REGINA - The province of Saskatchewan has announced support for livestock producers impacted by a serious drought situation this year.
At the legislature Monday, Agriculture Minister David Marit confirmed to reporters that the province would make available upwards of $70 million to producers, which is described as helping offset the costs of feeding livestock and to maintain the breeding herd in Saskatchewan.
This relief is being made available in response to ongoing drought conditions in western Saskatchewan. That portion of the province has seen below normal precipitation, and while Marit said there was some hay in areas, it wasn’t nearly enough.
Marit said he had travelled to the southwest a couple of weeks ago and met with about 30 ranchers, and "heard pretty clearly the issue is around feed, not only trying to find it but the transportation cost to get it.”
“A lot of ranchers were considering just how they were going to try and mitigate the risk through the winter, whether they were going to try and find feed or they were going to try and sell off some of the herd. That’s what I heard.”
Marit called it “concerning” and said that was the reason the province was coming to the table with $80 a head for the livestock sector: to help those ranchers make those decisions.
“We really felt the timing was important. From what I heard from the ranchers is they were starting to make those decisions on whether they were going to downsize the herds or what they were going to do. So it was very important for us to get this announcement out as soon as possible.”
Marit also mentioned it was important for them to come to the table this early because they wanted to maintain the breeding stock, and wanted to prevent any further decline similar to what they saw in 2021 when there was also a drought.
This payout is coming through AgriRecovery and is to be administered by Saskatchewan Crop Insurance Corporation.
Marit said the province’s request for assessment had been accepted by the Feds, and now they are waiting for the Feds regarding their contribution with AgriRecovery. Marit said the discussion he had in Saskatoon recently with Minister Lawrence MacAulay was “really good.”
“We’re hoping to hear from the minister soon as to just where they’re at, and if and when they announce that they’re here we’ll be there with them.”
Here is what the package announced on Monday means for producers:
Eligible producers will be provided up to $80 per head to maintain breeding stock, and pretty much all livestock is covered including beef cattle, bison, horse, elk, deer, sheep and goats. The $80 is the province’s share and in line with what was used in 2021.
According to the province, this program will be receipt based. Their news release states provincial funding will be available based on receipts or appropriate documentation for “extraordinary expenses” for the purchase of feed or transportation of feed or livestock, to provide cash flow to eligible producers impacted by significant drought.
Marit explained extraordinary expenses refers to “when you’re going to source feed or when you’re moving your cattle to another source as well, so that also is covered. There’s always been some cases where if the ranchers are out of feed, it’s cheaper for them to move the cattle than it is to bring the feed, so that’s why we allow it both ways and that’s what we call extraordinary expenses.”
The province has also pointed to other supports made available to help mitigate the situation facing producers. These include an increase by the province and Feds of the 2023 AgriStability interim benefit payment percentage from 50 per cent to 75 per cent; an increased AgriStability compensation rate from 70 to 80 per cent; the doubling of the low yield appraisal threshold; and freezing the 2023 rate charged to livestock producers leasing Crown grazing land. Lessees may also be eligible for a rent reduction under the 2023 Crown Grazing Lease Rental Reduction.
Additional information, including application forms, should be available either now or in the next few days at www.scic.ca or calling toll-free at 1-844-723-1211. Producers can fill out their applications to March 1, 2024.
Payments and processing will take time, but Marit indicated to reporters the province wants to get the assistance out as quickly as possible.
In a news release Monday, the province pointed to some positive reaction to the announcement:
"We appreciate the province stepping up and providing their portion of the AgriRecovery payment," said Keith Day, Board Chair of the Saskatchewan Cattlemen's Association, in a statement.
"We look forward to a similar announcement from the federal government to provide their funding to ensure our producers get the help they need through these challenging times."
"This support is promising, and the Saskatchewan Association of Rural Municipalities (SARM) is thankful for how quickly the province stepped up to assist those livestock producers most in need, it will certainly help," said Ray Orb, president of SARM, in a statement.
"We are confident that the federal government is working together with the province to assess how they can provide additional support through AgriRecovery and look forward to seeing what that much-needed assistance will be."
The Official Opposition NDP had previously called on the province to come through with relief and their critic Trent Wotherspoon issued a statement welcoming Monday's announcement.
"We have been standing alongside producer groups calling on the provincial government to step up and offer this support to those facing a dire situation, so this is welcome news. We call on the federal government to commit as well and together with the province to get needed dollars out the door now to help livestock producers facing extraordinary drought challenges. We will keep listening to and advocating for producers to ensure that supports meet the challenge and are delivered in a timely way."
