AFSC’s response to 2021 crop conditions
AFSC recognizes that the hot, dry conditions experienced across the province are affecting many Alberta producers. Our team is here to support our clients during this challenging time, and we are ready to work with clients to meet their individual needs.
AFSC continues to monitor the situation throughout the province as the 2021 crop year progresses. We anticipate a number of claims over the coming days and week as this situation continues to unfold. Our team of adjusters are familiar with the current conditions, and they are working to resolve claims as quickly as possible.
All claims are ranked and resolved by order of priority. Top priority claims include those claims where clients have indicated they need to allow cattle to feed on the crop immediately. AFSC adjusters are allocated throughout the province; however, adjusters will be moved as necessary to meet client claim levels
We strongly encourage clients to call their branch office or Relationship Manager Insurance (RMI) with any questions they have regarding their particular situation.
Hot, dry weather may move producers to put crops to other uses
Prolonged periods of heat with little moisture are taking a toll on crops in several areas of the province. If these severe growing conditions continue, some producers may put their crops to alternate uses rather than waiting for them to mature.
AFSC clients with Crop Insurance, Processing Vegetable, Hay or Export Timothy Hay insurance, can choose to put their insured crop to an alternate use including pasturing, ploughing down, spraying out, silaging, stacking or any other type of immeasurable state, such as large square bales.
Putting poor crops to good use
The governments of Canada and Alberta, through the Canadian Agricultural Partnership, are adjusting the crop insurance program.
Low Yield Allowance is a standard part of the production insurance program, and is meant for situations of extreme heat and severe drought. Alberta is doubling the low yield threshold to allow for additional cereal or pulse crops to be salvaged for livestock feed. For example, the barley crop threshold will be increased from 150 to 300 kg per acre.
Low Yield Allowance Q & A
In response to the extreme heat and dry conditions contributing to feed shortages this year, AFSC is doubling the Low Yield Allowance (LYA) threshold values for clients who salvage their cereal or pulse crops as feed. If the appraised yield falls below the established threshold level, AFSC can reduce the appraisal to zero based on information gathered by the adjuster during the inspection. The appraised yield of the crop is used in the calculation of any subsequent indemnities.
Inspection Strips are standing strips or swaths of insured crop left in from the edges of the field, a distance of about one-third (1/3) of the width of the field, for the length of the field and a minimum of 10 feet in width, for inspection by AFSC. The client is responsible for the maintenance of all inspection strips and swaths.
Yield Estimation Calculator for Annual Crops
A tool to help clients estimate yields prior to harvest. This estimate may help clients determine whether they want to combine the crop or sell it for feed, or estimate potential yield for production contracting. If you are planning to put an insured crop to alternate use, please contact AFSC to arrange for an inspection.
Satellite Yield Insurance Q&A
The Satellite Yield Insurance program is an area-based program that uses satellite measurements of light absorbed and reflected by pasture vegetation to estimate pasture growth. Losses are paid when the determined annual pasture growth in the township falls below the normal pasture growth in the area. Given the extreme heat and dry conditions clients who have purchased satellite insurance may have questions as to how the program works.
Moisture Deficiency Insurance and Moisture Deficiency Endorsement Q&As
The Moisture Deficiency Insurance program (pasture) and Moisture Deficiency Endorsement (hay) programs are area-based programs that compensate clients when the accumulated precipitation at selected weather station(s) in a given year falls below the normal expected precipitation for that weather station according to the payment schedule. Given this year’s extreme heat and dry conditions, clients who have purchased the insurance through these programs may have questions about how they work.
Eyes on the sky: severe weather and your insurance
Volatile storm activity coupled with extremely dry conditions in some areas means there is an increased risk of lightning strike or accidental fire affecting crops throughout Alberta. Depending your insurance coverage with Agriculture Financial Services Corporation (AFSC), you may have protection against losses related to lightning strikes and accidental fires.
Alberta Agriculture and Forestry’s Water Pump Program
The Water Pumping Program provides assistance to producers in securing adequate water supplies for domestic, livestock or agricultural purposes.
Farming the Web
An online marketplace for the forage and agriculture community operated with ethics and integrity. Powered by the Alberta Forage Industry Network.
Farming in dry conditions
Information and tools from Alberta Agriculture and Forestry to assist with on-farm business management and production issues during dry conditions and periods of business stress.
Mental health resources
The Do More Ag Foundation is a not-for-profit organization focusing on mental health in agriculture across Canada. Their website has information on a number of mental health resources, crisis lines and websites across Canada.
Discussions continue on a potential joint federal-provincial AgriRecovery response. AFSC is working with our provincial and federal counterparts to ensure all Alberta’s farmers and ranchers are supported.