Farmers in parts of Alberta dealing with persistent dry conditions will now have more options to manage poor-yielding crops, following changes to the province’s low yield allowance policy.
Through the Sustainable Canadian Agricultural Partnership, the federal and Alberta governments have approved an adjustment to the program, delivered by the Agriculture Financial Services Corporation (AFSC). The change is intended to help producers offset high feed costs by allowing low-yield crops to be repurposed for livestock feed rather than harvested for grain.
The low yield allowance is a standard element of crop production insurance, designed for situations where weather or environmental stress severely reduces harvest value. For the 2025 season, if AFSC’s appraisal shows yields falling below the updated threshold, the appraised amount can be reduced to zero. This decision will follow an on-site field inspection by an AFSC adjuster, and the resulting appraisal will still be used in calculating any future indemnity payments.
Producers are required to contact AFSC at least five days before harvest to discuss their circumstances and arrange a timely inspection.
The adjustment is part of AgriInsurance, a cost-shared initiative between producers and federal and provincial governments. The program provides financial protection against production and quality losses caused by natural perils.
AFSC, a provincial Crown corporation, has been providing risk management tools, loans, and crop insurance to Alberta’s agriculture sector for more than eight decades. The policy change comes as several municipalities and counties across Alberta have declared agricultural disasters due to ongoing heat and drought stress.
