Alberta is one of Canada’s leading agricultural provinces. We at Lane’s are proud of our farmers, which number more than 55,000 strong, and Alberta is known for our prolific production of crops such as wheat, canola, barley, oilseeds, cattle, and dairy products.
In 2020, Alberta’s agricultural sector contributed approximately $11.6 billion to the province’s Gross Domestic Product. This figure includes both crop and livestock production, as well as other agricultural activities. But it has been a hard year for our farmers, as parts of the province (mainly the south and east) have experienced extreme drought. Although the rest of the country is also experiencing drought, the first D3 Extreme Drought designation in 2023 in Canada was reported by Alberta. By the end of June, because of ongoing and extreme dry conditions, Paintearth, Stettler, Vulcan, and Foothills declared states of Municipal Agricultural Disaster. Alberta’s most recent crop report of Aug. 29 shows surface soil moisture ratings of more than 65% of agricultural properties in southern Alberta are at “Poor” levels, and about 45% of agricultural properties in central Alberta rank at “Fair” levels for moisture.
The share of crop quality rated “good to excellent” held steady from the previous report at around 43%, below the 5-year average of 57%.
Add that to a summer of horrible wildfires that have caused the evacuation of tens of thousands of people and many farmers are looking at a year of low yields. Recent news that crop prices are down this year only contribute to the concerns of farmers.
How crop prices compare
According to Statistics Canada’s preliminary model-based estimates for crops, which were released at the end of August, wheat and barley production in Alberta is expected to drop by 16% and 15%, respectively, as compared to production in 2022. Canola production is estimated to be 1.2% lower than last year, while oats and lentils are projected to be down by more than 33%. These numbers are still well above the lows of 2021, however, which means it’s not all bad news. Final estimates will be available in early December.
Alberta Farmer Express reported at the end of August that across much of the Prairies, prices for feed barley and feed wheat had fallen off over the past month. The high-delivered bid for Alberta feed barley was $8.06 per bushel, $1.42 less than in July. The high-delivered bid for feed wheat in Alberta was $10.75 per bushel, 95 cents lower than July. Jim Beusekom, president of Marketplace Commodities in Lethbridge, said, “There’s available supply from producers and although the crop is smaller due to drought pressure, there still is supply available right now.”
The expected combination of lower prices and lower yields will create financial challenges for many farmers in the province.
The difference between farm insurance and crop insurance
Although farm insurance is very similar to home insurance, a farmer’s property is a lot more than a simple house. As one of Alberta’s valued growers and ranchers, your home is also your business, and there are a lot of details that need to be covered.
Lane’s Insurance brokers of Calgary have specialists in farm insurance on hand, and through our providers we can offer a number of different products and options to protect you and your livelihood.
Crop insurance is a lot different than farm insurance, in that it helps protect farmers against yield and revenue losses caused by adverse weather conditions, pests, and other factors. The premiums for crop insurance are typically subsidized by both the provincial and federal governments, which is important in making this coverage accessible. For more information about crop insurance or to make an insurance claim, visit the Agriculture Financial Services Corporation (AFSC) website.
During periods of low crop prices, the government’s support becomes even more crucial. Government subsidies and assistance programs help farmers manage their financial burdens. Resources available from the Alberta government include tips for farming in dry conditions, agricultural moisture assistance updates, and the Alberta Climate Information Service. Farmers can also contact 310-FARM for information and assistance.
Questions about your Alberta farm insurance?
The knowledgeable and understanding professionals at Lane’s Insurance are here to help you answer any questions you may have about your farm insurance, and any other concerns you may have about your coverage. For personalized assistance, please contact a Lane’s Insurance customer service representative.
