Sask. to offer up to $70M for livestock producers hit hard by drought

The Saskatchewan government will distribute as much as $70 million to livestock producers hit hard by drought this year.

The money is meant to “help offset extraordinary costs of feeding livestock to maintain the breeding herd in Saskatchewan," a news release from the province said.

The program will be administered by Saskatchewan Crop Insurance Corporations (SCIC).

"Immediate measures are needed as farmers and ranchers deal with significant challenges due to drought," agriculture minister David Marit said in the release. "Our government is committed to ensuring livestock producers have the support they need, as they continue to provide the high-quality food Saskatchewan families rely on."

According to the province, it’s funding will provide eligible producers with up to $80 per head.

That includes beef cattle, bison, horse, elk, deer, sheep and goats.

When speaking to reporters on Monday, Marit said the move is needed for producers to maintain their herds.

"We saw quite a decline in 2021. We don't want to see a further decline, but I'm sure that we will see some decline," Marit said about the size of herds.

"That's why it was important for us to come to the table this early."

While producers have faced drought in many parts of Saskatchewan, the province says western Saskatchewan is of particular interest where precipitation levels remain well-below normal.

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Earlier this year the provincial and federal governments increased the 2023 AgriStability interim benefit payment percentage from 50 to 75 per cent.

The province said the AgriStability compensation rate also was increased from 70 to 80 per cent.

Marit said he's spoken with federal Agriculture Minister Lawrence MacAulay about Ottawa offering support, describing the conversation as "good."

On Monday, MacAulay announced the ministry is finalizing the AgriRecovery process to determine if any additional support is required.

According to the federal government, regions of Saskatchewan, Alberta, Manitoba and British Columbia have been eligible for the Livestock Tax Deferral program.

The program allows producers to defer a portion of their income to the next tax year if drought has forced them to sell a portion of their breeding herd.

"My heart goes out to farmers and ranchers who are affected by these extreme weather conditions," MacAulay said in a statement. "Early designation of the Livestock Tax Deferral provision provides assurance so they can make informed decisions to manage their herds."

In July Saskatchewan and Ottawa also announced an SCIC change that allows additional acres of cereal, pulse, canola and flax crops to be diverted into feed.

The province also froze the 2023 rate charged to producers who lease grazing land that belongs to the Crown.

Application forms for the new funding can be found in the coming days online or by calling 1-844-723-1211 toll free, the province said.

With files from The Canadian Press.