From a tough crop year to livestock feed gains in Alberta
News release
August 8, 2025 – Edmonton Alberta – Agriculture and Agri-Food Canada
The governments of Canada and Alberta, through the Sustainable Canadian Agricultural Partnership, increased the low yield allowance so farmers can use poor crops for feed.
The 2025 crop year continues to be challenging in some regions of Alberta. Agriculture Financial Services Corporation (AFSC) has adjusted the low yield allowance, enabling farmers to salvage crops for livestock feed in an effort to reduce producers’ feed-related costs.
The low yield allowance is a standard part of production insurance and is meant for situations where there may not be value in harvesting for grain (for example, low yield due to extreme heat and severe drought).
Producers should contact AFSC at least 5 days in advance of harvesting to share details about their situation and find out how best to proceed. AFSC will work with clients to complete a field inspection as soon as possible.
This change means that 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 will be used in the calculation of any subsequent indemnities.
AgriInsurance is a federal-provincial-producer cost-shared program that helps producers manage production and quality losses. Support for the program is provided by the governments of Canada and Alberta under the Sustainable Canadian Agricultural Partnership (Sustainable CAP).
Quotes
“I’ve spoken with livestock and crop producers in Alberta who are worried about the impact that dry conditions could have this year. Changing the yield threshold will give them some breathing room, so they can make the best decisions for their operations.”
- The Honourable Heath MacDonald, Federal Minister of Agriculture and Agri-Food
“The impact of ongoing dry conditions in some regions of the province is concerning for Alberta’s agricultural community. This adjustment lets producers act swiftly to salvage crops for livestock feed, rather than watch their fields deteriorate further and risk harvesting nothing.”
- RJ Sigurdson, Minister of Alberta Agriculture and Irrigation
“We recognize that this year’s conditions have had a significant impact on some producers – and changes to the low yield allowance can help them through times like this.”
- Darryl Kay, CEO, Agriculture Financial Services Corporation
Quick facts
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For more than 80 years, AFSC, a provincial Crown corporation, has provided loans, crop insurance and farm income disaster assistance programs to farmers, agribusinesses and other small businesses.
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AFSC provides leading, innovative, client-focused financial and risk-management solutions to grow agriculture in Alberta.
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Several rural municipalities and counties in Alberta have declared agricultural disasters due to dry conditions and the Government of Alberta continues to monitor the situation.
Associated links
Contacts
For media:
Annie Cullinan
Director of Communications
Office of the Minister of Agriculture and Agri-Food
annie.cullinan@agr.gc.ca
Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972
aafc.mediarelations-relationsmedias.aac@canada.ca
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Web: Agriculture and Agri-Food Canada
Darby Crouch
587-335-6934
darby.crouch@gov.ab.ca
Press Secretary, Alberta Agriculture and Irrigation