by At Jolene Noble’s family cattle ranch near Manning, Alta., in the northwest Peace River region, there isn’t much snow on the ground — something she said she’s never seen before. Ranchland No. 66, Albert
It comes after a hot summer that saw no significant rain until the end of July. Any moisture that added to the soil is now long gone.
Without more snow, Noble said there won’t be enough surface water runoff to refill the dugouts on their pasture.
“Everyone is nervous,” she said.
“For spring and summer, the water for the cows, right now, it is not there.”
Nobel is among the many Alberta farmers and ranchers who will be preparing for another tough year of dry conditions, as the cost of the 2023 drought.
Drought can leave cattle farmers scrambling for a way to feed their animals. They may have to choose between the cost of buying and transporting large amounts of feed, or selling cattle to reduce the size of their herd – which also affects their bottom line.
Near Nanton, Alta., in southern Alberta, Bob Lowe said there is finally snow cover where he runs a cow-calf operation — but not enough. There is also little snowpack on the mountains.
“The old saying is ‘Plan for a drought and hope for the best,’ right? But if you do that every year for a few years in real life, pretty soon you’re no longer a herd, ” said Lowe.
Better $300M in pasture insurance payments
Moisture deficiency insurance (MDI) – coverage for livestock producers in case their soil is too dry to grow feed or allow their herd to graze – reached a record $326.5 million in total payments in the 2023 growing season .
Last season’s payout more than tripled those made after the 2021 provincial drought, according to the Agricultural Financial Services Corporation (AFSC), which administers government cost-sharing loans and crop insurance to Alberta farmers.
Some insurance payouts last year were higher than 2021, when there was a province-wide drought. (Terri Trembath/CBC)
MDI, also sometimes called pasture insurance, is a fraction of total crop insurance coverage. The sum of all crop insurance claims for 2023 has not yet been finalized, but in 2022 there were $1.25 billion in payouts. In 2021, disbursements reached $2.75 billion.
AFSC’s manager of insurance products and innovation, Jesse Cole, said there are several reasons for the larger MDI numbers in 2023, including some recent adjustments to how the program works and an increase in the number of people taking the cover after the last major drought.
The deadline to obtain MDI for the upcoming growing season is February 29th. Cole said another increase in enrollment is likely.
“People might be able to handle one of those years. Maybe two of them didn’t have a choice,” he said.
Lowe and Noble had a demand for their MDI cover in 2023. Lowe said the program is not perfect, but it is an increasingly necessary support.
Because of last year’s conditions he had to buy feed for his cattle and pay to haul it with a truck, he said.
Less established producers “wouldn’t stand a chance” at thinner margins “if they’re put in that situation without insurance, Lowe said.
“He would have killed you,” he said.
Drought conditions continue across Alberta
Southern Alberta and the east-central parkland area, where there was a lot of drought, received 90 percent of the MDI payments.
Drought monitoring from Agriculture and Agri-Food Canada shows that this is still the case.
The most severe drought conditions are seen in southern Alberta and parts of the northwest. (Terry Reith/CBC)
The latest data, from late January, indicate drought conditions in most of southern Alberta are “severe” or worse; parts of the southeast are experiencing “exceptional” drought – the worst classification.
Northwest Alberta is also seeing problems, with increased areas of “severe” and “extreme” drought, data shows.
Agro-climate specialist Trevor Hadwen said 85 per cent of Alberta’s agricultural land is in drought – with more than half rated as severe drought.
“Usually we don’t see drought [that] level continuing through the winter as strong as they are this year,” Hadwen said.
The driest months of the year are coming to an end now, he said, so there is a better chance of more precipitation coming up. But there is no quick fix in regions where the drought is worse and lasts longer.
“We need above-normal precipitation to make up some of those long-term deficits,” Hadwen said.
“We go into drought slowly. We come out of drought slowly as well, usually.”
Alberta Beef Producers chairman Brodie Haugan is very concerned about the year ahead, given that long recovery time.
The higher MDI payments show the program is working for producers who need it, Haugan said, but producers are still pushing for changes to better cover the risk across the entire province.
While he and others are waiting for the spring rains, the compounding effects of the dry years are cause for concern.
“Even if we have an average year, it’s going to be a tough year for the industry,” he said.
