In the Northwest Peace River region, on Jolene Noble’s family cattle ranch near Manning, Alta., there is barely any snow on the ground; It’s something he says he’s never seen before. Ranchland No. 66, Albert
It came after a hot summer that saw no significant rain until the end of July. The moisture added to the soil is now long gone.
Without more snow, Noble said, there won’t be enough surface water runoff to fill pasture shelters.
“Everyone is nervous,” he said.
“Water is not currently available for cows in the spring and summer.”
Nobel is among many farmers and ranchers in Alberta preparing for a challenging year of dry conditions as the cost of drought in 2023 increases.
Drought can leave cattle ranchers scrambling to find a way to feed their animals. They may face a choice between incurring the expense of purchasing and transporting large quantities of feed or selling the cattle to reduce herd size; This also affects their profitability.
Near Nanton, Alta., in southern Alberta, Bob Lowe said there’s finally some snow cover where he runs his cow-calf operation — but it’s not enough. There is also very little snow drift in the mountains.
“The old saying is ‘Plan for drought and hope for the best,’ right? But if you do that every year for a few years in the real world, pretty soon you won’t have any herds anymore,” Lowe said.
Rangeland insurance payments are over $300 million
Moisture deficiency insurance (MDI), which covers livestock producers if their land is too dry to grow fodder or graze their herds, reached a record high of $326.5 million in total payments during the 2023 growing season.
Last season’s payments more than tripled those made after the 2021 provincewide drought, according to the Agricultural Financial Services Corporation (AFSC), which administers government cost-shared loans and crop insurance for Alberta farmers.
Some insurance payouts last year exceeded those in 2021, when there was a statewide drought. (Terri Trembath/CBC)
MDI, sometimes called pasture insurance, forms part of general crop insurance coverage. The total of all crop insurance claims for 2023 has not yet been finalized, but 2022 has seen payments of $1.25 billion. In 2021, payments reached $2.75 billion.
Jesse Cole, AFSC’s director of insurance products and innovation, said there are several reasons why MDI numbers in 2023 could be higher; These include some recent adjustments to the operation of the program and an increase in the number of people covered after the last major drought.
The deadline to obtain MDI for the upcoming growing season is February 29. Cole said there is likely to be another increase in registrations.
“It may be possible for people to manage one of these years. Both may not be an option,” he said.
Lowe and Noble had bets on MDI coverage in 2023. Lowe said the program isn’t perfect, but it is an increasingly necessary support.
He said he had to buy feed for his cattle and pay for trucking because of conditions last year.
Less established producers with smaller profit margins “won’t have a chance” if they find themselves in this situation without insurance, Lowe said.
“That would kill you,” he said.
Drought conditions continue in Alberta
Southern Alberta and the east-central Parkland region, where drought conditions were particularly difficult, received 90 per cent of MDI payments.
Agriculture and Agri-Food Canada’s drought monitoring shows this remains the case.
Southern Alberta and parts of the northwest are experiencing the harshest drought conditions. (Terry Reith/CBC)
Latest data for late January shows drought conditions across much of Southern Alberta are “severe” or worse; Part of the southeast facing “exceptional” drought; worst classification.
Northwestern Alberta is also experiencing problems with the expansion of areas of “severe” and “extreme” drought, the data shows.
Agro-climatologist Trevor Hadwen said 85 per cent of Alberta’s farmland is in drought, with more than half rated as severe to extreme drought.
“We generally do not see drought” [that] the level remains as strong throughout the winter as this year,” Hadwen said.
He said the driest months of the year are now over, so there is a greater chance of more rainfall. However, there is no quick solution in regions where drought is worse and lasts longer.
“We need above-normal rainfall to make up for some of these long-term deficits,” Hadwen said.
“We enter drought slowly. Typically, we exit drought slowly.”
Brodie Haugan, president of the Alberta Beef Producers, is extremely concerned about the year ahead, considering this long recovery period.
Haugan said the higher MDI payments show the program is working for producers who need it, but producers are still pushing for changes to better cover risk across the state.
While he and others await spring rain, the combined effects of several dry years are worrying.
“Even if we have an average year, it will be a difficult year for the industry,” he said.