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Drought Assistance Tools & Resources for Producers

 

If you are a Canadian Producer experiencing drought, we encourage you to review the list of funding resources below.

2021 Canada-Saskatchewan Drought Response Initiative

The 2021 Canada-Saskatchewan Drought Response Initiative provides financial relief to help offset the extraordinary costs livestock producers face related to the current drought, with a per head payment on female breeding animals.

Registration
On September 1, 2021, producers can apply for the 2021 Canada-Saskatchewan Drought Response Initiative’s first payment.

Eligible Producers
Must claim farm income and expenses in the province of Saskatchewan and be over the age of 18.

No minimum farm sales are required to apply for the 2021 Canada-Saskatchewan Drought Response Initiative.

Eligible Livestock
Canadian-owned female beef and dairy cattle, bison, elk, sheep or goats bred or intended to be bred.

The number of open replacement females considered eligible livestock is 15 per cent of the number of bred females.

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$100 million in AgriRecovery funding

Government of Canada announces $100 million in AgriRecovery funding to further support farmers facing continued extreme weather.

This funding is designed to match all provincial AgriRecovery submissions on the 60-40 cost-shared basis outlined under the Canadian Agricultural Partnership. By making funding available now, producers can be assured that they will receive assistance as soon as full assessments are completed.

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AgriStability Industry Advisory

With persistent dry conditions across Saskatchewan, many producers are facing challenging situations. This industry advisory will provide additional information on how the AgriStability Program can provide support for production losses and increased expenses resulting from dry conditions.

Interim Benefit
The federal and provincial governments have agreed to increase the 2021 AgriStability interim benefit payment percentage from 50 per cent to 75 per cent for Saskatchewan producers. The quickest way for producers to access funding through the AgriStability Program is the interim benefit. The interim benefit provides the opportunity for producers who are enrolled in AgriStability to access a portion of their benefit early. The interim benefit is based on the estimated margin decline or loss for the year compared to the farming operation’s reference margin. The decline must be at least 30 per cent below the reference margin to access a payment.

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AgriRecovery Funding to Help Saskatchewan Livestock Producers

The program will provide a per head payment to help maintain breeding stock. This financial relief will help producers with extraordinary costs caused by drought, such as accessing feed and water.
AgriRecovery is part of the Canadian Agricultural Partnership agreement, with funding shared on a 60-40 federal-provincial basis. The federal government is requested to provide an additional $178 million for a total program of $297 million.

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Dugout, Pipeline and Well Rebate

Conditions for the 2021 growing season have been challenging, with a lack of precipitation and higher than average temperatures. To support Saskatchewan producers, temporary adjustments have been made to the Farm and Ranch Water Infrastructure Program (FRWIP). The program is included as part of the suite of Canadian Agricultural Partnership programs and provides rebates to develop agricultural water sources.

The program normally offers a maximum rebate of 50 per cent of eligible costs up to $50,000 for water infrastructure. Temporary changes announced on July 14, 2021 increased the maximum funding a livestock producer can receive to $150,000 between April 1, 2021 and March 31, 2022. The first $50,000 will be based on a 50-50 cost-share and the remaining $100,000 will be on a 70-30 government–producer cost-share.

The Farm and Ranch Water Infrastructure Program (FRWIP) provides producers with a rebate for dugout, pipeline and well projects that meet program criteria. All applicants must demonstrate an agricultural use for the water.

Agricultural use is defined as crop spraying, livestock watering (that results in taxable income from livestock sales) or greenhouse production.

Applicants are encouraged to assess their project against the Rebate Eligibility Checklist, which includes the most common compliance requirements that may apply to your project.

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Livestock Tax Deferral Provision

The Livestock Tax Deferral provision allows farmers who sell part of their breeding herd due to drought or flooding in prescribed drought or flood regions to defer a portion of sale proceeds to the following year. When prescribed regions are identified, the list is announced publicly and posted to this web page.

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Questions?

Contact your trusted Stark & Marsh Advisor or an office close to you.

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