How SCIC Programs Can Lend Support to your Livestock Operation

Saskatchewan producers are all too familiar with severe weather impacting their farming operations; the 2023 growing season was no exception. Many producers faced challenges caused by extreme dry conditions in some areas across the province, particularly in south and southwestern Saskatchewan. Precipitation remained well below normal, contributing to a substantial moisture deficit and placing additional pressure on the livestock industry as producers struggled to secure adequate feed supply to maintain their breeding herds.

2023 Canada-Saskatchewan Feed Program

Acknowledging these circumstances, government committed additional financial support to impacted livestock producers through Saskatchewan’s AgriRecovery Program, referred to as the 2023 Canada-Saskatchewan Feed Program. The Government of Saskatchewan committed $70 million, and the federal government committed $77 million to help offset extraordinary costs associated with drought to maintain the breeding herd in Saskatchewan. The goal of this additional support is to prevent herd dispersals which would have lasting impact on the Saskatchewan livestock industry. The program is administered by the Saskatchewan Crop Insurance Corporation (SCIC).

The 2023 Canada-Saskatchewan Feed Program covers up to 70 per cent of extraordinary costs related to feed and freight, incurred after May 1, 2023, through to the application deadline of March 1, 2024. Producers need to submit copies of all receipts, incurred since May 1, 2023, that are extraordinary expenses related to feed and freight. If producers incur additional expenses after their initial application, but before the deadline, they need to contact the Feed Program’s team. The dedicated team can be reached toll free at 1-844-723-1211 or by email at skfp@scic.ca. Producers are encouraged to submit all eligible expenses.

The program’s funding provides eligible producers with an initial payment up to $150 per head (adjusted by species) to help maintain the breeding herd. Eligibility is area-specific driven by the federal government as a condition of the Program. A map, guided by the Canadian Drought Monitor, outlining eligible areas is available on SCIC's website.  

Saskatchewan recognizes the drought impact throughout the province and is committed to assisting all producers experiencing extraordinary expenses. Through the Feed Program application, producers can also apply for provincial-only funding that is not limited by area-specific eligibility. Provincial-only funded payments (initially up to $60 per head) are available to all producers who experienced extraordinary expenses.

AgriStability works for livestock producers

SCIC also administers the AgriStability Program, which helps farm operations facing large margin declines caused by production loss, increased costs or market conditions. AgriStability is a cost-effective program for all types of farming operations. The average cost for Saskatchewan producers to participate in AgriStability is $0.70 per acre or $1.21 per head.

Effective for the 2023 program year, the AgriStability compensation rate increased from 70 to 80 per cent. This means when an AgriStability payment is triggered, the payment is 80 cents for every dollar below the trigger point. Due to this increase, producers with an eligible margin decline will receive larger AgriStability benefits.

To determine payment eligibility, AgriStability considers your allowable income and allowable expenses. Most notably for livestock producers:

• Private insurance indemnities, including Livestock Price Insurance, are not allowable income.
• Purchased feed is an allowable expense.
• Accessing additional pasture through a custom grazing agreement is an allowable expense.
• Additional expenses incurred for purchasing and transporting water to livestock is allowable.

It’s easy to apply! To participate in AgriStability for the 2024 year, contact your local SCIC office or call 1‑866‑270‑8450 before April 30, 2024.

Livestock Price Insurance

Livestock Price Insurance (LPI) can offer another risk management tool to livestock producers. LPI is a unique risk management program designed for Western Canadian producers. The program protects producers from three risk components contributing to cattle prices: commodity futures price from the Chicago Mercantile Exchange, currency risk and basis risk. By purchasing a calf, fed or feeder policy, producers have the benefit of protection over a defined period of time. If the market declines and the price falls below their selected coverage, the producer can expect a settlement. If the market increases, LPI does not limit producers to the floor price.

Feeder and Fed policies are available to purchase year-round and calf policies are available from February to June. Mark your calendars as the first day to purchase a calf policy is February 1, 2024. Policies can be purchased every Tuesday, Wednesday and Thursday. Producers are encouraged to monitor LPI premium tables weekly. For more information, please visit LPI's website.

Crop Insurance

Like the multi-peril yield-loss program for grain crops, the Crop Insurance Program offers production-based coverage on forage acres for feed, seed or sale. Insurable forage crops include tame hay, dehydrated alfalfa, sweetclover and greenfeed crops. Forage production guarantees are based on a producer’s individual growing history rather than the area average. Producers can select coverage levels of 50, 60, 70 or 80 per cent of their average yield, and choose enhanced options such as forage establishment, restoration and diversification coverage.

Weather-based coverage is also available for forage acres utilizing weather data from weather stations across the province. Most forage acres are located within 30 km of a weather station allowing producers to select the weather station that most closely reflects weather patterns their operation experiences. The Forage Rainfall Insurance Program covers native and tame acres for hay or grazing, protecting pasture and hayland in the event seasonal precipitation is below the long-term average. Low, Medium and High coverage levels are available to best suit the needs of each farming operation and help producers manage premium costs. Over 90 per cent of acres insured through the Forage Rainfall Insurance Program received a payout in 2023; a total of $60 million in claims paid.

Weather-based coverage is also offered for corn acres through the Corn Heat Unit Insurance Program (insures against lack of corn heat units over the growing season) and Corn Rainfall Insurance Program (insures again lack of moisture on corn acres). With the option to insure corn acres on one or both of these programs, producers can maximize their insurance on corn acres grown for grain, grazing or silage.

For more information on programs offered and administered by SCIC, visit the SCIC website. For more information on the 2023 Canada-Saskatchewan Feed Program, SCIC has a dedicated toll-free number 1‑844‑723‑1211 or direct email.