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 (e.g. low yield due to extreme heat and severe drought).

 

 “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“

 

 

“I’ve spoken with livestock and crop producers in Alberta who are worried about the impact that dry conditions could have this year,” stated Heath MacDonald, federal Minister of Agriculture and Agri-Food Canada. “Changing the yield threshold will give them some breathing room, so they can make the best decisions for their operations.”

Producers should contact AFSC at least five 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.

“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,” added Darryl Kay, CEO, Agriculture Financial Services Corporation.

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)

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.