Farmers across southern Saskatchewan and Alberta are facing mounting pressure from worsening drought conditions and ongoing trade tensions. In response, both the provincial and federal governments have announced expanded support through Canada’s AgriStability program, aiming to provide more substantial financial relief for producers affected by falling margins.
What’s Changing with AgriStability?
The AgriStability program is a federal-provincial initiative designed to help farmers manage significant income declines. With this recent update, key changes include:
| Change | Previous | New Update (2025) |
|---|---|---|
| Compensation rate for eligible margin loss | 80% | 90% |
| Maximum payment cap per operation | $3 million | $6 million |
| Feed inventory valuation for livestock farms | Old valuation rules | New method recognizing on-farm feed use |
These updates mean higher payouts for eligible producers who experience margin losses due to either natural or economic events.
Why the Urgent Action?
1. Severe Drought
Southern Saskatchewan and parts of Alberta are grappling with dry conditions that have sharply reduced crop yields. Livestock producers are also struggling to feed their animals due to dried-up pastures and expensive imported feed.
2. Trade Turbulence
Canadian farmers continue to navigate global trade uncertainty. Tariff tensions with countries like China and the U.S. have impacted export demand and commodity prices, squeezing producer margins further.
Government Response
Federal Agriculture Minister Heath MacDonald emphasized that these measures are meant to “give farmers more protection and predictability in challenging times.”
Saskatchewan’s provincial officials echoed this sentiment, calling the support necessary to help the province’s producers stabilize their operations and plan for the long term.
What It Means for Farmers
For farm operations that rely on AgriStability, the increase to a 90% compensation rate offers more robust protection against income volatility. Doubling the cap to $6 million is particularly helpful for large-scale producers, who can now access significantly more aid in times of distress.
The new feed valuation rules benefit livestock farmers by more accurately reflecting the cost of using homegrown feed, a common practice that previously wasn’t fully accounted for in program payments.
Additional Support Still Needed?
While this announcement is welcome news, producers and agriculture groups may still call for further support—especially if the drought worsens or global markets remain unstable. Other safety net programs such as AgriInvest or AgriRecovery could be adjusted in the coming months depending on climate and economic developments.
FAQs
Who is eligible for the updated AgriStability support?
Any farmer currently enrolled in the program, especially those facing margin declines due to drought or trade issues.
When do the new rules take effect?
The new payment cap and compensation rate are effective immediately for the 2025 growing season.
Will other provinces adopt similar changes?
These changes currently apply to Saskatchewan; similar adjustments may follow in other provinces depending on local conditions.
