Alberta’s farmers will look to the re-elected United Conservative Party government for continued investment in research and affordability measures as they grapple with severe weather and inflation.
The UCP spoke little of farmers’ needs during the election campaign in May. A survey of nearly 300 farmers by the Simpson Centre ahead of the vote showed a strong preference for the UCP.
“I think that’s why we didn’t see much come out from the UCP during their election campaign on agriculture,” said Shawn Wiskar, a policy analyst at the University of Calgary’s Simpson Centre. “They were asking people to look back at their budgets and see the investments they made there.”
In November 2022, then Agriculture and Irrigation Minister Nate Horner announced an increase of the Feeder Association Loan Guarantee Program from $100 million to $150 million. The program finances about 17 to 24 per cent of the calf crop annually, providing capital to Alberta farmers through low-interest financing backed by a government guarantee.
The province also announced in February it would introduce a 12 per cent non-refundable tax credit for companies investing $10 million or more in Alberta agri-processing facilities, such as meat or potato processing plants or hemp manufacturing facilities.
Alberta farmers affected by extreme weather, rising costs
Government investment has been crucial as the province experiences a lack of moisture due to unseasonably hot temperatures this spring. Alberta faces wildfires and poor crop conditions.
The year has been more challenging than average for farmers, said Reg Warkentin, government relations and policy manager with Team Alberta Crops, a working collaboration between Alberta’s eight crop commissions.
The Alberta Crop Report, released June 13, shows a mere 41 per cent of major crops are rated good to excellent for this time of the year — a significant decline from the 10-year average of 74 per cent. Forty per cent of the province’s surface soil was rated poor for moisture, compared to an eight per cent 10-year average.
Now that the UCP has a renewed mandate, Warkentin said he hopes the government has the sector’s needs front of mind for continued investment in research, affordability and irrigation modernization.
Farmers reported higher operation costs and one of the most expensive crop plantings last year, Warkentin said. The rising costs of fertilizer, cattle feed and fuel are driving up input costs, and in turn, affecting food costs at the grocery store, Wiskar said.
“The agriculture industry is facing immense pressure to not only deliver a product that’s affordable to all Albertans — and even the rest of the world because we’re a major exporter — but also make sure they can afford to run their operations,” said Wiskar.
“I think we’ll see a lot of consideration and policy work from the government around addressing some of these rising costs.”
Farmers’ productivity hinges on research and innovation
Shannon Sereda, director of government relations, policy and markets with the Alberta Wheat Commission, said she is confident the province will continue to focus on competitiveness, market access and trade.
Non-partisan agriculture advocates will work with the provincial government on issues that may have federal jurisdiction such as rail, as Alberta is heavily reliant on the rail system, she explained. “We want to see any impediments to trade mitigated or reduced so that farmers can retain that access to market and continue to grow,” she said.
In 2020, the UCP established the Results Driven Agriculture Research organization, a non-profit corporation meant to invest in producer-led projects. Advocates will also push for sustained funding for it and other research initiatives, Sereda said.
“Most of what farmers do is pinned on their ability to gain efficiencies and to be productive, which is hinged largely on research and innovation,” said Sereda.
“The more farmers are able to use fewer resources to produce more, it’s a winning proposition for farmers. They can minimize their input costs and hopefully market their grains for the best price.”
The more support is given to the agricultural sector through value-added processing, investments and innovative research, the more Alberta can continue being a global supplier and contributor to global food security, she explained.
“We’ve seen more than ever how important food security is to not only Canada but around the world,” she said.
