On July 26th, the Agricultural Producers Association of Saskatchewan (APAS) issued a statement calling on all agricultural businesses for immediate support.
“Right now, producers are facing serious challenges and difficult business decisions. We need financial institutions, cash advance administrators, suppliers, and buyers to recognize these conditions and assist producers,” said APAS President Todd Lewis.
APAS indicated that Farm Credit Canada (FCC)’s recent plan to help customers in financial stress is an excellent example of what is necessary across the industry.
FCC is working with customers to support their operations. They encourage customers to reach out to their local office, discuss additional short-term credit options, deferral of principal payments, and/or other loan payment schedule amendments to reduce financial pressures for those impacted by the current weather pattern. APAS hopes that other financial institutions will follow suit.
“One of the biggest concerns we are having from our members is that we are hoping we are not going to see a credit crunch from major banks. We hope that other financial institutions consider what is occurring. We have not seen conditions like this in decades,” stated Lewis.
Producers are currently facing dire conditions across the prairies, with no break from drought in sight. The last significant rainfall occurred in early June. APAS says that, even if it were to rain in the coming weeks, it is far too late for most producers.
This year has revealed the ultimate challenge for producers who held prior contracts to deliver their grain to various grain companies. With tremendously low yields in sight, many grain contracts will not be fulfilled as expected.
Producers have expressed their concerns about the lack of consistency among grain companies when buying out grain contracts. APAS is calling on grain companies to consider implementing a more familiar and consistent contract structure going forward.
Saskatchewan's livestock sector is also suffering, with a lack of access to quality forage and water for cattle in the province. Several cattle producers are currently having to make the toughest of decisions, sell off some of their animals at low prices, or keep feeding them for more than they are worth.
Many farmers and ranchers have expressed that this year's conditions will seriously impact the cattle industry's future. Producers have carefully built up their herds with the best genetics and breeding stock in mind for several years, and to have to sell off animals due to lack of feed and water is simply devastating.
APAS, a nonpartisan organization founded by farmers, aims to tackle critical agricultural issues and offer council to provincial and national decision-makers on Agriculture in Saskatchewan.
President Todd Lewis offered his input to fellow producers in this stressful period: “Make sure you reach out, keep the communication open. Please speak to your creditors as early as possible and let them know what you are facing. It’s best to avoid any surprises.”
Lewis acknowledged that another vital consideration for producers right now is mental health. “Make sure you are reaching out to friends and family and the Farm Stress Line as well. There are lots of people willing to talk and help you through the situation we are in now.”
