Why climate change on the farm means a high cost for Canadian taxpayers
To get an idea of the financial toll extreme weather is taking on this country’s agriculture industry, look no further than the government of Saskatchewan’s books.
The prairie province had forecast a more than $1 billion surplus for the fiscal year ending March 31, 2024, but fresh budget documents released last month show that surplus has completely evaporated, leaving Saskatchewan with an approximate $482 million deficit for the year instead.
The reason for this dramatic reversal? In large part, drought and a resulting increase in government crop insurance payouts.
It’s an example of what some experts say Canadians can expect to see more of as climate change pressures agricultural production. Taxpayer money already supports the agriculture industry in this country to the tune of billions of dollars each year, and some say the bill will go up as climate change-driven natural disasters make it harder for farmers to eke out a living.
“We are going to see more droughts, more pests, the yields won’t be as good,” said Guillaume Lhermie, director of the Simpson Centre for Food and Agricultural Policy at the University of Calgary.
“For me the question is, who should pay for that? I do foresee that government will be solicited more and more.”
In Canada, crop insurance is available to farmers in all provinces to help cover production losses in the event of natural hazards such as drought, flood, excessive heat or snow and more.
It is part of a suite of business risk management programs, all jointly funded by the federal and provincial governments through what is called the Sustainable Canadian Agricultural Partnership.
But extreme weather — from drought to wildfires to “heat domes” to flash floods — has plagued farmers from coast
Read more on globalnews.ca
