Alberta ranchers face difficult decisions as drought drags on

Alberta ranchers hit hard during thepandemic last year are now dealingwith drought conditions that aredevastating vital grazing land andtaking both a financial and emotional toll.

"This should have been a year to put some profit back in the industry then we get this drought,"said Alberta rancher and feedlot operatorBob Lowe, president of the Canadian Cattlemen's Association.

"You can imagine what that's doing to the mindset of a lot of people."

It's been a difficult summer formany farmersacross the Prairiesas they deal with the effects of long bouts of hot temperatures and a dearth of moisture.

In the cattle sector,it's led some livestock producers to facethe difficult decision to startselling off their herds into a depressed market.

Craig Klemmer, principal agricultural economist at Farm Credit Canada, said the impact can be seen at auctions across the Prairie provinces, with an influx of animals coming to market sooner andat lighter weights.

Klemmer said the realization that people may have to startselling off some of their cattle is putting downward pressure on the price of breeding stock.

Klemmer saidhe's seen cow-calf pairs auctioning for 20 to 25 per cent less than they were a year ago, due in part to the shortage of feed in southern Alberta.

"That's a fairly large decline," Klemmer said.

The situation comes on the heels of the financial hit that ranching took last yearwhen COVID-19 outbreaks at meat-processing plants led to costly cattle backlogs.

It had been hoped this year might providea rebound, but few regions have been so fortunate.

"Emotionally, this is really affecting a lot of people," Lowe said.

This week, Rocky View County, which surrounds much of Calgary,declared an "agricultural disaster," highlighting "one of the worst growing seasons in recent memory."

In recent days, Vulcan County, Foothills County, Greenview,the County of St. Paul and Lac Ste. Anne County, among others, have also declared agricultural disasters.

Even if rain comes now, the concern is itmay be too late tohelp much this year, if at all.

Alberta's most recent crop report, issued at the end of July, said over 50 per cent of the pasture acres in the province were rated as poor.

Brad Dubeau, general manager of the Alberta Beef Producers, said ranchers probably face one of the most difficult decisions they've had to make in several years.

"They are faced with the decision of:can they acquire enough feed for the winter months ahead," Dubeau said.

"Depending on how much feed they can source, they will have to make the difficult decision on whether or not they can keep the whole mother-cow herd on their farm and ranch."

But the drought is making it harder to find feed and hay for cattle, with increased demand pushing up the price. Now, Dubeausaid he understands that American ranchers are also reaching into Canadato purchasefeed.

"Which continues to drive the cost of feed up in Alberta," he said.

Dubeausaid producers arelooking for government support.Last weekend, the group met with Premier Jason Kenney and Agriculture Minister Devin Dreeshen to discuss the situation.

"We look forward to continue negotiations on what potential support there may be out there or what potential support that might be available for our producers in Alberta," he said.

In an interview Wednesday, Dreeshen said the province is taking steps to help producers, includingaddinginsurance adjusters so farmers can more quickly convert marginal crops into feed for livestock.

The provinceis also working through the details with the federal government for an AgriRecovery program, he said.

"We got the ball rolling early on and we're hopeful that we'll be able to do an announcement before possibly a federal election," said Dreeshen.

Ranchers who might decide to sell their cattle today mayface a financial "double-whammy," Lowe said.

If forced to do so now, he explained, they face selling into a depressed market. But when the market eventually improves and they have to buy replacements, they could well be buying in an inflated market.

As the drought drags on, he tries to remain hopeful.

"Every day it doesn't rain is one day closer to the day it will," Lowe said.

"That's what keeps me going."