Drought forces Alberta to cut water pumping fees for farmers

The Alberta government is cutting rental fees in half for drought-affected producers who use the emergency water pumping program.

The fee reduction will apply retroactively to April 1 and will be in effect for the entire 2015-16fiscal year

The province also wants to open up more public land for producers to graze their livestock.

"This will help producers who are struggling with inadequate pastureand high hay prices," said Alberta Agriculture Minimster Oneil Carlier.

• Drought pushes Parkland County to declare state of agricultural disaster
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About 80 per cent of farmers have been impacted by the drought.The Agriculture Financial Services Corporation anticipates paying out $700 million to $900 million in claims this year. About $70 million has been paid so far this year.

The province is talking to the federal government about allowing producers to defer their taxes.

Producers who need to sell their herd because of feed shortages can defer some sale proceeds to next year. The deferral means they won't have to pay the applicable taxes this year.

A lack of rain has prompted a number of Alberta counties to declare states of agricultural disaster due to drought.

The government estimates crop yields will be 25 to 30 per cent below the five year average.