The Province is taking steps to help out drought stricken Alberta farmers.

Rental fees are being cut in half for the Agriculture and Forestry department's Water Pumping Program.

The program provides pumps and pipes to help producers get water for domestic and livestock use by filling their dugouts or other suitable catch basins from nearby water sources.

Agriculture Minister Oneil Carlier says the cut is retroactive.

"We have made it retroactive to April 1st, it corresponds with the government's fiscal year and it really does correspond or serve quite nicely with when people that are proactive typically start to access that particular program," Carlier says.

The Assistant Deputy Minister of Agriculture and Forestry, Dave Burdek says about 80 per cent of producers have been impacted to some degree. But he says even if it's only by half that can be a devastating blow.

"Half your revenue for the year is gone," Berdek says. "That's really what it comes down to. Even if it's just 25 or 30 per cent it's still 25 or 30 per cent of your gross revenue that's gone. That really makes it challenging to make sure that your input costs are paid, your creditor requirements as well.

Alberta Environment is also working with municipalities to identify additional public lands for grazing to help increase producers’ access to livestock feed supplies.

The measures will allow temporary grazing or haying permits in suitable locations.

The Agriculture Financial Services Corporation expects to pay out claims of about $700-to-$900-million this year.

Merle Jacobson, Chief Operating Officer of AFSC says last year was one of their better years when it comes to payouts.

"We had a claim ratio right around 50 per cent of premium, which in the insurance industry, when you have that it's a very successful year," he says. "If you go back to 2009 we had about a 100 per cent of premium so again had to use some reserves. The worst year ever was 2002, which was more than a 1-in-100 year event, we paid out just shy of 400 per cent of premium."

He expects they'll pay out about 120 to 150 per cent of premium this year.

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