Grant allocation needs to be immediate for financial sustainability

The Alberta Association of Agricultural Societies (AAAS) commented about their concerns about the ongoing sustainability of the Alberta Agricultural Societies during the COVID 19 crisis.

Tim Carson, CEO of AAAS, commented “It was decided from a Board level that these concerns need to be addressed. AAAS applauds the decisive and bold action of the Alberta government to limit exposure of citizens to the Covid 19 virus and the forced closure of public facilities. With those closures, also come cancellation of events and this is one of the greatest challenges for our Ag Societies.”

There are 293 Agricultural Societies in Alberta which own and operating more than 700 community facilities and hosting over 3400 events/year. These volunteer driven organizations focus on promoting agriculture and improving the quality of life for persons living in and around their community.

Carson further said, “Alberta Ag Societies benefit greatly from the support provided by the Alberta government, now currently in the second year of a four-year grant program. However, the grant program contributes to only one-third of the revenue needed to maintain their operations. During this unprecedented lock down period expenses to maintain facilities, even at minimum levels, will continue to mount. With no revenue serious cash flow problems have already occurred due to cancelled events. What are now viable Ag Societies may not survive. The demise of these volunteer driven organization would negatively impact the viability and vibrancy of communities across Alberta.”

Rick McCarthy, President of AAAS, said “the Alberta Government’s commitment over the years’ to support Agricultural Societies through the Ag Societies grant program has provided these associations with stable, predictable funding. The grant program usually allocates funds to the Ag Societies in June or July each year. These Ag Societies need this grant money now. We know Ag Societies have been adjusting to reduce operating costs to the best of their ability. The concern is that many of these volunteer organizations will not have the ability to manage over the next three to four months with no opportunity to generate revenue.”

Carson concluded “we know there are some possible suggestions, like loans to support small and medium size business through the pandemic. However, the not-for-profit sector does not support the profit margin to manage the repayment of an operating loan. Another idea suggested that Agricultural Societies would benefit greatly from would be stabilization funding, allowing each organization to support their community post pandemic. Accelerating the recovery of their community’s physical and mental health. We hope we can discuss this idea further with the Alberta Government.”

Supporting information on AAAS and the Ag Societies are on following pages.