Southern Alberta has potential for further investment: CIB

Advance Photo By Richard Francella. IRRIGATION: Grant Hunter Taber-Warner MLA, David Westwood from St. Mary River Irrigation District, Jodie Parmar from Canada Infrastructure Bank, Ehren Cory from Canada Infrastructure Bank, George Lohues from St. Mary River Irrigation District and representatives from Whissell Contracting Ltd. were at the tour.

By Trevor Busch
Vauxhall Advance
editor@tabertimes.com

Canada Infrastructure Bank CEO Ehren Cory was in the Lethbridge area in late October to see the work being done to upgrade irrigation systems for farmers in Southern Alberta, alongside project partners and local construction providers. 

During part of the tour, he visited the St. Mary River Irrigation District’s ditch and Chin Expansion projects.

“The CIB made an investment back at the end of 2020 in expanding irrigation across Alberta,” said Cory. “We’re working with irrigation districts, especially here in southern Alberta, really meant to increase crop yields, grow productivity, exactly what infrastructure is designed to do. So now we’re a few years into that, and we were here to do two things. One, visit with the St. Mary River Irrigation District, one of our partners, to see the progress they’re making. And two, we went and visited the McCain potato factory expansion they’re doing, which is, of course, a direct result of the increasing productivity of farmers in southern Alberta. So it was a great chance to see how infrastructure plays out, from a farmer’s field to the production capacity, ultimately to markets around the world. So that’s what we were doing.”

Cory highlighted the significant economic ripple effects of infrastructure investments, emphasizing the collaborative effort among various stakeholders, including local governments and private companies like McCain.

“For us as infrastructure investors, so much of the time the goal is infrastructure that enables other stuff. You don’t build a road so you can drive up and down. You build a road so you can get somewhere, so that goods can get somewhere. So you don’t build irrigation pipes just to spread water around. You build it to grow crops and to grow, ultimately, economic productivity. We made this irrigation investment, and last year, when McCain was moving ahead with their expansion, we actually talked to them and they said we never could have done this expansion without your investment in irrigation. So that’s what brought us out here. It wasn’t an evaluation. It was just to see how does infrastructure downstream feed economic growth? And the cold storage facility getting built in Coaldale, all of those things are the spin off of better infrastructure. So that’s what we were here to see on the ground.”

Cory highlighted some other areas that have seen CIB investment, while hinting there may be much more to come in the future.

“We have agreements with 10 different irrigation districts across the province. Right now we are always looking for more investments. So we’re looking to make investments in any additional ideas to continue to grow the agriculture sector and crop productivity. We’re also looking at things around water and wastewater to enable community growth and we also are looking at investments, of course, in the power space. We made an investment earlier this year near the Central East transfer line. That’s to grow electricity transmission to allow the growth in the grid that’s happening. So we’ve got a bunch of investments in Alberta, not only irrigation, and we’re looking to make more. If you think about the CIB, we were set up as a $35 billion pool of money to invest in good infrastructure projects that benefit Canadians. The loans, they get paid back over time, and we reinvest the money, but we’re a tool to get more stuff built and we’ve invested about $14 billion or so of that $35 billion so we’ve got lots more to put to work for Canadians.”

Expanded irrigation in southern Alberta isn’t just about boosting yield potential, argues Cory, but creates an environment where new choices and options become available in terms of what kinds of crops are being grown in the region. 

“I think what was really interesting to us is just how the irrigation investment, how they unlock business opportunities for farmers and ranchers. Meeting with the head of the irrigation district and the board chair, they were explaining to us how the improvements in irrigation that we’re making in the region increase crop yields, but they also open up new crop potential, new options for farmers to move into more specialty products. And I think the growth in the potato sector here is a great example of that, and it’s going to continue. And so they really impressed upon us that irrigation isn’t just allowing them to grow a bit more, increase yields a little bit. It’s allowing them to make different choices, whole different uses for their land and really grow their businesses. And of course, I think the other thing we learned that maybe wasn’t fully on my radar, is just for every dollar – I mean, I know this is the theory, but to see it in action it really brings it home – for every dollar you put into infrastructure, there are many dollars downstream that get invested. Farmers making investments in growing their storage equipment, buying new, new rolling stock, investing in their own irrigation systems, and then the McCain investment, and then downstream of that cold storage and transportation and shipping. And so just to see how an investment in infrastructure blows out into the economy, our investment here in the region is really the poster child for how infrastructure can drive economic growth. Drive around and you see it. I think that’s what’s so important, is to be on the ground and say how does this investment trigger stuff down the road?”

Cory was impressed with the region’s can-do attitude and the buy-in he has witnessed among area representatives.

“I’d say that it’s been a great visit. I would say that what was really neat about today’s visit, is we had the local reeve of the county and the mayor of Coaldale. We had the MLA for the area. You should have all levels of government – I count as the federal government, in a way, at least as a Crown corporation – you had a private company like McCain, the irrigation districts and individual farmers. We met with some of the contractors who are actually doing the work. What I’m trying to say is, you realize the incredible amount of partnership that goes into a project like this when you get on the ground, all together. It was the very best of southern Alberta hospitality. And more importantly, it was the very best of the sort of no nonsense, get ‘er done attitude that this project has, where everyone has come together with a goal and rolled up their sleeves and figured out how to work together. So really proud of that.”