By Alice McFarlane

Crop insurance reaches record levels in Saskatchewan

Feb 22, 2022 | 3:47 PM

MELFORT, Sask. — The drought on the prairies demonstrated the value of risk management programs to ensure producers have the best coverage to help them through challenging times.

Saskatchewan Crop Insurance Corporation (SCIC) said producers submitted 30,000 claims in 2021 worth $2.4 billion dollars last year.

Saskatchewan Agriculture Minister David Marit said the changes to this year’s crop insurance program will see the average coverage reach a record level of $405 per acre due to higher commodity prices and increased yield coverage.

With the 48 per cent increase in coverage, the average total premium is higher at $12.05 per acre, compared to $8.59 in 2021. The average premium rate is lower due to the strong production in 2020. As there is a one-year lag when calculating premium rates, 2021 production is not used until 2023.

Marit said even though it was a historically high claim year the program is in good shape financially.

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“The Crop Insurance Program remains an actuarial sound program with strong funding. Producers can continue to rely on the support, coverage and flexibility of the Crop Insurance Program as they work toward the future of their operation,” Marit said.

With the Contract Price Option, producers can use their contract prices to blend with the SCIC base price for higher coverage. This allows producers to establish an insured price reflective of the actual market value they would receive for their production.

The Contract Price Option is available on all commercial crops including faba beans, Khorasan wheat, fall and spring rye, sunflowers, triticale, winter wheat, extra strong wheat, hard white wheat, all classes of chickpeas, caraway, irrigated dry beans and soybeans.

Producers have until Mar. 31 to select the crops they want covered under the Contract Price Option.

In response to extreme temperatures and dry growing conditions, a heat adjustment factor was added to rainfall data used in claim calculations for the Forage and Corn Rainfall Insurance programs.

SCIC acting president and CEO Jeff Morrow said for every day the weather stations record a temperature of 31 Celsius or higher, they subtract one millimeter of precipitation when calculating the monthly total.

“For example, let’s say in July there are five days that reach 31 degrees or higher, then we’re going to take five millimeters off the total for calculating the monthly precipitation,” Morrow said.

Saskatchewan Cattlemen’s Association chair Arnold Balicki said crop insurance continues to improve programs and coverage for producers.

“It’s been a difficult year, so I really encourage every cattle producer to talk to an SCIC rep about the options for their hay land, their grassland and their cattle,” Balicki said. “Last year, programs helped a lot of producers and I don’t want anyone missing out on something that can be very helpful if rain isn’t there for us this year.”

The deadline to apply, reinstate or cancel their contract is Mar. 31.

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alice.mcfarlane@pattisonmedia.com

On Twitter: @farmnewsNOW