Monday, 11 February 2013 10:29

Record funding and coverage for the 2013 Crop insurance program in Sask.

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Today, Federal Agriculture Minister Gerry Ritz and Saskatchewan Agriculture Minister Lyle Stewart announced details of the 2013 Crop Insurance Program, which includes record funding and record coverage levels.

 

“Agriculture plays an important role in Saskatchewan and across Canada in creating jobs and economic growth,” Ritz said.  “Insurance-based programs such as these ensure that Saskatchewan farmers have the tools they need to maintain their success today and well into the future.”

“We are committed to the growth of the agriculture industry by working to improve the Crop Insurance Program,” Stewart said.  “I would encourage producers to consider enrolling in Crop Insurance to take advantage of the increased coverage levels and other enhancements to the program.”

The 2013 Crop Insurance budget is a record $198 million.  On average, coverage levels are also increasing to a record $194 per acre up from $174 per acre in 2012, and more than double the coverage offered in 2007.  Since 2008, the provincial government has continually increased funding for crop insurance to address the needs of farmers and ranchers.

New in 2013, hard red spring wheat and oats will be eligible for yield trending.  Yield trending recognizes agronomic advancements and increases a producer’s historical yields, which improves the current coverage available on those crops. The yield for hard red spring wheat will increase nine per cent and oats yield will increase 13 per cent, on average.

The 2013 Crop Insurance Program also includes increased Establishment Benefit values for field peas, canola and identity-preserved canola; expansion of the insurable region for soybeans; and expansion of the insurable region for corn.

Crop Insurance enhancements made in previous years will also continue in 2013.  These include up to $100 per eligible acre Unseeded Acreage Benefit, yield cushioning and 100 per cent wildlife damage compensation.  As a result of record coverage and continued crop insurance enhancements, there will be no ad-hoc AgriRecovery Program for weather-related disasters in 2013.

In 2013, for the first time ever, private reinsurance will be purchased for the Crop Insurance Program to stabilize premiums, which will help protect producers in the event of a large claim year.  Purchasing private reinsurance was a recommendation from the 2008 Crop Insurance Review.

“We appreciate the record investment, record coverage and continued improvements to the Crop Insurance Program,” SARM President David Marit said.

“Saskatchewan canola producers welcome the record coverage levels and increased establishment benefits for canola,” SaskCanola Chair Joan Heath said.  “This program will continue to be very important to the success of the canola industry and its producers.” 

“Saskatchewan oat producers are pleased to see the improvements to crop insurance including yield trending for oats,” Saskatchewan Oat Development Commission Chair Dwayne Anderson said.

"The outlook for wheat acres seeded this spring is promising," Western Canadian Wheat Growers Saskatchewan Vice-President Kenton Possberg said.  "We appreciate the increased coverage and enhancements to crop insurance like yield trending for wheat."

The deadline for customers to apply for, make changes to or cancel a Crop Insurance contract is March 31, 2013.  Detailed program and contract information is also available at any Crop Insurance office, at www.saskcropinsurance.com or by calling 1-888-935-0000.

Under Crop Insurance, premiums for most programs are shared 40 per cent by participating producers, 36 per cent by the Government of Canada and 24 per cent by the Government of Saskatchewan. Administrative expenses are fully-funded by governments, 60 per cent by Canada and 40 per cent by Saskatchewan.

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