Crop insurance returns for Saskatchewan producers will remain steady through 2018, announced Saskatchewan Agriculture Minister, Lyle Stewart.
Stewart, as well as Saskatchewan Crop Insurance Corporation (SCIC) CEO and President, Shawn Jaques, along with other members of different agricultural organizations gathered at the SCIC head office in Melville on Feb. 27 to discuss the new 2018 crop insurance program.
“Overall coverage for Saskatchewan producers remain at very high levels, the average insurance coverage is $216 per acre compared to $217 last year.”
Producers will be paying a slightly less premium for the coverage at an $8.41 an acre average compared to $8.51 an acre in 2017.
Stewart says the crop insurance program remains strong due to improvements to Saskatchewan crop production.
“Premiums have remained relatively steady because of the strong fun balance used to pay claims,” says Stewart.
Stewart says that, despite $600 million in claims in 2016 and $200 million in claims in 2017, SCIC maintains a fund balance of $2 billion, “which helps keep premium low for producers.”
Establish benefit values will also be on the rise for canola, sunflowers, chickpeas, and grain corn and will be decreased for large green lentils.
Through establish benefits, “producers are compensated for crop that is seeded but fails to establish due to insurable causes. The compensation amounts are reviewed annually to ensure they compensate for the cost of seeding the crop,” says Stewart.
Marketing of grain continues to evolve and industry leaders have more choices than ever to contract their production.
Contract pricing options have now been expanded through SCIC and a total of 30 crops are now eligible.
Bill Prybylski with Agriculture Producers Association of Saskatchewan says these are positive changes for both the cattle and grain and oil seed industries.
“Changes to the contract pricing option is a positive step and reflects the more modern marketing of our grains and oil seeds.”
Stewart also announced changes to the insurance programs, the key being changes to fire protection for pasture land.
Fall 2017 saw 88,000 acres of land impacted by wildfires, much of this including pasture land, says Stewart.
Fire insurance for pasture land will now be an option for producers and ranchers as part of the new 2018 crop insurance program.
“There was no insurance for fire damage on the pasture but now producers will be able to easily access coverage. Producers who enroll in the Forage Rainfall Insurance program will have year round coverage for fire when they purchase that insurance.”
Insurance for forage was something that has been in need of improvement, says Stewart, so work will continue into 2018 after changes were made in 2016.
Stewart announced that forage restoration benefit will be included for tame hay and alfalfa seed to, “compensate producers for insured acres of established hay or alfalfa due to prolonged flooding.”
Improvements will also be make to the wildlife damage compensation. Coverage for calves lost in predator attacks were not adequate with compensation being based on the cost of the animal at the time of the loss, says Stewart.
In 2018 will have new compensation rates for the loss of calves.
Bill Huber, vice-president of the Saskatchewan Stock Growers Association says they appreciate that government is recognizing the cost that predation is having on producers.
“The enhancement puts Saskatchewan producers on a level playing field and it’s a program that certain works well.”
As it was already announced by the Government of Saskatchewan, there will a PST exemption on crop, livestock, and hail insurance premiums as well as individual and group life and health insurance premiums, says Stewart.
The exemption is retroactive to Aug. 1, 2017.
Many industry partners were also in attendance during the announcements in Melville, including members from different commodity organizations.
Stewart says they are trying to grow the program in consultation with these partners so he was grateful for all who could attend the announcement.
“It’s your input and feedback that provide guidance and directions for making improvements and ensuring that the program is relevant and continues to meet the needs of Saskatchewan farmers and ranchers.”
With concerns over moisture levels during this years growing season, Stewart encourages all farmers to be prepared for the challenges this year will bring.
“Risk management has never bee more important for Saskatchewan farmers,” says Stewart.
