Crop insurance returns for Saskatchewan producers will remain steady through 2018, announced Lyle Stewart, the province’s agriculture minister.
Stewart, Shawn Jaques, the CEO of the Saskatchewan Crop Insurance Corporation, and other members of various agricultural organizations gathered at the corporation’s head office in Melville to discuss the new 2018 crop insurance program.
“Overall coverage for Saskatchewan producers remains 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 said the crop insurance program remains strong due to improvements to Saskatchewan crop production.
“Premiums have remained relatively steady because of the strong fund balance used to pay claims,” said Stewart.
Stewart said 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 premiums low for producers.”
Establishment benefit values will also be on the rise for canola, sunflowers, chickpeas and grain corn and will be decreased for large green lentils.
Through establishment 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,” said 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 the Agriculture Producers Association of Saskatchewan said 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, which included pasture land, said 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, said 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 made 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, said Stewart.
In 2018, there will be new compensation rates for the loss of calves.
Bill Huber, the Saskatchewan Stock Growers Association’s vice-president, said they appreciate that government is recognizing the cost predation is having on producers.
“The enhancement puts Saskatchewan producers on a level playing field and it’s a program that certainly works well.”
As it was already announced by the Government of Saskatchewan, there will be a PST exemption on crop, livestock and hail insurance premiums as well as individual and group life and health insurance premiums, said 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 said 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 provides 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 year’s growing season, Stewart encourages all farmers to be prepared for the challenges this year will bring.
“Risk management has never been more important for Saskatchewan farmers,” said Stewart.
