Changes to AFSC’s insurance products for 2023
Producers can expect several changes to Agriculture Financial Services Corporation’s (AFSC) insurance products for 2023.
The changes include a move to monthly payments for Moisture Deficiency Insurance, an increase in the reseeding benefit compensation rate, the addition of bear predation (hive and bees) to the Wildlife Damage Compensation Program, increased coverage for Straight Hail Insurance and the cancellation of Satellite Yield Insurance.
“Agriculture in Alberta is a multi-billion-dollar industry and one of the driving forces of our economy,” said Nate Horner, Minister of Agriculture and Irrigation. “Producers need affordable and effective risk management options to give them peace of mind and support them as our agriculture sector grows and diversifies. These adjustments give producers more flexibility to react and respond to emerging challenges and opportunities.”
“We are making these changes to ensure we continue to meet the needs of Alberta’s hardworking farmers and ranchers,” explained Darryl Kay, AFSC’s Chief Executive Officer. “This year’s enhancements ensure our programs reflect and respond to the risks faced by producers and give them the tools to respond to those risks.”
The shift to monthly Moisture Deficiency Insurance payments will put money into producers’ hands when they need it, allowing them to be proactive during dry periods and buy feed or take other immediate steps. Similarly, the addition of a bear predation (hives and bees) pilot project to the Wildlife Damage Compensation Program will allow beekeepers to recover more quickly after bear damage to their hives.
Additionally, updates to the Reseeding Benefit compensation rate will make it more reflective of current reseeding costs. Cancellation of Satellite Yield Insurance
The other major change this year is the cancellation of Satellite Yield Insurance.
“Technical issues with the acquisition of satellite data for 2023 and beyond make the continuation of this program impossible,” said Kay. “Satellite Yield Insurance was only available in certain locations in the province, and we will be contacting the affected clients to discuss the cancellation of the program and review their insurance options.”
Producers who have taken Satellite Yield Insurance in the past will be able to transition to Moisture Deficiency Insurance seamlessly as Moisture Deficiency Insurance coverage levels are comparable to satellite insurance.
AFSC offers a broad range of insurance products covering a variety of crops including grains, cattle and fresh vegetables. Last summer’s intense hailstorms affirmed the need to ensure hail coverage meets the needs of all producers, including market garden producers. As such, AFSC is increasing Straight Hail Insurance maximum coverage limits.
AFSC continues to work with market garden operators to ensure this growing sector has access to risk management programs. AFSC is holding two input advisory group meetings in January to gather information from Alberta’s market garden operators about the risks they face and how risk management programs can be improved to better meet these risks.
Quick facts
• Moisture Deficiency Insurance is moving to monthly payments.
• Monthly payments will ensure money gets into producers’ hands when they need it.
• This will allow producers to be more agile as they access water, buy feed or take other steps to deal with dry conditions.
• Updates to the Reseeding Benefit compensation rate make it more reflective of current reseeding costs.
• The addition of a bear predation to hives and bees pilot project to the Wildlife Damage Compensation Program will allow beekeepers to recover more quickly after bear damage to their hives.
• Satellite Yield Insurance is being discontinued.
• Technical issues with the acquisition of satellite data for 2023 and beyond make the continuation of this program impossible.
• Clients who have taken Satellite Yield Insurance in the past will be able to transition to Moisture Deficiency Insurance seamlessly as Moisture Deficiency Insurance coverage levels are comparable to satellite insurance.
• Additionally, client experience will transfer from Satellite Yield Insurance to Moisture Deficiency Insurance.
For more on the satellite situation, please see: https://afsc.ca/satellite-yield-insurance-program-cancellation-qas/