Crop insurance coverage rises to record levels

Farmers get payment boost as reserves of moisture in soil continue to decline

REGINA Saskatchewan Crop Insurance Corp. (SCIC) is boosting average coverage for farmers and ranchers this year, and adding 55 new weather stations to ensure accurate payouts.

Agriculture Minister David Marit made the announcement in Melville on Tuesday, joined by industry representatives who celebrated the news. Average coverage will rise from $216 per acre in 2018 to a record $230 in 2019. Premiums for producers will go up just 20 cents per acre, as the province absorbs more financial risk.

Marit touted the program as a fail-safe for farmers as dangers loom over the horizon. He warned that soil moisture reserves continue to decline as the growing season approaches, putting this year’s crop at risk if bad weather strikes.

Marit noted that many of the changes were made to better reflect insured values for tame and native grazing areas. Levi Hull of the Canadian Cattlemen’s Association stressed the importance of insurance for ranchers while answering questions in Melville.

“When the grass and hay doesn’t grow, when the weather doesn’t co-operate or when animals are lost to predators, farmers and ranchers need insurance programs to help them replace the feed and the livestock that they’re expecting to have,” Hull said.

A corn rainfall program is also being introduced to protect against lack of moisture. Claims will be triggered when precipitation falls below 80 per cent of the long-term average.

The Saskatchewan Association of Rural Municipalities (SARM) welcomed the record coverage. Division 4 director Harvey Malanowich said the program enhancements recognize that farmers are growing more on every acre.

“SARM is very pleased with the announcement this morning,” Malanowich said. “On the grain end, we’ve been recognizing that the yields are going up in the province.”

The crop insurance program is funded partly through premiums from producers, but the federal and provincial governments pick up 60 per cent of the bill. Marit said program costs are set to rise from about $173 million to $185 million for the coming fiscal year. The higher premiums could also lead to more risk.

“Obviously you do increase your risk when you increase your coverage,” he said, before noting that the balance fund is in good shape to mitigate that.

Coverage for this fiscal year is expected to reach $300 million in claims, according to a news release from the province.

SCIC came looking for more money this month, with roughly $10 million released through special warrant for increased provincial premiums. The corporation ended up insuring more acres than it had budgeted.

Saskatchewan Stock Growers Association Zone 1 chair Henry Mccarthy seemed especially excited about the new weather stations, which will ensure that most farms are within 30 kilometres of a station. That will help ensure claims reflect actual growing conditions.