Saskatchewan Crop Insurance adds Individual Premium option for each insured crop
A new Individual Premium calculation has been unveiled as part of the enhancements to the 2023 Crop Insurance Program.
Saskatchewan Agriculture Minister David Marit shared details of the suite of insurance options offered through the Saskatchewan Crop Insurance Corporation (SCIC) during an announcement on February 27. The 2023 average coverage is being offered at a record-high level of $446 per acre as a result of increased commodity prices and yield coverage. This year’s average total premium is $14.79 per acre, which is up from $12.05 a year ago.
“The most significant change is the new way of individualizing premiums for each producer. Starting in 2023, Crop Insurance now calculates an individual premium based on each customer’s personal claim history compared to their area risk zone,” Marit explained during Monday’s program announcement.
SCIC calculates a base premium annually for each crop, and when factoring in a specific producer’s risk zone they come up with an individual premium - with this premium adjustment an increase or decrease from the base premium. The calculation is done individually for each crop a customer is insured.
“This individual premium is unique to each farm, and is calculated individually for each crop a customer is insured. This individual premium is unique to each farm, and is calculated independently for each crop. This means a producer’s claim on one crop does not impact their premiums for a different crop. Producers will see these individual premiums be more reflective of what they are experiencing on their own farm,” Marit explained.
As part of the program enhancements, SCIC is increasing the maximum coverage levels for the Unseeded Acreage feature. While the minimum coverage level remains at $50 per acre, additional unseeded acreage coverage levels are increasing to $75 per acre, $100 per acre, and $125 per acre, with the farmer able to select their own coverage.
The unseeded acreage coverage is in place to compensate producers costs for costs associated with acres that are too wet to seed in the current year, and getting those acres back in condition to seed for the following year.
Marit agreed this optional coverage is very much a regional consideration.
“Where we probably see the unseeded more than anything would probably be on the east side of the province. Manitoba had raised theirs, so that’s why we just felt compelled to work through that and work with the farmers, especially on the east side of the province.
“There’s going to be some concerns on the west side of the province with lack of moisture so far this year. Hopefully we’ll see a change in that in the next few months. But I think we have a good program on that side of it.”
“That program obviously is working for the livestock industry to some degree when you pay out just under $100 million over the last two years. We obviously saw some significant dollars going out to ranchers predominantly in the Southwest and Central part of the province.”
Jeff Morrow, Acting President and CEO of Saskatchewan Crop Insurance Corporation, highlighted producers can access higher insured prices in their coverage.
“Overall we are seeing an increase in the insured prices year over year. It is about 7.2 per cent increase in prices on average from the 2023 prices over 2022.”
Among the commodity highlights in these higher insured prices are:
Hard Red Spring Wheat, rising to $10.21 per bushel in 2023, up from $8.71 per bushel last year.
Canola, increasing to $18.83 per bushel this year, with last year’s coverage at $17.01 per bushel.
Large green lentils, increasing to 40 cents a pound for 2023 versus 36 cents a year ago.
Marit also pointed to increased compensation available through the Agristability business risk management program.
“Effective for the 2023 program year, the Ag Stability compensation rate is increasing from 70 per cent to 80 per cent, and I encourage producers to look at this. This is something that industry has asked for.”
Saskatchewan Rural Municipality Association President Ray Orb said that SARM was overall satisfied with this year’s changes.
“We’re pleased about the announcements. We realize that there is a lot of risk out there, producers are looking at still pretty high input prices, costs down the road especially,” Orb said on Monday. “The protection and the ongoing commitment of Saskatchewan Agriculture is there and we’re pleased about that.”
“We’re obviously pleased when Crop Insurance looks at changing some of the programs. Agri Stability, obviously a good change, something that SARM had been lobbying for for quite some time.”
Producers will receive mail outs containing specific coverage information, with more information available by calling SCIC at 1-888-935-0000 or visiting scic.ca.