Support for Producers Through 2022 Crop Insurance Program
The Federal Agriculture and Agri-Food Minister Marie-Claude Bibeau and Saskatchewan Agriculture Minister David Marit announced details of the 2022 Crop Insurance Program.
“The resilience and determination that prairie producers have shown through this incredibly challenging year is an inspiration to all Canadians,” said Bibeau. “The drought of 2021 demonstrated the value in risk management programs, such as Saskatchewan’s Crop Insurance, to ensure producers have the best coverage to meet their needs. I encourage producers to continue to subscribe to government programs and private insurance that will protect their crops against ongoing climate-related challenges.”
“Reflected through the historically high claim year, the challenges Saskatchewan farmers and ranchers faced during the 2021 growing season reinforces the importance of our Business Risk Management Programs,” Marit said. “The Crop Insurance Program remains an actuarial sound program, with strong funding. Producers can continue to rely on the support, coverage and flexibility of the Crop Insurance Program, as they work toward the future of their operation.”
Saskatchewan Crop Insurance Corporation (SCIC) continues to provide relevant pricing and coverage levels. Average coverage will reach a record level of $405 per acre, due to higher commodity prices and increased yield coverage. Due to this year’s 48 per cent increase in coverage, the average total premium is higher, at $12.05 per acre, compared to $8.59 in 2021. The average premium rate is lower, due to the strong production in 2020. As there is a one-year lag when calculating premium rates, 2021 production is not used until 2023.
“We appreciate the changes to these programs for 2022-23,” SARM President Ray Orb said. “SARM has always valued working with the Saskatchewan Crop Insurance Corporation and the Ministry of Agriculture to make programs better for our producers and looks forward to that continued collaboration in the future.”
Last year, producers faced a provincial-wide drought, resulting in reduced available moisture to pasture and hay land. In response to experiencing extreme heat temperatures and dry growing conditions, a heat adjustment factor was added to rainfall data used in claim calculations for the Forage and Corn Rainfall Insurance programs. When temperatures reach 31 degrees Celsius or higher, precipitation amounts are now reduced in the ‘monthly per cent of normal’ calculation. This adjustment helps recognize the impact of extreme heat on forage and corn yields.
“Business risk management programs are critical tools for producers to address market volatility and severe weather conditions,” Saskatchewan Stock Growers Association President Kelcy Elford said. “We appreciate SCIC responding to producers needs to make coverage levels more reflective of increased forage costs and to adjust for moisture loss due to extreme heat.”
With the Contract Price Option, producers can use their contract prices to blend with the Crop Insurance base price for higher coverage. This allows producers to establish an insured price reflective of the actual market value they would receive for their production. New for 2022, this price option is available on all commercial crops. New crops added include fababeans, Khorasan wheat, fall and spring rye, sunflowers, triticale, winter wheat, extra strong wheat, hard white wheat, all classes of chickpeas, caraway, irrigated dry beans and soybeans. Producers can select the crops they want covered under the Contract Price Option by March 31, 2022, and submit their contracts to SCIC by May 31, 2022.
“We appreciate the changes SCIC has made to the Contract Price Option,” Saskatchewan Pulse Growers Chair Shaun Dyrland said. “It could be an attractive option for pulse growers with the new inclusion of chickpeas, soybeans and fababeans.”
March 31, 2022, is the deadline to apply, reinstate or cancel their Crop Insurance contract. Producers must select insured crops and coverage levels or make additional changes by this date. Producers can speak to their local SCIC office to make any changes or coverage will remain the same as the previous year.
SCIC provides a diverse and relevant suite of risk management programs: AgriStability, Crop Insurance and Livestock Price Insurance. Producers can reduce their risk by reviewing all SCIC options to find the right insurance and coverage package for their operation. For more information, contact a local SCIC office, call 1-888-935-0000 or visit scic.ca.
Crop Insurance is a federal-provincial-territorial Business Risk Management program under the Canadian Agricultural Partnership. Under Crop Insurance, premiums for most programs are shared 40 per cent by participating producers, 36 per cent by the Government of Canada and 24 per cent by the Government of Saskatchewan. Administrative expenses are fully funded by governments, 60 per cent by Canada and 40 per cent by Saskatchewan.
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