Insurance coverage

Agrimart: Saskatchewan Crop Insurance Coverage and Premium Increases in 2022

Average coverage for 2022 will be $405 per acre, a 48% increase from $273 per acre in 2021

The recent announcement of the Saskatchewan Crop Insurance Corporation’s annual program took place on February 22, 2022, Agriculture Day in Canada.

Saskatchewan Agriculture Minister David Marit said 2021 was a record year for SCIC applications. SCIC received around 30,000 complaints in 2021, compared to a five-year average of around 7,800 complaints. This year was a record for the number of SCIC complaints since its inception.

The total value of crop insurance claim payments in 2021 was approximately $2.4 billion.

“It is now more important than ever for farmers and ranchers to assess their current insurance, to ensure they have the right coverage for their operation.”

Marit shared that seventy-five percent of seeded acres in the province are insured and producers must continue to do so in the future.

The average hedge for 2022 will be $405 per acre, a 48% increase from $273 per acre in 2021. This jump is due to higher commodity prices and increased yield hedges.

The move also results in a higher premium per acre at $12.05 per acre, a 40% increase from $8.59 per acre last year. Average premium rate remaining lower due to robust 2020 production.

“As there is a one-year lag in the calculation of premium rates, 2021 production is not used until 2023.” Marit explained.

In order to better reflect the impact of high temperatures on forage yields, SCIC has adapted its forage program, in particular the calculation of precipitation linked to high temperatures. The monthly precipitation percentage of the normal accounting is reduced when the temperature reaches 31°C.

For 2022, forage acre coverage has increased significantly due to current feed prices. Producers will be able to choose from different pricing options.

“So for July, let’s say there are five days that reach 31 degrees or more. Next, we’ll subtract five millimeters from the total to calculate the monthly precipitation. It’s really about acknowledging that when we’re in this extreme heat, all the moisture that’s not falling is definitely not available for forage yield,” said Interim President and CEO Jeff Morrow. .

Producers are encouraged to consider investing in AgriStability, another risk mitigation program, with payments currently set at 16 cents per acre or $1.16 per animal. April 30 is the deadline to register for the 2022 program.