Insurance coverage

Crop insurance coverage will jump a record close to 50% in 2022

Average coverage this year will hit a record high of $405 per acre, a 48% jump from $273 per acre last year. This is mainly due to the severe drought that Saskatchewan experienced last year.

Saskatchewan’s crop insurance program will provide a record level of coverage per acre to producers this year due to record insurance claims last year due to province-wide drought.

Also, new for 2022, the contract pricing option will be available on all commercial crops this year, while 13 new crops will be added for coverage.

“Reflected by the historically high claims year, the challenges farmers and ranchers in Saskatchewan faced during the 2021 growing season reinforce the importance of our business risk management programs,” said David Marit, Saskatchewan Minister of Agriculture, at a press conference on February 22.

“The crop insurance program remains an actuarially sound program with solid funding. Producers can continue to count on the support, coverage and flexibility of the crop insurance program as they work towards the future of their operations.

The Saskatchewan Crop Insurance Corporation (SCIC) — which oversees the program — continues to provide relevant pricing and coverage levels, he continued.

Average coverage will hit a record high of $405 per acre this year, up from $273 per acre last year, due to higher commodity prices and increased yield coverage. Due to the 48% increase in coverage this year, the average total premium increased to $12.05 per acre from $8.59 per acre last year.

The average premium is lower due to strong production in 2020, Marit added. As there is a one-year lag in the calculation of premium rates, 2021 production is not used until 2023.


Producers faced a province-wide drought last year that reduced the moisture available for pasture and hay land, the agriculture ministry said. In response to extreme temperatures and dry growing conditions, a heat adjustment factor was added to rainfall data used in claims calculations for forage and corn rainfall insurance programs.

When temperatures are above 31 degrees Celsius, precipitation amounts are now reduced in the calculation of the “monthly percentage of normal”. This adjustment takes into account the effect of extreme heat on forage and corn yields.

“Trade risk management programs are essential tools for producers to deal with market volatility and difficult trading conditions,” said Kelcy Elford, president of the Saskatchewan Stock Growers Association. “We appreciate that SCIC is responding to growers’ needs to make coverage levels more representative of rising forage costs and to accommodate moisture loss due to extreme heat. »

With the contract price option, producers can use their contract prices to combine with the base crop insurance price for higher coverage, the ministry said. This allows producers to establish an assured price that reflects the actual market value they would receive for their production.

New for 2022, this pricing option is available on all cash crops. New crops added include fava beans, Khorasan wheat, fall and spring rye, sunflower, triticale, winter wheat, extra strong wheat, hard white wheat, all classes of chickpeas , caraway, dry irrigated beans and soybeans.

Growers can select the crops they want covered under the contract price option by March 31 and submit their contracts to SCIC by May 31.

March 31 is also the deadline for producers and farmers to apply for, reinstate or terminate their crop insurance contract. Growers must select insured crops and coverage levels or make additional changes before this date. Producers can speak to their local SCIC office to make changes, or their coverage will remain the same as 2021.

For more information, call SCIC at 1-888-935-0000 or visit scic.ca.