Crop insurance coverage in Saskatchewan is going up due to higher commodity prices, and rates are going up as well, but the premium cost per dollar of coverage continues to decline.
Saskatchewan Finance Minister Donna Harpauer and the federal Minister of Agriculture and Agri-Food, Marie-Claude Bibeau, announced enhancements to the 2021 Crop Insurance Program on Tuesday.
This year, crop insurance coverage will reach a record level due to higher commodity prices and increased yield coverage.
“Farmers across Saskatchewan continue to step up despite all the challenges thrown their way during the COVID-19 pandemic,” Bibeau said in a release.
“These improvements to the Crop Insurance Program give Saskatchewan farmers more coverage they can count on. We will continue working with our provincial counterparts to ensure farmers have the risk management tools to help their stability and growth.”
Asked if the COVID-19 pandemic had an impact on crop insurance, Harpauer said, “None.”
“For over 60 years, the Crop Insurance Program has supported Saskatchewan producers with reliable coverage and exceptional customer service,” Harpauer said.
“We are committed to providing producers with the insurance programs they need and the enhancements announced today build upon the current suite of programs.”
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Coverage will reach a record level of $273 per acre due to higher commodity prices and increased yield coverage, up from $224 in 2020, according to the Saskatchewan Crop Insurance Corporation.
This represents a 22 per cent increase in coverage. The average premium cost per dollar of coverage continues to decline.
There was a 42 per cent reduction in average premium cost per dollar of coverage over the last 10 years. This includes a 20 per cent reduction directly resulting from the strong financial position of the program, SCIC said.
However, due to the increased coverage for 2021, the average premium for producers will be higher than in 2020. The average premium per acre will be $8.59, up from $7.40.
“Establishment benefit values are reviewed annually. This year, the establishment benefit values for canola, lentils, chickpeas and corn have increased,” Harpauer said.
“Canola is now $70 per acre. Large green lentils are $50 per acre and red lentils are $30 per acre. Large Kabuli chickpeas are $65 per acre and Small Kabuli chickpeas are $45 per acre. Corn is $95 per acre.”
Ray Orb of the Saskatchewan Association of Rural Municipalities said some changes to the program are welcome.
“We’re actually quite pleased about some of the enhancements, in particular, with the vegetable pilot program. We think that will be good to create more diversity into the province’s agriculture industry,” he said.
“In general, we’re favourable, and always have been favourable, to uplifting and adjusting some of the weather-based insurance programs. And we think that will help our livestock producers, as far as protecting their forage crops and things like that.”
The deadline to select insured crops and coverage levels or make additional changes to crop insurance contracts is March 31, 2021. Producers need to also apply, reinstate or cancel by this date.
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