The federal and provincial governments have announced details of the 2023 Crop Insurance Program.
On Feb. 27, federal Agriculture and Agri-Food Minister Marie-Claude Bibeau and Saskatchewan Agriculture Minister David Marit said Saskatchewan farmers continue to get the coverage they can count on with the enhancements.
“We encourage farmers to use risk management tools to help them minimize the economic effects of production losses caused by natural hazards,” said Bibeau.
In a release, Marit acknowledged the drive and resilience Saskatchewan farmers and ranchers continue to show year after year.
“We had some rough years and while last year was a step forward, there were still very dry areas in the West side of the province and Crop Insurance responded with quick action on claims,” Marit said. “That is why it’s important for producers to evaluate their current risk management options and ensure they have the right coverage for their farm.”
According to a release, the average coverage for 2023 is at a record-high level of $446 per acre, due to increased commodity prices and yield coverage. With this increased coverage and higher insured prices, the average total premium is $14.79 per acre, an increase from $12.05 in 2022.
“Starting in 2023, Crop Insurance customers will see an Individual Premium calculated for each crop they insure,” read the release. “Premiums are individualized based on a producer’s personal claim history compared to the area risk zone. This adjustment (increase or decrease) from the base premium rate is calculated for each customer, and independently for each insured crop. This means a producer’s claim on one crop does not impact their premium for a different crop. Premium Discounts and Surcharges previously used in the Crop Insurance Program are discontinued.”
Saskatchewan Crop Insurance Corporation (SCIC) is increasing the maximum dollar coverage levels of the Unseeded Acreage feature while the minimum coverage remains the same at $50 per acre, additional Unseeded Acreage coverage levels are increasing to $75, $100 and $125 per acre. In addition, unseeded acreage coverage will also be included to help offset costs associated with summer fallow acres too wet to seed due to excessive spring moisture.
“We appreciate the ongoing commitment to Saskatchewan agriculture,” Saskatchewan Rural Municipality Association (SARM) President Ray Orb said. “The increases to unseeded acres coverage stands out as an example of SCIC listening and incorporating the concerns of our members.”
AgriStability is part of SCIC’s programs that provides further coverage against uncontrollable events like rising input costs or falling commodity prices. According to the release, during the 2023 program year, the AgriStability compensation rate will increase from 70 per cent to 80 per cent to better support farmers in times of need. This will allow AgriStability to be more responsive when a farm experiences a large margin decline, providing additional compensation to address the operation’s financial shortfall.
Producers have until March 31, 2023, to apply, reinstate, cancel or make changes to Crop Insurance contracts and they must also select insured crops and coverage levels by this date. If no changes are made, a producer’s coverage will remain the same as last year. To make changes or discuss the different features and coverage levels, producers can contact their local SCIC office or call 1-888-935-0000.