Saskatchewan crop insurance moves to individual premium program

by

Crop insurance holders in Saskatchewan will see a change in how premiums are calculated starting this year.

Agriculture and Agri-Food Minister Marie-Claude Bibeau and Saskatchewan Agriculture Minister David Marit announced on Monday that farmers who purchase crop insurance from Saskatchewan Crop Insurance Corporation (SCIC) will see an individual premium calculated for each crop they insure. Premiums are individualized, based on a producer’s personal claim history compared to the area risk zone. This adjustment (which could either be an increase or decrease) from the base premium rate is calculated for each customer, and independently for each crop.

This means a producer’s claim on one crop will not impact their premium for a different crop. Premium discounts and surcharges previously used in the crop insurance program will be discontinued.

“It’s always good to review the program to ensure it continues to serve farmers and remains efficient. It is important for farmers to open their insurance packages, review their information and learn about their coverage options,” says SaskCanola chair Keith Fournier, in the press release shared by both the federal and provincial governments.

Also effective for 2023, SCIC is increasing the maximum dollar coverage levels for unseeded acres. 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.

“The increases to unseeded acres coverage stands out as an example of SCIC listening and incorporating the concerns of our members,” notes Ray Orb, president of the Saskatchewan Rural Municipality Association.

In making the announcement, Marit says he wants to acknowledge the drive and resilience Saskatchewan farmers and ranchers continue to show year after year.

“We’ve 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 โ€” and SCIC responded with quick action on claims. 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,” he says, in a recent release.

The average coverage for 2023 through SCIC is projected at a record level of $446 per acre, with the average premium rising from $12.05 per acre in 2022 to $14.79 per acre in 2023.

March 31, 2023, is the deadline to apply, reinstate, cancel, or make changes to SCIC contracts. Producers 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.

Crop insurance is offered as part of the business risk management suite of programs under the federal-provincial-territorial Canadian Agricultural Partnership. Premiums for most commodities are covered as follows: 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 the federal and provincial governments โ€” 60 per cent by Canada and 40 per cent by Saskatchewan.

Wake up with RealAgriculture

Subscribe to our daily newsletters to keep you up-to-date with our latest coverage every morning.

Wake up with RealAgriculture

Please register to read and comment.

 

Register for a RealAgriculture account to manage your Shortcut menu instead of the default.

Register