The Governments of Canada and Saskatchewan are reporting a record-breaking level of payments under the Saskatchewan Crop Insurance Corporation (SCIC) Forage Rainfall Insurance Program.
Total 2023 program indemnities paid have totalled $60.4 million across SCIC’s 17 forage risk zones.
A forage rainfall claim is triggered when the precipitation at a selected weather station is below 80 per cent of normal, with the liability payout increasing by 2.5 per cent for each percentage point below that 80 per cent threshold. The Forage Rainfall Insurance Program is available on native and tame acres for hay or grazing as risk managmenet tool in the event of below average seasonal rainfall.
While conditions have varied across Saskatchewan with scattered distribution of moisture, the 2023 growing season saw generally drier than average conditions in several areas of the province. Payments are most heavily concentrated in the southwest and west central regions of the province.
Minister of Agriculture and Agri-Food Canada Lawrence MacAulay says this record high levels of payments to producers is a testament to the need for, and value of, the AgriInsurance Program.
“While producers face ongoing risks related to climate change and extreme weather events, the support of Business Risk Management programs provides some level of stability against income and product loss,” says MacAulay.
Saskatchewan Agriculture Minister David Marit adds that this is additional cash flow to participating crop insurance customers that really need it during the dry times.
“We are seeing this program respond to producers needs where precipitation shortages result in feed and pasture shortfalls,” Marit explains. “There is additional support for our livestock producers, as over 90 per cent of insured acres enrolled in the Forage Rainfall Insurance Program received a payment.”
FRIP premiums are cost-shared, with producers covering 40 per cent and the federal and provincial governments contributing 60 per cent.