An agronomist examines a soybean crop. (Twitter/@SaskPulse)

By Alice McFarlane

Crop Insurance

Soybeans, irrigation featured in 2020 crop insurance

Feb 25, 2020 | 4:04 PM

There are changes coming to the province’s crop insurance program.

Saskatchewan Agriculture minister David Marit announced this morning insurance coverage at $224 per acre is decreasing $6 from last year. It’s a 14 per cent decrease in premium and roughly a 2 per cent reduction in coverage costs.

Premiums will decrease to an average of $7.40 per acre, down from $8.61.

Other adjustments featured soybeans, organics, irrigation and vegetable production.

Marit said the changes come as a result of Saskatchewan Crop Insurance Corporation (SCIC) consultation with producer groups and farm organizations based on what is best for farmers.

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“SCIC has done a very good job working with the industry leaders on any changes we want to make. I think that’s important for us to reiterate to the public. We really do engage with organizations to say here’s some changes we’re looking at and how do you feel about it? Are they good? Are there some things we could make better?” Marit said.

Saskatchewan Association of Rural Municipalities director Norm Nordgulen said his organization has a good working relationship with the provincial government.

“I think the farmers will positively look at the premium reduction of $1.21 per acre on average. The coverage of to $224 is still pretty reasonable. I work closely with crop insurance. Shawn [Jaques] and his folks come to us quite often and they do consult with us.” Nordgulen said.

For 2020, the insurable region for soybeans is expanding to the entire province. Coverage is based on a soybean producer’s individual insured history instead of the regional average. Their experience discount or surcharge will be applied to premiums for soybean crops.

Saskatchewan Irrigation Projects Association Chair Aaron Gray said irrigators can now make their decision on crop rotation based on their operations and not be penalized.

“Adding soybeans to this has been fantastic because soybeans are a very good complementary crop rotation with irrigation, you don’t get penalized for trying to make more money,” he said. “We find over the years, communication we’ve had with SCIC on new programs coming up has been very, very good and very open. We’re excited for the new year to come.”

Saskatchewan Stock Growers Association director Aaron Huber said his group appreciates what government is doing for producers.

“It’s was a tough, difficult time and an odd year where it was so dry in the spring and then so wet in the fall,” Huber said. “Sometimes you need to get that helping hand, so we appreciate it very much.”

The insured value of vegetable crops has been updated to better reflect the production costs. To allow for a longer growing season before harvest begins, fall cut-off dates have been extended. Asparagus has been added as an eligible crop.

Premiums and coverage are updated using information from organic customers. Previously, the organic option was based on a combination of conventional and organic crop experience. With this change, organic insured prices are higher and premium rates are lower. Average coverage is also lower, realigning to current organic risk. The impact of this change will depend upon each producer’s production experience.

Sask Organics President Will Oddie said in the past organic yield and pricing was largely based on estimates.

“SCIC has now amassed enough information to form sound data. There may be some people, in some cases, who will be adversely affected. But, by and large, I think we’re collecting mature organic yields, and organic credits because we’ve been doing a lot of price discovery which helps crop insurance establish accurate information. There’s certainly some very significant premium on a per product basis.”

SCIC President and CEO Shawn Jaques said today’s announcement will give some opportunity to producers with additional crops endorsed and possibly have some new customers signing up.

For those customers looking to return to the program, SCIC is making an administrative change. Producers now have up to seven years to rejoin the program to continue with their previous premium discount, surcharge and yields.

“This is a rule that SCIC had in place for a number of years. Prior to today’s announcement, it was three years. For a producer to exit the program, for whatever reason, and they were out longer than three years, if they rejoin our program, they had to start as a zero per cent discount, “Jaques said. “When we took a look at this, we felt that we were able to extend that period of allowing producers to come back into the program.”

Jaques said he’s confident the producers who decide to come back haven’t changed their farming practices. He said this could encourage customers to come back.

“We get about 60 producers a year, I think was the average, that join our program and so I think this change will be viewed positively because it’ll allow people to re-enter our program and still maintain those discounts they had.”

Announced last year, private insurance revenue will be excluded when calculating a producer’s program year margin. It increases the potential for an AgriStability benefit as private insurance revenue is not factored into the producer’s allowable income. Premiums for private insurance will remain included as allowable expenses.

Jaques said March 31 is the deadline to select insured crops and coverage levels or make additional changes to crop insurance contracts. Producers need to also apply, reinstate or cancel by the end of March.

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alice.mcfarlane@jpbg.ca

On Twitter:@AliceMcF