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By Alice McFarlane

Crop Insurance Coverage

Saskatchewan crop insurance program adjustments

Feb 27, 2023 | 4:08 PM

MELFORT, Sask. – There are some changes coming for Saskatchewan Crop Insurance customers.

Agriculture Minister David Marit revealed the details for the 2023 program year. He said customers 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 means a producer’s claim on one crop does not impact their premium for a different crop,” Marit said. “Producers will see these individual premiums be more reflective of what they are experiencing on their own farm.”

Marit said the premium discounts and surcharges previously used in the Crop Insurance Program are discontinued.

Producers will see a 7.2 per cent increase in insured prices in 2023 as compared to 2022.

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For example, the insured price for hard red spring wheat is $10.21 per bushel compared to last year’s price of $8.71. Canola increases to $18.83 per bushel. Last year it was $17.01 per bushel. Large green lentils will be 40 cents a pound compared to 36 cents last year.

SCIC Acting President and CEO Jeff Morrow said the average coverage for 2023 is at a record-high level of $446 per acre, while the average total premium is $14.79 per acre, an increase from $12.05 in 2022.

“The coverage increase is driven almost exclusively by those commodity price increases. So that has an impact on the premium cost as well, because as coverage goes up, so does the premium cost per acre,” Morrow said.

The average coverage for 2023 is at a record-high level of $446 per acre, due to increased commodity prices and yield coverage.

Morrow said the 2021 loss experience totalled $2.5 billion. He said 2022 claims are still being finalized, but they expect payouts to be above $1 billion with most claims coming from the west-central and southwest parts of the province.

The maximum dollar coverage levels of the Unseeded Acreage component will increase. 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. That coverage offsets some of the costs associated with summer fallow acres too wet to seed due to excessive spring moisture.

Another change for the 2023 program year is the Agristability compensation rate will increase from 70 per cent to 80 per cent.

SCIC offers a full suite of business risk management programs. This also includes Livestock Price Insurance and the Wildlife Damage Compensation and Prevention Program.

The deadline for farmers and ranchers to make changes to crop insurance must be done by March 31, otherwise a producers’ coverage will remain the same as last year.

Moe information is available at scic.ca or by calling 1-888-935-0000.

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alice.mcfarlane@pattisonmedia.com

On Twitter: @farmnewsNOW