Melville, Saskatchewan – Agriculture and Agri-Food Canada - Today, federal Minister of Agriculture and Agri-Food Marie-Claude Bibeau and Saskatchewan Finance Minister Donna Harpauer announced enhancements to the 2021 Crop Insurance Program. This year, Crop Insurance coverage will reach a record level due to higher commodity prices and increased yield coverage.
Saskatchewan Crop Insurance Corporation (SCIC) continues to provide high coverage as we enter a new growing season. Coverage will reach a record level of $273 per acre due to higher commodity prices and increased yield coverage, up from $224 in 2020. This represents a 22 per cent increase in coverage. The average premium cost per dollar of coverage continues to decline.
There was a 42 per cent reduction in average premium cost per dollar of coverage over the last 10 years. This includes a 20 per cent reduction directly resulting from the strong financial position of the program. However, due to the increased coverage for 2021, the average premium for producers will be higher than in 2020. The average premium cost will be $8.59, up from $7.40.
Establishment benefit values are reviewed annually. This year, the establishment benefit values for canola, lentils, chickpeas and corn have increased. Canola is now $70 per acre. Large Green lentils are $50 per acre and Red lentils are $30 per acre. Large Kabuli chickpeas are $65 per acre and Small Kabuli chickpeas are $45 per acre. Corn is $95 per acre.
New in 2021, producers growing tame hay will have additional options when insuring their hay acres. Crop Insurance customers now have the choice to insure their tame hay acres under the Forage Rainfall Insurance Program (FRIP) or the Multi-Peril Crop Insurance Program. Coverage options can be customized for each farming operation. Under FRIP, payments will be calculated based on rainfall levels, instead of overall yields.
Forage producers will also see an increase in Native Forage Establishment Benefit coverage. The Native Forage Establishment Benefit provides coverage on newly seeded native forage acres. The coverage is increasing from $75 to $200. Other Forage Establishment Benefit prices seeing an increase includes tame hay to $90 per acre and sweetclover to $65 per acre. Forage producers are encouraged to review available coverage options through SCIC’s Forage Option and Weather-Based Programs.
SCIC has been working with the Saskatchewan Vegetable Growers’ Association to develop programming for the growing commercial vegetable sector in Saskatchewan. The impact of a crop failure on vegetable operations could be significant as a relatively small number of acres has extremely high value. New for 2021, the Commercial Vegetable Program is a pilot program that will provide stand-alone coverage for damage to cabbage and pumpkin crops. A minimum of eight acres is required to participate in the Program. SCIC will continue to explore insurance coverage options for the Commercial Vegetable Program.
Saskatchewan has also become a significant producer of chickpeas. SCIC is updating the base grade for large-seeded Kabuli chickpeas to reflect current production and marketing patterns. This increases the insured price and the quality coverage.
Source : Canada.ca