Manitoba Agriculture is advising dollar values for many crops insured in Manitoba are mostly higher than the previous year and have reached record levels in many cases, Agriculture Minister Derek Johnson announced today.
Total AgriInsurance coverage for 2022 is expected to exceed $4.66 billion on 9.8 million acres. This means the average coverage is estimated at $463 per acre, compared to $321 per acre in 2021. This substantial increase in coverage reflects the expectation of continued strength in commodity prices into the 2022 crop year.
“With a widespread drought throughout the province, 2021 was a difficult year for many Manitoba farmers,” said Johnson. “We’re proud to increase our support to the agricultural sector as we value its strength as a driving force to our economy.”
AgriInsurance premium rates have increased by about 10 per cent due to the reduced program surplus as a result of record payments in 2021. Premiums per acre will also be higher for most crops due to the increased coverage.
Based on industry and producer feedback, several other program enhancements for 2022 include:
- The introduction of a new Polycrop Establishment Insurance that will provide financial assistance to Manitoba farmers if an eligible polycrop fails to establish. Polycrops are a mixture of two or more annual crops other than greenfeed that are grown simultaneously on the same acreage for the purpose of livestock feed, soil restoration or green manure.
- An increase in the indemnity level for table and processing potatoes destroyed prior to harvest from 85 per cent to 90 per cent, resulting in a better reflection of current potato harvesting costs.
- The vegetable acreage loss insurance has been updated to reduce the minimum required acres for the program to one-half from three. This will provide smaller commercial producers with an effective risk management tool.
The AgriInsurance program is a risk management tool for Manitoba farmers to protect against production shortfalls and quality losses caused by natural perils. The program is administered by Manitoba Agricultural Services Corporation (MASC).
Under the Canadian Agricultural Partnership, AgriInsurance premiums for most programs are shared 40 per cent by participating producers, 36 per cent by the Government of Canada and 24 per cent by the Manitoba government. Administrative expenses are paid 60 per cent by Canada and 40 per cent by Manitoba.
The hail insurance program, administered by MASC outside the scope of the Canadian Agricultural Partnership, will also see increased coverage levels for 2022. Maximum hail dollar coverage is increasing to $400 per acre from $300 per acre, based on higher expected gross revenue for most crops. The 2022 premium rates are the same for most risk areas and expected coverage will increase to $1.5 billion from $1.1 billion.
Source : news.gov.mb.ca