With coverage levels rising, so too will Saskatchewan crop insurance premiums in 2022.
Due to higher commodity prices and increased yield coverage, average coverage will increase by 48% to a record $405/acre, according to a joint federal-provincial release Monday. With increase in coverage, the average total premium will climb to $12.05/acre, up from $8.59 in 2021.
However, the average premium rate is lower, due to strong production in 2020. (As there is a one-year lag when calculating premium rates, drought-ravaged 2021 production will not be used until 2023).
Among the changes in this year’s insurance is an adjustment that helps recognize the impact of extreme heat on forage and corn yields.
Last year, producers faced a provincial-wide drought, resulting in reduced available moisture to pasture and hay land. In response to experiencing extreme heat temperatures and dry growing conditions, a heat adjustment factor was added to rainfall data used in claim calculations for the Forage and Corn Rainfall Insurance programs. When temperatures reach 31 degrees C or higher, precipitation amounts are now reduced in the 'monthly percent of normal' calculation.
Meanwhile, with the Contract Price Option, producers can use their contract prices to blend with the crop Insurance base price for higher coverage. This allows producers to establish an insured price reflective of the actual market value they would receive for their production. New for 2022, this price option is available on all commercial crops. New crops added include fababeans, Khorasan wheat, fall and spring rye, sunflowers, triticale, winter wheat, extra strong wheat, hard white wheat, all classes of chickpeas, caraway, irrigated dry beans and soybeans.
Producers can select the crops they want covered under the Contract Price Option by March 31, 2022, and submit their contracts to Saskatchewan Crop Insurance Corporation (SCIC) by May 31.
March 31 is the deadline for producers to apply, reinstate or cancel their crop insurance contract. Producers must select insured crops and coverage levels or make additional changes by this date. Producers can speak to their local SCIC office to make any changes or coverage will remain the same as the previous year.
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