Federal Agriculture Minister Gerry Ritz and Saskatchewan Agriculture Minister Lyle Stewart recently announced details of the 2013 Crop Insurance Program, which includes record funding and record coverage levels.
The 2013 Crop Insurance budget is a record $198 million. On average, coverage levels are also increasing to a record $194 per acre up from $174 per acre in 2012, and more than double the coverage offered in 2007. Since 2008, the provincial government has continually increased funding for crop insurance to address the needs of farmers and ranchers.
New in 2013, hard red spring wheat and oats will be eligible for yield trending. Yield trending recognizes agronomic advancements and increases a producer’s historical yields, which improves the current coverage available on those crops. The yield for hard red spring wheat will increase nine per cent and oats yield will increase 13 per cent, on average.
The 2013 Crop Insurance Program also includes increased Establishment Benefit values for field peas, canola and identity-preserved canola; expansion of the insurable region for soybeans; and expansion of the insurable region for corn.
Crop Insurance enhancements made in previous years will also continue in 2013. These include up to $100 per eligible acre Unseeded Acreage Benefit, yield cushioning and 100 per cent wildlife damage compensation. As a result of record coverage and continued crop insurance enhancements, there will be no ad-hoc AgriRecovery Program for weather-related disasters in 2013.
In 2013, for the first time ever, private reinsurance will be purchased for the Crop Insurance Program to stabilize premiums, which will help protect producers in the event of a large claim year. Purchasing private reinsurance was a recommendation from the 2008 Crop Insurance Review.
The deadline for customers to apply for, make changes to or cancel a Crop Insurance contract is March 31, 2013. Detailed program and contract information is also available at any Crop Insurance office, at www.saskcropinsurance.com or by calling 1-888-935-0000.
Under Crop Insurance, 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 Government of Saskatchewan. Administrative expenses are fully-funded by governments, 60 per cent by Canada and 40 per cent by Saskatchewan.