|2013 Sask Crop Insurance|
|Written by Neil Billinger|
|Monday, 11 February 2013 15:45|
Farmers can look forward to record coverage levels and a double-digit premium increase this year.
Saskatchewan Crop Insurance says premiums will rise about 12 per cent to an average of $9.98 per acre. The average producer premium was $8.91 last year. Individual producer premiums and coverage levels will vary based on crop, location, production and experience discount.
Average coverage levels are $194 per acre, up from $174 in 2012.
Growers are being told for the second consecutive year that there will no ad-hoc AgriRecovery program for weather-related disasters. That likely prompted more farmers to purchase crop insurance last year when 77 per cent of seeded acres were insured---the highest since 1992.
Hard red spring wheat, hard white spring wheat and oats will be eligible for yield trending in 2013. Yield trending recognizes agronomic advancements and increases a producer's historical yields, which improves the coverage. Yields will increase nine percent for hard red spring wheat, 7.8 per cent for hard white spring wheat and 13 per cent for oats.
The Establishment Benefit for canola and identity-preserved canola will increase to $60 an acre from the former $50 an acre. Peas will move to $40 an acre from $35. It is paid to the producer for crops that are seeded and fail to establish by June 20.
Soybeans will be insurable over a wider area of the province. Farmers in southeast Saskatchewan have been able to insure soybeans for three years. Soybean acres are increasing as new varieties become available. About 55 per cent of land will be eligible for soybean coverage, which has extended to many central and western regions. You can see the eligibility map by clicking this link:
There will also be an expansion of the insurable region for corn with four weather stations added to the Corn Heat Unit Insurance Program. They will be located at Swift Current, Estevan, Yorkton and Virden, Manitoba. That means 95 per cent of the corn seeded in Saskatchewan in 2012 will be eligible for insurance.
One other change will see Sask Crop Insurance Corporation purchase private reinsurance to help stabilize the program in case of a large claim year. Purchasing private reinsurance was a recommendation from the 2008 Crop Insurance Review.
"Back in 2008 when it was (first) looked at, liability was a little over $2 billion," said Shawn Jaques, Sask Crop Insurance President and CEO. "Liability is projected to be closer to $5 billion this year. That is why we thought we should take a look at it and help share in some of that risk with the private industry. So in the event of a large claim year, we would be able to stabilize the premiums for producers in the future."
The deadline for customers to apply for, make change to or cancel a Crop Insurance contract is March 31.
|Last Updated on Monday, 11 February 2013 18:12|