Federal Agriculture Minister Gerry Ritz and Saskatchewan Agriculture Minister Lyle Stewart announced details of the 2015 Crop Insurance Program which includes ongoing enhancements, giving producers more choice and flexibility to build an insurance package suited to the needs of their operation.
“Our government is committed to providing producers the tools they need to get the job done,” said Ritz. “Bankable, predictable and flexible insurance programs such as this are key to mitigating risks and remaining competitive in the long-term.”
“Every farming operation is unique and the Saskatchewan Crop Insurance Corporation continues to grow the range of choices available for the province’s farmers and ranchers,” Stewart said. “Producers are able to custom fit their crop insurance coverage to the needs of their operation.”
The Crop Insurance budget for 2015 is $154 million. On average ,coverage levels are increasing to $183 per acre, up from $162 per acre in 2014. Premiums are going down to an average of $7.06 per acre from $7.47 in 2014. The improved coverage is a result of better forecasted crop prices and increased long-term yields. The lower premium is a result of lower rates to provide insurance coverage to producers.
Three changes have been made to the Unseeded Acreage (USA) feature this year. First, new coverage levels of $50, $70, $85 and $100 per acre have been created, giving producers more choice about coverage for land that may be too wet to seed due to excess spring moisture. In past years, producers had a minimum coverage of $70 per eligible acre and could purchase additional coverage if they wanted. Secondly, a change has been made to how the USA premium is shown on a producer’s statement. The USA premium will now be shown separately from the producer’s Crop Insurance premium. In the past, these were bundled together. Finally, the USA premium will be charged on total acres normally seeded and not just acres insured through Crop Insurance.
As in previous years, options for crop insurance coverage will continue. Producers can select a range of coverage levels, prices and program features to develop custom-fit insurance to meet the needs of their operation. Producers are encouraged to visit their local Crop Insurance office and discuss the options and choices available to ensure their coverage meets their needs.
Other enhancements to the 2015 Crop Insurance Program include adding hemp as an insurable crop to meet growing demand for this newly emerging crop and increasing the base grade for oats to a #2CW from a #3CW to reflect the improved quality of oats grown in the province.
The deadline for customers to apply for, make changes to or cancel a Crop Insurance contract is March 31, 2015. Producers who prefer to do their business online are encouraged to use CropConnect where they can review their coverage selections and use the online tools to see what coverage best fits the needs of the operation.
Detailed program and contract information is also available at any local 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.
