Estimated $1.8B in insurance claims to be paid to producers for 2023

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An estimated $1.85 billion in insurance claims is expected to be paid to producers following Saskatchewan’s 2023 growing season as the province looks to make program enhancements for 2024.

The Saskatchewan Crop Insurance Corporation (SCIC) received approximately 14,200 claims last year, said Minister of Agriculture David Marit as he announced changes to the 2024 Crop Insurance Program in Melville on Tuesday morning.

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“We recognize with significant challenges from weather conditions in recent years, these programs are the producers first line of defence,” he said.

The program does come at a cost to taxpayers but “we obviously feel that it’s a very important program for the agriculture industry,” Marit said, adding the feds are picking up “a significant portion of that 60 per cent” but didn’t specifically say what the split was between Saskatchewan and Ottawa.

The SCIC had reserves in previous years but conditions have whittled those down, Marit noted.

“Hopefully we can see some better conditions over the growing season and we can build those reserves back up again,” Saskatchewan’s Agriculture Minister said.

Recent snowfall is welcomed by farmers in the province as the presence and threat of drought looms over the prairies again this year. Marit said he is optimistic but knows even if things look OK in the spring, moisture is needed throughout the growing process.

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In the last three years, programs through SCIC have provided more than $6 billion in insurance claims and benefits to producers and have “largely responded to weather-related production losses.”

This year’s enhancements “build on SCIC’s existing suite of Business Risk Management programs that have demonstrated success in providing support to producers impacted by drought conditions,” said a news release.

In 2024 though the average coverage rate will decrease to $389 per acre “largely due to an average decrease in insured commodity prices.” Marit said coverage and premiums from SCIC are individualized and reflect a producer’s operation. Premiums on that coverage are set to be $12.21 per acre.

The reason for the decrease is that commodity prices are “softening” which comes from a January price forecast from Agriculture and AgriFood Canada, according to Jeff Morrow, president and CEO of SCIC.

Last year, SCIC offered about $440 an acre for coverage with premiums set at $14.50 an acre. Included in the estimated $1.85 billion in claims, was “just over $1.1 billion” in SCIC premiums, said Morrow.

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SCIC is funded 40 per cent by producers and a combined 60 per cent by the province and federal government.

Several new enhancements were also announced for the mixed forage rainfall insurance program, which “protects any forage feed crop not previously covered” and includes greenfield and silage. Coverage levels are also increasing for the forage rainfall insurance program.

And additional 38 weather stations have been added across Saskatchewan, for a new total of 224. Marit said most crop land is within 30 kilometres of a station.

Last week SCIC found some producers were paying a higher premium than they should have. Marit said SCIC has been working “to resolve the issue.”

Morrow said it is a “small minority of crops that are affected.”

alsalloum@postedia.com

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