Hay Disaster Benefit to pay out $5 million in Manitoba

The government program will compensate producers for poor forage crops produced in the province last year

WINNIPEG (MarketsFarm) — Compensation for poor Manitoba forage crops in 2019 will soon be coming to insured producers now that Manitoba Agricultural Services Corp. has activated the Hay Disaster Benefit.

The estimated payout for 2019 is more than $5 million on about 1,500 claims, federal Agriculture Minister Marie-Claude Bibeau and Manitoba Agriculture Minister Blaine Pedersen announced Jan. 10.

“We recognize it has been a difficult harvest for many farmers in Manitoba,” said Bibeau. “The Hay Disaster Benefit is one of the ways our government is supporting farmers to protect their businesses against weather-related risks, such as this forage shortfall.”

As part of the AgriInsurance program, the Hay Disaster Benefit compensates insured forage producers for the increased cost of hay and transportation when there is a severe provincial forage shortfall.

All producers enrolled in the Select Hay Insurance and Basic Hay Insurance programs are automatically enrolled in the Hay Disaster Benefit. All insured hay types (alfalfa, alfalfa-grass mixtures, grasses, sweet clover and coarse hay) are eligible.

To trigger a Hay Disaster Benefit payment, at least 20 percent of producers with Select Hay or Basic Hay Insurance must harvest less than 50 percent of their long-term average hay yield.

For 2019, producers will receive an additional $40 for each tonne below their Select Hay or Basic Hay Insurance coverage.

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