Winnipeg, (MarketsFarm) – Compensation for poor Manitoba forage crops in 2019 will soon be coming to insured producers as Manitoba Agricultural Services Corporation (MASC) has activated the Hay Disaster Benefit (HDB). The estimated payout for 2019 is in excess of $5 million on approximately 1,500 claims, announced Agriculture and Agri-Food Canada Minister Marie-Claude Bibeau and Manitoba Agriculture and Resource Development Minister Blaine Pedersen in a news release Jan. 10.
“We recognize it has been a difficult harvest for many farmers in Manitoba,” said Bibeau in the release. “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 HDB compensates insured forage producers for the increased cost of hay and transportation when there is a severe provincial forage shortfall. All producers who are enrolled in the Select Hay Insurance and Basic Hay Insurance programs are automatically enrolled in the HDB.
The HDB was first introduced in 2014 as part of a revamped forage insurance offering. Payments were made to producers for the first time in 2018. All insured hay types (alfalfa, alfalfa grass mixtures, grasses, sweet clover and coarse hay) are eligible.
To trigger an HDB 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, according to the release.