Alberta forage crop insurance will be based on rainfall, not grass
growth, announced the Agriculture Financial Services Corp.
“We want to get away from the traditional problems of how much grass
grew or didn’t grow,” said Merle Jacobson of Lacombe.
Forage insurance used to be based on how much grass grew under cages
across the province, but farmers were not satisfied that the amount
clipped in the cages represented growth in their pasture.
Under the new Lack of Moisture Insurance Pilot Program, farmers can buy
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insurance against a lack of rain based on nearby Environment Canada
weather sites. An insurance payment is triggered if rain during the
growing season is less than 80 percent of normal for the area.
“Rain has a big impact on whether grass grows,” said Jacobson.
In Saskatchewan, a similar precipitation-based pilot program last year
was popular with farmers, said Doug Matthies, general manager of
Saskatchewan Crop Insurance in Melville.
“It was very popular, straightforward and simple,” said Matthies. By
mid-August, cheques were written to 174 of the 336 farmers on the
program who made claims.
Farmers liked the program because it was tied to Environment Canada
weather stations, an objective, independent source, he said.
The Saskatchewan government’s budget will determine if the program
continues, is dropped or expanded this year, said Matthies.
The farmers’ share of the $826,500 premiums was $230,000. The program
paid out $623,000 in claims. Saskatchewan has no permanent insurance
program for grazing acres.
Alberta has also expanded its Satellite Imagery Insurance Pilot
Program. Satellite imagery is used to calculate the pasture condition
for a particular township. The program has been expanded to include
most of southeastern Alberta from Hanna to Foremost.
Changes have also been made to the Forage (Hay) Insurance program to
compensate farmers for production losses from natural perils.
The deadline for all three programs is Feb. 28.
The Alberta government will also announce changes to its crop insurance
program by the end of the month.
