CALGARY — A group of Alberta producers is seeking a court injunction to delay signing of the 1994 Gross Revenue Insurance Plan contracts.
Producers for Fair Insurance say this year’s version is not legal because farmers weren’t told of changes to the plan until March 23, even though the GRIP contract says they must be advised of revisions by March 1.
The new program increases premiums and lowers the amount of coverage farmers could receive if claims are made.
In meetings with Bob Splane, head of Alberta Hail and Crop Insurance Corporation, the producer group heard that the board of directors was asked to consider changing the signup deadline from April 30 to May 31.
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“This is an issue that affects every policy holder in Alberta,” said Bob Klassen of the PFI group.
Avoid expensive trial
The group wants to negotiate with the crop insurance corporation and together ask the courts to decide whether the new contract is legal without going through a lengthy and expensive trial.
“If we could just simply go into court and get an interpretation of what the contract means, what is and isn’t allowed, what are the responsibilities of the policy holders and what is the obligation of the corporation, we could quite possibly have that sorted out by the end of May,” said Klassen, who farms near Ferintosh.
If the 1994 contract is ruled invalid, producers say the 1993 contract should go into effect.
The group is also advising farmers who feel they must sign the contract to include the statement, “Signed without prejudice to my (our) right to challenge the validity of the 1994 contract.”
Unifarm president Roy Jensen said farmers told his organization that they’re considering dropping out of the program even before the issue goes to court. Contract holders must give three years notice before dropping out or else repay benefits received. Others say they won’t sign the new contract until the issue over changes is resolved.
“GRIP paid out a lot of dollars…to a lot of people. Some of us didn’t really gain a lot out of GRIP. Now it’s costing us money because the coverage is so low there’s no way we can collect,” said Jensen.
The PFI group, Unifarm and the Alberta Soft Wheat Commission are also pursuing the controversy over the $19 million shortfall in payouts for the 1992 crop, which was downgraded to feed wheat. The soft wheat commission has requested a meeting with federal agriculture minister Ralph Goodale to see if the federal government can help recover some of the shortfall.
