Don Bromley appeared upbeat after learning of a new safeguard for farmers who cannot plant a crop due to excess moisture.
The Manitoba government last week announced its new excess moisture insurance program as part of basic Manitoba Crop Insurance coverage. The program will pay $50 per acre to producers unable to seed a crop by June 20 due to flooding or excess moisture.
“I think a lot of farmers are going to be happy to here this,” said Bromley, a Brandon area farmer who sat in on a news conference announcing the program.
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“Whether $50 an acre is going to be adequate, I’m not sure, but it’s going to help.”
The program was prompted by the glut of moisture last spring that prevented Manitoba farmers from seeding a million acres of land.
The new program replaces the optional unseeded land insurance previously available through Manitoba Crop Insurance.
Producers who buy crop insurance will be covered automatically by the excess moisture insurance at no additional premium. The cost of the premiums will be shared by the federal and provincial government through a 60-40 split.
Manitoba agriculture minister Rosann Wowchuk said the latest change should prevent some of the uncertainty that farmers faced last year in regions plagued by too much moisture.
The Manitoba government approved an ad hoc program in 1999 that paid $50 per unseeded acre to farmers unable to plant fields saturated with moisture. That program has already cost the province $56 million.
“We all hope there isn’t going to be a disaster like there was last year,” said Wowchuk, who farms in Manitoba’s Swan River Valley region.
That sentiment was shared by Bromley, who was unable to seed almost a third of his land last year. Much of his crop was seeded late and half of it was struck by frost.
“I don’t think there’s anyone around that remembers a year like this past year. Hopefully we won’t have to go through this again.”
During last week’s announcement, Wowchuk said she will continue pressing Ottawa for the kind of disaster assistance that was extended to farmers swamped by the 1997 Red River Valley flood. The absence of that kind of assistance remains a sore spot for farmers in western Manitoba.
“We haven’t given up on it. We believe the federal government did not fulfil their responsibility and we want to be sure that happens.”
Excess moisture insurance details
- All acres in Manitoba intended for seeding are eligible, with the exception of bush, pasture, forages, fall rye and winter wheat.
- A five percent deductible is applied to all eligible acres to reduce the number of claims for low-lying areas and potholes that normally occur on most farms. The deductible will increase by five percent each year after a claim is paid. Over time, that will set a normal deductible for each farm. The deductible will shrink by five percent for each year there is no claim, but never drop below a five percent minimum.
- A “zero deductible” option is available to producers wanting increased coverage. Producers must pay half the premium cost (35 cents per acre) on all acres. The cost of the other half will be shared by the federal and provincial governments on a 50-50 basis.
At least 10 acres must be affected before a claim will be paid under either the basic or zero deductible options.
