WINNIPEG – Bernie von Tettenborn wants to protect the bottom line on his 2,900-acre farm near Camrose, Alta. from the curve balls Mother Nature throws his way.
Yet last year, for the first time, he decided not to buy crop insurance.
He was still smarting from 1994, when he had his worst crop in 25 years but did not receive a crop insurance payment.
“The idea of an insurance program is to cover the disasters,” von Tettenborn said. “And when we had the disaster, (crop insurance) didn’t do any good.”
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It has been dry for six years in von Tettenborn’s part of the province and that sent the rolling historic average yield down.
Poor crops have caused his coverage to plummet. Last year, it would have cost him roughly $15,000 to guarantee coverage for nine bushels per acre on canola, 22 bu. on wheat, and about 30 bu. on barley.
So von Tettenborn bought hail insurance from a private company and crossed his fingers for good growing conditions. The gamble paid off.
Federal and provincial governments are so worried about the numbers of farmers who, like von Tettenborn, are dropping out of crop insurance that they set up a committee to examine how to make crop insurance more affordable and effective for farmers and governments alike.
Report in April
It is to report recommendations to federal and provincial agriculture ministers in early April.
Dreams of more coverage for less money seem far-fetched to some but many farmers believe the present crop insurance system is stretched to its limits.
“I think I’m capped out, really,” said Richard Douglas, who farms near Eatonia, Sask. Last year, he paid about $10,000 to insure 850 acres of mustard, canaryseed and wheat to 70 percent of its value.
Bert Lowry said he would not pay much more or settle for much less coverage than he receives now on his farm near Neepawa, Man. But he hopes he can continue to buy it.
“I think it’s peace of mind,” he said. “Disasters can happen and a guy just can’t afford to lose a crop.”
Lowry remembers getting caught without insurance in the 1988 drought. Emergency support programs broke his fall, but Lowry said farmers cannot count on
special payments anymore.
“We had a lot of government money thrown our way on an ad hoc basis, but from what they’re telling us, and I certainly would believe it, that’s over.”
The issue facing farmers and governments is how to devise a reliable, affordable alternative.
