Saskatchewan farmers who received crop insurance payments in the last two years shouldn’t be penalized with premium surcharges, the opposition said last week.
Agriculture critic Donna Harpauer said farmers have been hit hard enough by the drought. She wants the government to review the surcharge policy.
“It does seem like a very unfair extra charge.”
She said farmers shouldn’t be penalized for something out of their control. The drought affected a large area, yet not all producers will have to pay a surcharge.
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Agriculture minister Clay Serby said the surcharge is an insurance principle at work.
“This isn’t something that crop insurance has decided somewhere out of the blue,” he said.
“It would apply to house insurance. It applies to commercial insurance. It applies to your vehicle insurance. The more times you claim on your insurance policy, the larger your rate is.”
Harpauer raised the issue of a Wakaw farmer who will see his insurance rates jump 85 percent, partly due to a 26 percent surcharge.
In a letter to Serby, farmer Rick Yakimchuk noted he received payments of $27,500 for losses in 2001 and $88,600 in 2002.
“Being covered for a total of $88,600 last year cost me $6,134 for the premium,” he wrote.
“This year, with an increase on my policy of 85 percent, it would cost $11,348 for approximately the same amount of coverage as last year on the same crop and acreage.”
Serby said the number of farmers faced with surcharges is likely small. He also said farmers earn premium discounts up to 50 percent during years when they don’t make claims.
