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Insurance to include yield trends

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Published: February 26, 2009

Saskatchewan farmers wanted yield trending as part of their crop insurance program, and they got it.

But after analyzing 17 years worth of data, the Saskatchewan Crop Insurance Corp. could include only four crops.

Yield trending is the practice of adjusting historical yields where technology, either through production practices or varieties, has resulted in a significant change.

General manager Cam Swan said the statistical formula used to analyze yields in the province from 1990 to 2007 didn’t find many differences for most crops.

“There just was not a strong trend,” he said.

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Canola, identity preserved canola, winter wheat and fall rye all showed the most significant positive trends in all areas of the province and yields will move up.

The average yield coverage will increase 11 percent for both canola types and 9.5 percent for wheat and rye.

Swan said the corporation will continue its analysis to see if other crops can be included.

Producers had also asked for yield cushioning to limit the impact of a bad year on an individual farmer’s coverage level. The corporation will operate a pilot project this year to see how it works. It will target 2,000 customers with consecutive low yields from 2005 through 2007.

Most farmers with yields below 70 percent of their long-term individual average in all three years will see a six- to 10-percent yield increase, while those in that situation in the latter two years will see a four- to eight-percent increase.

Participants will also watch to see how the new in-season price option works. This will offer coverage based on actual market prices rather than forecasts.

Prices will be set using a six-month average from September 2009 to February 2010. Interim and final payments will be made.

Premiums for this option and the variable price option will now be established in March.

About the author

Karen Briere

Karen Briere

Karen Briere grew up in Canora, Sask. where her family had a grain and cattle operation. She has a degree in journalism from the University of Regina and has spent more than 30 years covering agriculture from the Western Producer’s Regina bureau.

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