Crop insurance claims are expected to reach record levels in Manitoba this year, with projections they could top $300 million.
Large tracts of cropland weren’t seeded in the eastern and Interlake regions of the province this year because of excess moisture. Many of the crops planted in those areas were drowned or performed poorly.
“We’re getting claims on just about every kind of crop in that part of the country,” said Herb Sulkers, vice-president of insurance operations for the Manitoba Agricultural Services Corp.
“It’s definitely going to be a record year.”
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Growers in southwestern Manitoba also suffered crop damage because of a torrential rain that swept through after their crops were planted. Crops in lower lying areas were washed or drowned by the heavy downpour.
The previous record for crop insurance payouts in Manitoba was set last year. Producers were paid $298 million, mainly for damages arising from excess moisture and frost.
Despite having back-to-back years with record claims, Sulkers said the Manitoba crop insurance program is “in pretty good shape.”
The program entered 2005 with a reserve of $230 million. That reserve will be drawn down by about $100 million this year to help cover all the claims.
Because of the record insurance claims, producers might see small price increases on their premiums for next year. However, Sulkers said crop insurance will remain affordable.
The Manitoba Agricultural Services Corp. was formed earlier this year through a merging of Manitoba Crop Insurance and the Manitoba Agricultural Credit Corp.
