Rising crop insurance premiums won’t sit well with Saskatchewan producers, an opposition politician said last week.
Premiums are to rise more than 50 percent overall and individuals could see their costs rise significantly above that, depending on their claim history, where they farm and what they plant.
Saskatchewan Party agriculture critic Donna Harpauer said the increases come at the worst possible time – after farmers battled two years of drought.
She said while premiums go up by half, coverage is rising only 14 percent. Premiums have nearly tripled since 2001.
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“I foresee that the uptake will be a lot less,” she told reporters after agriculture minister Clay Serby announced details of this year’s program.
Last year, about 74 percent of seeded land was insured by Saskatchewan Crop Insurance Corp. That was the same as 2001 and just above the five-year average of 68 percent.
Improved soil moisture conditions in most parts of the province since last fall have made farmers optimistic the drought won’t be repeated.
But Harpauer worries that they may not even consider crop insurance because of its cost.
“This year, if there’s moisture, I think farmers are going to take that risk,” she said.
Serby said the government wants to make premiums more stable over time by not allowing them to drop as much when times are good.
Some producers have new options.
Last year seven dry bean producers insured 632 acres through a pilot program in the Rosthern and Redvers areas. This year, coverage is offered in 92 rural municipalities from the Rosthern area and south through the black soil zone on the eastern side of the province.
Prices have also risen 20-40 percent for organic crops. Insurance general manager Doug Matthies said the prices were updated to reflect steadily increasing organic acreage.
