REGINA — Saskatchewan’s new crop insurance program will include three options designed to expand coverage and reduce premium costs.
Spot-loss hail, multiple-crop insurance and a diversification option for minor crops were all announced by finance minister Janice MacKinnon in last week’s provincial budget.
Farm leaders said they were encouraged by the changes, while opposition politicians reserved judgment until they received full details.
Saskatchewan Wheat Pool director Ken Elder said the reintroduction of spot-loss hail coverage was positive.
“An awful lot of people have dropped out of crop insurance the last few years and the major reason is they felt the premium they had to pay for the coverage they received wasn’t good value,” he said.
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Warren Jolly, a Western Canadian Wheat Growers director from Mossbank, said if premiums are significantly reduced through “basketing” insurance, farmers will be happy.
“I still think there’s probably going to be a lot of people dropping out of crop insurance this year,” he said.
The critics comment
Tory agriculture critic Bill Neudorf said he is still concerned about premiums because the changes are optional.
“What is the ultimate cost to the farmer going to be,” he asked. “First of all you get into crop insurance, you pay a basic price and then what?”
Glen McPherson, Liberal MLA from Shaunavon, said he wanted to know why Saskatchewan Crop Insurance Corp.’s $600-million debt wasn’t addressed.
He also noted that the budget calls for the province to contribute less in premiums.
“If the province pays less and the farmer pays less, that tells me something isn’t being covered,” he said.
Saskatchewan Crop Insurance Corp. senior executive manager Henry Schappert said multiple-crop averaging, which has also been referred to as whole-farm crop insurance, will be beneficial to those wanting “good bottom line coverage” at lower premiums.
The basketing approach means that a good barley yield will offset a poor wheat yield, for example.
“Only when they’re both the same (condition) will we be in a pay position,” he said.
Three changes made
Schappert said the spot-loss hail program differs in three ways from the previous program, which was cut in 1992. The program is now optional, and any payments made for spot loss will be deducted from subsequent yield loss claims, Schappert said. Before, two claims could be made.
The third difference is that producers who choose spot-loss hail only get a maximum yield coverage of 70 percent. Those who don’t choose the option receive 80 percent coverage.
Schappert also said the diversification option for minor crops does not mean these crops are insurable. Instead, it provides for expanded coverage.
A farmer who traditionally grows 1,000 acres of wheat but decides to seed 200 acres to coriander, for example, will be able to have all 1,000 acres insured instead of only 800.
“He would pay the premium and get the indemnity as if it was 1,000 acres of wheat.”
Schappert said 35 information meetings are being scheduled starting Feb. 28 to explain details to farmers.
The selling period will start in early March, giving farmers two months to make decisions instead of the usual three weeks.
