Saskatchewan farmers are getting more crop insurance coverage but they’re going to have to pay for it.
Premiums are rising an average of $2 per acre for 2008 as coverage levels go up to reflect increased commodity prices.
The average coverage level will be $128 per acre, compared to $86 last year.
Agriculture minister Bob Bjornerud said the province will budget an extra $25 million this year to pay for its share of increased premium costs. That takes the province’s contribution to $128 million.
The federal and provincial governments pay 60 percent of the premium and producers pay the remainder.
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About 26 million acres, or 69 percent of seeded acres, were insured through the corporation last year.
The deadline to sign up or make changes for 2008 is March 31.
Glenn Blakley, president of the Agricultural Producers Association of Saskatchewan, said farmers have long asked for better coverage.
“You have to accept along with that the increase in premiums,” he said.
The 2008 program incorporates last year’s pilot program on gopher damage into the establishment benefit and yield-loss components of the multi-peril program for all farmers. More than $1 million in damage was paid out last year in the pilot area.
New this year is a pilot program on separate production guarantees for irrigated and dryland acres of the same crop.
Roger Pederson, chair of the Saskatchewan Irrigation Projects Association, said the irrigators have long lobbied for the split.
“Irrigated acres are pretty much a given,” he said. “You’re always subsidizing your dryland acres.”
Individual alfalfa seed yield-loss insurance is also available for the first time. In the past, coverage has been based on area average yields.
NDP agriculture critic Pat Atkinson said she was surprised the Saskatchewan Party government hadn’t reinstated spot-loss hail insurance, since it had called for that in the past.
She also wondered why the review of the entire crop insurance program has not yet been done. She said the government promised an immediate review.
“I thought they knew exactly what they wanted to do,” Atkinson said.
Bjornerud said the guidelines for a review should be established by the end of March and the results available by the end of September.
