Many young Alberta farmers are unable to get their own crop insurance.
Agriculture Financial Services Corp. (AFSC) administration of crop insurance is making it very difficult for many young and beginner farmers to insure their crops.
If a young farmer happens to live too close to farming parents, there is a strong possibility that his application for crop insurance will be rejected.
Young and beginning farmers need the availability of independent crop insurance in order to protect their business in the event of crop loss or damage.
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Here are some key points to consider:
AFSC is the only supplier available to farmers for comprehensive crop insurance;
• a farmer must demonstrate that he is “legally, financially, and operationally independent”;
• approval of crop insurance is based on a long list of specific criteria to determine if the farmer is independent. According to the AFSC representative we spoke to, the criteria list is “absolutely not” available to the public. This makes it very difficult for the farmer to appeal an application rejection;
• crop insurance or AgriStability is required in order to qualify for Canadian Wheat Board and/or Canadian Canola Growers Association cash advances. It is no secret that AgriStability is months if not years behind in issuing payment to farmers on that program. A young or beginning farmer is not likely to be in a position to wait. Crop insurance claims, on the other hand, are handled much more expediently;
• although AFSC representatives seem very reluctant to suggest this option, a farmer’s son (or daughter) who is farming independently may apply for crop insurance as an “associate.” Approval to be insured as an “associate” is up to the discretion of AFSC;
• a farmer’s son may also apply to have his crop insured under his parent’s policy. However, in the event of the son’s crop loss or damage, the parent and son will have their crop acres combined and averaged, which could result in no available claim for the son.
Many farmers have assumed that they have no choice other than to combine father/son crop insurance contracts. This is not necessarily so.
Young farmers who are operating their own farm operation, even those with some assistance from their parents, could very well qualify for their own policy.
Farmers just need to step up to the plate and vocalize their concerns by discussing this with their AFSC representatives and by calling upper level AFSC personnel and the Alberta minister of agriculture.
Farmers do have a voice, and making change is possible. And remember, it’s election time.
Tim and Henrik Bruun,Millet, Alta.
