After an extremely difficult year for Saskatchewan farmers, the provincial and federal governments have unveiled changes for the 2022 crop insurance program.
Average coverage will reach a record level of $405 per acre — up from $273 per acre in 2021 — due to higher commodity prices and increased yield coverage. The 48 per cent increase in coverage leads to an increase in the average total premium to $12.05 per acre — up from $8.59 in 2021.
However, the average premium rate stays lower thanks to a strong 2020 crop and the 2021 crop not being reflected in the premium rate calculation until 2023.
Saskatchewan’s $2.4 billion crop insurance payout in 2021 was the largest in the province’s history.
“The drought of 2021 demonstrated the value in risk management programs, such as Saskatchewan’s Crop Insurance, to ensure producers have the best coverage to meet their needs. I encourage producers to continue to subscribe to government programs and private insurance that will protect their crops against ongoing climate-related challenges,” Federal Agriculture and Agri-Food Minister Marie-Claude Bibeau said.
“The resilience and determination that prairie producers have shown through this incredibly challenging year is an inspiration to all Canadians.”
Addressing the hot, dry conditions seen in 2021, this year’s program features a heat adjustment factor that reduces precipitation calculations when temperatures reach 31 C or higher.
“We appreciate SCIC responding to producers’ needs to make coverage levels more reflective of increased forage costs and to adjust for moisture loss due to extreme heat,” Saskatchewan Stock Growers Association President Kelcy Elford said.
Also new for 2022 is the option for the contract price option tool to be available for all commercial crops, including fababeans, Khorasan wheat, fall and spring rye, sunflowers, triticale, winter wheat, extra strong wheat, hard white wheat, all classes of chickpeas, caraway, irrigated dry beans and soybeans.
The tool gives producers higher coverage by blending contract prices and crop insurance base prices.
“It could be an attractive option for pulse growers with the new inclusion of chickpeas, soybeans and fababeans,” Saskatchewan Pulse Growers Chair Shaun Dyrland said.
“We appreciate the changes to these programs for 2022-23,” SARM president Ray Orb said.
The program is supported by the Business Risk Management program under the Canadian Agricultural Partnership. Premiums for most programs are shared 40 per cent by participating producers, 36 per cent by the Government of Canada and 24 per cent by the Government of Saskatchewan.
