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Agrimart: Increases to Saskatchewan Crop Insurance Coverage and Premiums in 2022

The average coverage for 2022 will be 405 dollars per acre, a 48% increase from 273 dollars per acre in 2021
Crop Fields supplied by Gov of SK June 2021

The recent Saskatchewan Crop Insurance Corporation Annual Program Announcement, took place on Canada’s Ag Day on Feb 22, 2022. 

Saskatchewan Minister of Agriculture, David Marit shared that 2021 was a record-breaking year for SCIC claims. The SCIC received around 30,000 claims in 2021, compared with the five-year average of about 7,800 claims. This year was a record for the number of SCIC claims since its inception.

The total value of the payout for crop insurance claims in 2021 was approximately $2.4 billion. 

“It is now more important than ever for farmers and ranchers to evaluate their current insurance, to ensure that they have the right coverage for their operation.” 

Marit shared that seventy-five percent of seeded acres in the province are insured, and producers must keep doing so in the future. 

The average coverage for 2022 will be 405 dollars per acre, a 48% increase from 273 dollars per acre in 2021. This jump is driven by higher commodity prices and increased yield coverages. 

This decision also results in a higher premium per acre at $12.05 per acre, a 40% increase from $8.59 per acre last year. The average premium rate remaining lower due to the robust production of 2020. 

“As there is a one-year lag when calculating premium rates, 2021 production is not used until 2023.” Explained Marit. 

In order to best reflect the impact of severe heat on forage yields, SCIC has adjusted its forage program, including the calculation of precipitation relating to extreme heat. The monthly precipitation percent of normal accounting is reduced when the temperature reaches 31°C. 

For 2022 coverage for forage acres has increased significantly due to current feed prices. Producers will be able to choose from different pricing options.

“So for July, let’s say there are five days that reach 31 degrees or higher. Then we’re going to take five millimetres off the total for calculating the monthly precipitation. It’s really to acknowledge that when we’re experiencing that extreme heat, all the moisture that doesn’t fall is certainly not available for forage yield,”said Acting President and CEO Jeff Morrow.

Producers are urged to consider investing in the Agri Stability program, another risk mitigation program, with payments currently set at sixteen cents an acre or $1.16 per animal. Apr 30 is the deadline to enroll in the 2022 program.