2007 crop insurance deadline approaching

Source: Saskatchewan Agriculture and Food

The deadline for producers to apply for 2007 Crop Insurance is fast approaching. Applications, changes, or cancellations must be made by March 31.

This year’s crop insurance program has some new options and a significant increase in coverage for producers.

Saskatchewan Crop Insurance Corporation (SCIC) General Manager Stan Benjamin says one new feature of the program is the Variable Price Option. Benjamin says the idea is to provide customers with an opportunity to receive compensation that reflects current market values.

“The price option that we pay for any bushels that are lost is set in July, rather than the price that we offer as a fixed price option, which is based on a January forecast,” he said. “So the intent is for producers who want to have the flexibility that if they do lose a bushel, they can be paid a more current price.”

Saskatchewan Agriculture and Food Minister Mark Wartman announced the details of the program last month.

“The 2007 Crop Insurance program has been improved and enhanced in many ways,” he said. “With this year’s program, Saskatchewan Crop Insurance continues its commitment to developing and delivering insurance products and services that meet the needs of Saskatchewan’s diverse agriculture industry.”

That diversity includes the introduction of a Wild Rice Insurance Pilot Program, developed to support the expanding number of wild rice producers in northern Saskatchewan.

Benjamin says the new program is a recognition that the wild rice crop is growing in significance, with more than 55,000 permitted acres of production and more than 100 wild rice producers.

“For the last number of years, wild rice producers in northern Saskatchewan have been contacting us about having access to the production risk management that farmers in the south do. So we have developed an area-based program. There will be an area production value set, and if there is less harvested production than the production guarantee in that region, then all those who signed up for the program will be paid a loss,” Benjamin said.

“This is the type of program that we usually develop when we first bring a crop into the program, because we are inexperienced with insuring the crop, or do not have sufficient data to provide insurance on an individual basis.”

The 2007 Crop Insurance program has also added coverage for identity-preserved canola, expanded the Crop Averaging Pilot Program to the entire province, and expanded the establishment benefit to cover gopher damage.

For the second year in a row, program debt has been reduced, improving from a deficit of $627 million in 2004 to $340 million going into 2007.

Benjamin says the bottom line for producers is that coverage will increase while premium rates will decrease.

“The biggest news is that we have a significant increase in coverage, from an average of $64 per acre in 2006 to $87 in 2007, and premium rates are going down,” explained Benjamin.

Program and contract information is also available in person at any Crop Insurance customer service office, online at www.saskcropinsurance.com, or by calling 1-888-935-0000.

For more information, contact:

Stan Benjamin, General Manager
Saskatchewan Crop Insurance Corporation
Phone: (306) 728-7287