Government Of Canada And Saskatchewan Announce Enhancements To The 2021 Crop Insurance Program

Released on February 23, 2021

Today, Federal Minister of Agriculture and Agri-Food Marie-Claude Bibeau and Saskatchewan Deputy Premier and Finance Minister Donna Harpauer announced enhancements to the 2021 Crop Insurance Program.  This year, Crop Insurance coverage will reach a record level due to higher commodity prices and increased yield coverage.

“Farmers across Saskatchewan continue to step up despite all the challenges thrown their way during the COVID-19 pandemic,” Bibeau said. “These improvements to the Crop Insurance Program give Saskatchewan farmers more coverage they can count on. We will continue working with our provincial counterparts to ensure farmers have the risk management tools to help their stability and growth.”

“For over 60 years, the Crop Insurance Program has supported Saskatchewan producers with reliable coverage and exceptional customer service,” Harpauer said.  “We are committed to providing producers with the insurance programs they need and the enhancements announced today build upon the current suite of programs.”

Saskatchewan Crop Insurance Corporation (SCIC) continues to provide high coverage as we enter a new growing season.  Coverage will reach a record level of $273 per acre due to higher commodity prices and increased yield coverage, up from $224 in 2020.  This represents a 22 per cent increase in coverage.  The average premium cost per dollar of coverage continues to decline.

There was a 42 per cent reduction in average premium cost per dollar of coverage over the last 10 years.  This includes a 20 per cent reduction directly resulting from the strong financial position of the program.  However, due to the increased coverage for 2021, the average premium for producers will be higher than in 2020.  The average premium per acre will be $8.59, up from $7.40.

Establishment benefit values are reviewed annually.  This year, the establishment benefit values for canola, lentils, chickpeas and corn have increased. Canola is now $70 per acre.  Large Green lentils are $50 per acre and Red lentils are $30 per acre. Large Kabuli chickpeas are $65 per acre and Small Kabuli chickpeas are $45 per acre.  Corn is $95 per acre.

New in 2021, producers growing tame hay will have additional options when insuring their hay acres. Crop Insurance customers now have the choice to insure their tame hay acres under the Forage Rainfall Insurance Program (FRIP) or the Multi-Peril Crop Insurance Program.  Coverage options can be customized for each farming operation.  Under FRIP, payments will be calculated based on rainfall levels, instead of overall yields.

“Saskatchewan cattle producers face a lot of risks. It is good to see the programs they can access through SCIC continue to evolve,” Saskatchewan Cattlemen’s Association Chair Arnold Balicki said.  “Adding tame hay to the Forage Rainfall Insurance Program and extending the calf coverage deadline and hours of operation for Livestock Price Insurance are all positive. I encourage cattle producers to look into SCIC’s programs as there were many improvements in recent years.”

Forage producers will also see an increase in Native Forage Establishment Benefit coverage.  The Native Forage Establishment Benefit provides coverage on newly seeded native forage acres.  The coverage is increasing from $75 to $200.  Other Forage Establishment Benefit prices seeing an increase includes tame hay to $90 per acre and sweetclover to $65 per acre.  Forage producers are encouraged to review available coverage options through SCIC's Forage Option and Weather-Based Programs.

SCIC has been working with the Saskatchewan Vegetable Growers' Association to develop programming for the growing commercial vegetable sector in Saskatchewan.  The impact of a crop failure on vegetable operations could be significant as a relatively small number of acres has extremely high value.  New for 2021, the Commercial Vegetable Program is a pilot program that will provide stand-alone coverage for damage to cabbage and pumpkin crops.  A minimum of eight acres is required to participate in the Program.  SCIC will continue to explore insurance coverage options for the Commercial Vegetable Program. 

Saskatchewan has also become a significant producer of chickpeas.  SCIC is updating the base grade for large-seeded Kabuli chickpeas to reflect current production and marketing patterns. This increases the insured price and the quality coverage.

“Saskatchewan Pulse Growers welcomes this change to the Kabuli chickpea base grade calculation, as it better reflects the larger sizes grown by Saskatchewan producers,” Saskatchewan Pulse Growers Board Chair Shaun Dyrland said. “This change should increase coverage levels for most of the 300 chickpea producers in the province.”

SCIC encourages producers to review their business risk management plans regularly.  SCIC has 21 local customer service offices across the province with knowledgeable staff available to discuss the insurance options best suited for each farming operation. March 31, 2021, is the deadline to select insured crops and coverage levels or make additional changes to Crop Insurance contracts.  Producers need to also apply, reinstate or cancel by this date.  For more information about the 2021 insurance options, call 1-888-935-0000 or visit www.scic.ca.

Crop Insurance is a Business Risk Management program supported through the Canadian Agricultural Partnership.  Under Crop Insurance, 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.  Administrative expenses are fully funded by governments, 60 per cent by Canada and 40 per cent by Saskatchewan.

-30-

For more information, contact:

Whitney Treasure
Saskatchewan Crop Insurance Corporation
Melville
Phone: 639-398-2275
Email: whitney.treasure@scic.ca