Saskatchewan crop insurance reaching $405 per acre in 2022

A record $405 in average coverage per acre has been announced for 2022 by Saskatchewan Crop Insurance Corporation (SCIC).

SCIC said that is a 48 per cent increase in coverage, mainly due to higher commodity prices and increased yield coverage.

As a result, the average premium will rise to $12.05, an increase from $8.59 in 2021.

"Reflected through the historically high claim year, the challenges Saskatchewan farmers and ranchers faced during the 2021 growing season reinforces the importance of our Business Risk Management Programs," Agriculture Minister David Marit said in a release.

Marit said in the announcement on Tuesday morning, there were 30,000 claims main in 2021, compared to an average 7,800 post-harvest annual claims in the past five years.

In 2021, producers faced a provincial-wide drought, resulting in reduced available moisture to pasture and hay land.

“Combines with hail storms, pests and extreme winds in some areas of the province creating further damage, Saskatchewan producers faced a very difficult season,” said Marit.

Thanks to extreme heat and very dry growing conditions, a heat adjustment factor has been added to rainfall data used when calculating a claim.

When temperatures climb to at least 31 degrees Celsius, precipitation amounts will now be reduced in the monthly per cent of normal calculation.

“For every day that our weather stations record a temperature of 31 degrees celsius or higher we will subtract one millimetre of precipitation when we’re calculating the monthly total,” explained Jeff Morrow, acting CEO and president of SCIC, “so for July, let’s say there were five days that reached 31 or higher then we will take five millimetres off the total for calculating the monthly precipitation.”

Marit said there has been an increase in participation in weather-based programs from forage and livestock producers.

Producers can now purchase a calf policy through the Livestock Price Insurance program, which provides protection against unexpected drops in market prices in cattle and hogs.

“It’s critical for these tools to be in place for agriculture to be successful in this province and we applaud the announcement today,” said Kelcy Elford, president of the Saskatchewan Stock Growers Association, during the announcement.

Producers must select the crops they want covered under the Contract Price Option by March 31, 2022, and submit their contracts to SCIC by May 31, 2022.

New for 2022, the price option is available on all commercial crops.

Producers who are looking to make changes can do so by contacting their local SCIC office