Today, Federal Agriculture and Agri-Food Minister Marie-Claude Bibeau and Saskatchewan Agriculture Minister David Marit announced details of the 2022 Crop Insurance Program.
Saskatchewan Crop Insurance Corporation (SCIC) continues to provide relevant pricing and coverage levels. Average coverage will reach a record level of $405 per acre, due to higher commodity prices and increased yield coverage. Due to this year's 48 per cent increase in coverage, the average total premium is higher, at $12.05 per acre, compared to $8.59 in 2021. The average premium rate is lower, due to the strong production in 2020. As there is a one-year lag when calculating premium rates, 2021 production is not used until 2023.
Last year, producers faced a provincial-wide drought, resulting in reduced available moisture to pasture and hay land. In response to experiencing extreme heat temperatures and dry growing conditions, a heat adjustment factor was added to rainfall data used in claim calculations for the Forage and Corn Rainfall Insurance programs. When temperatures reach 31 degrees Celsius or higher, precipitation amounts are now reduced in the 'monthly per cent of normal' calculation. This adjustment helps recognize the impact of extreme heat on forage and corn yields.
With the Contract Price Option, producers can use their contract prices to blend with the Crop Insurance base price for higher coverage. This allows producers to establish an insured price reflective of the actual market value they would receive for their production. New for 2022, this price option is available on all commercial crops. New crops added include 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. Producers can 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.
