Manitoba Agricultural Services Corporation (MASC) is notifying producers that the Hay Disaster Benefit (HDB) has been activated and associated payments will begin shortly. The estimated payout for 2019 is in excess of $5 million on approximately 1,500 claims.
To trigger an HDB payment, at least 20 per cent of producers with Select Hay or Basic Hay Insurance must harvest less than 50 per cent of their long-term average hay yield. For 2019, producers will receive an additional $40 for each tonne below their Select Hay or Basic Hay Insurance coverage.
There is no cost to producers for this benefit. Premiums are cost-shared 60 per cent by the Government of Canada and 40 per cent by the Province of Manitoba under the Canadian Agricultural Partnership.
“We recognize it has been a difficult harvest for many farmers in Manitoba. The Hay Disaster Benefit is one of the ways our Government is supporting farmers to protect their businesses against weather-related risks, such as this forage shortfall.”
– The Honourable Marie-Claude Bibeau, federal Minister of Agriculture and Agri-Food
“The Hay Disaster Benefit (HDB) is a complimentary feature of the AgriInsurance program that compensates insured forage producers for the increased cost of hay and transportation when there is a severe provincial forage shortfall. All producers who are enrolled in the Select Hay Insurance and Basic Hay Insurance programs are automatically enrolled in the HDB.”
– Blaine Pedersen, Manitoba Minister of Agriculture and Resource Development
The HDB was first introduced in 2014 as part of a revamped forage insurance offering. Payments were made to producers for the first time in 2018.
All insured hay types (alfalfa, alfalfa grass mixtures, grasses, sweet clover and coarse hay) are eligible.
The five-year, $3-billion Canadian Agricultural Partnership includes $2 billion for cost-shared strategic initiatives delivered by the provinces and territories and $1 billion for federal programs and services.