Manitoba's crop insurance coverage is expected to increase for the upcoming crop year, Canada's Minister of Agriculture and Agri-Food Marie-Claude Bibeau and Manitoba Agriculture Minister Derek Johnson announced today.
The ministers released details indicating that 2023 dollar values are higher than 2022 dollar values for most crops insured in Manitoba. Total AgriInsurance coverage for 2023 is expected to reach $5.3 billion on 9.45 million acres. This means the average coverage is estimated at $560 per acre, compared to $499 per acre in 2022. This increase in coverage reflects the expectation of continued strength in commodity prices into the 2023 crop year.
In the case of extreme weather events that impact production such as drought or excess moisture, the AgriInsurance program provides predictable coverage that producers can depend on when planning for the upcoming growing season.
Additional program enhancements for the 2023 growing season include:
- expanding the Contract Price Option (CPO) to be available for most crops (including the corresponding pedigreed and organic crop if applicable), except for potatoes, vegetables, and forages. Established in 2020, CPO was previously only available for canola and field peas. This expansion of CPO will provide flexibility for producers in allowing them to blend the price from their contracted production with the base AgriInsurance dollar value (weighted by production) to better reflect expected market prices.
- amending premium rate calculations so that AgriInsurance premium rates will not exceed a 10% increase year-over-year. This change will lessen the impact of disastrous growing seasons on premium rate increases.
