AAFC News Release
Feb. 22, 2012

RECORD COVERAGE FOR 2012 CROP INSURANCE PROGRAM

Record Budget Includes Enhanced Unseeded Acreage Benefit

 
The 2012 Crop Insurance Program will include an Unseeded Acreage Benefit of up to $100 per eligible acre, as well as another year of record funding and record coverage levels.

"We have worked closely with the Province of Saskatchewan to expand Crop Insurance coverage for unseedable acres," said Member of Parliament Garry Breitkreuz (Yorkton-Melville) on behalf of federal Agriculture Minister Gerry Ritz. "With stronger and broader coverage, Crop Insurance is now better positioned to help producers manage the risk of excess moisture and flooding. We encourage producers to enroll in Crop Insurance so they are best positioned for the coming growing season."

"We are working to improve the Crop Insurance program for producers by providing record funding, record coverage levels, an improved Unseeded Acreage Benefit and numerous other program enhancements," Saskatchewan Agriculture Minister Bob Bjornerud said. "With this year's program improvements, as well as those we have made over the previous four years, I encourage all producers to consider enrolling in Crop Insurance in 2012."
The 2012 Provincial Crop Insurance budget is at a record high of $177 million. Coverage levels are increasing to a record high $174 per acre, on average. This is nearly double the average coverage level offered to producers under the previous government in 2007. Since 2008, Crop Insurance has introduced the five largest budgets and highest coverage levels in the program's history.

New in 2012, producers will have the option to supplement the Unseeded Acreage Benefit of $70 per eligible acre by purchasing either $15 or $30 per acre in additional coverage. In addition, the Unseeded Acreage Benefit calculation has also been simplified.

Crop Insurance will now also provide coverage to commercial fruit growers for the replacement of Saskatoon bushes, dwarf sour cherry and haskap fruit trees.
Yield cushioning is also being extended to include forage crops. This feature limits the impact of consecutive poor growing seasons, such as excess moisture or drought, on a producer's coverage level.

In 2012 establishment benefit values will also increase from $20 to $25 per acre for oats, canary seed, fall rye, spring rye and triticale.

Overall, this year's Crop Insurance Program will provide more options and improved coverage for producers. As a result, there will be no AgriRecovery program for weather-related disasters in 2012.

"The Saskatchewan Association of Rural Municipalities (SARM) is pleased Crop Insurance continues to make program improvements," SARM President David Marit said. "The increased coverage, enhanced Unseeded Acreage Benefit and other improvements will help producers manage their risk."

"Saskatchewan oat growers will benefit from these continued program improvements, including increased coverage and establishment benefit values, as well as further enhancements to the Unseeded Acreage Benefit," Saskatchewan Oat Development Commission Chairman Dwayne Anderson said.

"We are pleased Crop Insurance continues to improve its programs to address the needs of producers," SaskCanola Chair Brett Halstead said. "Record coverage, improved unseeded acreage options and other program improvements will benefit canola producers and our entire industry."

"We welcome these Crop Insurance improvements, especially the introduction of yield cushioning for forage crops, which will benefit forage producers whose production is affected by extreme weather, such as excess moisture or drought," Saskatchewan Forage Council President Aaron Ivey said.

The deadline for customers to apply for, make changes to, or cancel their Crop Insurance contract is March 31, 2012. Detailed program and contract information is available at any Crop Insurance office, at www.saskcropinsurance.com or by calling 1-888-935-0000.

Under the Growing Forward Agricultural Policy Framework, Crop Insurance is cost-shared on a 60:40 basis between the Government of Canada and Government of Saskatchewan.

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