GOVERNMENTS UPDATE FARMERS ON RISK MANAGEMENT PROGRAMS FOR 2017
BRANDON—Manitoba farmers will continue to benefit from comprehensive coverage provided through AgriInsurance and the Western Livestock Price Insurance Program in the upcoming season, Federal Agriculture Minister Lawrence MacAulay and Manitoba Agriculture Minister Ralph Eichler announced at Ag Days here today.
“Governments continue to work together to ensure producers have access to an effective suite of business risk management programs that offer protection against a broad range of farm business risks,” said MacAulay. “Taking proactive steps to protect the farm against the financial impact of extreme weather and price fluctuations is a key strategy for success.”
The ministers noted total AgriInsurance coverage for 2017 is expected to exceed $2.6 billion on 9.6 million acres in Manitoba, the second-highest level of coverage on record. AgriInsurance coverage is increasing on average by seven per cent, while premium rates are down by an average of four per cent, as compared to last year.
“Through AgriInsurance, we continue to offer a comprehensive risk management program for Manitoba’s farmers, which is effective whether they are just starting out or have had years of experience,” said Eichler. “To ensure the long-term growth of our province’s agriculture sector, AgriInsurance is an essential tool, as it provides reliable protection against the unpredictable challenges of weather and other production-related risks.”
More than 8,400 farms are enrolled in AgriInsurance. Manitoba has the highest level of AgriInsurance participation in Canada, covering over 90 per cent of annual crop acres. The total governments’ share of AgriInsurance premiums for 2017-2018 is expected to be $136.3 million.
Under AgriInsurance, premiums for most programs are shared 40 per cent by participating producers, 36 per cent by the Government of Canada and 24 per cent by the Manitoba government. Administrative expenses are paid 60 per cent by Canada and 40 per cent by Manitoba.
The Western Livestock Price Insurance Program (WLPIP), which was expanded to include Manitoba cattle and hog producers in 2014, provides protection against unexpected price declines. Due to lower cattle prices in 2016, WLPIP paid out $1.7 million to producers, with 73 per cent of insured calves qualifying for a payment. The average payment for each calf that qualified for an indemnity was $94. Under WLPIP, administrative expenses are paid 60 per cent by Canada and 40 per cent by Manitoba. Premiums are paid by participating producers.
AgriInsurance and WLPIP are risk management programs supported through Growing Forward 2, the five-year federal-provincial-territorial policy framework, and are administered by the Manitoba Agricultural Services Corporation (MASC).
For more information about AgriInsurance, WLPIP or other programs, visit a local MASC office or www.masc.mb.ca.