January 20, 2015
Governments Announce Improvements To Manitoba's Agriinsurance Program
Brandon – Manitoba farmers will benefit from improvements to the AgriInsurance program, Federal Agriculture Minister Gerry Ritz and Manitoba Agriculture, Food and Rural Development Minister Ron Kostyshyn announced today.
“AgriInsurance is the first line of response for producers dealing with weather related damages to their crops,” said Agriculture Minister Gerry Ritz. “We continue to work closely with Manitoba to ensure producers have access to predictable and bankable programming designed to meet their needs.”
For 2015, AgriInsurance premium rates are down by an average of 11 per cent, as compared to 2014. With probable 10-year average yields increasing, participating producers will, on average, be paying lower premium for higher coverage this year.
“Every year, Manitoba’s insurance and risk management programs are adjusted based on feedback from producers and other stakeholders,” said Minister Kostyshyn, who announced the changes at Ag Days in Brandon. “These changes help provide a strong risk management framework for crop and livestock producers, young farmers and those affected by flooding and other challenges.”
Improvements to AgriInsurance, which is administered by the Manitoba Agricultural Services Corporation, include:
- offering higher coverage for pedigreed soybeans, which reflects the additional cost of producing pedigreed seed. Soybeans are expected to be the largest pedigreed seed crop in Manitoba this year;
- increasing the guaranteed grade for oil sunflowers to #1 Canada (from #2 Canada), which better reflects the average grade of Manitoba production; and
- changing the escalating deductible for coarse hay to a flat 20 per cent for the Harvest Flood Option, which was one of the new program features introduced for forage producers in 2014.
The ministers noted the following initiatives will continue in 2015:
- the new suite of forage insurance programs continue to provide producers with enhanced benefits and options at a reduced premium cost;
- the Western Livestock Price Insurance Program provides Manitoba cattle and hog producers with an opportunity to protect against market risks;
- the Pasture Days Insurance Pilot Program continues to be offered to 90 producers to test the concept of providing coverage for situations where cattle have to be removed from pasture earlier than normal due to weather conditions; and
- work continues on developing a hog mortality insurance program.
With more than 8,600 Manitoba farm operations enrolled in AgriInsurance this year, it is anticipated that total insured coverage (liability) will be over $2.3 billion. 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.
AgriInsurance is a Business Risk Management program supported through Growing Forward 2. More information on AgriInsurance and Wildlife Damage Compensation is available at local Manitoba Agricultural Services Corporation offices or online at www.masc.mb.ca.
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