News Releases

News Release - Canada and Manitoba

February 11, 2021


As the 2021 AgriInsurance contract will soon be released to Manitoba farmers, Canada’s Minister of Agriculture and Agri-Food Marie-Claude Bibeau and Manitoba Agriculture and Resource Development Minister Blaine Pedersen announced that coverage is expected to be the highest on record while premium rates are moderately lower than last year.

“The COVID-19 pandemic has caused unprecedented challenges for farmers, on top of the normal challenges they face from weather and market fluctuations,” said Bibeau. “While farmers continue to step up to keep quality Canadian food on our kitchen tables, they need the support and stability that a solid set of BRM programs can provide. The record AgriInsurance coverage announced today is one of the ways we are helping farmers with incomes losses.”

The ministers released details indicating that 2021 dollar values are mostly higher than 2020 dollar values for grain, oilseeds, and specialty crops. Total insurance coverage will reach an all-time high of $3.128 billion.

On average, AgriInsurance premium rates are lower than 2020 due to adding a low-loss year (2019) and removing a higher-loss year (1994) from the 25-year average base rate calculation. AgriInsurance is a risk management program administered by Manitoba Agricultural Services Corporation (MASC). Insurance is offered for over 80 different annual crops and forages during establishment and production.

“AgriInsurance allows our producers to proactively manage their risk, and provide them with stability,” said Pedersen. “These enhancements to AgriInsurance are made in response to our industry, and producer’s needs.”

Other program enhancements for 2021 include:
• Many crops will experience an increase in probable yield for 2021. The probable yields for all crops are based on a 10-year average and trended for improvements in technology and agronomic advances. For 2021, data from 2010 to 2019 is used in the calculation. The year dropped (2009) was an average year for most crops; the year added (2019), produced above-average yields for most crops.
• Individual productivity indexing for silage corn.
• Transportation allowance within the Forage Insurance dollar value and Hay Disaster Benefit for the Forage Insurance program will increase. The transportation allowance was updated to $16 from $8 per tonne for Select and Basic Hay, and to $24 from $20 per tonne for the Hay Disaster Benefit.
• The seeding dates for full coverage and reduced coverage have been expanded for winter wheat and fall rye.

Manitoba has a high level of AgriInsurance participation with nearly 90 per cent of annual crop acres enrolled and more than 7,800 farms registered in the program.

Under the Canadian Agricultural Partnership, 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 total governments’ share of AgriInsurance premium for 2021-22 is expected to be $130 million.

The Hail Insurance program, administered by MASC outside the scope of the Canadian Agricultural Partnership, will also see increased coverage levels for 2021. Maximum hail dollar coverage is increasing to $300/acre from $250/acre based on expected gross revenue for most crops. The 2021 premium rates are the same as or lower than 2020 rates for most risk areas and expected coverage will increase to $1.1 billion from $985 million.

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