Agriculture Minister David Marit says this year, Crop Insurance coverage will reach a record level due to higher commodity prices and increased yield coverages.
" The average coverage for 2022 is $405 per acre, an increase from $273 an acre in 2021. This represents a 48 per cent increase in coverage compared to last year. Due to this increase in coverage, the average total premium is also higher at $12.05 per acre, compared to $8.59 in 2021."
He adds the average premium rate is lower, due to the strong production in 2020, since there is a one-year lag when calculating premium rates, meaning that the 2021 production numbers will be used in 2023.
2021 marked a challenging year as producers faced extreme heat and a province wide drought.
Saskatchewan Crop Insurance reports claim numbers reached 30,000 for a total payout of $2.4 billion dollars.
The 30,000 claims up substantially from the five-year average of 7800 post-harvest claims annually.
Marit says the hot, dry conditions of last year resulted in the Province implementing a new heat adjustment factor for the Forage and Corn Rainfall Insurance Program.
"When temperatures reach 31 degrees Celsius or higher, precipitation amounts are reduced in the 'monthly per cent of normal' calculation. This adjustment helps recognize the impact of extreme heat on forage and corn yields."
Among the other program changes for 2022 changes to the Contract Price Option which allows producers to use their contract prices to blend with the Crop Insurance base price to establish a price that's higher and more reflective of the market value.
In 2022 the Contract Price Option will be available on all commercial crops,
The new crops being added include fababeans, Khorasan wheat, fall and spring rye, sunflowers, triticale, winter wheat, extra strong wheat, hard white wheat, all classes of chickpeas, caraway, irrigated dry beans and soybeans.
Marit compared some of the crop base prices that producers will see for 2022.
"Durum wheat in 2021 was insured at $6.94 in 2022 it will be insured at $11.16, which is an increase of about 161%. Oats in 2021, was insured at $3.39 a bushel, this year will be insured at $5.63 a bushel, which is an increase of 166%. Canola is $17.01 an increase of 142 per cent. Field peas will be $11.57 an increase of 154 per cent. While large green lentils will go from 29 cents in 2021 to 36 cents in 2022."
He notes establishment benefit values are also increasing this year due to the increases producers have seen in commodity and seed prices.
Producers have until March 31st to apply, reinstate or cancel their Crop Insurance contract.
You can find more pricing information on the 2022 Saskatchewan Crop Insurance Program here.