Business risk management programs continue to respond through $2 billion in forecasted payouts for Saskatchewan producers

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Source: Agriculture and Agri-Food Canada

Today, the governments of Canada and Saskatchewan announced forecasted payments under the suite of business risk management programs, administered by the Saskatchewan Crop Insurance Corporation (SCIC).

With approximately 30% of the 2023 Crop Insurance Program claim payouts already paid to producers, forecasts indicate that total program payments could reach $1.85 billion. Most producers are eligible for advance payments on claims, allowing money to flow to producers before claims are completely verified. Total Crop Insurance claim payouts remain a forecast as the deadline for Crop Insurance customers to report their detailed net production and register a claim is November 15, 2023.

Throughout the growing season, additional supports were announced through SCIC’s full suite of Business Risk Management Programs:

  • In July, governments announced a supplemental freight adjustment to support producers who experienced over-winter wildlife damage to their stacked forage. The announcement also included provincial-wide support with changes to the existing prevention program.
  • In August, as dry conditions negatively impacted crop yields, including forage crops, SCIC doubled the low yield appraisal thresholds, working with producers as they made on-farm decisions to salvage grain crops for livestock feed.
  • In September, governments announced over 90% of insured Forage Rainfall Insurance Program (FRIP) acres received a payout for 2023.The total 2023 FRIP indemnity paid was $60 million.
  • Effective for the 2023 program year, the AgriStability compensation rate increased from 70% to 80% – which means AgriStability provides a benefit payment of 80 cents for every dollar of decline below the trigger point. Due to this compensation rate increase, producers with an eligible margin decline will receive larger AgriStability benefits.
  • Producers are forecast to receive $115 million in the form of matching government contributions through the AgriInvest Program in 2023. As of October 2023, Saskatchewan producers collectively have over $1 billion in their individual AgriInvest accounts.

An additional $147 million in federal/provincial support is now flowing through the 2023 Canada-Saskatchewan Feed Program ($77 million federal and $70 million provincial). Producers can submit their applications, review eligibility and additional details online at Saskatchewan Crop Insurance Corporation

Quotes

“Producers faced another challenging year and have had to make tough decisions in the face of extreme weather. We are working closely with our provincial counterparts to ensure producers have access to the full range of business risk management programs. We will continue to work together to ensure farmers have access to the tools they need to continue to feed Canada and the world.”

– The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food

“We recognize it’s been another challenging year in many areas of our province. Our suite of business risk management programs continues to respond to support farmers and ranchers. With a forecast of nearly $2 billion in support, I continue to encourage all producers to continually reassess options available through the full suite of Business Risk Management Programs.”

– David Marit, Saskatchewan Agriculture Minister

Quick facts

  • Under the Sustainable Canadian Agriculture Partnership (Sustainable CAP), producers can access support provided by the governments of Canada and Saskatchewan.
  • AgriStability protects Canadian producers against large declines in farming income for reasons such as production loss, increased costs and market conditions.
  • Crop Insurance is a federal-provincial-producer cost-shared program that helps producers manage production and quality losses.
  • AgriRecovery is a federal-provincial-territorial disaster relief framework to help agricultural producers with the extraordinary costs associated with recovering from disaster situations. AgriRecovery initiatives are cost-shared on a 60:40 basis between the federal government and participating provinces or territories.

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