Source: Agriculture and Agri-Food Canada
Manitoba’s crop insurance coverage is expected to increase for the upcoming crop year, Canada’s Minister of Agriculture and Agri-Food Marie-Claude Bibeau and Manitoba Agriculture Minister Derek Johnson announced today.
The ministers released details indicating that 2023 dollar values are higher than 2022 dollar values for most crops insured in Manitoba. Total AgriInsurance coverage for 2023 is expected to reach $5.3 billion on 9.45 million acres. This means the average coverage is estimated at $560 per acre, compared to $499 per acre in 2022. This increase in coverage reflects the expectation of continued strength in commodity prices into the 2023 crop year.
In the case of extreme weather events that impact production such as drought or excess moisture, the AgriInsurance program provides predictable coverage that producers can depend on when planning for the upcoming growing season.
Additional program enhancements for the 2023 growing season include:
- expanding the Contract Price Option (CPO) to be available for most crops (including the corresponding pedigreed and organic crop if applicable), except for potatoes, vegetables, and forages. Established in 2020, CPO was previously only available for canola and field peas. This expansion of CPO will provide flexibility for producers in allowing them to blend the price from their contracted production with the base AgriInsurance dollar value (weighted by production) to better reflect expected market prices.
- amending premium rate calculations so that AgriInsurance premium rates will not exceed a 10% increase year-over-year. This change will lessen the impact of disastrous growing seasons on premium rate increases.
“Climate challenges, like last spring’s flooding, continue to threaten farmers’ livelihoods. Enhancements to the AgriInsurance program for 2023 will bring increased value to Manitoba’s producers and ensure they have fair and flexible coverage to meet their needs.”
– The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food
“The costs and risks related to farming in Manitoba continue to climb. We’re increasing our support for Manitoba farmers through the AgriInsurance program because we know that adequate coverage is now, more than ever, important in helping manage that risk.”
– Derek Johnson, Manitoba Minister of Agriculture
- The AgriInsurance program is a risk management tool for Manitoba farmers to protect against production shortfalls and quality losses caused by natural perils. The program is administered by Manitoba Agricultural Services Corporation (MASC).
- Manitoba has a high level of AgriInsurance participation, with over 92% of annual crop acres and more than 7,600 farms enrolled in the program.
- The Canadian Agricultural Partnership (CAP) is a five-year, $3-billion commitment by the federal, provincial and territorial governments that supports Canada’s agri-food and agri-products sectors. Under CAP, AgriInsurance premiums for most programs are shared 40% by insured producers, 36% by the Government of Canada and 24% by the Manitoba government. Administrative expenses are shared 60% by Canada and 40% by Manitoba.