2015 was a challenging year for many forage producers as production was reduced in many areas of the province due to spring frosts and dry conditions early in the growing season. Most producers who participated in the Saskatchewan Crop Insurance Corporation’s (SCIC) forage insurance program last year received compensation for their lower production. Enhancements have been made for 2016 and producers may want to consider forage insurance before the March 31 sign up deadline.
This year producers have access to a higher level of forage coverage. Insured prices are up more than 30 per cent when compared to 2015 and forage establishment coverage has increased from $55 per acre to $70 per acre.
Over the years SCIC has worked diligently with producers and industry organizations to build an effective forage insurance program for hay, pastureland and greenfeed. This consultation was instrumental in changes to the pricing options that producers have for their forage insurance. Producers expressed concern over restrictions on how forage insurance prices can reach a maximum, even though the market may still be rising dramatically due to uncontrollable factors. For 2016 producers who choose the Variable Price Option or In-Season Price Option, when they select their forage insurance coverage, will no longer have a cap on the maximum value for the forage insurance price. If the market price for hay rises over the course of the year, as it did in 2015, producers selecting these two pricing options will see the full price increase reflected in their forage claim.
SCIC continues to provide additional choices and options for forage insurance. Producers who do not want to use the In-Season or Variable Price Options can continue with the traditional multi-peril forage insurance where producers can select 50, 60, 70 or 80 per cent coverage on the forecasted forage insurance price. The 2016 forage insurance prices can be found at: saskcropinsurance.com/ci/forage.
SCIC continues to work with producer groups such as the Saskatchewan Forage Council to further improve programming so it remains on target with producer needs. If you would like more information about forage insurance, visit a Saskatchewan Crop Insurance office or saskcropinsurance.com.
To read the full article describing a number of forage insurance options click here.
Posted March 25, 2016