Governments enhance crop insurance with excess moisture coverage for 2012

New options offer reliable protection against wet, unseedable acres

Alberta producers will have more crop insurance options to protect against losses caused by weather-related disasters in 2012.

Enhancements to the federal-provincial AgriInsurance program were announced last week by federal Agriculture Minister Gerry Ritz and Alberta Minister of Agriculture and Rural Development, Evan Berger. The enhanced AgriInsurance coverage provides crop producers with more extensive coverage for unseeded acres due to excessive moisture, eliminating the requirement for an AgriRecovery response.


“Producers told us they need better protection to deal with events like flooding and excess moisture, and we’ve listened,” said Ritz. “We worked closely with the Province of Alberta to develop more responsive and comprehensive AgriInsurance protection to help farm operators deal with wet cropland.”

“Running a successful agricultural operation requires a substantial investment that needs to be protected,” said Berger. “Through Agriculture Financial Services Corporation programs our producers are supported by some of the best and most innovative business risk management programs in the country; and all of our producers should be taking advantage of them.”

In 2012, the Unseeded Acreage Benefit in Alberta will offer dry land producers two levels of protection, with the coverage expanded to $45 per acre for producers who have not applied fertilizer and $95 per acre for producers who have.

“We have also expanded the Unseeded Acreage Benefit to provide additional coverage for irrigated land to $100 per acre (unfertilized) and $175 per acre (fertilized)” said Brad Klak, President and Managing Director of Agriculture Financial Services Corporation (AFSC). “With stronger and broader coverage, AgriInsurance is now better positioned to help producers manage the risk of excess moisture and flooding.”

In addition, the Reseeding Benefit has been enhanced so it can be paid even if producers do not reseed the original crop.&nbsp If producers are not able to reseed a lost crop as a result of excess moisture, they may also qualify for the Unseeded Acreage Benefit.

This expanded coverage will decrease dependency on the AgriRecovery program for incidents of excess moisture and flooding.

Under the Growing Forward Agricultural Policy Framework, Crop Insurance is cost-shared on a 60:40 basis between the Government of Canada and Government of Alberta.

The deadline for customers to apply for AgriInsurance is April 30. Program details and contact information is available at www.afsc.ca or by calling 1-877-899-2372.