Alberta farmers are set to receive a hefty break on their crop insurance premiums for the upcoming 2021 growing season.
Agriculture Financial Services Corp (AFSC) announced Monday farmers in the province will receive a 20% reduction in their premiums, an amount that translates into a collective savings of more than $55 million. Individually, the reduction means a farmer with 2,000 insured acres will save about $8,000 this year.
According to a release, the reduction in premiums is possible because of a healthy crop fund reserve. The fund protects against any future insurance payments and is now at a point where it can help support discounted premiums, without posing significant risk to the overall program. In short, there is enough money in the fund to mitigate a major event, such as a province-wide disaster in 2021 or beyond.
Alberta has been fortunate to have had a favourable decade without a significant widespread provincial event, the release said. However, if a major event occurred in the future, then the fund balance would be depleted and the discount strategy revisited, it added.
“I’m thrilled that we can pass these savings on to our clients,” said Darryl Kay, AFSC’s chief executive officer, “and proud that our healthy crop insurance program in Alberta can give producers a bit of a break when they need it most.”
Source: DePutter Publishing Ltd.
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