Manitoba Crop Insurance Coverage, Premiums Higher for 2022

Manitoba producers will have to dig deeper for crop insurance in 2022.

In a statement Tuesday, the province said new-crop premium rates have increased by about 10% due to last year’s drought that resulted in record payments to producers and slashed the crop insurance program surplus. Premiums per acre will also be higher for most crops due to the increased coverage brought on by the higher price of most crops, the statement added.

Total AgriInsurance coverage for 2022 is expected to exceed $4.66 billion on 9.8 million acres. That means the average coverage is estimated at $463/acre, up sharply from $321 in 2021. “This substantial increase in coverage reflects the expectation of continued strength in commodity prices into the 2022 crop year,” the province said.

The provincial hail insurance program will also see increased coverage levels for 2022. Maximum hail dollar coverage is increasing to $400/acre from $300, based on higher expected gross revenue for most crops. The 2022 premium rates are the same for most risk areas and expected coverage will increase to $1.5 billion from $1.1 billion.

The AgriInsurance program is a risk management tool for Manitoba farmers to protect against production shortfalls and quality losses caused by natural perils. Premiums for most programs are shared 40% by participating producers, 36% by the Government of Canada and 24% by the Manitoba government.

Other crop insurance changes for 2022 include:

  • The introduction of a new Polycrop Establishment Insurance that will provide financial assistance to Manitoba farmers if an eligible polycrop fails to establish. Polycrops are a mixture of two or more annual crops other than greenfeed that are grown simultaneously on the same acreage for the purpose of livestock feed, soil restoration or green manure.

  • An increase in the indemnity level for table and processing potatoes destroyed prior to harvest from 85% to 90%, resulting in a better reflection of current potato harvesting costs.

  • The vegetable acreage loss insurance has been updated to reduce the minimum required acres for the program to one-half from three. This will provide smaller commercial producers with an effective risk management tool.

Source: DePutter Publishing Ltd.

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