2008 CROP INSURANCE PROGRAM FEATURES INCREASED COVERAGE FOR PRODUCERS

A substantial increase in the coverage available for producers under the 2008 Saskatchewan Crop Insurance program was announced today by Saskatchewan Agriculture Minister and Minister responsible for the Saskatchewan Crop Insurance Corporation Bob Bjornerud.

"Forecast market prices have increased significantly for many crops this year, and Crop Insurance has adjusted its insured prices to reflect this increase," Bjornerud said. "Our dollar coverage is increasing from a provincial average of $86 per acre in 2007 to $128 per acre in 2008."

There is an overall four per cent reduction in premium rates (the amount farmers pay for each dollar of coverage). However, premiums paid by farmers overall will rise marginally as a result of the projected 46 per cent increase in the value of the 2008 crop.

This year, the Saskatchewan Government will commit an additional $25 million to the crop insurance program to cover the Province's share of the increased premium costs.

Along with providing yield-loss coverage for a large variety of crops, Crop Insurance's multi-peril program also includes coverage for establishment, unseeded acreage and gopher damage. Provincial coverage for gopher damage is a new feature this year and follows a successful pilot program run in 2007.

Beginning in 2008, Crop Insurance will also offer alfalfa seed yield-loss insurance based on a producer's individual experience with alfalfa seed production. This change, from area average yields to individual experience, will better reflect the production average of each individual farm.

Crop Insurance is also introducing a new Enhanced Irrigation Pilot to recognize the unique risks associated with irrigated crop production. This pilot allows a separate production guarantee for irrigated and dryland acres of the same crop. This will enable the producer to be protected against losses on irrigation without being impacted by production of the same crop on dryland acres, and vice versa.

The deadline for customers to apply for, make changes to, or cancel their 2008 Crop Insurance contract is March 31, 2008. The 2008 endorsement packages containing complete program details will be mailed to Crop Insurance customers shortly. Detailed program and contract information is also available at any customer service office, at www.saskcropinsurance.com, or by calling 1-888-935-0000.

As promised in the Saskatchewan Party election platform, the Government of Saskatchewan will launch a full review of the Crop Insurance program in the very near future. The results of this review will be considered in the development of the 2009 Crop Insurance Program.

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For more information, contact:

Gail Audette-Sand
Saskatchewan Crop Insurance
Melville
Phone: 306-728-7287
Email: gail.audette-sand@scic.gov.sk.ca