FARMERS GET INSURANCE IMPROVEMENTS FOR 2003

Saskatchewan's decision to participate in the Agricultural Policy Framework (APF) means that farmers will benefit from an improved Crop Insurance Program for 2003.

Deputy Premier and Agriculture, Food and Rural Revitalization Minister Clay Serby and Minister of Agriculture and Agri-Food Lyle Vanclief said the 2003 program will provide producers with better protection against yield loss.
"Farmers told us they needed a more effective Crop Insurance program for this growing season," Serby said . "By signing on to the APF, we are now in a position to deliver that kind of program."

"The new framework delivers an insurance program that is more responsive to the needs of producers," Vanclief said. "This year's changes will support innovation and diversification in Saskatchewan's agriculture sector."

Changes for 2003 include:

- Forage Rainfall Insurance Program – Increased coverage that better reflects forage productivity across soil zones and includes more weather stations.

- Annual Crop Weather Based Insurance – More weather stations and a frost trigger have been added to the 2002 pilot program and a new pilot program has been introduced to test alternative concepts.

- Yield data – A new yield methodology will better reflect the use of new technology and management practices on farms and will result in an average five per cent increase in long-term yields across the province.

- Low Price Option - A new feature of the all-peril program that offers coverage at 85 per cent of the base price.

- Organic Crops – Increased prices to reflect organic crop premiums and a new reseeding benefit.

- Individual Crop Enhancements – Improved coverage for dry beans, field peas and sweet clover.

- Diversification Option – Increased percentage of acreage covered.

- CropConnect – New pilot project allowing producers to calculate premiums and coverage scenarios online.

Claims and program debt from previous years will impact producer premiums in 2003. When combined with commodity price increases and coverage enhancements, average producer premium costs will increase by $1.65/ac as shown in the table below:

2002 average producer premium cost $3.15/ac

2003 cost including impact of claims and
program debt 33% increase $4.19/ac

2003 cost including impact of commodity
price increases 9% increase $4.57/ac

2003 cost including impact of
coverage improvements 5% increase $4.80/ac

2003 average producer premium cost 52% increase $4.80/ac

(product of the above increases – 1.33X1.09X1.05=1.52 or 52%)

Information about the 2003 Forage Rainfall Insurance program will be mailed to producers today. Producers have until March 31st to make new selections, deletions or changes to their rainfall insurance.

The deadline for all other Crop Insurance programs is April 30th. Customers will receive their personalized information package by mail in early April.
For more information contact your local crop insurance customer service office or visit the corporation's website: www.saskcropinsurance.com

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For More Information, Contact:

Terri Kentel-Weinheimer Saskatchewan Crop Insurance Melville Phone: 306-728-7287