Business Risk Management Programs Forecasted to Pay Out $2 Billion to Saskatchewan Producers

by

Doug Falconer

Today, the Governments of Canada and Saskatchewan announced forecasted payments under the suite of Business Risk Management Programs, administered by the Saskatchewan Crop Insurance Corporation (SCIC). 

“Producers faced another challenging year and have had to make tough decisions in the face of extreme weather. We are working closely with our provincial counterparts to ensure producers have access to the full range of business risk management programs,” said federal Minister of Agriculture and Agri-Food, Lawrence MacAulay. “We will continue to work together to ensure farmers have access to the tools they need to continue to feed Canada and the world.”

“We recognize it’s been another challenging year in some areas of our province,” Saskatchewan Agriculture Minister David Marit said. “Our suite of Business Risk Management Programs continues to respond to support farmers and ranchers. With a forecast of nearly $2 billion in support, I continue to encourage all producers to continually reassess options available through the full suite of Business Risk Management Programs.” 

With approximately 30 per cent of the 2023 Crop Insurance Program claim payouts already paid to producers; forecasts indicate that total program payments may reach $1.85 billion. Most producers are eligible for advance payments on claims, allowing money to flow to producers before claims are completely verified. Total Crop Insurance claim payouts remain a forecast as the deadline for Crop Insurance customers to report their detailed net production and register a claim is November 15, 2023. 

Throughout the growing season, additional supports were announced through SCIC’s full suite of Business Risk Management Programs:

  • In July, the federal and provincial governments announced a supplemental freight adjustment to support producers who experienced over-winter wildlife damage to their stacked forage. The announcement also included provincial-wide support with changes to the existing prevention program. 
  • In August, as dry conditions negatively impacted crop yields, including forage crops, SCIC doubled the low yield appraisal thresholds, working with producers as they made on-farm decisions to salvage grain crops for livestock feed. 
  • In September, the federal and provincial governments announced over 90 per cent of insured Forage Rainfall Insurance Program (FRIP) acres received a payout for 2023. The total 2023 FRIP indemnity paid was $60 million.
  • Effective for the 2023 program year, the AgriStability compensation rate increased from 70 per cent to 80 per cent – providing a benefit payment of 80 cents for every dollar of decline below the trigger point. Due to this compensation rate increase, producers with an eligible margin decline will receive larger AgriStability benefits.
  • Producers are forecasted to receive $115 million in the form of matching government contributions through the AgriInvest Program in 2023. As of October 2023, Saskatchewan producers collectively have over $1 billion in their individual AgriInvest accounts

An additional $147 million in federal/provincial support is now flowing through the 2023 Canada-Saskatchewan Feed Program ($77 million federal and $70 million provincial). Producers can submit their applications, review eligibility and additional details online at www.scic.ca. 

Under the Sustainable Canadian Agriculture Partnership (Sustainable CAP), producers can access support provided by the Governments of Canada and Saskatchewan. AgriStability protects Canadian producers against large declines in farming income for reasons such as production loss, increased costs, and market conditions. Crop Insurance is a federal-provincial-producer cost-shared program that helps producers manage production and quality losses. AgriRecovery is a federal-provincial-territorial disaster relief framework to help agricultural producers with the extraordinary costs associated with recovering from disaster situations. AgriRecovery initiatives are cost-shared on a 60:40 basis between the federal government and participating provinces or territories.

(Government of Saskatchewan news release)

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