Manitoba’s crop insurance coverage is expected to increase for the upcoming crop year, federal Agriculture and Agri-Food Minister Marie-Claude Bibeau and Manitoba Agriculture Minister Derek Johnson announced.
“Climate challenges, like last spring’s flooding, continue to threaten farmers’ livelihoods,” said Bibeau. “Enhancements to the AgriInsurance program for 2023 will bring increased value to Manitoba’s producers and ensure they have fair and flexible coverage to meet their needs.”
The ministers released details indicating 2023 dollar values are higher than 2022 dollar values for most crops insured in Manitoba. Total AgriInsurance coverage for 2023 is expected to reach $5.3 billion on 9.45 million acres. This means the average coverage is estimated at $560 per acre, compared to $499 per acre in 2022. This increase in coverage reflects the expectation of continued strength in commodity prices into the 2023 crop year.
“The costs and risks related to farming in Manitoba continue to climb,” said Johnson. “We’re increasing our support for Manitoba farmers through the AgriInsurance program because we know that adequate coverage is now, more than ever, important in helping manage that risk.”
The AgriInsurance program is a risk management tool for Manitoba farmers to protect against production shortfalls and quality losses caused by natural perils. In the case of extreme weather events that impact production such as drought or excess moisture, the program provides predictable coverage producers can depend on when planning for the upcoming growing season. The program is administered by Manitoba Agricultural Services Corporation (MASC). Manitoba has a high level of AgriInsurance participation, with over 92 per cent of annual crop acres and more than 7,600 farms enrolled in the program.
Additional program enhancements for 2023 growing season include:
-Expanding the Contract Price Option (CPO) to be available for the majority of crops (including the corresponding pedigreed and organic crop if applicable), exccluding potatoes, vegetables, and forages. Established in 2020, CPO was previously only available for canola and field peas. This expansion of CPO will provide flexibility for producers by allowing the price of contracted production to be blended with the base AgriInsurance dollar value (weighted by production) to better reflect expected market prices.
-Amending premium rate calculations so that AgriInsurance premium rates will not exceed a 10 per cent increase year-over-year. This change will lessen the impact of disastrous growing seasons on premium rate increases.
The Canadian Agricultural Partnership (CAP) is a five-year, $3 billion commitment by the federal, provincial, and territorial governments that supports Canada’s agri-food and agri-products sectors. Under CAP, AgriInsurance premiums for most programs are shared 40 per cent by insured producers, 36 per cent by the Government of Canada, and 24 per cent by the Manitoba government. Administrative expenses are shared 60 per cent by the Government of Canada and 40 per cent by the Manitoba government.
