A greater spend on crop insurance by one provincial government, including adding hemp as an insurable crop, are two significant changes that were announced today.
The Saskatchewan government has announced it will spend $154 million on its crop insurance program this year, with coverage levels increasing to $183 an acre ($452.20 a hectare), up from $162 an acre in 2014.
The numbers come as a result of better forecasted crop prices and increased long-term yields, according to Saskatchewan’s Agriculture Minister Lyle Stewart.
There are 2.47105 acres in one hectare of land.
Premiums are expected to average $7.06 an acre, down from $7.47 an acre in 2014.
Several changes have been made to the program for 2015. New coverage levels of $50, $70, $85 and $100 an acre have been created, allowing producers to choose lower coverage for land that may be too wet to seed. Previously, the minimum amount of coverage available was $70 an acre.
According to CTV News, the USA premium will now be charged on total acres normally seeded, not just acres insured through the program. In addition, the USA premium will now be separated from the crop insurance premium on the producer’s statement.
Other changes include adding hemp as an insurable crop and increasing the base grade for oats to #2CW from #3CW.
Stewart said that the addition of hemp reflects the growth of the crop, from 25,000 seeded acres in 2013 to more than 40,000 last year.
