AFSC announces reduced insurance premium rates for 2018 season

AFSC announces reduced insurance premium rates for 2018 season

Aligning insurance coverage for two new wheat classes a major change: AFSC

By Mustafa Eric Agriculture Financial Services Corporation

Many of Alberta’s crop producers will benefit from lower crop insurance premium rates when they insure their crops with AFSC this spring.

On average, 2018 premium rates for crops are 8 per cent lower than they were in 2017. The rate change for specific crops will vary depending on the actual loss experience for that crop as well as the risk area.

The decrease in premium rates is a reflection of the generally good growing conditions over the past few years, which resulted in positive results for the crop insurance program. The recent experience has also translated into increased yield coverage for many producers in 2018.

Lawrence MacAulay, Minister of Agriculture and Agri-Food: “Under the new Canadian Agriculture Partnership (CAP), the federal/provincial/ territorial partnership agreement, the Government of Canada is committed to offering effective and affordable Agriculture Business Risk Management Programs like AgriInsurance.”

Oneil Carlier, Minister of Agriculture and Forestry: “AgriInsurance continues to play a key role in protecting producers when the weather turns against them and I encourage producers to contact AFSC to review their existing policies or to learn more about the programs that are available.”

Darryl Kay, Interim CEO, AFSC: “We are pleased to be able to reduce AgriInsurance premium rates so producers can manage their risk and get the coverage they need. In addition to reducing rates, we have also made changes to the program itself and how it is delivered.

In response to the feedback received from producers, the following changes have been introduced:

• A 10 per cent claim deductible being introduced under the Spring Price Endorsement, which will reduce the premium rate charged to clients between 20 per cent and 30 per cent depending on the crop selected;

• Aligning insurance coverage for two new wheat classes after the Canadian Grain Commission reclassified a number of wheat varieties, moving them from Canadian Prairie Spring (CPS) and Canadian Western Red Spring (CWRS) to the new Canadian Northern Hard Red (CNHR) and Canadian Western Special Purpose (CWSP) classes;

• Introducing AFSC Connect, just another way for AFSC clients to conduct their business. The new online platform provides producers with a number of online functionalities that include viewing and managing their account information, chatting online with Client Contact Centre staff, and conducting a number of transactions, including filing change requests to make adjustments to their crop insurance policy. The online platform was developed with the needs of AFSC clients in mind, and will continually be enhanced, and developed, to meet their changing needs;

• April 30 is the deadline to apply for, make changes to or cancel insurance.

About AFSC: Agriculture Financial Services Corporation (AFSC) is a provincial Crown corporation that provides producers, agribusinesses and other small businesses loans, crop insurance and farm income disaster assistance. AFSC has provided Alberta farmers with hail insurance for 80 years, and has grown into a diverse corporation with several core business areas, including crop insurance, livestock price insurance, farm loans, commercial loans and farm income disaster assistance.