Feed replacement cost, precipitation threshold and more tweaked by AFSC

Feed replacement cost, precipitation threshold and more tweaked by AFSC

AFSC announces enhancements to perennial crop insurance programs

Working in agriculture requires the ability to withstand unpredictable events. To protect producers from designated perils that lead to production loss, Agriculture Financial Services Corporation (AFSC) provides a number of perennial crop insurance options as part of their suite of business risk-management programs.

In response to industry feedback, AFSC made adjustments to our Perennial Crop Insurance programs and is pleased to announce we have made the following enhancements for 2020:

• Recalculated historical pasture normal yields for 2020, resulting in an increase to coverage for pasture insurance. On average, pasture normal yields have increased approximately 55 per cent for 2020. The enhanced coverage levels ensure clients receive higher compensation in the event of a loss.

• Updated methodology to determine price options to better reflect feed replacement cost in the event of a loss.

• Adjusted minimum daily precipitation threshold of 0.1 mm for moisture-based products (Moisture Deficiency Insurance and Moisture Deficiency Endorsement). This means that moisture recorded at less than 0.1mm is now considered zero precipitation. This change addresses instances of evaporation of small amounts of precipitation, which will not count towards total moisture accumulation.

• Added weather stations to AFSC’s network, near Iddesleigh and east of Drumheller. Clients can choose one, two or three weather stations within proximity of their land base to best represent conditions on their farm.

Crop insurance in Alberta (also known as AgriInsurance) is one component of the Canadian Agricultural Partnership (CAP). The CAP agreement demonstrates both Canada and Alberta’s commitment to agriculture, reflects input from across the sector and strives to deliver programs that are responsive to the needs of producers. Federal and provincial governments support AgriInsurance programs by paying all administration expenses, while sharing premium costs with clients.

Producers are encouraged to visit AFSC.ca to view the 2020 program in full. To discuss options for 2020 and develop a personalized risk-management plan, they can contact their local AFSC Relationship Manager.

About AFSC: Agriculture Financial Services Corporation (AFSC) is a provincial Crown corporation that provides producers, agribusinesses and other small businesses with loans, crop insurance and farm income disaster assistance. For over 80 years, AFSC has been a proud partner for Alberta farmers, beginning by providing hail insurance—and growing into a diverse corporation with several core business areas, including crop insurance, livestock price insurance, farm loans, agribusiness loans and farm income disaster assistance.

-Kaelyn Gillard, AFSC

Agriculture