CSCI Calculations

Res #: 18-01M
Number: 18
Year: 2001
Midterm: Yes
Expired: Yes
Responses Received: No

Resolution No. 18-01M

WHEREAS, the average cost per acre to combine a cereal crop, according to the Saskatchewan Agriculture and Food Publication "Farm Machine – Custom and Rental Rate Guide 2000", is $20.20 for straight head cutters, and

WHEREAS, the price per bushel for durum wheat paid out by Canada-Saskatchewan Crop Insurance (CSCI) is $4.10 in 2001;

THEREFORE BE IT RESOLVED, that the CSCI utilize the number of "5 bushels/acre" when calculating low production appraisal as anything less than this will only result in further economic loss to the producer.

Response from the Honourable Clay Serby, Minister of Agriculture and Food:

Saskatchewan Crop Insurance Corporation (SCIC) already appraises crops using a threshold level, which varies by crop. If the appraisal yield is below the threshold level, it is counted as zero for insurance purposes. You will be aware that I have asked the Farm Support Review Committee (FSRC) to review safety net design issues and make recommendations on how they can be improved.

Over the summer, this committee, consisting of individual producers and representatives from farm organizations, sought producer input into the current mix of safety net and disaster programs including the Net Income Stabilization Account (NISA), Canadian Farm Income Program (CFIP), and crop insurance. They will make their recommendations to the government once all the information is collected. All aspects of the crop insurance plan will be reviewed. However, the intent will be to maintain sound insurance principles, in that any reasonable salvageable production will be counted towards a claim.