POP: Wildlife Crop Damage Compensation

POP: Yes
Res #: POP 2-10A
Number: 2
Year: 2010
Midterm: No
Expired: Yes
Responses Received: No
Departments: Saskatchewan Ministry of Agriculture and Agricultre and Agri-Food Canada

WHEREAS the compensation paid to producers on wildlife crop damage is to be 100%;


WHEREAS the formulas for these rates are set by Government and Crop Insurance; and


WHEREAS these rates fall short of actual costs that are incurred by the producer;


BE IT RESOLVED that SARM ask the Federal Government and Crop Insurance to compensate the true cost of the damage.

Response from Honourable Bob Bjornerud, Minister of Agriculture:

The current Wildlife Damage Compensation Program pays for 100 per cent of the assessed crop damage. Damage is assessed based on the crop quality or grade at the time of adjustment. Grades and prices for most common crops and forages are set based on surveyed crop prices from September to February. Surveyed crop prices are determined by an independent third party and are based on commodity selling prices throughout Saskatchewan.


Compensation is also available for cleaning costs associated with excreta-contaminated grain. An additional allowance is available to compensate producers for the extra handling costs associated with cleaning excreta contaminated grain.


If a wildlife claim arises involving a unique commodity and compensation rates are not accurate, payments can be adjusted. The customer is required to submit sales receipts confirming a significant compensation shortfall.

Response from Honourable Gerry Ritz, PC, MP, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board:


As you know, AgriInsurance, known as crop insurance in Saskatchewan, is a federal/provincial/producer cost-shared program. It is available for all commercially grown crops to reduce the risk to producers of crop losses, and in some instances quality losses, from natural perils beyond producers' control, including excessive moisture, drought, frost and disease.


While the federal government contributes a significant portion of the funding for crop insurance in Saskatchewan, the program is designed, delivered and administered by each individual province-in this case, by the Saskatchewan Crop Insurance Corporation (SCIC). As the administrator, the SCIC has the discretion to determine what type of programming and coverage they choose to offer under crop insurance and wildlife compensation.


For any wildlife damage, federal authorities allow for compensation of up to 80 per cent of the production loss. The loss is calculated using market values and is not based on the cost of production. The province can also decide to provide additional compensation. The first

80 per cent coverage is cost-shared 60:40 by federal and provincial governments respectively, while coverage over 80 per cent is the province's responsibility. The provincial government is responsible for determining the value of the production loss, including the market values used to calculate the loss.


I therefore encourage you to contact the SCIC to discuss your concerns and provide input on how the wildlife damage compensation initiative could be adjusted to best suit producers' needs.