SCIC Flooded Acres

Res #: 23-14M
Number: 23
Year: 2014
Midterm: Yes
Expired: Yes
Responses Received: No
Departments: Saskatchewan Crop Insurance Corporation

WHEREAS the 2014 crop year was declared a disaster year, flooded acres should be considered exempt and not be applied against a producer’s 2014 production;

BE IT RESOLVED that SARM lobby Saskatchewan Crop Insurance Corporation (SCIC) for producers not to be penalized in 2014 for production loss due to excessive moisture.

Response from the Honorable Lyle Stewart, Minister of Agriculture

The Crop Insurance Program provides full yield-loss coverage for losses r esulting from flooding, on a total crop basis.   The coverage that each producer has under the program is bas ed on his or her individual yield experience.  It is understandable that there is concern about the impact that acres flooded in 2014 will have on future coverage. However, the methodology used by SCIC to determine producers' long-term  individual yields (LTIY} ha s proven to be very stable over time, with the result that LTIYs do not drop significantly following a below-average year. The methodology includes fu rther protection for producers that suffer yield shortfalls in two consecutive years with a yield-cushioning feature that limits the amount of downward  movement.