Spot Loss Hail in Crop Insurance

Res #: 12-04M
Number: 12
Year: 2004
Midterm: Yes
Expired: Yes
Responses Received: No

Resolution No. 12-04M

WHEREAS, Saskatchewan Crop Insurance used to provide spot loss hail coverage as part of their package; and

WHEREAS, this allowed producers to have coverage without having to pay an extra fee or buying coverage from another company and incurring yet more production costs; and

WHEREAS, crop insurance premiums have risen steadily since the loss of this coverage;

THEREFORE BE IT RESOLVED, that spot loss hail coverage be returned to producers under the Crop Insurance Program and that no extra premium be charged for this coverage.

Response from Honourable Mark Wartman, Minister of Agriculture, Food and Rural Revitalization:

The spot loss hail option offered under the crop insurance program was discontinued in Saskatchewan for 2002. With program costs increasing due to higher participation rates, higher commodity prices and higher premium rates due to the increased program debt, it was decided to redirect the available government support towards the multi-peril aspect of the crop insurance program. Several private sector companies have and continue to offer spot loss hail coverage in Saskatchewan.

Farmers are able to purchase coverage from these companies. Coverage for hail losses on a total crop basis continues to be available through the multi-peril crop insurance program the same as any other insurable peril. SAFRR reviews crop insurance program features on an ongoing basis. The views of SARM on spot loss hail will be considered as we review the program for 2005.