The province of Manitoba is increasing insurance coverage for the AgriInsurance program for this year to $2.6 billion, a 13% jump, the government announced Monday.
Under the AgriInsurance risk management program, premiums for most programs are shared 40% by participating producers, 36% by the Government of Canada and 24% by the Province of Manitoba. Administrative expenses are paid 60% by Canada and 40% by Manitoba.
The province also announced Monday it is expanding the areas eligible for the insurance for 2013.
“As a province, we’ve listened to and worked with producers to improve our insurance products and make sure they offer the coverage they need to address the unpredictable effects nature can have on their crops,” Ron Kostyshyn, Manitoba’s Agriculture, Food and Rural Initiatives Minister commented in a government statement.
The increase for 2013 is a result of higher insured crop values compared to 2012, resulting in about $200 million of additional insured coverage, the provincial government noted.
The province’s share of AgriInsurance premiums is also increasing to $67.16 million for 2013, up $8.3 million from last year.
According to the government, the AgriInsurance changes for 2013 include:
- “Expanding insurance availability, on a test basis, to soybeans, grain corn, sunflowers and dry edible beans, which previously were restricted to certain designated areas. The development of new varieties in recent years has allowed for insurance to be provided outside of traditional growing areas.
- Expanding the Pasture Days Insurance Pilot Program to the Dauphin and Neepawa insurance agencies, with the objective of determining how much demand there is for this product.
- Adding an over-seeding option to the Forage Restoration Benefit. This provides producers with another option for restoring damaged forage crops.”
The federal and provincial governments will continue reviewing livestock insurance in partnership with other provinces, a Manitoba government statement noted.
From 2010 to 2012, the AgriInsurance program paid out more than $700 million to producers in Manitoba, according to the provincial government.