Alberta hikes crop insurance premiums 60%

[FredF2]

https://globalnews.ca/news/9527563/a...miums-farmers/

Really surprising to see considering farmers are a very important demographic to them and being its just before a closely called election... what are they thinking?

[Rvsask]

I think they’re thinking that important demographic doesn’t pay attention to things like that if they point fingers at Trudeau. That is for a fact how it works here in Saskatchewan anyways.

[Armorman]

If my coverage has increased to match it's only reasonable to expect that the premium does as well. Anyway, I'm going to wait until I see how my insurance package compares to last year before I say anything either way.

[lannie]

The government has no business insuring privately owned assets of any type.

[Grizzly Adams1]

Originally Posted by lannie

The government has no business insuring privately owned assets of any type.

That's one point of view, but farming is a particular risky and vital endeavor, failure of that sector would be catastrophic for the rest of us.

Grizz

[huntinstuff]

Claims

Like most insurance, it has an effect.

My son had to stop his snow removal for that reason. 700% increase on premiums. Yes. 700%.

Cooperators insurance wont even cover for snow removal anymore. They suggest a broker. Claims went from 2.3 billion to 5.8

Of course, payouts are part of the problem but it is cheaper than an investigation and legal battle.

I think 2022 was likely the most expensive input costs for farming ever per acre. This year doesnt look better.

[Trochu]

This makes no sense to me. Insurance is set pay out per acre. Has nothing to do with commodity prices. So, higher payout, higher premium. Unless it's been mismanaged for years and they need to make up....

[esher]

Originally Posted by Trochu

This makes no sense to me. Insurance is set pay out per acre. Has nothing to do with commodity prices. So, higher payout, higher premium. Unless it's been mismanaged for years and they need to make up....

Not how it works, its like 30 bushels per acre x price =total per acre. Price and or yield change so does total.

[Goncutn]

Originally Posted by Trochu

This makes no sense to me. Insurance is set pay out per acre. Has nothing to do with commodity prices. So, higher payout, higher premium. Unless it's been mismanaged for years and they need to make up....

Actually the premium is tied to the commodity price (averaged yearly) and then factored with the producers proven production. The price of the commodity multiplied by the producers proven yield. Every producer will have different premiums as per coverage offered, plus there is a multitude of different coverage level to work with, not a cut and dry as one thinks.

[jungleboy]

Insurance companies. I have often said they are at the top of the food chain when it comes screwing over their customers. I have more faith in Trudeau than I do insurance companies.

They can hike their rates by 100% , it doesn’t increase your chances of a fair payout or any payout for that matter when you put a claim in

[hillbillyreefer]

This is the most concise summary I’ve found about the premium increase in Alberta. I shamelessly stole it from @skellerfarms on twitter.

Lots of posts about crop insurance increases. Remember to do the math properly by factoring in the increased coverage.

2022: $24/ac buys $600/ac coverage
2023: $36/ac buys $800/ac coverage

24/600= 4%
36/800= 4.5%
(4.5-4)/4= 12.5% increase

This is not a 50% increase (36-24)/24

Oh and the dippers in the article claiming crop in insurance is the biggest expense in cropping is laughable. It shows just how misinformed the NDP agriculture critic is with actual agriculture.

[raab]

Originally Posted by hillbillyreefer

This is the most concise summary I’ve found about the premium increase in Alberta. I shamelessly stole it from @skellerfarms on twitter.

Lots of posts about crop insurance increases. Remember to do the math properly by factoring in the increased coverage.

2022: $24/ac buys $600/ac coverage
2023: $36/ac buys $800/ac coverage

24/600= 4%
36/800= 4.5%
(4.5-4)/4= 12.5% increase

This is not a 50% increase (36-24)/24

Oh and the dippers in the article claiming crop in insurance is the biggest expense in cropping is laughable. It shows just how misinformed the NDP agriculture critic is with actual agriculture.

To be fair the NDP do not believe in fertilizing with their climate agenda. Which is ironic because every time they open their mouth it seems to be all they spew.

[riden]

Originally Posted by jungleboy

Insurance companies. I have often said they are at the top of the food chain when it comes screwing over their customers. I have more faith in Trudeau than I do insurance companies.

They can hike their rates by 100% , it doesn’t increase your chances of a fair payout or any payout for that matter when you put a claim in

Someone can chime in and add if they want.

Only the gubbermint sells crop insurance. AFSC (provincial crown corp) sells it. Does anyone know if FCC sells crop insurance?

Quite certain roughly half the cost is subsidized between the province and the Feds.

[Grizzly Adams1]

Originally Posted by jungleboy

Insurance companies. I have often said they are at the top of the food chain when it comes screwing over their customers. I have more faith in Trudeau than I do insurance companies.

They can hike their rates by 100% , it doesn’t increase your chances of a fair payout or any payout for that matter when you put a claim in

https://regina.ctvnews.ca/lawyer-off...nial-1.6296587

Grizz

[Trochu]

Originally Posted by riden

Only the gubbermint sells crop insurance.

I don't believe that's correct.

[urban rednek]

Originally Posted by hillbillyreefer

This is the most concise summary I’ve found about the premium increase in Alberta. I shamelessly stole it from @skellerfarms on twitter.

Lots of posts about crop insurance increases. Remember to do the math properly by factoring in the increased coverage.

2022: $24/ac buys $600/ac coverage
2023: $36/ac buys $800/ac coverage

24/600= 4%
36/800= 4.5%
(4.5-4)/4= 12.5% increase

This is not a 50% increase (36-24)/24

Oh and the dippers in the article claiming crop in insurance is the biggest expense in cropping is laughable. It shows just how misinformed the NDP agriculture critic is with actual agriculture.

I see what you are saying.
That's the kind of math that financial advisors and retail businesses (especially sales managers at car dealerships) love to foist on an unsuspecting consumer.
A 50% increase out of pocket is still out of pocket, no matter how you try to spin it.

[gman1978]

Originally Posted by hillbillyreefer

This is the most concise summary I’ve found about the premium increase in Alberta. I shamelessly stole it from @skellerfarms on twitter.

Lots of posts about crop insurance increases. Remember to do the math properly by factoring in the increased coverage.

2022: $24/ac buys $600/ac coverage
2023: $36/ac buys $800/ac coverage

24/600= 4%
36/800= 4.5%
(4.5-4)/4= 12.5% increase

This is not a 50% increase (36-24)/24

Oh and the dippers in the article claiming crop in insurance is the biggest expense in cropping is laughable. It shows just how misinformed the NDP agriculture critic is with actual agriculture.

This is a pretty accurate post on how it work. Canola at 20 bucks per bushel is going to cost you more than canola at 13 bucks a bushel. That’s pretty simple math. The dippers comment on the most expensive input shows how much they really know or care. Just playing politics trying to get a farmer vote.

[saskbooknut]

Crop insurance is a Federal/Provincial subsidized risk management insurance.
Farmers do not pay the full cost of crop insurance.
If it were a private insurance company, the rates would be much higher.

[Dr. Phil A]

You can lower your coverage to 60% and still take the hail rider to the max. If you live in hail alley in central Alberta this usually makes up most of the claims. Very rarely are the crops pounded 100% and there is some salvage value. You can take additional coverage thru a straight line company. These guys are usually have a limited number of policies they will sell in any given area.

Most producers were given an individual worksheet showing what they had paid into the program and what they had received for a period of ten plus years. Most of them had come out ahead. My clients always wanted enough payout to cover the premiums at least.

Crop insurance has paid out more than they have taken in over the years. Saskatchewan ran into this problem as well. Enter in the re-insurers (money guys)that will cover the shortfall. These guys need to see some return on their cash especially when the weather continues to take its toll.

One year there was a hail storm go thru in early July, not 100% and the hail paid out. The barley recovered and we had a long fall with no frost. Crops were coming off in good shape around 70 bushel per acre. Barley prices hit $5.50 per bushel making it a very lucrative crop that year. Payout should have waited until the crop was off and bins measured. Kinda of like getting a vehicle payout prior to an adjuster looking at your car.

Insurance is a small cost in comparison to the inputs.

[Dr. Phil A]

Going on to the website, I find it interesting there was no mention of the 20% premium reduction in 2021 due to a surplus in the reserve. The reserve depleted in 2022 requiring the 20% to be dropped.

Also offered is the fall price insurance. This is basically hedging. Farmers look at the price in the spring and make an educated estimation as to where the price will be in the fall. If they figure the price will be lower that the spring price the can take this insurance. This is an extra insurance outside the crop insurance (perils) premium.

[IL Bar]

Originally Posted by Dr. Phil A

Going on to the website, I find it interesting there was no mention of the 20% premium reduction in 2021 due to a surplus in the reserve. The reserve depleted in 2022 requiring the 20% to be dropped.

Also offered is the fall price insurance. This is basically hedging. Farmers look at the price in the spring and make an educated estimation as to where the price will be in the fall. If they figure the price will be lower that the spring price the can take this insurance. This is an extra insurance outside the crop insurance (perils) premium.

The price insurance was called the spring price endorsement. It was cancelled a couple years ago.

[Dr. Phil A]

Originally Posted by IL Bar

The price insurance was called the spring price endorsement. It was cancelled a couple years ago.

I know they removed it at one point. Just looked at AFSC website and it is back called the Fall Price insurance. I would venture an educated guess that it looks more like the cattle price insurance model than the original Spring Price Endorsement. Grain producers liked the look of the cattle price insurance when it originally rolled out.

Pigs and paint.

[saskbooknut]

2021/2022 Saskatchewan Crop insurance - worst year ever
Premiums 272 Million
Sask Gov. 200 Million
Fed Gov. 245 Million

Paid out. 2.55 Billion
There were reinsurance recoveries making the
net loss. 1.46 Billion
If it wasn't a Government program, it would be bankrupt and done.

Here's the Alberta Crop Insurance info -
https://afsc.ca/about-afsc/annual-report/
Provincial and Federal input 2021/22 almost a Billion $
Deficit still over 2 Billion in Alberta

[6.5 shooter]

NDP wants to forum Government they will lie about everything so those who care not to look up the facts will vote for them. At present that seems to be about 50% of the population of Alberta. We are screwed if they get in. Happy socks and his side kicks Singalong and Nutbar will lead us down the path of social ruin.... Mark my words. They will be the destroyers of Canada.