EMI payments close to $63 million on 985,000 acres too wet to seed

The deadline for selecting fields for Excess Moisture Insurance coverage in 2015 is this Nov. 30

Manitoba farmers were paid almost $63 million under Excess Moisture Insurance (EMI) on 985,000 acres reported as too wet to seed this spring.

“It’s a little less than what we were estimating before we had all the data keyed in and got the actual calculations done,” Craig Thomson, Manitoba Agricultural Services Corporation’s (MASC) vice-president of insurance operations said in an interview Aug. 22.

“Pretty close to $60 million was in the mail by the end of July.”

MASC received almost 2,400 EMI claims after excessive rains and flooding prevented many farmers, especially in western Manitoba, from seeding some of their fields before the June 20 crop insurance seeding deadline.

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Last year 219,241 insured acres were too wet to plant. In 2012, 117,623 acres weren’t seeded due to excessive moisture.

A record 2.9 million acres were too wet to seed in 2011 triggering $162 million in payments on 5,800 claims under the EMI program.

That year almost 3.1 million acres, including uninsured land, were too wet to seed.

EMI was introduced in 2000 with a basic $50-an-acre coverage and deductible of five per cent of total acres available for seeding.

All Manitoba farmers participating in AgriInsurance pay 46 cents an acre for basic $50-an-acre EMI coverage, which is 40 per cent of the total premium cost.

Each year a farmer makes an EMI claim his or her deductible increases five per cent; each claim-free year the deductible drops five per cent.

Farmers can buy down their deductible and/or buy up their coverage to either $75 or $100 an acre.

Farmers pay 40 per cent of the $50-an-acre basic coverage and the first $25 for the $75-an-acre option, MASC’s website says.

For the $100-an-acre option farmers pay 67 per cent of the premium for the extra $25-an-acre coverage in addition to 40 per cent of the first $75-an-acre coverage. The remainder of the premium is paid by the federal and provincial governments.

Farmers pay all of the cost for buying down their EMI deductible.

The deadline for selecting fields to be covered by EMI in 2015 is Nov. 30, 2014, which is also the deadline for filing harvest production reports to MASC, Thomson said.

About the author

Reporter

Allan Dawson

Allan Dawson is a reporter with the Manitoba Co-operator based near Miami, Man. Covering agriculture since 1980, Dawson has spent most of his career with the Co-operator except for several years with Farmers’ Independent Weekly and before that a Morden-Winkler area radio station.

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