Manitoba producers can expect lower crop insurance premiums on most products, attendees of Ag Minister Ron Kostyshyn’s Manitoba Ag Days address heard Jan. 16.
Average premiums for annual crops under AgriInsurance are expected to hit $16.21 per acre in 2024, down from $19.21 in 2023.
It’s a good news, bad news scenario for producers.
[VIDEO: Manitoba Agriculture Minister Ron Kostyshyn speaks with reporters at Manitoba Ag Days 2024]
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Speaking after the announcement, Kostyshyn pointed to lower grain prices. Those lower prices factor into the calculation for producer premiums, he noted.
“I guess, what it basically does say is, if you’re very successful, you could have some super yields and you save $3 an acre on a premium for the insurance component,” he said.
A press release put out by the province following the announcement noted “continued volatility in global commodity markets.”
Prices may rise for crops like dry beans, forage and forage seeds, potatoes and vegetables, the release noted, but most other crops are anticipating a price hit.
Manitoba’s 2024 AgriInsurance program is expected to provide coverage for about 9.55 million acres, worth $5 million.
Of the 60 per cent of premium cost born by government, 36 per cent is funded by the federal government, while the provincial government foots the bill for 24 per cent of the cost. Producer payments make up the remaining 40 per cent of the premium.
[VIDEO: Manitoba Premier Wab Kinew speaks with reporters at Manitoba Ag Days 2024]
Veggie pilot
Small-scale vegetable growers may have reason to smile this year.
The Manitoba Agricultural Services Corporation will have a pilot program on offer for those producers, Kostyshyn announced. Many of those producers previously did not have an AgriInsurance option, due to minimum acreage requirements.
Under the new program, producers will be able to bundle the footprint of their different vegetable crops. Eligibility can then be determined based on the combined area.
This will allow growers to “adequately insure a variety of their vegetable crops,” the release said.
“We encourage the demand for locally grown food and, in order for them to be conscientious in a business perspective, [producers previously] had to grow ‘x’ amount of acres,” Kostyshyn said.
With the ability to bundle crops, producers will now be eligible for insurance on the land base they already have, he noted.
Combined, the crops must span at least a half-acre, Kostyshyn’s office said.
For more details, watch for the Jan. 25 edition of the Manitoba Co-operator.
