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Managing risk with agriculture insurance

Reference: FCC

Protecting the house and car with insurance is commonplace, but when it comes to crops, insurance coverage isn’t as universally embraced.

Nova Scotia's Minister of Agriculture Keith Colwell explains crop insurance adds some predictability to producers’ businesses.

Adverse weather, disease and insect infestations can have a serious impact on production and income, so having insurance is important, he says.

“It protects against the effects of yield reductions and crop losses caused by insured perils,” says Colwell. “AgriInsurance helps maintain cashflow in poor crop years with claim payments that offset losses caused by crop damage and low yields that are beyond their control.” Provinces across Canada offer public and private insurance coverage.

For instance, production insurance from Ontario’s AgriCorp, a provincial Crown corporation, has plans for over 100 commodities and covers yield reductions and production losses caused by weather, disease, wildlife and insects.

On the Canadian Prairies, hail is one of the leading risks to crops, and no other kind of disaster produces as sudden and devastating an impact, says Canadian Crop Hail Association president Rick Omelchenko.

“You can have a crop that’s producing 100 bushels per acre, and then all of a sudden, the next day, it’s like summer fallow,” Omelchenko says... Read More