Weather-based Programs

Transcription

1 Weather-based Programs DELIVERED BY SCIC Saskatchewan Crop Insurance Corporation

2 Deadlines MARCH 31 Deadline to apply, reinstate, cancel or make changes to your current year Crop Insurance contract, including all crops to be insured and coverage levels. Report any land you have added to or deleted from your contract. Customers who want insurance for this year must make arrangements for payment of outstanding balances from the previous year by March 31. FRIP enrolment: Your contract is continuous and unless you make changes to your endorsement by this date, your insurance remains the same from year to year. 2

3 Contents Forage Rainfall Insurance Program 4 To Enrol 4 Rainfall Coverage 4 Claims 7 Corn Heat Unit Program 10 To Enrol 10 Coverage 10 Claims 11 3

4 Forage Rainfall Insurance Program Pastureland production depends upon timely precipitation and is vulnerable to losses from accidental fire. The Forage Rainfall Insurance Program (FRIP) is available on native and tame grazing acres, protecting pastureland in the event that seasonal precipitation is below the long-term average. This is the only insurance program available for native forage. Fire insurance is also provided within the Forage Rainfall Insurance Program. TO ENROL There is no limit to the number of acres you may insure, but a minimum of 10 acres per legal land description is required. The deadline to apply for, reinstate, cancel or make changes to your FRIP endorsement is March 31. Your contract is continuous and unless you make changes to your endorsement by March 31, your insurance remains the same from year to year. Fire coverage is in effect year around from April 1 to March 31. PREMIUM FRIP premiums are cost-shared. Producers will pay 40 per cent while governments pay 60 per cent. Experience discounts and surcharges do not apply. Premium rates are calculated using weather station historical precipitation data, the weighting option, precipitation cap that you select. The risk of accidental fire is also included in the rate. RAINFALL COVERAGE For each land location you wish to insure you must select the following: Weather station Weighting option Precipitation cap The weather station you select must be within 100 kilometres of your land location. Coverage levels follow three soil zones along township boundaries. Your soil zone where your land is located, not the weather station you select, determines your coverage per acre. For prices in the soil zones for tame grazing and native forage, visit or your local customer service office. 4

5 SASKATCHEWAN SOIL ZONES RM Township Black/Gray Dark Brown Brown 5

6 Corn Heat Unit / Forage Rainfall CORN HEAT UNIT / FORAGE RAINFALL INSURABLE WEATHER STATIONS Insurable Weather Stations RM ± Meridian 3 RM Twp Cold Lake Beaver River 60 Meadow Lake 59 Loon Lake Meridian 2 Meridian Fort Pitt 54 Waskesiu 55 Big River Glaslyn Debden 521 Lloydminster Shipman Butte St Pierre 497 Nipawin Spiritwood Aylsham Paynton Prince Albert 47 Shell Lake South North Battleford Carlton Melfort Hudson Bay Weekes Mafeking 42 Marsden Hafford South Wakaw McKague Scott Spalding 39 Bodo Humboldt Endeavour Swan River Unity Biggar Saskatoon Fosston Pelly Asquith St Denis Leroy Major Hazel Dell Plenty Esther Dundurn 314 Wynyard Foam Lake 305 Kindersley Harris Watrous Pelly 2 Cote 292 Outlook Good Spirit Lake Rosetown Last Mountain Mantario 286 Oyen Cappon Bickleigh Kenaston 26 Kelliher Yorkton 26Roblin Rock Point Duval Elbow Leader Fenwood Elrose Empress Lancer Lucky Lake Chamberlain Balcarres Tugaske Atwater Cupar 181 Stewart Valley Binscarth Hazlet 191 Fox Valley East 189 Indian Head Grayson Schuler Parkbeg Swift Current Morse Moose Jaw ReginaBratt's Lake Broadview Wapella Medicine Hat Maple Creek North Gull Lake Lac Pelletier Coderre Corning Kendal Shaunavon Aneroid Weyburn 9 Assiniboia 7 79 Dahinda Yellow Grass Cypress Hills 72 Benson 6 5 Eastend 49 Cypress Glentworth Bengough Midale Manor Willmar Manyberries Willow Creek Beaver Valley Rockglen Lake Alma (Rm 8) Oxbow Val Marie Se Estevan 1 Treelon Grasslands 12Coronach Pierson 3 2 Meridian 3 Meridian 2 Meridian Stations 131 Stations Townships 1 Virden Elkhorn Melita RM Boundary Source: Information Services Corporation, Sask. 6

7 The soil zone map and the weather station map can also be found at You must also select the weighting option for each land location insured. This allows you to weight the April to July precipitation to best suit the growing season of your specific forage variety and your management plans for grazing your pasture. Monthly Precipitation Weighting Options Finally, select a precipitation cap of either 125 or 150 per cent of normal for each land location you insure; any precipitation above this selected cap in any month will not be included in the claim calculation. For calculation scenarios, please go to the FRIP premium and coverage what if calculator at or contact your customer service office. CLAIMS There are two perils that can trigger a claim, independently from one another: Rainfall Fire Rainfall April May June July Total Option 1 30% 30% 30% 10% 100% Option 2 10% 40% 40% 10% 100% Option 3 10% 30% 30% 30% 100% Option 4 20% 40% 40% 0% 100% A rainfall claim is triggered when the precipitation at your selected weather station is below 80 per cent of normal. For each percentage point below that 80 per cent, 2.5 per cent of liability will be paid. The rainfall indemnity calculation is based on your selected monthly precipitation weighting and your selected precipitation cap. Quality control measures include verification of all weather station data by a third party (independent of SCIC) using procedures approved by an accredited meteorologist. Precipitation includes all rainfall and snowfall amounts. Only verified data is used in claim calculations. Rainfall claims do not have to be filed; they are automatically calculated by the end of the season based strictly upon weather station data. Verified monthly precipitation amounts will be available at and your customer service office. Precipitation determined for the selected weather station is the only means of determining a rainfall claim. Claims are not tied to individual yields or the amount of precipitation on individual parcels of land. Fire A fire claim requires an inspection to assess the damaged acres. An eligible fire claim will trigger a payment equal to the full insured value per acre. A minimum of one acre must be damaged to be eligible for payment. The combined value of a rainfall claim and fire claim cannot exceed the maximum insured value per acre. For example, if an acre is fire damaged, the maximum value will be paid. Lack of rainfall will not trigger an additional payment. 7

8 RAINFALL CLAIM CALCULATION EXAMPLES The examples on the following pages use identical precipitation data to demonstrate the impact the monthly weighting and precipitation cap selection has on your FRIP coverage. You enrol 100 grazing acres at $20/acre coverage. You are covered for a total liability of 100 acres x $20/acre coverage = $2,000. Example at and precipitation cap of 150 per cent: Month (Weighting) Long-Term Normals Monthly Precipitation Monthly Precip./ Long-Term Normal = % of Normal (Max. of 150%) Value for Monthly Weighting % of Normal x Monthly Weight = Monthly Weighted % of Normal April (30) 25mm 40mm 160% (150% cap) 30% 45% May (30) 45mm 32mm 71% 30% 21% June (30) 70mm 33mm 47% 30% 14% July (10) 65mm 16mm 25% 10% 3% = 83% of normal Monthly weighted precipitation is greater than 80 per cent; therefore, no indemnity is paid. 8

9 Example at and precipitation cap of 125 per cent: Month (Weighting) Long-Term Normals Monthly Precipitation Monthly Precip./ Long-Term Normal = % of Normal (Max. of 150%) Value for Monthly Weighting % of Normal x Monthly Weight = Monthly Weighted % of Normal April (10) 25mm 40mm 160% (125% cap) 10% 13% May (40) 45mm 32mm 71% 40% 28% June (40) 70mm 33mm 47% 40% 19% July (10) 65mm 16mm 25% 10% 3% = 63% of normal Indemnity Payment Calculation = (80% - 63%) x 2.5% = 42.5% Indemnity Payment on Liability = 42.5% x $2,000 = $ FIRE CLAIM CALCULATION EXAMPLE You enroll 100 grazing acres at $20/acre coverage. An accidental fire destroys 70 acres. The indemnity payment would equal 70 acres x $20/acre = $1,400. 9

10 Corn Heat Unit Program Corn depends on timely heat units. The Corn Heat Unit Program is a weather-based program that insures against a lack of corn heat units over the growing season. The same acres cannot be insured under the Grain Corn Yield-loss Program and the Corn Heat Unit Program. This program provides a risk management option to silage, grazing and grain corn producers. The Corn Heat Unit Program is not an individual production program; corn heat units determined for the selected weather station are the only means of determining a claim. Indemnities are not tied to individual yields or the corn heat units recorded on individual parcels of land. TO ENROL The insurable area for this program includes data from 131 weather stations. To determine your eligibility, contact your customer service office or visit PREMIUM Experience discounts and surcharges do not apply. Premium rates are calculated for participating weather stations based on historical heat unit data. COVERAGE The corn heat unit calculation is a standard North American formula modified for the specific area measuring the maturity of corn. Customers will be guaranteed 95 per cent of the long-term normal Corn Heat Unit accumulation for the selected weather station. Annual corn heat units accumulate from May 15 until the daily minimum temperature first reaches -1 C or less after July 1. 10

11 You are limited to selecting one weather station per insured parcel of land which is within 120 kilometres of your land. You may select insured values of $100, $200 or $300 per acre. You may insure any number of acres, but you do not need to insure all your corn acres. All acres on that contract must be insured at the same level of coverage. At the time of enrolment, you must declare all acres selected for coverage. If you seed fewer acres than were declared, your premium will be adjusted accordingly. If you seed more acres, the declared acres will be used for premium calculations. These acres must be seeded to corn. CLAIMS For every per cent the accumulated heat units fall below 95 per cent of normal for the selected station, 4 per cent of liability will be paid. Corn Heat Unit Claim Calculation Example: If the long-term normal for the selected station is 2250 corn heat units, and during the season 2030 corn heat units are accumulated equaling 90 per cent of normal. 95 per cent - 90 per cent = 5 per cent. Liability is paid at 4 per cent for each per cent the accumulations drop below 95 per cent. Therefore 5 x 4 per cent = 20 per cent. If the insured value was $200, the indemnity paid would be $200 x 20 per cent = $40/acre. Claims do not have to be filed but are automatically calculated in November based strictly upon weather station data. Quality control measures include verification of all weather data by a third party (independent of SCIC) using procedures approved by an accredited meteorologist. Only verified data will be used in claim calculations. Corn heat unit information may be found at and at your customer service office. 11

12 Customer Service Offices Assiniboia Box st Ave. W. Assiniboia, SK S0H 0B Davidson Box Lincoln St. Davidson, SK S0G 1A Estevan Box 1716 #5-419 Kensington Ave. Estevan, SK S4A 1C Humboldt Geschaft Centre Box th Ave. Humboldt, SK S0K 2A Kindersley Unit th Ave. E. Kindersley, SK S0L 1S Leader Box 387 # st Ave. W. Leader, SK S0N 1H Moose Jaw 45 Thatcher Dr. E. Moose Jaw, SK S6J 1L Moosomin Box Carleton St. Moosomin, SK S0G 3N North Battleford Kramer Place # nd St. North Battleford, SK S9A 1E Preeceville Box Hwy. Ave. E. Preeceville, SK S0A 3B Prince Albert Box Central Ave. Prince Albert, SK S6V 6G Raymore Box Main St. Raymore, SK S0A 3J Regina 515 Henderson Dr. Regina, SK S4N 5X Rosetown Box nd Ave W. Rosetown, SK S0L 2V Saskatoon 3830 Thatcher Ave. Saskatoon, SK S7R 1A Shaunavon Box rd Ave. E. Shaunavon, SK S0N 2M Swift Current E.I. Wood Building Box 5000 # Cheadle St. W. Swift Current, SK S9H 4G Tisdale Box th St. Tisdale, SK S0E 1T Turtleford Box A Main St. Turtleford, SK S0M 2Y Weyburn Box 2003 # Souris Ave. N.E. Weyburn, SK S4H 2Z Yorkton 38 5th Ave. N. Yorkton, SK S3N 0Y Ce livret est aussi disponible en français. 12

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14 Contact Information Saskatchewan Crop Insurance Corporation Head Office 484 Prince William Drive Box 3000 Melville, SK S0A 2P0 Phone: Fax: Toll Free: Office Hours: Monday to Friday, 8 a.m. to 5 p.m. Closed weekends and statutory holidays.