AFSC refunding hail premiums on crops deemed non-viable due to excess moistureHail Endorsement Straight Hail Insurance
Producers in the North East, North West and Peace regions of Alberta are facing challenges as they deal with consecutive years of excessive moisture. Agriculture Financial Services Corporation (AFSC) recognizes the hardship and stress these producers are experiencing and we want to provide meaningful support and assistance at this crucial time.
Producers insured under AFSC’s Hail Endorsement or Straight Hail Insurance who currently have non-viable acres due to excessive moisture can apply to have their hail premiums refunded for 2020. This one-time initiative offers relief to farmers who have drowned out crops that are no longer viable, and thus would be ineligible for a hail claim.
From August 19 to September 11, AFSC will be accepting applications for premium refunding to impacted clients for the full amount of their 2020 hail premiums on crop deemed non-viable. Premiums will only be refunded on non-viable acres. Non-viable crops are those where the yield possible is considered not to be worth the cost of harvesting. Refunds will be issued in the fall as part of Harvested Production Report and Post-Harvest activities.
“We recognize the challenges many farmers in the North East, North West and Peace region are facing as they deal with back-to-back years of excessive moisture. We realize this won’t fix the problem, but it is something AFSC can do to help farmers impacted by these extreme moisture conditions.”
Jerry Bouma, AFSC interim CEO
“We recognize the challenges many farmers in the North East, North West and Peace region are facing as they deal with back-to-back years of excessive moisture,” said Jerry Bouma, AFSC interim CEO. “Many AFSC staff are also producers, so we understand the frustration and disappointment farmers feel when they can’t harvest the crop or conditions simply won’t allow it to grow.
“We realize this won’t fix the problem, but it is something AFSC can do to help farmers impacted by these extreme moisture conditions.”
Producers who have purchased AFSC hail insurance and have over 10 per cent flooded/non-viable acres in a field can declare those acres non-viable, and can apply to have their hail premiums fully refunded for the affected acres. Any non-viable acres on which an indemnity has already been paid by AFSC for hail damage are not eligible for the refund.
This is a special refund, in response to the excessive moisture in the northern part of Alberta. Generally, there are no refunds after July 31 of the insured year. Premium cancellation is only applicable to Hail Endorsement or Straight Hail Insurance; annual crop production insurance coverage remains in effect.
Applications for the hail premium refund will be available online through AFSC Connect. Producers will need an AFSC Connect account to begin the application process. If you need assistance setting up an AFSC Connect account, call AFSC at 1.877.899.2372 or reach out to any branch office.
For each affected field, clients will need to report provide legal land descriptions, part, crop type, acres insured and non-viable acres. Clients must apply by 11:59 p.m. September 11, 2020 to participate in the refund initiative.
Throughout all phases of the initiative, AFSC will monitor the information reported and conduct random audits to ensure people are following the intent of the refund. Clients should be aware that all information reported during the refund process must be consistent with the abandoned acres reported on their Harvested Production Reports.
For more information on this initiative, please refer to Hail Premium Refund Q & As.
If you still have questions, please contact AFSC using online chat, call our Client Service Centre at 1.877.899.2372 or contact a branch office. AFSC is ready and available to answer your questions and assist you.