Alberta farmers will receive a 20 per cent reduction in crop insurance premiums for the 2021 crop year.
The Alberta Premium Reduction will save farmers more than $55 million on their crop insurance premiums in 2021. This will mean significant savings for individual farmers as a farm with 2,000 insured acres will save about $8,000 this year.
“I’m thrilled that we can pass these savings on to our clients,” said Darryl Kay, AFSC’s chief executive officer, “and proud that our healthy crop insurance program in Alberta can give producers a bit of a break when they need it most.”
The reduction in premiums is possible because of a healthy crop fund reserve. This fund protects against any future insurance payments, and is now at a point where it can help support discounted premiums, without posing significant risk to the overall program. This also means that there is enough money in the fund to mitigate a major event, such as a province-wide disaster in 2021 or beyond.
Watch the announcement
Why is there money in the reserve fund?
Crop insurance rates are calculated based on an actuarially-sound methodology. Agriculture can be quite variable in terms of when weather-related events occur, and Alberta has been fortunate to have had a favorable decade without a significant widespread provincial event. If a major event occurred in the future, then the fund balance would be depleted and the discount strategy revisited.
AFSC continues to focus on ways to cut red tape, evaluate and deliver relevant programs and streamline our organization so that we are easier to deal with.
Please check out the Alberta Premium Reduction Q & A page. For additional information, please use Live Chat on our website or AFSC Connect, call our Client Service Centre at 1.877.899.2372 or contact your branch office.