Excessive precipitation across northern Alberta over the past several weeks has significantly impacted seeding progress for many producers and is causing fields to flood in some areas.
Agriculture Financial Services (AFSC) recognizes these kinds of conditions can create uncertainty and worry for producers trying to manage the distressed acres.
In anticipation of issues arising from the wet weather, AFSC extended seeding dates for some regions to give producers additional time. These extensions only apply to the 2026 crop year. Clients with elected acres under the Silage Greenfeed Lack of Moisture program have until July 15 to seed those crops.
The deadline to file land reports was June 20. Once all reports have been processed, AFSC will have a clearer picture of total seeded versus unseeded acres and overall production impacts.
Insured causes of loss
Excess moisture and flood are insured perils (cause of loss) under AFSC’s production-based Annual Crop Insurance and Hay Insurance. The following AgriInsurance features and benefits are available to producers to help protect them from excess moisture-based loss.
Stage 1 & Stage 2 Crop Losses
Understanding the distinction is important, as claims and compensation differ depending on crop stage. Where the insured has notified AFSC of a loss:
- Stage 1 (establishment loss)- on or before June 20
- Occurs when a crop fails early due to insurable perils.
- May qualify for reseeding benefits or partial compensation for production loss.
- Stage 2 (production loss)- on or after June 21
- Applies once the crop is established but yield is reduced due to insurable perils.
- Paid based on actual production shortfall compared to coverage.
Reseeding Benefit (Stage 1)
The reseeding benefit provides compensation for reseeding operations
It provides coverage for established crops that can be re-seeded before June 20 and covers additional perils to excess moisture.
Unseeded Acreage Benefit (Stage 1)
Designed to provide financial support to producers unable to seed eligible crops due to excess moisture. It’s intended to offset input and opportunity costs.
- To qualify, producers must have an active crop insurance policy and report acres that were too wet to seed on their land report.
- Payment is a per-acre benefit and not based on actual yield loss.
- There is a five per cent deductible applied on every quarter section to cultivated acres. This is to account for any portions that would be typically unseeded in a normal year anyway.
- There are four payment levels. Fertilized requires receipts to prove application:
- Level 1- Dryland, unfertilized: $57/ac
- Level 2- Dryland, fertilized: $127/ac
- Level 3- Irrigated, unfertilized: $125/ac
- Level 4- Irrigated, fertilized: $207/ac
- Acres that receive the UAB cannot be harvested as an insured crop in the insurance year
Production Insurance Coverage (Stage 2)
Excess moisture and flooding are insured perils for production-based insurance products like Annual Crop Insurance and Hay Insurance. Actual production is measured, and a loss is paid if there is a shortfall across the total insured acres of the crop compared to the coverage guarantee.
Crops that can be harvested may suffer from quality losses. Eligible harvested annual crops may have the yield adjusted for quality losses when the grade falls below the designated grade.
Pre-harvest inspections & alternate use
Insured producers with excess moisture damage may wish to put all or a portion of an insured crop to alternate use. Pre-harvest inspections are required before destroying a crop or putting any insured acres to an alternate use (e.g., plow down, grazing or silage).
- Producers must contact AFSC and request an inspection at least five days prior to doing any work on those acres. Approval is required by AFSC before these acres can be released. Failure to obtain a release may result in uninsured causes of loss being applied as the yield could not be verified.
- Where AFSC can’t inspect the acres prior to work being completed, AFSC will instruct the insured on leaving inspection strips or exclosures for adjusters to determine yield at a later date.
- Indemnities will not be paid until all acres for an insured commodity are finalized, which includes harvesting or putting it to alternate use after appraisal. This ensures that AFSC can accurately calculate total production and loss before issuing any payments.
Additional resources
- Annual Crop Insurance Insuring Agreements, Terms & Conditions and Benefits
- Inspection Strip Policy
- Things to know before you put a crop to alternate use
For more information, please use the live chat function on our website or AFSC Connect, call the Client Care Centre at 1.877.899.2372 or contact your preferred AFSC branch office.
