Improving AFSC’s offerings for today’s ag industry

For 2025, we’ve made a few changes to our products to optimize them for today’s agriculture industry.

Crop insurance

AFSC is making improvements to several crop insurance offerings for the 2025 crop year. Changes include improving payment timing for Silage Greenfeed Barley Proxy Insurance, the addition of mixed grain as a primary cocktail crop for both Silage Greenfeed Insurance options, the expansion of soft white spring wheat risk areas for pedigreed growers, and a new claim deadline for wildlife excreta damage in the Wildlife Damage Compensation Program.

Updates for 2025:

• Silage Greenfeed Insurance – Barley Proxy payments: AFSC will use harvested production report data and post-harvest data to speed up payment timelines. This means payments may occur in January, earlier than the usual timeline of April or May.
• Cocktail Crops in Silage Greenfeed Insurance – Barley Proxy and Lack of Moisture: Mixed grain is being added as an eligible primary crop. This means cocktail crops with two cereal crops making up 35 per cent or greater of the crop will now be eligible for coverage as a cocktail crop.
• Soft white spring wheat risk areas: This enhancement allows clients who are members of the Canadian Seed Growers Association to insure soft white spring wheat grown in risk areas 7, 8, 10, 11, 12, 13, 15 and 16 for a pedigreed end use.
• Wildlife Damage Compensation Program: Cleaning receipts for wildlife excreta claims will now need to be submitted within two years of the inspection date – previously one year. Current claims will require submission of cleaning receipts within either a year from the date of notice or two years from the date of inspection, whichever is longer.

Producers can also expect to see higher crop insurance premiums for the 2025 crop year as loss experience from previous dry years continues to drive premium increases. Individual program changes, resulting in additional coverage, can also move premiums higher.

“We are seeing the consequences of drier conditions the last few years in premiums,” explained Darryl Kay, AFSC chief executive officer. “In 2021, we saw historic claim payments and that had an impact on both the insurance fund balance and individual producer’s experience, which translates into higher premiums.

“The aim is not to recover these losses in a short period of time; rather, our premium framework takes a longer-term, 25-year approach. This longer view means greater premium predictability and stability for our clients.”

Clients have options when it comes to controlling their perennial and annual crop insurance premium costs.

Price options are available under the production-based insurance for hay as well as Moisture Deficiency and Corn Heat Unit insurance products. Coverage level options, from 50 to 80 per cent, are available for most commodities insured under AFSC’s production-based insurance products.

Clients are encouraged to contact their insurance relationship manager to discuss their situation and options on how best to handle any premium increases while managing their risk.

AgriStability

Changes are on the way that will reduce the filing burden, increase dependability and predictability, and result in files being processed sooner.

Starting with the 2025 program year, AgriStability participants will be able to:

• choose between optional reference margin (ORM) and accrual adjusted reference margin (AARM)
• request coverage notices, if they have selected the optional reference margin

Additionally, the filing deadline for supplementary forms and tax information (inventories, purchased inputs, receivables and payables) is moving to June 30. Participants will still be able to file their AgriStability forms any time after they complete their year-end but will need to ensure all necessary information has been received by AFSC by June 30.

“AgriStability can be an important risk management tool for producers in Alberta,” said Kay. “It’s an under-appreciated program with a reputation of being complex and slow to pay; the changes we’re making for 2025 should help address those concerns.

“It’s time for producers to take another look at AgriStability. It’s a low-cost program that can help protect your farm from income declines.”

Lending

AFSC has expanded eligibility for the Next Generation loan making it easier for producers to enter and re-enter the agriculture industry, giving greater opportunities to new and growing operations, making succession more appealing and encouraging new and young people to get into farming.

Recent changes include:

• Producers of any age who are entering or returning to farming are eligible for a one per cent interest rate incentive, previously it was only available to those under 40.
• Producers may receive an interest rate incentive on their total lifetime loan principal up to $1.5 million, an increase from the previous $1 million.
• Applicants now require 20 per cent ownership in a farming operation, down from 25 per cent.
• Eligible borrowers can make “interest-only” payments on their loans for up to five years, up from the current two years.

“The changes to the Next Generation Loan program are key to supporting the next generation of farmers and ensuring the vitality of agriculture in the province,” said Kay.

“AFSC is here to support Alberta’s producers – no matter what stage they are at – and our team is ready to help producers develop a risk management plan that fits their operation.”

To learn more about AFSC insurance, income stabilization or lending options, please reach out to your preferred branch office, contact AFSC through Live Chat on our website or AFSC Connect, or call our Client Care Centre at 1.877.899.2372.