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SCIC Coverage for Dry Conditions

June 2021

Cattle near a dugout

At Saskatchewan Crop Insurance Corporation (SCIC), we recognize the challenges farmers and ranchers are facing due to dry conditions. We encourage producers to contact their local SCIC office to review their Crop Insurance coverage details. SCIC staff will work with producers to do what is best for their operation.

Customers can register a pre-harvest claim if they do not carry the crop through to harvest or put insured acres to alternate use. In response to the feed shortage this year, SCIC is doubling the Low Yield Appraisal threshold values for customers who salvage their cereal or pulse crops as feed. When crops are severely damaged and the appraised yield falls below an established threshold level, the yield is reduced to zero. For these acres diverted to feed, a Low Yield Appraisal will not negatively impact a customer's future individual coverage.

Customers are asked to contact their local SCIC office before they graze, bale or silage any damaged crops to discuss their options. An adjuster will visit and assist in setting up exclosures, or the producer will be instructed to leave a checkstrip, to conduct future appraisal. Bale feeders or a small, fenced area can also be used for each exclosure.

Crop Insurance coverage will not be negatively impacted if customers chose to divert grain crops to feed. Livestock producers can gain access to feed sources from Crop Insurance customers who chose to put their crops to a use other than harvest. Producers are encouraged to contact their neighbouring operations to set up arrangements.

For Crop Insurance customers, who endorsed Weather-Based and Forage Programs, coverage is available for grazing, feed or seed production. Crop Insurance customers who selected the Forage Rainfall Insurance Program (FRIP) have coverage against dry conditions and fire. FRIP customers are able to manage and graze their forage as needed. Customers who have tame hay insured under FRIP can decide to graze their hay land without contacting SCIC first. Weather-Based claims do not have to be filed, they are automatically calculated based on weather station data.

The AgriStability Program can help manage the challenges caused by dry conditions. Increased feed costs, inventory reductions and price declines are factored into the AgriStability Calculations of Benefits. Producers enrolled in the AgriStability Program can receive 50 percent of their estimated final payment through an interim benefit. Customers can contact their local SCIC office or call 1-866-270-8450 to learn more about their coverage.

Livestock Price Insurance (LPI), formerly known as Western Livestock Price Insurance Program (WLPIP), provides protection to producers from unexpected price drops in the cattle or hog market; producers can tailor coverage to best suit their operation's needs. Premium tables are published on Tuesday, Wednesday and Thursday each week to help guide decisions. Policies are based on a forward market price and if, at the end of the policy, the average market price is lower than the insured price, the producer will receive a payment for the difference. Livestock Price Insurance can be purchased year-round for feeder cattle, fed cattle or hogs.

LPI policy holders are reminded they have the flexibility to market their cattle as needed. As per the LPI Contract of Insurance, producers on the Feeder and calf programs are required to have a minimum of 60 continuous days. Once this criteria is met, a producer may sell their inventory before policy expiration.

Producers should be aware, given the current dry conditions, if the cattle insured are lighter than insured, producers will still have full coverage.

Wondering how the Crop Insurance Low Yield Appraisal impacts your claim and future coverage? Looking to apply for an early payment with AgriStability? Wanting to learn more about Livestock Price Insurance? SCIC programs can provide support for producers experiencing dry conditions. Check out SCIC's video series outlining program details.

Those concerned about dry conditions should contact their local SCIC office. SCIC staff is available to walk through program options and discuss claims, compensation and requirements. If you have any questions, please call 1-888-935-0000 or visit Saskatchewan Crop Insurance.

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