2005 CROP INSURANCE PROGRAM RELEASED

Released on February 11, 2005

Saskatchewan Crop Insurance has announced the 2005 insurance program. Producers will receive their endorsement packages in the beginning of March and must finalize their coverage for the upcoming year by March 31st.

"Production Insurance is key to a comprehensive risk management strategy for producers," Federal Agriculture and Agri-Food Minister Andy Mitchell said. "Continued program participation demonstrates that Saskatchewan producers continue to value the program and use it to mitigate the risk of farming today."

"Crop Insurance is an important risk management tool for Saskatchewan producers," Agriculture and Food Minister Mark Wartman said. "The drought conditions of 2002 and 2003 and the early frost in 2004 demonstrated how vulnerable this sector is to Mother Nature. We can't control nature, but an effective crop insurance program can mitigate the impact of production difficulties."

A number of enhancements have been made to the grains and specialty crop programs for 2005 including:

•a Crop Averaging Pilot Program
•updated coverage on winter wheat and sunflowers.
•a Vegetable Insurance Pilot Program
•establishment benefit on diversified acres
•a Contract Price Option for organic producers

Enhancements to the forage program include:

•a new greenfeed seeding deadline
•greenfeed establishment benefit
•the ability to transfer management experience to forages
•a forage diversification option
•an expanded Corn Heat Unit Pilot Program.

Complete 2005 program information will be mailed to producers in their endorsement packages at the beginning of March.

Crop Insurance has paid nearly two billion dollars in claims since 2001, resulting in a program deficit of $574 million. On average, 2005 premiums are increasing nine per cent while coverage is decreasing slightly, due in large part to reduced market prices. These are averages; customers will receive their 2005 personal premium and coverage information in March with their endorsement packages.

The deadline to apply for, make changes to or cancel Crop Insurance coverage is March 31st, 2005. Program information is available online at www.saskcropinsurance.com

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For More Information, Contact:

Scott Brown SAFRR Regina Phone: 787-4031

Terri Kentel-Weinheimer Saskatchewan Crop Insurance Melville Phone: 728-7287