APAS Says It’s Not Fair To Blame Producers For A Provincial Deficit

Dec 01, 2021

The Agricultural Producers Association of Saskatchewan is raising concern over the Province's claim that Saskatchewan Crop Insurance Corporation payments caused the provincial deficit in 2021.

According to APAS Saskatchewan Crop Insurance Corporation reported a $2.4 billion surplus for 2020 which was accumulated over previous years, as well as a sizable surplus in the reinsurance fund.

APAS Vice President Ian Boxall says it’s not fair to blame producers for a provincial deficit in a drought year when that surplus gets used up.

Boxall says over the last several years, claims have been lower than premiums, which is why a surplus was built up over time.

He notes if the Crop Insurance surplus had been invested in a dedicated fund, like the SGI Auto Fund, then that money would have been readily available for paying Crop Insurance claims.

Federal and provincial governments are also protected by reinsurance policies that insulate them from the risk of high claim years.

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