Interest in forage insurance wanes

Thursday, July 11, 2013

by SUSAN MANN

A provincial survey has found a large proportion of forage growers in Ontario have experienced significant yield variances over the last decade.

But despite the variability, Agricorp numbers indicate that fewer farms are obtaining forage insurance.

More than 300 forage producers answered Agricorp’s online survey in April and May. The survey is part of a review of the forage rainfall plan by Agricorp and the Ontario Ministry of Agriculture and Food.

Of those respondents, more than 40 per cent said their yield varied more than 30 per cent over the last decade.

Yet the number of Ontario farms enrolling in the forage rainfall plan declined 18 per cent this year compared to 2012. This year, 1,174 farm businesses and a total of 294,554 acres were enrolled in the forge rainfall plan; last year 1,432 farm businesses and 344,428 acres were enrolled.

John Clement, Agricorp senior program and policy adviser, says participation in forage insurance is low across jurisdictions in Canada and that’s mainly because farmers have many self-insurance options, such as doing extra production, controlling inventory and substituting feedstuffs.

Agricorp and the ministry are working with an industry advisory committee and industry experts to review the existing plan and develop options for improvements. The advisory committee is made up of representatives from Dairy Farmers of Ontario, Ontario Federation of Agriculture, Ontario Cattlemen’s Association, Ontario Forage Council and the Ontario Soil and Crop Improvement Association.

The plan uses rainfall as an indicator of forage quality and quantity and the survey also found that farmers rated rains during the growing season and at harvest as the biggest risks to forage production. (The plan currently offers farmers coverage for insufficient rain during May, June and July and excess rain during first cut.)

Clement says for the review they’ve consulted with a number of people and groups and “we move into a phase now where we’ve taken some broad general directions and we start accompanying it with some technical analysis and development.”

Agricorp, the provincial Crown corporation that administers agricultural risk management programs and the farm business registration process, will have recommendations by the end of the summer and they’ll start talking to people about them at that time.

Clement says they’ve met with the advisory committee four or five times now to talk about how the plan works. “We’ve used them as a sounding board” and they’ve talked to their members about the review’s progress. “They’re also providing critiques as we go along.”  BF