AFSC REMINDS PRODUCERS OF FEBRUARY 28 DEADLINE TO INSURE HAY AND PASTURE

Posted on Tuesday February 11, 2014 at 06:31AM

As the February 28 deadline approaches for Alberta farmers to insure their pasture and hay land this year, above-average to normal snow cover across much of the province has many livestock producers feeling

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John Kresowaty with AFSC reminds area producers of the upcoming February 28 deadline to insure hay and pasture in Alberta. In 2013, more than $4.4 million was paid on hay and pasture claims across the province, including the County of Vermilion River.
John Kresowaty with AFSC reminds area producers of the upcoming February 28 deadline to insure hay and pasture in Alberta. In 2013, more than $4.4 million was paid on hay and pasture claims across the province, including the County of Vermilion River.

hopefulabout the potential growth they’ll get on their hay and pasture once the snow melts this spring.

“We had a dry fall in many parts of the province with very limited moisture in September and October, but the producers I talk to are feeling encouraged by the amount of snow we’ve gotten so far this winter,” says Barry Yaremcio, a provincial beef and forage specialist with the Alberta Ag-Info Centre.

Dry Soil Conditions Beneath the Snow

While the deep snow has been challenging for some producers in central and northern Alberta – preventing cattle from swath grazing or winter grazing earlier in the season than usual – it should help offset dry soil conditions that lie beneath the snow in many regions – depending on how it melts, says Yaremcio.

“If we get a slow melt and the ground takes up most of the moisture, it should help kick-start growth on our hay and pastures this spring. But if we get a quick melt, most of that moisture will likely run off and collect in the sloughs and creeks with minimal benefit to the dry soil,” he explains.

$4.4 Million Paid on Hay and Pasture Insurance Claims

Last year, dry conditions in early spring and late summer triggered more than $4.4 million in hay and pasture insurance claims in some areas across the province, says John Kresowaty, with Agriculture Financial Services Corporation (AFSC). AFSC is the Crown corporation that provides crop insurance to Alberta farmers on behalf of the provincial and federal governments.

“When the rain finally came in late May and June, we ended up with strong growth on hay and pasture in most regions,” says Kresowaty. Last year’s total payout is among the lowest in more than a decade due to favourable precipitation and good growing conditions in June and July. The highest payout years for hay and pasture insurance were during the droughts of 2009 when $56 million was paid in claims, and 2002 when $89 million was paid out.

Perennial hay and pasture crops depend on plenty of moisture early in the spring for healthy growth, says Grant Lastiwka, a provincial livestock forage business specialist with Alberta Agriculture and Rural Development (ARD). “As a general rule, 70 to 90 per cent of the yield potential of pasture and rangeland is determined by early June across southern Alberta, and by early July across the rest of the province,” he explains. So while snow melt can help, getting adequate spring moisture and rainfall during April, May, and June ultimately determines whether producers will get good production on their hay and pasture each year, says Lastiwka.

Of course, nobody can predict what will happen this spring, says ARD provincial soil moisture specialist, Ralph Wright. “It could be wet or the snow could melt quickly and things could turn hot and dry. If it’s a cold spring, the snow could linger, delaying hay and pasture growth. There are still two months of winter left. Anything’s possible. It’s really a wait-and-see game because weather is so random,” says Wright.

Unpredictable weather is the biggest reason Alberta producers insure about 7.5 million acres of hay and pasture across the province every year through AFSC Perennial Insurance programs, says Kresowaty.

12 New Weather Stations Added

New to Perennial Insurance this year is the addition of 12 new weather stations to the provincial network AFSC uses to determine payouts on Perennial Insurance programs for hay and pasture. “We now have 238 weather stations across Alberta that measure precipitation and other weather data,” says Kresowaty.

Farmers who take Moisture Deficiency Insurance on their pasture or include it as a rider on hay insurance select up to three weather stations, he explains. If accumulated moisture at these stations falls below normal over the growing season, a claim is triggered. Kresowaty says hay insurance also insures against yield losses caused by perils such as hail, flood, insects, disease, lightning, winterkill, and wildlife damage.

Most producers who insure hay and pasture stay in the program every year, says Kresowaty. “The premium discounts they earn likely influence that decision,” he says, noting a Continuous Participation Discount, an Experience Discount for low claims on hay insurance, and an Early Payment Discount can add up to a reduction of 60 per cent or more on hay insurance premiums.

For more information about Perennial Insurance, farmers can contact their local AFSC Branch or the AFSC Call Centre at 1-877-899-AFSC FREE (2372) before the February 28 deadline.

Author: Lamont County

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