NFU five-point plan to compensate flooded farmers

Between 2 and 3 million acres in SW Manitoba and SE Saskatchewan will be left unseeded this year due to high rainfall and flooding. In a meeting with Sask. Minister of Agriculture Eric Upshall, the NFU laid out its plan to compensate these farmers.

The NFU plan is simple, it uses the existing Crop Insurance system, it is an option for all farmers, and is capped to ensure fairness. The NFU plan calls for:

  1. A permanent Crop Insurance Enhancement up to $75/acre on unseeded land. It would pay nothing if the farmer was able to seed at least 75% of average seeded acres; $25/seeded acre if the farmer was able to seed 50% - 75%; $50/unseeded acre if the farmer was able to seed 25% - 50%; and $75/unseeded acre if the farmer was able to seed less than 25% of his or her average acreage.

  2. Farmers not currently enrolled in Crop Insurance would be allowed to "opt in" and receive full benefits.

  3. The cost of the enhancement would be shared equally by the provincial and federal governments and farmers. Farmers would be subject to a surcharge similar to hail insurance.

  4. Farmers would commit to participate in Crop Insurance for at least five years. This ensures that farmers who receive benefits contribute to the program.

  5. Payments would be capped at 1,000 to 1,500 acres per farm.

The NFU plan would cost each government $10 - $20 million. During the droughts of the late 1980s, federal and provincial governments paid out nearly $600 million through Crop Insurance. Further, through cuts to the Crow Benefit and other programs, the federal government has cut its agricultural spending by $4 million since 1992. In light of that $4 billion cut and with the future of hundreds of farm families hanging in the balance, $10 - $20 million is not an unreasonable investment.


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