AFSC and APG Work Together for Increased Fababean Insurance Coverage (PCN Winter 2013) JAN 1 2013 | Consumers and Producers | Pulse Crop News
This article appeared in the Winter 2013 issue of Pulse Crop News.
Dean Dyck, AFSC
On November 7, the Board of the Alberta Pulse Growers Commission met with representatives of Agriculture Financial Services Corporation (AFSC) to share information, build relationships, and discuss new opportunities. Of particular interest at this meeting was the review of insurance coverage for fababeans.
AFSC insures approximately 4,000 acres of fababeans in the province, on average. APG was concerned that the yield normal, and subsequently coverage for the crop, was too low compared to current yields.
The yield normal for fababeans is a constant, meaning that yields from previous years are not factored into calculating the yield normal. The constant has not been reviewed for a few years.
One of the challenges with fababeans is that producers do not consistently insure the crop and do not have individual coverage. It takes five years of yield data to calculate individual coverage, and producers are encouraged to insure the crop so their own yield data can be used.
An analysis of AFSC’s yield records from 2000 to 2011 showed that producers experienced at least 25 percent higher yields than the normals. It is evident that coverage is insufficient compared to current varieties and agronomic practices. AFSC will be increasing the yield normals to bring them in line with the yield experience of our clients. Both coverage and premium will increase with this change. It is anticipated that these changes will be available for the 2013 crop year.
By building a strong relationship with AFSC, Alberta Pulse Growers is sharing information that is relevant to its members to help build a strong risk management portfolio for Alberta producers. Visit www.afsc.ca for more information on current risk management options.