Safeguarding Crops: AgriInsurance Framework

The AgriInsurance Regulation, M.R. 127/2023, establishes a framework for agricultural insurance under The Manitoba Agricultural Services Corporation Act. Registered on August 25, 2023, this regulation outlines the types of insurable crops, eligibility criteria, and procedures for claiming insurance. It begins with critical definitions, specifying terms such as “insurable crop,” “contract of insurance,” and “designated peril.” Insurable crops include various vegetables, but only certain varieties are eligible, with coverage contingent upon annual approvals by the corporation. Specific crops like carrots, onions, and broccoli have particular insurability conditions, while certain categories, such as organic crops and silage corn, are excluded from coverage.
The Manitoba Agricultural Services Corporation (the corporation) provides insurance subject to contract terms. The decision-making process regarding claims—related to the cause of loss, production amounts, and adjustments—occurs through formal communication from the corporation to the insured. If an insured individual claims a loss, the corporation may resolve the claim based solely on the insured’s declaration, which limits further disputes. Coverage levels vary, generally offering 50%, 70%, or 80% for most insurable crops, with distinct provisions for select and basic hay. Additionally, the regulation details options like the harvest flood option and enhanced quality option, which provide specialized coverage under specific conditions.
Eligibility for insurance is restricted to individuals deemed “qualified persons,” who must be 18 or older, legally independent, and maintain a contract of insurance. Notably, landlords are explicitly excluded from certain types of coverage, particularly for establishment insurance related to specific crops. Interested parties must submit a complete application for insurance to obtain coverage. Acceptance of an application creates a binding contract effective from the beginning of the crop year, with automatic renewals each year until canceled. The corporation retains the right to amend contract terms annually and impose administrative fees.
The regulation identifies various designated perils, including drought, flood, and pests, which must occur for a claim to be valid. Different types of insurance are available, including coverage for losses due to excessive moisture and damages to established crops. The corporation can implement options for specialized circumstances, such as pasture days insurance for livestock. Contracts must conform to specified forms and conditions, and the corporation can impose additional requirements, such as monitoring of operations. Any transaction resulting in a change of control or partnership in an insured entity is treated as a transfer of the contract, requiring the corporation’s approval.
The regulation outlines specific crops eligible for insurance, categorized with associated grade guarantees. Coverage of these crops aids farmers looking to mitigate risks associated with agricultural production. In summary, M.R. 127/2023 establishes a structured approach to agricultural insurance in Manitoba.
Manitoba (127/2023) August 28, 2023