Alberta’s Severe Drought Expected to Cost $1B in Crop Payouts

 Tuesday, July 27, 2021

 Canadian Underwriter

Crop insurance payouts in Alberta will likely reach about $1 billion later this year due to hot, dry weather that is contributing to severe drought conditions, Alberta’s Minister of Agriculture and Forestry said Thursday.

‘This year’s crop insurance claims will be comparable to 2002, when farmers and ranchers in Alberta collected about $1 billion after a significant drought,’ Alberta Minister of Agriculture and Forestry Devin Dreeshen said on Twitter.

He was referencing a Globe and Mail article in which he discussed his estimate for this year’s crop insurance payouts.

Adjusters have already helped farmers submit about 300 claims for losses to the Agriculture Financial Services Corporation (AFSC), which provides crop insurance in the province. Adjusters had nearly as many appointments scheduled for this week, Dreeshen added on Twitter Wednesday.

About three-quarters of farmers in Alberta have insurance through AFSC.
Risk Management