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November 17, 1999
(Forest Resources and Agrifoods)


The following statement was issued today by Kevin Aylward, Minister of Forest Resources and Agrifoods. It was also read in the House of Assembly:

I am pleased to table before you today, the annual reports of the Newfoundland Crop Insurance Agency and the Livestock Owners Compensation Board for the year ending March 31, 1999.

The Newfoundland Crop Insurance Agency is a Crown corporation of the Province of Newfoundland and Labrador under the authority of the Minister of Forest Resources and Agrifoods. The agency operates within the Crop Insurance Act, R.S.N. 1990, c.C-39.

The Livestock Owners Compensation Board was established in 1977 and operates under the Livestock Insurance Act, R.S.N. 1990, c.L-23. A new Agricultural Insurance Act is currently being drafted which will replace both the aforementioned legislation.

The objective of the Crop Insurance Agency is to provide for comprehensive all-risk insurance, which in years of crop losses will provide compensation to the farmer to help minimize the financial loss due to crop failure. The Crop Insurance Program offers protection against uncontrollable crop loss caused by all natural hazards from date of seeding to final date of harvesting. Each insured farmer is guaranteed a specified yield per acre on an individual farm basis. If production falls below the guaranteed production, the insured is paid for the difference at a predetermined value per unit. For the 1998/99 crop year, the program offered plans for potato, turnip, carrot, beet and cabbage.

The premium cost-sharing arrangement between the federal and provincial governments and producers provides a base level of coverage at no cost to producers. The federal and provincial governments pay 100 per cent of the premium for 60 per cent coverage and producers pay nothing. Producers can also purchase coverage as high as 80 per cent of their average yield and pay only 50 per cent of the incremental premium costs. Governments will contribute the remaining 50 per cent. This new cost-sharing makes crop insurance affordable to all farmers and offers producers a valuable risk management tool.

Livestock owners in Newfoundland and Labrador are able to purchase insurance for cattle, sheep and goats through the Livestock Insurance Plan. Compensation will be paid to insured owners who incur a loss through the predatory attack of dogs or any other animal. The majority of animals insured under the plan are sheep, due mainly to their vulnerability to attack on private and/or community pastures by roaming dogs.

Both the Crop Insurance Program and Livestock Insurance Program are voluntary. In order to participate in the plan, farmers must make application in writing for the crops/livestock they wish to insure prior to the program deadline.

The Newfoundland Crop Insurance Agency and the Livestock Owners Compensation Board are one in the same and consist of four members and a chairperson who are appointed by the Lieutenant-Governor in Council. The chairperson and one member are employees of the provincial Department of Forest Resources and Agrifoods; one member is an employee of Agriculture and Agri-Food Canada, and there are two farmer representatives.

In closing, The Newfoundland Crop Insurance Agency and the Livestock Owners Compensation Board both provide valuable and important funding through insurance compensation, which in times of loss, will help support farm incomes. I encourage all eligible farmers to participate and incorporate their farm management practices.

I respectfully table these two reports in the House.

1999 11 17 2:40 p.m.


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