The crop hail industry set yet another record with nearly $10 billion in crop hail coverage – a 20 percent increase over last year.

Producers who waited to purchase hail coverage late in 2022 likely had a problem finding it due to the unanticipated demand.

With continued strong crop pricing, combined with increasing input costs, rising fuel costs and record inflation, producers increased record crop hail coverages to ensure adequate coverage was placed on their crops.

Claim activity was at or slightly below the 5-year average. Producer premiums totaled $265 million, which was slightly above the 5-year average. This resulted in an industry loss ratio of 71 percent – down from last year but still a significant impact on participating companies.

Prairie farmers faced mixed conditions at the beginning of the season.

Alberta seeding and conditions were at or near normal despite the south being persistently dry through the winter. Timely rains helped progress crops.

Saskatchewan had an early start in the south and west portions of the province with drought like conditions still a concern along the west corridor. The dry conditions provided some impact on crop production. The east side of the province battled a cool damp spring hampering and delaying early seeding progress. A dry fall season helped to ensure that all crops were harvested. Overall crop reports indicate an average to above average production year for most producers.

After a record dry 2021, Manitoba had a very wet start to the 2022 growing season. Saturated soils delayed seeding by up to four weeks in parts of the province. A warm and moderate summer allowed most crops to catch up to near normal development. Harvest rain caused some delays and extending harvest beyond the average.

Storm frequency was below average in 2022. The number of days producing active weather was below average for most provinces. With the record coverage, the cost per claim quickly built like the clouds that cause the hail. What appears to have been an average season for storms and claims endured record high claim payments.

Manitoba’s average claim was 20 percent higher than the 5-year average. Saskatchewan’s average claim was 45 percent higher and Alberta was 41 percent higher.

2022 received fewer than average storm days throughout the summer, but the cost per claim made up for the decrease in storm days. June was the only month that provided more storm day activity than the average across much of the prairies.  With June more active than normal, the year overall ended up with about 20 percent less active days from the 5-year average.

Hardest hit was Alberta with an industry loss ratio of 98 percent compared to 2021’s 97 percent. Saskatchewan followed with a 68 percent loss ratio, compared to 133 percent in 2021.  Manitoba reported a 43 percent loss ratio compared to 21 percent in 2021.

The Canadian prairie storm season runs June through October. This year July, August, and September saw reduced storm activity. Though claim day activity for the year saw a decrease, the 5-year average for claim frequency, or number of claims to policy, saw an increase of 28 percent – meaning more claims were filed with limited storms.

Alberta crop hail results continue to be clouded with storm activity

Alberta’s storm activity resulted in heavier-than-average loss expense for the industry. The claim-to-policy ratio was 18 percent above the 5-year average.  Average cost per claim saw an increase of more than 41 percent of the 5-year average.  More than $94 million was paid out to Alberta producers in hail claims.

Total sums insured saw 14 percent increase from 2021, with average rates charged reporting a slight increase likely due to industry results.

Saskatchewan records average hail loss year

2022 was a below average loss year for Saskatchewan based on cost of losses to sums insured. However, the loss results show a different story with an average paid loss ratio of 68 percent. The claim to policy ratio was 36 percent higher than average, and average claim paid 45 percent higher than average, resulting in $143 million being paid to producers.

Total sums insured saw a 26 percent increase year-over-year, likely due to the increase crop prices and cost related to inputs.

The industry average rate charged appears to have reached its lowest historic point last year.  A small increase was realized in the 2022 year.

Manitoba records positive results despite the late start to the season.

Seeding was later than normal due a very wet spring. Saturated soils delayed seeding by up to 4 weeks in areas.  A warm moderate summer followed in July, allowing crops to nearly catch up to normal development.  A later harvest with a few rain delays led to an extended harvest.

Manitoba’s hail season saw below average hail activity. Like the other provinces however average cost per claim was higher than the 5-year average. The combination of lighter activity and increased cost per claim provided a higher-than-average loss ratio at 43 percent, resulting in $31 million being paid to producers.

Manitoba’s most expensive storm occurred in the southwest corner on Aug. 23.

Total sums insured saw an increase of over 25 percent from 2021 with average rates mostly remaining flat.

Storms produced marble size hail resulting in light to complete crop damage across Western Canada has harvest continues, according to the Canadian Crop Hail Association.

The storms occurred Aug. 22-Sept. 1.

CCHA member companies are investigating more than 1,000 claims of crop damage during the time period.

Companies contributing to this report are Co-operative Hail Insurance Company, Manitoba Agricultural Services Corporation, Agriculture Financial Services Corporation, Additional Municipal Hail Insurance and Palliser Insurance.

CCHA President Scott McQueen, of Palliser Insurance, said late season storms have impacted mature crops.

“Crops are now mature and ripe in most areas and harvest is within the 5-year average for this time of the year,” he said. “Ripe standing crops are not able to sustain the hail damage as well as crops hit in the swath and we are seeing this in our claimed acres. Storms have produced marble sized hail and damaged areas have reported light damage to complete loss of crop. Light to medium hail losses have been the trend this growing season as well as high winds and rain accompanying hailstorms.”

He said higher than normal temperatures are helping turn the crop ready for harvest.

“Harvest is underway for most producers,” he said. “As shared previously, we encourage farmers to use adequate samples test strips for adjusters if hailed fields need to be harvested. If you are unsure what to leave, please contact your crop hail insurance provider for help.”

Here’s a look at storm damage across the region.

Alberta

Crops damaged: Alfalfa, barley, canola, corn, flax, lentils, mustard, oats, peas, sugar beets, triticale, wheat.

 Communities impacted include: Cardston, Magrath, Milk River, Warner, Fort Macleod, Okotoks, Blackie, Gleichen, Bassano, Gem, Acadia Valley, Barrhead.

Saskatchewan

Crops damaged: Wheat, canola, barley, oats, lentils, peas.

Communities impacted include: Consul, Assiniboia, Briercrest, Central Butte, Coderre, Colonsay, Coronach, Humboldt, Kenaston, Moose Jaw, Regina, Saskatoon, Swift Current, Viceroy, Weyburn, Willow Bunch, Choiceland, D’Arcy, Desisle, Dundurn, Eatonia, Fiske, Holdfast, Langham, Lloydminster, Norquay, Plenty, Saskatoon, St. Denis, Stranraer, Wakaw, Weyburn, Arcola, Beechy, Watrous, Ogema, Ceylon, Herschel, Blaine Lake, Buchanan, Stornoway, Alida, Beechy.

Manitoba

Crops damaged: Soybean, canola, wheat, oats, peas, cereals, corn, greenfeed, pintos, soybeans, flax.

Communities impacted include: Foxwarren, Boissevain, Brandon, Deloraine, Goodlands, Harney, Mariapolis, Medora, Melita, Minto, Nesbitt, Souris, St. Alphonse, Stanley, Wawanesa, Winkler, Birtle, Oakburn, Crystal City, Pilot Mound.

Sporadic storms produced significant hail damage across parts of Western Canada in early August, according to the Canadian Crop Hail Association.

The storms occurred Aug. 1-5.

CCHA member companies are investigating more than 1,800 claims of crop damage during the time period.

Companies contributing to this report are Manitoba Agricultural Services Corporation, Ag Direct Hail Insurance, Agriculture Financial Services Corporation, Additional Municipal Hail Insurance, Co-operative Hail Insurance Company, Palliser Insurance Company.

One storm produced softball size hail near Alberta’s Innsfail community.

CCHA President Scott McQueen, of Palliser Insurance, said some parts of Alberta and Saskatchewan saw complete crop devastation.

“Corn crops chopped down to a foot tall, canola plants turned into sticks, cereal crops completely decimated,” he said. “August 1 was the most potent day of the week in terms of claim numbers and claim damage.”

Rick Omelchenko, of Ag Direct Hail Insurance, said adjusters are working hard to stay ahead of the combines and continuous storm activity.

“Please leave adequate check strips for our adjusters to make an accurate assessment. If you have any questions call your insurers to be sure,” he said.

Here’s a look at storm damage across the region.

 Alberta

Crops damaged: Cereals, pulses, legumes, grasses, specialty crops

 Communities impacted include: Gliechen, Bassano, Acadia Valley, Balzac, Airdrie, Kathryn, Keoma, Rockyford, Sundre, Didsbury, Rocky Mountain House, Alhambra, Markerville, Penhold, Innisfail, Pine Lake, Huxley, Elnora, Endiang, Scapa, Red Deer, Stettler, Castor, Fleet, Rimbey, Ponoka, Lacombe, Clive, Camrose, Stony Plain, Bilby, Calahoo, Newbrook, Waskatenau, Wembley, La Glace, Valhalla, Rycroft

Saskatchewan

Crops damaged: Cereals, pulses, oilseeds, legumes, grasses, specialty crops, canola, lentils, peas

Communities impacted include: Eatonia, Maple Creek, Big River, Codette, Saskatoon, Yorkton, Wilkie, Landis, Cupar, Grenfell, Broadview, Clavet, Hudson Bay, Humboldt, Melville, Yorkton, Arborfield, Archerwill, Carrot River, Codette, Debden, Nipawin, Septre.

Manitoba

Crops damaged: Canola, Fall Rye, Soybeans, Oats, Perennial Ryegrass, Timothy Seed

Communities impacted include: Lac du Bonnet, Beausejour, Shoal Lake

Storms damaged crops with hail as large as baseballs across Western Canada and growers are urged to leave adequate samples for adjusters as harvest approaches, according to the Canadian Crop Hail Association.

The storms occurred July 18-24.

CCHA member companies are investigating more than 1,500 claims of crop damage during the time period.

Companies contributing to this report are Co-operative Hail Insurance Company, Rain and Hail Insurance Service, Agriculture Financial Services Corporation, Additional Municipal Hail, Palliser Insurance Company

CCHA President Scott McQueen of Palliser Insurance said storms produced pea to baseball size hail across the region

“Southern Alberta experienced severe hail events with strong winds and baseball sized hail,” he said. “Heavy damage to all crop types was reported in isolated areas. Saskatchewan also saw severe damage but not nearly the impact Alberta had. Manitoba experienced smaller isolated storms with the damage ranging from light to heavy.”

Yves Dooper, of Agriculture Financial Services Corporation, said some growers are attempting to salvage their crop, begin harvest or in a few cases replant the damaged area to another crop and, with the current claim load, adjusters may not inspect all claims before something is done with the fields.

“Producers are encouraged to contact their insurance provider to ensure they leave the appropriate amount of crop for the adjuster to assess,” he said.

Here’s a look at storm damage across the region.

Alberta

Crops damaged: all major crops, lentils, peas, wheat, durum, corn, mustard, potatoes, sugar beets, dry beans, hybrid canola seed, mint, and dill.

Communities impacted include:. Ponoka, Galahad, Lethbridge, Taber, Glenwood, Standoff, Coalhurst, Picture Butte, Iron Springs, Enchant, Aetna, Milk River, Warner, Gahern, Wrentham, Bow Island, Redcliff, Bassano, Gleichen, Langdon, Airdrie, Schuler, Hoadley, Ponoka, Bluffton, Lacombe, Delburne, Big Valley, Hanna, Red Willow, Halkirk, Castor, Coronation, Veteran, Consort, Warburg, Elk Point, Fort Assiniboine

Saskatchewan

Crops damaged: Cereal, oilseed and pulses Lentils, peas, wheat, durum, corn, mustard

Communities impacted include: Fox Valley, Frobisher, Indian Head, Lampman, Rockglen, Tramping Lake, Dinsmore, Redvers, Alameda, Estevan, Nipawin, Oxbow, Zenon Park, Rockhaven, Bradwell, Davidson, Glen Bain, Gravelbourg, Alida, West of Arborfield, Torquay, Estevan, Bienfait, Chamberlain, Yorkton.

Manitoba

Crops damaged: Cereals, pulses and oilseeds

Communities impacted include: Boissevain, Killarney, Pilot Mound, Winkler.

Hail damage ranged from light to medium after recent storms across Western Canada and insurance adjusters remain on pace to complete claims in a timely manner, according to the Canadian Crop Hail Association.

The storms occurred June 25-July 2.

CCHA member companies are investigating more than 1,450 claims of crop damage during the time period.

Companies contributing to this report are Ag Direct Hail, Additional Municipal Hail, Rain and Hail Insurance Service, Palliser Insurance Company, Agriculture Financial Services Corporation and Co-operative Hail Insurance Company.

Some areas are also affected by drought. Later seeding and cooler temperatures have affected crop maturity. Other areas very wet and that has delayed access to the fields but adjusters are still able to complete most claims quickly.

CCHA President Scott McQueen, of Palliser Insurance Company, said the adjuster force is working across all three provinces.

“Damage continues to be light to medium in most areas,” he said. “Crops seem more advanced in Alberta compared to Saskatchewan and Manitoba.”

Yves Dooper, of Agriculture Financial Services Corporation, adjusters with his company are currently focused on storms from June 1-July 22.

“The stage of the crop and the severity of some damage will result in our adjusters deferring settlement in some cases to assess the loss more accurately, but many claims will be settled on the first visit,” he said.

Here’s a look at storm damage across the region.

Alberta

Crops damaged: Cereals, oilseeds, pulses, and a few specialty crops.

 Communities impacted include: Barrhead, Camrose, New Norway, Eckville, Sylvan Lake, Penhold, Innisfail, Olds, Beiseker, Three Hills, Morin, Drumheller, Hanna, Rockyford, Delia, Holden, Wainright, Penhold, High River, Brooks, Oyen, Trochu, Bowden, Acadia Valley, Vermilion, Strathmore, Leslieville, Condor, Spruceview, Disdbury, Torrington, Elnora, Rumsley, Chestermere, Langdon, Lyalta, Aldersyde, Carseland, Mossleigh, Schuler, Rosemary, Hussar, Hay Lakes, Viking and Irma.

Saskatchewan

Crops damaged: Cereals, oilseeds, pulses, canola, barley, wheat, peas and lentils.

Communities impacted include: Neilberg, Meota, Biggar, Kenasten, Imperial, Strasbourg, Southey, Regina Beach, Regina, Vibank, Esterhazy, Choiceland, Meath Park, Naicam, Wilkie Saskatoon, Langenburg, Burstall, Leader, Sceptre, Eatonia, Glidden, Shamrock, Govan, Leross, Semans, Wilcox, Arran, Major, Luseland, Radville, Ceylon, Minton, Jansen, Melville Leader, Naicam, Southey, Major, Abbey, Cabri, Fox Valley, Gull Lake, Leader, Prelate,Swift Current, Archerwill, Grayson, Yorkton, Kerrobert and Minton.

Manitoba

Crops damaged: Cereals, oilseeds, pulses, wheat, oats, soybeans, canola, buckwheat, grain corn, barley, field peas, beans and silage corn.

Communities impacted include: Binscarth, St. Lazare, Shoal Lake, Minnedosa, Newdale, Plumas, Swan River, Minitonas, Snow Flake, Treherne, Crystal City, Notre Dame, Killarney, Homewood, Dugald, Fork River and Bowsman.

The Canadian Crop Hail Association (CCHA) has been serving the crop insurance industry since 1915. It is a member-driven organization that represents the interests of the Canadian Crop Hail managing general agencies and insurance companies. These private and government organizations together provide a risk management tool to the farmers across Canada. Members are Municipal Hail (Saskatchewan), AG Direct Hail Insurance Ltd, Agriculture Financial Services Corporation (Alberta), Canadian Hail Agencies Inc, Co-operative Hail Insurance Company, Manitoba Agricultural Services Corporation, Rain and Hail Insurance Service Ltd., New Brunswick Agricultural Insurance Commission and Palliser Insurance Company Ltd.