Prairie farmers continue to insure their crops for hail damage at near record levels. 2020 was a below the 5-year average for claims but endured higher than average claim payments. Overall, the industry will record a near breakeven type of year. Claims produced insurance payouts of over $192 million on over 12,100 claims in Western Canada. Producer premiums totaled just over $300 million for an industry loss ratio of 64 percent.

Timely rains and good seeding conditions gave producers some early hope after a poor fall harvest.  For some areas, the weather dried out quickly.  Reserve moisture helped many producers across the prairies. Some crops did suffer from insufficient moisture and excess heat.  Indications are that crops range from excellent to average for the most part.  With industry premiums decreasing an average of 15% over the past 5 years, producers welcome one of the few declining agricultural input costs.

Some parts of the prairies received less than average storm days throughout the summer, but storm severity made up for the decrease. July storms caused havoc across Alberta and Saskatchewan.  But a single-day late August event in Saskatchewan was costly to ripe crops.  Manitoba was spared after 2 years of higher-than-average losses.  Activity was widespread around the prairies.

Hardest hit was Alberta with an industry loss ratio of 83% similar to 2019.  Saskatchewan followed with a 65% loss ratio, down from 95% a year earlier. Manitoba saw limited hail activity posting a 29% loss ratio after suffering a 93% loss ratio in 2019.

After a year of contrasts and challenges producers welcomed the ideal seeding conditions.  2019 poor harvest conditions provided much needed sub soil moisture to help get the 2020 seeding year off to a great start.  Summers timely rains for many provided what looked to be above average crop conditions.  A warm dry fall provided many straight days of harvest allowing producers to reap the benefits of the growing season.

The summer was mostly average for the number of storm days.  The storm season was spread mostly through June to August.  September was spared allowing producers to finish up harvest.  Claim frequency (Claim to Policy) was down 4% from the 5-year average. Storm severity (Average per Claim) was up 10% from the average.

Alberta hail claims result in second straight year of negative results

Alberta’s storm activity resulted in similar activity to 2019 for the industry. An early severe storm that pummeled the city of Calgary also caused crop damage, however, early crop recovery helped lessen industry losses.  Claim activity was up over 26% compared to the 5-year average, while claim severity at more than $20,000 per claim was higher by more than 20% compared to the average.  Total hail payments for 2020 were reported at just over $69 million.  The overall reported loss ratio was 83%.  Total sums insured increased for 2020, with rates appearing to stabilize.

Saskatchewan reported average loss year

Saskatchewan saw a decrease in storm activity compared to 2019. A late August storm dampened what was looking to be a light hail season for industry insurers. The late storm on harvest ready crops was the most expensive of the year.  Claim activity was down 1% compared to the 5-year average, while claim severity at $13,000 per claim was a decrease of about 15% compared to average.  Total hail payments for 2020 were reported at just over $163 million.  The overall reported loss ratio was 65%.  Total sums insured increased for 2020, with average rates continuing to soften.

Manitoba records light hail activity for 2020

Manitoba recorded a decrease in storm activity compared to 2019. Little storm activity resulted in positive results for the province.  Claim activity was down 59% compared to the 5-year average, while claim severity at $9,900 per claim was down 22% compared to the average.  Total hail payments for 2020 were reported at over $15 million.  The overall reported loss ratio was 29%.  Total sums insured decreased slightly for 2020, with average rates decreasing slightly as well.

Who we are: 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 Additional Municipal Hail Ltd. (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.

Milder weather resulted in fewer damaging storms across western Canada as harvest nears the halfway mark in some places, according to the Canadian Crop Hail Association.

The storms occurred Sept. 4-11.

CCHA member companies are investigating more than 16 claims of crop damage during the time period.

Murray Bantle, of Co-operative Hail Insurance Company, said storms damaged oilseeds in the Manitoba communities of Benito and McCreary.

“Only small scattered thunderstorms this week for Manitoba,” he said. “Our August claims in Manitoba are 94 percent complete at this time.”

In Saskatchewan, storms damaged oilseeds and cereals in Bethune, Lucky Lake, Nipawin and Wilkie.

“Scattered thunderstorm activity caused damage on ready-to-harvest crops,” he said. “We are asking growers to make sure to leave adequate samples to adjust from. Harvest is now nearing 50 percent complete according to the provincial crop report. August storms are now 90 percent adjusted in Saskatchewan.”

Jackie Sanden, of Agriculture Financial Services Corporation, said storms damaged crops in the Alberta communities of La Glace, Pincher Creek, Calmar and Thorhild.

Cassandra Holt, of Canadian Hail Agencies, said storms damaged crops in the Alberta community of Westlock. In Saskatchewan, storms damaged crops in Norquay.

Adjusters are working to document crop damage across western Canada as harvest continues in the wake of damaging storms, according to the Canadian Crop Hail Association.

The storms occurred Aug. 22, 24-25 and 27-28.

CCHA member companies are investigating more than 700 claims of crop damage during the time period.

Darryl Tiefenbach, of Additional Municipal Hail, said storms damaged crops in the Saskatchewan communities of Loon Lake, Kindersley, Rosetown, Milden, Conquest, Outlook, Davidson, Kenaston, Jansen, Annaheim, Buchanan, Melville, Yorkton and Churchbridge.

“We expect there will be some heavy damaged areas as crops are fairly ripe and more prone to shelling. We will be starting to adjust these claims on Sept. 2 and expect to have them all adjusted by Sept. 11-12. This year has seen an average hail occurrence so far and we wish farmers all the best as they continue harvest.”

Brendan Blight, of Manitoba Agricultural Services Corporation, said storms produced pea size hail and damaged crops in the Manitoba community of Russell

Jackie Sanden, of Agriculture Financial Services Corporation, said storms damaged crops in the Alberta communities of Camrose, northeast and northwest of Lamont, north of Athabasca, west of Smoky Lake, Sedgewick, northwest of Wainwright, northeast of Ponoka, Grande Prairie, southeast of Lacombe, east of Vulcan and southwest of Thorhild, northwest of Barrhead, northeast of Oyen, and west of Sounding Lake.

Cassandra Holt, of Canadian Hail Agencies, said storms damaged crops in the Saskatchewan communities of Yorkton, Outlook, Simpson, Rhein, Roblin, Calder, and Fiske. In Alberta, storms damaged crops in Coronation.

Murray Bantle, of Co-operative Hail Insurance Company, said storms damaged cereals, oilseeds, and pulses in the Manitoba communities of Angusville, Foxwarren, Russell, Oakburn and Neepawa. Damaged ranged from light to heavy.

“Currently we are 80 percent complete on claims in Manitoba,” he said. “The adjusters are still completing claims from the July 19-21 storms.”

In Saskatchewan, he said storms damaged cereals, oilseeds and pulses in Lake Lenore , Bladworth, Churchbridge, Conquest, Davidson, Dinsmore, Imperial, Langenburg, Melville, Outlook, Rhein, Rosetown, Saltcoats, Swift Current, WIllowbank and Yorkton.

“A large storm path began on the afternoon of Aug. 27 in west-central Saskatchewan and moved eastward into Manitoba leaving a large path of hail damage on advancing crops and creating a large number of claims of which are still coming in,” he said. “Depending on where our adjuster teams start working from it could be at least 14 days for us to view the damage.  With harvest underway we ask producers to be patient.  Please ensure you leave adequate samples.  If you are unsure of what to leave contact your company for advice. Prior to this storm, Saskatchewan claims were 70 percent complete.”

Scott McQueen, of Palliser Insurance said storms damaged crops across Saskatchewan, Alberta and Manitoba.

“We are seeing some heavier damage in the standing canola crops from the Aug. 27 storm,” he said. “All damage ranges from light to heavy on all crops reported in the storm.”

Tyson Ryhorchuk, of Rain and Hail Insurance Service, said storms damaged crops in the Saskatchewan communities of Glenside, Outlook, Kenaston, Lanigan, Yorkton, Saltcoats, Willowbrook and Langenburg. In Manitoba, storms damaged crops in Russell and Virden.

“Adjusters are working tirelessly to complete claims as soon as possible,” he said. “Producers with claims are asked to leave adequate strips in fields they are harvesting.”

Crop insurance adjusters are working to stay ahead of the combines after storms damaged crops across western Canada with harvest well underway, according to the Canadian Crop Hail Association.

The storms occurred Aug. 14 and Aug. 18-22.

CCHA member companies are investigating more than 300 claims of crop damage during the time period.

Darryl Tiefenbach, of Additional Municipal Hail, said storms damaged crops in the Saskatchewan communities of Langenburg and Spy Hill.

“There was 2-3 inches of rain in this area, with the hail, and that is making swathing canola challenging since the farmers are not able to see where there is standing water in some of the low spots,” he said. “Harvest is now well underway and there is a high percentage of peas and lentils being harvested through the south of the province. Conventional canola is starting to be swathed as well as cereals. The forecast for this coming week looks good for harvest to continue. A much better start to harvest in 2020 versus 2019.”

Tyson Ryhorchuk, of Rain and Hail Insurance Service, said storms damaged crops in the Manitoba communities of Morris, Letellier, Virden, Dominion City and Emerson. In Alberta, storms damaged crops in Wanham.

“Consistent extreme hot weather across the prairies in this past week has pushed many crops into maturity,” he said. “As it is now common see equipment moving in the fields, we would like to wish all operations a safe harvest.”

Murray Bantle, of Co-operative Hail Insurance Company, said storms damaged cereals, pulses and oilseeds in the Manitoba communities of Kenville, Roland, Altona, Binscarth, Decker, Miniota, St Jean, Emerson, Cartwright, Newdale and Russell.

“Damage is variable to ripening crops,” he said. “Please leave adequate samples for adjusters to examine the damage.”

In Saskatchewan, he said storms damaged oilseeds, cereals and pulses in Alida, Regina, Lajord, Sedley, Strongfield, Langenburg and Stockholm.

“There were various degrees of damage on ripening crops,” he said. “Pulse crops are advancing fast and the damage is heavier.”

Jackie Sanden, of Agriculture Financial Services Corporation, said storms damaged crops in the Alberta communities of Kitscoty, Edgerton Mayerthorpe, Radway and Worsley.

Scott McQueen, of Palliser Insurance, said storms damaged crops in the Saskatchewan community of Lagenburg.

In Alberta, he said storms damaged crops in Worsley, Wanham, Manning, Keg River, Ferintosh, Wetaskwin and Galahad. In Manitoba, storms damaged crops in Russell, Binscarth, Solsgirth, Dominion City, Virden, Hamiota, Arborg, Birtle, Isabella, Emerson, Minnedosa and Oakburn.

“Claims are starting to go quick with fields opening up due to harvest,” he said. “Better access to fields speeds up the number of claims adjusted in a day.”

Cassandra Holt, of Canadian Hail Agencies, said storms damaged crops in the Alberta communities of Killam and Beaver County.

In Saskatchewan, she said storms damaged crops in McCord. In Manitoba, storms damaged crops in Letellier, Dominion City, and Emerson.

Brendan Blight, of Manitoba Agricultural Services Corporation, said storms produced pea-size hail and damaged crops in Russell and Dominion City.

“Harvest has started in lots of areas so adjustments will have to done quickly to stay ahead of the combines,” he said.

Storms produced golf-ball size hail that damaged crops across western Canada and spawned a massive tornado that killed two people in Manitoba, according to the Canadian Crop Hail Association.

“Our thoughts and prayers are with the families of Shayna Barnesky and Carter Tilbury and the entire community in Manitoba,” said Rick Omelchenko, CCHA president. “We are here, as partners, to help the farm families impacted by this storm and the others across the region.”

The storms occurred Aug. 1-9.

CCHA member companies are investigating about 400 claims of crop damage during the time period with many claims still coming in.

Murray Bantle, of Co-operative Hail Insurance Company, said storms damaged cereals, pulses and oilseeds in the Saskatchewan communities of Neilburg, Senlac, Carlyle, Lemburg, Midale, Stoughton, Consul, Estevan and Vibank.  Pea to golf-ball size hail was reported.

“For June, 98 percent of the claims have been adjusted, with a 55 percent decrease in claims reported and a 50 percent decrease in the average claim and a 4 percent increase in the number of days with reported hail from the 5-year average,” he said. “For July, 60 percent of claims have been adjusted with a 14 percent decrease in claims reported for the month. So far, our average claim is on par with the 5-year average. The number of days with claim activity is on average.”

Beth Shewkenek, of AG Direct Hail Insurance, said storms damaged crops in the Alberta community of Drumheller.

Jackie Sanden, of Agriculture Financial Services Corporation said storms damaged crops in the Alberta communities from Crossfield to Drumheller and Consort to Provost.

They also hit Stettler to Killam and Vermilion and north to Kitscoty, Sanden said. There were pockets of claims near Water Valley, West of Didsbury and Olds, near Torrington and Trochu, and in Eckville, Warburg and Barrhead. A small number of claims were reported near Wrenthan and south of Stony Plain, she said.

Cassandra Holt, of Canadian Hail Agencies, said storms damaged crops in the Alberta communities of Drumheller, Rosedale, Viking, Heisler, Stettler, Barrhead, Rosebud, Strome, Forestburg, Provost, Alliance, and Killam.

In Saskatchewan, she said storms damaged crops in Cutknife, Norquay, Unity, and Consul.

“As harvest gets underway, we remind all policyholders to review their hail insurance provider’s protocol for harvesting prior to inspection,” she said.

Brendan Blight, of Manitoba Agricultural Services Corporation, said storms damaged canola, wheat and soybeans in the Manitoba communities of Virden, Birtle and Hamiota. They produced pea-size hail and high winds with the tornado south of Virden.

He said agency offices continue to take calls about claims from these storms.

Darryl Tiefenbach, of Additional Municipal Hail, said storms damaged crops in the Saskatchewan communities of Macklin, Unity, Neilburg, Richmound, Maple Creek, Moose Jaw, Lajord, Francis, Estevan, Torquay, Midale and Lampman. He said wind and rain are factors in adjusting for damage.

“There are varying amounts of damage in the areas,” he said. “These were spotty storms and isolated in nature.”

Scott McQueen, of Palliser Insurance, said farmers reported storms that produced half-inch hail in Alberta, Saskatchewan and parts of Manitoba. Strong wind is a factor in adjusting for damage.

“With crops now in advanced stages we are starting to see some heavier losses in the cereals and pulses,” he said. “Farmers should leave adequate test strips if they are harvesting crops prior to adjustment.”