Price Options

Producers default to the base price. The base prices for grains crops are established on the basis of January price forecasts provided by the Market Analysis Group of Agriculture and Agri-Food Canada. These prices represent the expected farm gate market price for most crops for the coming crop year. Also available is the In-Season Price Option. A select group of crops are also eligible for the Contract Price Option. Pedigreed, forage and organic crops have their own price structure to reflect the value of these crops.

Scroll down below to view program enhancements and the list of insurable crops under the Contract Price Option.

In-Season Price Option

Producers who select the In-Season Price Option will intially receive a production guarantee based upon the base price.

The dollar guarantee for the In-Season (ISP) will be recalculated based upon the final price. Producers should be aware that the dollar guarantee may fluctuate up or down, depending on final pricing.The In-Season Price Option sets the final price in February following the year of selection. An interim payment will be made when the claim is processed, based upon a percentage of the spring base price, and the final payment will be issued once the In-Season Price is finalized.The premium is based on the historical relationship between the actual base price in the spring and the final price. This allows the premium costs to be finalized based upon the base price regardless of the direction the prices move for the final price. However, premiums will be higher than for the base price or Low Price Option, to account for the risk of price uncertainty.

The final price for a crop can increase or decrease by a maximum of 50 per cent in relation to the base price for the crop.

The Contract Price Option or Crop Averaging Program is not available if the In-Season Price Option is selected. All option must be selected by March 31.

In-Season Price Option: Current season crop price averages, to reflect actual market prices for the current year crop, are used and premiums are set up front.
 

In-Season Price Option Example

Example provided as a walkthrough to understanding the In-Season Price Option.

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Contract Price Option

Commercial crops available under the Contract Price Option include:

  • Canola
  • IP Canola
  • Durum Wheat
  • Barley
  • Oats
  • Canary Seed
  • Mustard (Yellow)
  • Mustard (Brown)
  • Mustard (Oriental)
  • Flax
  • Lentils (Large Green)
  • Lentils (Other)
  • Lentils (Red)
  • Alfalfa Seed
  • Field Pea
  • Hard Red Spring Wheat
  • Canada Prairie Spring Wheat

Organic crops available under this option are:

  • HRS Wheat
  • Durum
  • Barley
  • Oats
  • Flax
  • Fall Rye
  • CWES Wheat
  • HWS Wheat
  • Field Peas
  • Spring Rye
  • Triticale
  • Winter Wheat
  • Mustard (Yellow)
  • Mustard (Brown)
  • Mustard (Oriental)
  • CPS Wheat
  • Lentils (Large Green)
  • Lentils (Other)
  • Lentils (Red)

The Contract Price Option allows a customer to insure a crop at the price at which it is contracted.

The insured price is an average of your contract price and SCIC’s base price based on the amount of crop contracted and your production guarantee. This creates a “blended” price for which you will be insured. The blended price will be used to calculate the coverage and premium for all acres of the insured crop, including those that are not contracted. Your insured price does not guarantee market price.

Note: Most total production, partial production or deferred delivery contracts are eligible. For deferred delivery contracts, the delivery period must be August of the crop year or later. The producer must be financially independent from the buyer for the contract to be eligible. SCIC requires the contract(s) to determine the insured price.

Eligible contracts must specify the contract price or a price premium (e.g. dollars per bushel or dollars per tonne) and the quantity of grain or number of acres contracted. A maximum allowable contract price will be set by SCIC for each crop by April 30 of the current crop year based on contract prices offered by Saskatchewan’s primary contractors. Contract prices will be capped at this value.

You must provide SCIC with a copy of the contract by May 31 of the current crop year. SCIC will use that information to calculate the insured price, coverage and premium for the crop. If you do not provide complete contract details your insured price will default to the base price for that crop. For losses due to quality, SCIC applies standard quality factors. Quality is not determined by criteria stated in your production contract nor on the final price of the crop. If the use of SCIC standard quality factors places you in a claim position, your claim will be paid using the insured price.

 

Contract Price Option Example

Three examples provided, workthing through Total Production Contract, Partial Production Contract and IP Canola Contract.

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"What-if" Calculator

Contract Price Option

Visit our online Resource page for access to a variety of "What-if" Calculators.

Click here to access the Contract Price Option "What-if" Calculator »