Enhanced Insurance Protection Available This Spring to Canola Farmers
18 May 2022, Canada: Farmers Edge Inc. (“Farmers Edge” or the “Company”) (TSX: FDGE) today announced enhancements to Canola Heat Blast Yield Protection, an innovative insurance product distributed through its wholly owned subsidiary, DigiAg Risk Management Inc. (“DigiAg”). Expanding on the 2021 release, the unique parametric coverage will now be available to farmers as a standard property and casualty solution with less paperwork and no legal entity or minimum asset requirements. The Company has also increased its capacity to cover more acres and provide coverage opportunities to reach more farmers across Manitoba, Saskatchewan, and Alberta.
In Canada, canola is one of the most widely grown crops and accounts for nearly ¼ of all farm receipts, representing a significant source of income for farm businesses. However, the notorious high-value crop has progressed into a high-risk investment, elevating the significance of revenue protection for long-term resilience. This season — alongside inflated input costs, rising temperatures, and an ambitious industry goal to boost yields by 2025 — farmers also face delayed planting, thereby increasing the risk of lost yield due to heat exposure during canola’s flowering period. Canola Heat Blast Yield Protection automatically monitors hyper-local weather conditions to provide transparent and affordable coverage for farmers to protect their investment against the economic effects of yield loss due to excess heat.
“In 2020, we helped canola growers across the Prairies increase yields by 18%1, but we understand ROI is determined by far more than what’s in the bin,” stated Wade Barnes, Founder and CEO of Farmers Edge. “That’s why, at Farmers Edge, we bring sustainability, productivity, and profitability together. We recognize that our customers are doing what they can to grow more with less and ensure long-term economic viability; but the fact is, they can’t control the weather. Last year, the Canadian Prairies experienced some of the hottest temperatures on record, and over 90% of the canola acres on our platform impacted by heat blast would have qualified for a payout. With these enhancements to insurance, we can provide more farmers with access to sufficient, affordable coverage to secure revenue and shield their profit margin from the costly impact of high temperatures.”
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Saskatchewan farmer Darin Strudwick, of DCD Strudwick Farms, bought Canola Heat Blast Yield Protection as a tool to ensure his farm meets its bottom line and stated he would “recommend it to other farmers.” Strudwick explained how he planted his canola with the intent to reach a target of 50 bushels/acre, but the effects of heat blast in his area dropped his yield to 25 bushels/acre at harvest.
“Heat blast is most often associated with being catastrophic to a single season, but it also causes shallow losses year after year, adding a financial hit on the farm,” says Darren Peters, VP of Global Insurance. “At DigiAg, our focus is to provide superior insurance products and unparalleled customer experience. We’ve worked closely alongside farmers to deliver a robust heat blast solution where they can lean on technology to meet the evolving needs of the farm — a product that is highly accurate, cost-considerate, requires minimal manual effort, and also provides complete claim transparency and fast payouts.”