Western Canadian farmers thinking about growing Nexera canola have until the end of October to take advantage of free crop insurance coverage providing up to $100 per acre in protection against heat blast during the 2022 growing season.
Corteva Agriscience has introduced this first-of-its-kind insurance coverage, known as the Heat Advantage program, providing insurance of up to $100 per acre as a further incentive to get farmers to grow the hybrid canola that produces a specialty oil.
“Brevant Seeds Nexera canola already offers farmers a price premium over commodity canola,” says Tyler Groeneveld, Corteva’s Commercial Leader Grain and Oilseeds, North America. “The Heat Advantage program just gives farmers another level of confidence in growing Nexera canola. It is a high value crop and the insurance adds another layer of risk management against heat blast during the critical flowering period.”
The insurance coverage comes at no cost to the farmer and is automatically applied as soon as a producer signs up with Nexera retailers — Bunge, Louis Dreyfus, Richardson Pioneer, Parrish & Heimbecker and Viterra — to grow the crop for 2022. Deadline to take advantage of the Heat Advantage program is Oct. 29, 2021.
The Heat Advantage program applicable to all Nexera canola varieties is available to farmers in Alberta, Manitoba and Saskatchewan. The insurance coverage is underwritten by Northbridge General Insurance Corporation and arranged for by Global Ag Risk Solutions.
The coverage and any insurance payout is all fully automated. The farmer doesn’t have to do anything, says Groeneveld.
Global Ag Risk Solutions has developed an equation or model based on 40 years of climate and canola yield information, and they couple that with reliable, third-party, daily temperature readings.
The model covers all of Western Canada from southeast Manitoba all the way to Alberta’s Peace River Region, but reflects canola-growing conditions over a very localized six mile by six mile grid across the whole area. For any particular farm address, the model and temperature readings are based on information within a six by six mile radius of your canola fields.
“Based on 42 years of data, the model calculates the seeding date for each local region and the grower gets coverage for approximately 21 days of the expected flowering period for that local region,” says Groeneveld. “During that flowering period, if the temperature is excessively hot on your farm, and that’s excessively hot relative to the norm in that region, the model will calculate a payout based on $5 increments up to a maximum of $100 per acre.”
In the event of excessive daytime or nighttime temperatures, growers will accumulate Heat Blast Units (HBUs). If the HBUs recorded during the policy coverage period exceeds the index minimum, Global Ag Risk Solutions pays directly to the farmers who seed Nexera canola. A payout is triggered and paid automatically.
“Unlike other kinds of crop insurance, there is no time-consuming reporting process, no trips to the field, no yield measurement, and the farmer gets paid months ahead of traditional crop insurance,” said Grant Kosior, president and CEO of Global Ag Risk Solutions.
Global Ag Risk Solutions estimated that heat blast in 2020 resulted in a nationwide loss of more than 50 million bushels and $525 million in combined revenue. Numerous studies on the impact of climate change suggest most regions of Canada are projected to increase average temperatures during the next 60 years. In fact, the southern and central Prairies are projected to see more warming than most other regions.
Earlier in 2021, as temperatures across much of Western Canada climbed well into the 30 to 40 C temperature range, the Canola Council of Canada said hot days (28 to 30 C and up) and warm nights (16 C and up) from bud to mid-flowering stages can have a devastating effect on canola yield.
Cool nights offer some recovery from hot days. Warm nights do not provide a recovery period and more flowers are aborted, producing blanks along the stem. Even with a few days of heat, it can take a week for hormone balance and regular pod formation to return. Recently opened flowers with shortened stamens that don’t protrude above the petals can be a sign of heat damage. These flowers are not likely to produce pods.
Nexera canola, which has been on the market for more than 25 years and today includes many high yielding varieties, produces a specialty oil that is in strong demand, particularly among food processors.
“Brevant seeds Nexera canola produces omega-9 oil, the gold standard in the North American food industry for sensory, health and performance benefits,” says Groeneveld. “Our high yielding hybrids combined with strong processor-paid premiums due to strong market demand makes our canola one of the most profitable options for Canadian farmers.
“Now, we are adding more peace of mind and a better return per acre through the Heat Advantage by committing to be the only seed brand in Canada to share the risk of canola heat blast. We’re bringing farmers a first-of-its-kind, turn-key program to help protect their Brevant seeds Nexera canola seed investment.”
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