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The provincial government of Manitoba and the Manitoba Agricultural Services Corporation (MASC) have created two new trusts to help the region’s insurance programs.
With MASC named as the trustee, both trusts will support the province’s AgriInsurance and Hail Insurance programs.
“Establishing these trusts clearly demonstrates that these funds are strictly for the benefit of insured producers and provides greater transparency to the public in that these funds cannot be used by government for any other purposes,” said Agriculture Minister Ralph Eichler in a release.
Eichler added that the trusts are a reflection of the government’s continued support of Manitoba’s agricultural industry.
“The creation of these trusts, with MASC as the trustee, will provide continued assurance to participating producers the Manitoba government is committed to the industry and that these funds will be available when needed,” he explained.
A government release said that MASC will remain in control of these funds and ensure they are “solely for the benefit of Manitoba’s participating agricultural producers.”
“MASC is committed to supporting Manitoba’s financial reporting initiative,” commented MASC chair Jim Wilson. “I also want to assure agricultural producers that their contributions to the trusts will be available to pay indemnities when protection is needed in years of adversity and challenging weather conditions.”
AgriInsurance programs across Canada, including Manitoba’s, operate under the Canadian Agricultural Partnership – a federal, provincial and territorial agreement. The premiums paid for the insurance are cost-shared among the federal government, provincial governments, and the producers.
The hail insurance program, on the other hand, is solely funded by premiums paid by producers, including administration costs.
