Better meeting the needs of agricultural producers – Expanded and simplified crop insurance coverage
News release
March 3, 2025 – Saint-Paul-d'Abbotsford, Quebec – Agriculture and Agri-Food Canada
The Government of Québec and the Government of Canada are announcing major changes to the Crop Insurance Program (ASREC) to better meet the changing needs of agricultural businesses, particularly in the context of climate change.
André Lamontagne, Minister of Agriculture, Fisheries and Food and Minister responsible for the Centre-du-Québec region, was joined at the announcement by Audrey Bogemans, MNA for Iberville, Ernest Desrosiers, President and CEO of La Financière agricole du Québec (FADQ); Martin Caron, Executive President of the Union des producteurs agricoles du Québec; and Catherine Lefebvre, President of the Association des producteurs maraîchers du Québec.
A successful consultation
In 2023, Minister Lamontagne committed to reforming the ASREC in response to climate-related hazards faced by agricultural businesses. After working in collaboration with all implicated sectors, the Quebec government is proud to unveil the main changes which will make it possible to offer expanded, improved and simplified insurance coverage for the benefit of those who feed us.
The changes are designed to:
- better protect businesses from climate-related hazards by adding disaster clauses. In particular, the share of premiums associated with disasters will be borne entirely by governments, as provided for under the Sustainable Canadian Agricultural Partnership;
- simplify the program for clients and reduce payment times;
- introduce a rebate for businesses that adopt good agri-environmental practices;
- expand coverage to reflect and encourage crop diversification;
- facilitate access to the program for smaller businesses.
Implementation of this program reform will begin this year and continue gradually until 2027. This major project is part of FADQ's digital transformation, which will see the introduction of a simplified offer, and quick and easy access to online services. It will also offer personalized advice to guide clients towards products and services tailored to their needs.
A disaster clause as of 2025
In a context of climate change, protection against catastrophic losses is important for our producers. As of 2025, the governments will cover 100% of the losses due to natural disasters in the vegetable‑producing sector. Previously, these weather events had the effect of increasing the bill for insured businesses. Following various studies, expansion to other sectors is scheduled for 2026.
The protection offered to cover losses of vegetables in storage has also been improved. This will make it possible to compensate companies which suffer losses linked to production damage which appears after the harvest.
Quotes
“There’s no question – farmers are facing the devastating impacts of climate change, and it’s so important that we help them make their operations more sustainable. Our programs need to meet their needs, so they can focus on what they do best: producing top-quality products for Canadians and the world.”
- The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food
“With the changes to the Crop Insurance Program, your government is taking action to better support agricultural producers. The close collaboration between La Financière agricole and all concerned sectors will enable us to offer coverage tailored to the needs of those who feed us.”
- André Lamontagne, Minister of Agriculture, Fisheries and Food and Minister Responsible for the Centre-du-Québec Region
“Iberville County, whose territory is more than 95% agricultural, is undeniably part of Quebec’s pantry. The changes made to the Crop Insurance Program will undoubtedly provide better support for our producers.”
- Audrey Bogemans, MNA for Iberville
“The organization is committed to revising ASREC to meet the needs of agricultural producers. Their satisfaction remains our top priority.”
- Ernest Desrosiers, President and Chief Executive Officer, La Financière agricole du Québec
“The changes to crop insurance announced today respond to issues raised by producers for some time. This is a big step to improve the resilience of our farms and contribute to better consistency in the supply of our local products.”
- Catherine Lefebvre, President, Association des producteurs maraîchers du Québec
Quick facts
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In addition to the disaster clause, which will be rolled out this year, the changes will be staggered as follows:
- By 2026, it is expected that other production sectors will have access to the disaster clause, and that processes will be adjusted to improve the client experience.
- In 2027 and beyond, components of the digital transformation will be delivered, bringing significant digital service benefits to agricultural businesses.
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In 2024, 11,956 businesses were enrolled in ASREC.
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Since 2019, insured values have increased by 61%. In 2024, they will amount to $2.6B.
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Payouts in 2023 and average payout correspond to the following:
- 2023: $181.9M
- 5-year average: $66.6M
- 10-year average: $106.8M
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The Canadian and Quebec governments cover 60% of the premium while members pay the remaining 40%.
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ASREC is funded through the AgriInsurance Program, under the Sustainable Canadian Agricultural Partnership, an agreement between the federal, provincial and territorial governments.
Associated links
Contacts
For media:
Annie Cullinan
Director of Communications
Office of the Minister of Agriculture and Agri-Food
annie.cullinan@agr.gc.ca
Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972
aafc.mediarelations-relationsmedias.aac@agr.gc.ca
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Web: Agriculture and Agri-Food Canada
Sophie J. Barma
Press Secretary
Office of the Minister of Agriculture, Fisheries and Food and Minister Responsible for the Centre-du-Québec Region
581-993-5016
sophie.jacques-barma@mapaq.gouv.qc.ca
Media Relations
Communications Directorate
Quebec Department of Agriculture, Fisheries and Food
418-380-2100, ext. 3512
relationsdepresse@mapaq.gouv.qc.ca
Mireille Cornelissen
Communications and Public Relations Advisor
La Financière agricole du Québec
418-834-6866, ext. 6545
mireille.cornelissen@fadq.qc.ca
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