The Governments of Québec and Canada have unveiled significant reforms to the Crop Insurance Program (ASREC) to better support agricultural businesses facing climate-related challenges. These changes will expand coverage, simplify processes, and introduce new benefits tailored to modern farming needs.
Strengthening Support for Farmers
In 2023, André Lamontagne, Québec’s Minister of Agriculture, Fisheries and Food, pledged to reform ASREC in response to the increasing climate risks affecting farmers. Following extensive consultations with industry stakeholders, the government is implementing key changes that will enhance insurance coverage for agricultural producers.
Key improvements include:
- Enhanced protection against climate-related disasters: A new disaster clause ensures that the government covers 100% of losses from catastrophic weather events, starting with the vegetable sector in 2025 and expanding to other sectors in 2026.
- Simplified insurance processes: Reducing red tape will make it easier and faster for farmers to access support.
- Incentives for sustainable practices: Farmers who adopt environmentally friendly agricultural methods will receive financial rebates.
- Expanded coverage for diverse crops: Encouraging crop diversification by broadening the range of insurable products.
- Improved access for smaller farms: Making insurance more accessible to small-scale producers.
These reforms will roll out gradually from 2024 to 2027 as part of La Financière agricole du Québec’s (FADQ) digital transformation, which aims to streamline services and offer personalized guidance to farmers.
Disaster Clause and New Coverage by 2025
Recognizing the growing impact of climate change, the updated program will fully cover losses caused by natural disasters in the vegetable sector starting in 2025. Previously, such events increased costs for insured farms. Future expansions are scheduled for 2026.
Additionally, from 2025, new coverage will compensate farmers for losses of stored fruits and vegetables caused by post-harvest production damage.
Government Commitment to Resilient Agriculture
“The changes to the Crop Insurance Program demonstrate our commitment to ensuring farmers have the resources they need to thrive in the face of climate challenges,” said André Lamontagne, Minister of Agriculture, Fisheries and Food.
“Our programs must evolve to meet the realities of climate change,” added Lawrence MacAulay, Canada’s Minister of Agriculture and Agri-Food. “With these reforms, we’re ensuring that farmers can focus on what they do best—producing high-quality food for Canadians and the world.”
Fast Facts on ASREC Reforms
- 2024: 11,956 businesses enrolled in ASREC.
- Insurance values: Increased by 61% since 2019, reaching $2.6 billion in 2024.
- Payouts: $181.9 million in 2023, with an average of $106.8 million over 10 years.
- Cost-sharing: Governments cover 60% of premiums, with farmers paying the remaining 40%.
The ASREC program is supported through the AgriInsurance Program, under the Sustainable Canadian Agricultural Partnership—a federal-provincial-territorial initiative ensuring long-term agricultural sustainability.
With these changes, Québec and Canada are taking a significant step toward building a more resilient and sustainable agricultural sector.
