Farmers depend on Mother Nature for a successful crop, and as we all know, weather in Canada can be fickle. As a result, crop farmers can buy government-backed or private insurance in case weather or other acts of God wreak havoc on their harvest.
A good harvest in 2025 translates into lower crop payments
Crop insurance payments to farmers declined 26.9% to $2.5 billion in 2025, the lowest payments since 2020 and approximately half of the record-high $4.9 billion paid to farmers in 2022.
Saskatchewan (-$646.9 million) and Alberta (-$242.5 million) saw the largest decreases in payments in 2025. Better growing conditions for some principal field crops supported record yields, further lessening the demand for crop insurance payments.
Crop farmers paid just over $1.3 billion in government-backed crop insurance premiums in 2025.
Private insurance protection against Prairie hail
Summer storms on the Prairies can bring hail, which can devastate crops in local areas. As a result, some Prairie crop farmers buy private hail insurance to cover themselves from such an event.
In 2025, farmers paid $377.4 million in premiums and received $232.4 million in payments. The worst year for hail damage in the Prairies occurred in 2021, when $321.8 million was paid out.
One major difference between private and government-backed insurance programs is that, in private insurance, premiums always exceed payments, often by a wide margin, whereas in government-backed insurance, the payments to farmers always exceed the premiums they pay.
When animals attack
Sometimes, wild animals can run amok and cause damage to crops and livestock. Through various programs, farmers are compensated for losses caused by waterfowl (e.g., ducks and geese), wild boars and predators (e.g., coyotes and wolves).
In 2025, insured farmers received $58.5 million in compensation for damage caused by wild animals.
Contact information
For more information, contact the Statistical Information Service (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
