+ RMA Rural Municipalities
of Alberta

Resolution 3-04F

Insurance for Seed Cleaning Cooperatives

January 1, 2004
Expiry Date:
December 1, 2007
Active Status:
Vote Results:

WHEREAS the agricultural industry is necessary to sustain the province of Alberta; AND WHEREAS seed cleaning cooperatives are a vital part of the agricultural industry; AND WHEREAS non-profit seed cleaning plants lack the needed funds to fully support the insurance requirements for seed cleaning plants; AND WHEREAS other designated non-profit organizations are eligible for insurance under the municipal insurance plan;

Operative Clause:

THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties explore the possibility of including designated non-profit seed cleaning cooperatives as additional named insureds under the Municipal Liability Insurance Program.

Member Background:

In the past, by way of Ministerial order, the Province has provided capital funding to seed cleaning plants. Currently, the seed cleaning cooperatives are expected to maintain their facilities and operate on a minimal budget. Seed cleaning plants are required to pay $1,500 for a yearly membership in a seed cleaning association in order to receive insurance coverage. This added expense increases the struggle of the seed cleaning plant to operate.The agricultural industry has suffered in recent years due to weather conditions not normal for this area, resulting in poor crops and low income.Insurance companies issue blanket coverage requirements for all seed cleaning plants in the province, and often it is more than is required. Therefore, insurance coverage is more costly to individual seed cleaning plants.

RMA Background:

The AAMDC currently has no resolutions in effect with respect to this issue.

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