Okanagan growers say crop insurance isn’t keeping up with a changing climate

Okanagan grape growers are expressing concern that their crop insurance policies are not keeping pace with the effects of a changing climate. Karnail Singh Sidhu, a wine industry veteran, says that factors such as extreme heat, cold, drought, hail, and wildfire smoke are becoming increasingly difficult to control and cover under current insurance models.

The insurance payout often only compensates for the damaged plant, but not the lost production years while a new vine takes root, which can be a significant financial setback. Jeff Guignard, CEO of the BC Wine Growers Association, says that the current evaluation methods are suggesting that payouts are falling short of the actual operation costs.

Smoke-tainted grapes can also result in contracts with wineries being canceled, creating additional financial burdens for growers. Insurance experts argue that the historical loss data used to calculate coverage may not be reliable in predicting future claims in a climate where extreme weather events are becoming more frequent and harder to isolate.

To address these concerns, the BC Wine Growers Association is advocating for a transparent review of the insurance model, with coverage based on current production capacity and risk modeling that reflects modern climate conditions. For Sidhu, the issue is not just about getting paid for this year's damaged crop, but ensuring that there will still be a viable farm to produce crops in the future.