Purpose
The Enhanced Quality Option provides producers of high quality alfalfa the opportunity to purchase an additional Relative Feed Value guarantee for alfalfa.
Eligibility
- The Enhanced Quality Option is available to Manitoba producers with alfalfa acres insured under Select Hay Insurance and have demonstrated that they have produced high quality hay in the past three years.
- Production must be placed into acceptable storage. For example: bales must be wrapped, tarped, or shedded.
Coverage
- Producers with Select Hay Insurance can add the Enhanced Quality Option, which allows them to increase their Relative Feed Value coverage above the Select Hay Relative Feed Value guarantee of 105.
- Assigned Relative Feed Value for 2026 is 130.
Every new producer in 2026 will start with an assigned Relative Feed Value of 105. For each claim-free year, a producer’s assigned Relative Feed Value increases by five points to a maximum of 150. For each claim year, a producer’s assigned Relative Feed Value decreases by five points to a minimum of 110. - Relative Feed Value guarantee is calculated:
Relative Feed Value Guarantee
= (assigned Relative Feed Value – Select Hay Relative Feed Value guarantee) x 90% + Select Hay Relative Feed Value guarantee
= (130 – 105) x 0.9 + 105
= 128 (rounded)
- Relative Feed Value coverage is calculated:
Relative Feed Value Coverage
= (Relative Feed Value guarantee – Select Hay Relative Feed Value guarantee) x tonnes of Select Hay alfalfa coverage
- Claims are calculated based on a $1.25 per tonne for each Relative Feed Value point below the assigned Relative Feed Value.
- March 31 is the last day to apply for the Enhanced Quality Option. Once selected, the Enhanced Quality Option renews automatically each year until the producer cancels the option.
- Yields must be reported to MASC on a producer’s Harvested Production Report by November 30.
Cost
- Relative Feed Value testing is done by MASC at no cost to producers.
- The premium cost is shared 40 per cent by the producer, 36 per cent by the Government of Canada, and 24 per cent by the Province of Manitoba.
Claims
- A producer is entitled to a claim if their attained Relative Feed Value is less than their Relative Feed Value coverage.
- Claims for the Enhanced Quality Option must be registered with MASC by October 1 (without penalty).
- A producer’s attained Relative Feed Value will be based on individual lots of alfalfa, where production with the highest Relative Feed Value is counted first for claim purposes, and continues until the tonnes accounted for equals tonnes covered under Select Hay Insurance.
Claim Example:
A producer insures 240 acres of alfalfa with a total production coverage of 381.6 tonnes. The producer actually harvests a total of 450 tonnes, with 300 tonnes that exceed the 128 Relative Feed Value guarantee and 150 tonnes with a Relative Feed Value of 108 (20 points below the Relative Feed Value guarantee).
Relative Feed Value Shortfall
= Relative Feed Value guarantee – actual Relative Feed Value
= 128 – 108
= 20 Relative Feed Value shortfall points
Claim Tonnage
= 381.6 tonnes of coverage – 300 tonnes higher than 128 Relative Feed Value
= 81.6 shortfall tonnes
Claim Amount
= shortfall tonnes x dollar value x Relative Feed Value shortfall points
= 81.6 tonnes x $1.25 x 20
= $2040