Why are five million acres of Ontario farmland insured under Production Insurance each year?
In a word: protection.
Production Insurance protects Ontario producers from factors beyond their control such as yield reductions and crop losses. Things like adverse weather, disease, wildlife and insect infestations.
Agricorp is now offering a pilot Production Insurance plan for ginseng. When you enrol in the pilot, you are offered an establishment benefit for your seedling gardens. A claim may be paid if an insured peril prevents your crop from establishing a stand.
What Production Insurance offers
- Peace of mind
- Dependable collateral with financial institutions
- Affordable coverage that is cost-shared with government
- Premiums that are tax deductible as operating expenses
- Claim payments that reflect market prices and production costs
- Individual crop plans that accommodate unique aspects of each insurable crop
- Payments that are made within the year the loss occurred (in most cases)
Production Insurance is part of the suite of programs available under The Canadian Agricultural Partnership. In most plans, producers pay 40 per cent of the total premium cost and none of the administrative cost. Together, the federal and provincial governments contribute the other 60 per cent. Administrative costs are fully funded by both levels of government.