Why are 5 million acres of Ontario farmland insured under Production Insurance each year?
In a word: protection.
Production Insurance protects Ontario producers from yield reductions and crop losses caused by factors beyond their control. Things like adverse weather, disease, wildlife and insect infestations.
When you enrol in the Production Insurance plan for tender fruits, you are guaranteed a level of production, based on your yield history and the level of coverage you choose. Claims are paid when an insured peril causes your yield to fall below your guaranteed production.
What Production Insurance offers
- Peace of mind (production level is guaranteed)
- Dependable collateral with financial institutions
- Affordable coverage that is cost-shared with government
- Premiums that are tax deductible as an operating expense
- Claim payments that reflect market prices
- Individual crop plans that accommodate unique aspects of each insurable crop
- Payments that are made within the year the loss occurred (in most cases)
New coverage options for your vines
Starting in 2017, you will have the option to purchase additional coverage for your vines. The standard level of vine coverage is still included with your Production Insurance at no cost to you. This means that more of your operation is covered, bringing you greater peace of mind.
In addition, vine coverage now applies to both your fruit bearing and newly planted vines. You are compensated when you lose vines to perils such as drought, freeze injury or tornado.
Vine coverage works on a deductible basis. You must sustain a specific amount of loss to be eligible for compensation. For more information, see the “How it works” page.
Visit the “Rates” page for deductible levels
Separating grapevine categories
Starting in 2017, Agricorp will separate hybrid, labrusca, and vinifera grape vines when calculating grape vine claims. Separating the grape vine variety categories better reflects the risks and costs associated with each category. This change also means that your vine coverage now works like your grape production coverage, with claims for variety categories being assessed and calculated separately.
Production Insurance is part of the suite of programs available under Growing Forward 2. In most plans, producers pay 40 percent of the total premium cost and none of the administrative cost. Together, the federal and provincial governments contribute the other 60 percent. Administrative costs are fully funded by both levels of government.