When you enrol in Production Insurance, you are guaranteed a level of production based on your yield history and the level of coverage you choose. If an insured peril causes your actual yield or extracted honey to be below your guaranteed production, a production claim may be paid on the difference.
- Excessive moisture
- Excessive rainfall
- Pest infestation*
- Cool weather
- Disease in the bees*
* Provided good farm management practices are followed.
Losses due to uninsured perils
Losses due to uninsured perils such as improper use of pesticides, third-party damage or spray drift are not covered by Production Insurance.
Yield losses caused by uninsured perils are removed from your guaranteed production before any claim is calculated.
If the final yield used for insurance claim purposes is less than your guaranteed production (adjusted for any loss due to uninsured perils), a production claim may be paid on the difference. If the final yield is equal to or greater than your guaranteed production (after adjustment for uninsured perils), no production claim is payable.
Calculating your coverage and claims
Your coverage depends on:
- Your average farm yield
- Claim price
- Your coverage level
- Your guaranteed production
Average farm yield (AFY)
An AFY is calculated and used as a benchmark to determine if your actual production is below average for insurance purposes.
AFY for existing plan participants
Your AFY is calculated using up to the past 10 years of your actual reported yields.
AFY for new plan participants
You are assigned an underwritten AFY for the first five years of production based on:
- Any available production records
- Experience and management practices
- Owned equipment
- Regional averages
Each year that you participate in the plan, your actual yield replaces an underwritten yield until your AFY is composed entirely of your own actual yields.
Unusually high and low yields are adjusted to stabilize and lessen the impact of extreme yields on your AFY.
- If your actual yield is 130 per cent above the upper threshold, the yield is buffered two-thirds of the way down to the upper threshold.
- If your actual yield is below 70 per cent of the lower threshold, the yield is buffered two-thirds of the way up to the lower threshold.
Bees moved out of province and/or used for pollination services must be back in Ontario or on their home farm by July 1 or a penalty will be applied. For each day after July 1, the AFY is reduced by one percent per hive, per day for claim purposes.
Each year, Agricorp determines a
claim price based on the previous year’s average price of bulk honey sold to packers and to other beekeepers. The claim price is used to calculate any claim.
When you apply or renew, you choose a coverage level. It will determine your guaranteed production.
Your guaranteed production is determined by multiplying your AFY by your selected coverage level. If an insured peril causes your actual yield to be below your guaranteed production, a production claim may be paid on the difference.