Why are 5 million acres of Ontario farmland insured under Production Insurance each year?
In a word:
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 fresh market vegetable yield-based plans, you are guaranteed a level of production. Your coverage is based on comparing your actual yields to an average of your historical yields for each crop. A claim may be paid if an insured peril causes your yield to fall below your guaranteed production.
Production Insurance is part of the suite of programs available under the Canadian Agricultural Parternship. 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.