Production Insurance
New forage seeding

How it works

​​​​Production Insurance for new forage seeding offers establishment protection for new forage crops. A claim may be paid if an insured peril causes damage to three or more adjoining acres, preventing your crop from establishing a stand.

Production Insurance covers you for losses due to adverse weather, disease, pests, wildlife, or other uncontrollable natural perils, except for perils excluded in your Contract of Insurance – General Terms and the Commodity-Specific Terms: New Forage Seeding on the Publications page.

Calc​​​​​ulating your coverage and claims

There are two different plans for new forage seeding. If you grow both the premium and standard new forage seeding, you must insure the premium new forage seeding in order to insure the standard.

Premium new forage seedin​​g plan

This plan is designed to ensure the estab​​lishment of high-quality, long-term forage stands. They contain a seed count of less than 50% red clover or have a seed value of at least $35 per acre.

Claim payments are subject to a deductible ​​of 10% of the total planted acres.

Standard new forage se​​​​eding plan

This plan is intended for forage stands that contain a seed count of more than 50% red clover or​​ have a seed value of less than $35 per acre.

Claim payments are subject to a deductible of 35% of the total planted acres.

How claims are determin​​ed

A claim under establishment coverage may be​​ paid if:

  • At least three adjoining acres were damaged
  • Damage was due to an insured peril
  • Damage was reported to Agricorp

A fixed claim price is set for each plan at the beginning of the year. Claims are calculated using this formula:

Number of acres – deductible* × claim price ($/acre)

* Deduc​tible equals:

  • 10% of total acres for premium new seeding
  • 35% of total acres for standard new seeding

Example: Calculating an establishment claim

Wallace Farms planted 150 acres of spring-seeded, standard new forage seeding. Due to conditions after planting, 100 acres failed to establish a decent stand. The deductible for standard new forage seeding is 35% of total liability (150 × 35% = 52.5 acres) and the example establishment claim price is $115 per acre. Based on this information, the establishment claim is calculated as follows:

Claim payment = 100 acres – 52.5 acres × $115.00

= $5,462.50

Canadian Agricultural Partnership – Agricorp – Ontario – Canada