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Production Insurance options in a shortened growing season

October 9, 2019

Ontario grain and oilseed farmers who are concerned that their crops may not have enough time to reach maturity have options through Production Insurance. Customers are currently making important decisions about their crops and knowing their Production Insurance options can help.

Yield shortfalls

Production Insurance is a yield-based program that gives customers a guaranteed level of production.

A customer's guaranteed level of production is based on their farm's historical yields and the coverage options they select for their crop.

If an insured peril, such as frost, causes the yield to fall below the customer's guaranteed level of production, customers can receive a production claim after harvest for the shortfall.

Harvesting options for corn

Because of the shorter growing season, and the cool fall weather, corn in some areas of the province may not have enough time to mature, making low test weights a concern. Here are some scenarios that may arise as customers move forward with harvest.

Harvesting silage and green chop

Customers concerned with their crop not reaching maturity and low test weights may be considering harvesting for silage or green chop. Production Insurance includes options to properly determine the yield of these crops. For details, see the Harvesting Damaged or Stressed Grain Corn feature sheet.

While harvesting decisions are entirely up to customers, they need to contact Agricorp if they're considering harvesting for silage or green chop, so an adjuster can contact them and help them through the process. The sooner an adjuster inspects the crop and explains the options, the better. This allows time to assess the situation and make any necessary arrangements for the crop.

The corn salvage benefit for sample grade corn

For customers who have sample grade corn, the corn salvage benefit provides compensation to help with the additional costs of harvesting and marketing their damaged crop.

Customers may be eligible for a payment if they have corn that is sample grade and their grades 1-5 corn is below their guaranteed level of production.

For 2019, the corn salvage benefit for sample grade corn pays $0.52 per eligible bushel, up to a customer's guaranteed level of production.

Sometimes a customer's total yield of grades 1-5 corn and sample grade corn may still fall below their guaranteed level of production. In this case, a customer may be eligible for both a corn salvage benefit payment and a production claim.

The corn salvage benefit for DON

Starting in 2019, the corn salvage benefit for DON has been enhanced to include a tiered approach, with benefit amounts rising as DON levels increase. This change takes into account the higher costs farmers face as DON levels increase and more accurately reflects the extra costs to harvest, handle and market corn damaged by DON.

The salvage benefit pays for eligible bushels, up to a customer's guaranteed level of production, as follows:

  • $0.52/bu for 3 ppm to 4.9 ppm
  • $0.79/bu for 5 ppm to 7.9 ppm
  • $1.08/bu for 8 ppm and above

The updates for 2019 also include extending the corn salvage benefit to cover organic corn. To learn more about the benefit, see the Corn Salvage Benefit feature sheet.

We're here to help

Agricorp understands that this growing season has been especially stressful for farmers and wants to remind customers to contact Agricorp for help understanding their insurance options. 

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