Production Insurance peril added for 2020 labour disruptions

July 10, 2020

The governments of Canada and Ontario announced a new peril for production loss due to on-farm labour disruptions caused by COVID-19 has been added to Production Insurance customer policies for 2020.

Agricorp is adding this new coverage immediately to these customer policies for 2020 only, at no additional 2020 premium cost. Customers do not need to sign up.

This enhancement to yield-based, acreage-loss and ginseng plans covers crop losses, up to the customer's guaranteed production (or number of damaged acres for ginseng), that are due to:

  • Illness or quarantine of the producer due to COVID-19;
  • Inability to fulfill contracted on-farm labour due to COVID-19; or
  • Illness or quarantine of on-farm labour due to COVID-19.

With this enhancement, customers will have coverage for production loss due to labour disruptions caused by COVID-19 for the full duration of their 2020 policies, from when the crop is planted all the way to harvest. For perennials, coverage starts at the beginning of the coverage period.

Production Insurance will still work the same as it does with existing perils

Production Insurance provides coverage against insured perils, like weather, disease, infestation, wildlife, and now 2020 labour disruptions due to COVID-19. Most plans are based on total yield, but there is also coverage for some vegetable plans that is based on yield loss per acre and a ginseng plan that is based on crop establishment.

For most plans, customers in Production Insurance have a guaranteed level of production, and are compensated when their final yield falls below their guarantee because of an insured peril. Payments are based on the customer's final yield at the time of harvest. For ginseng, the establishment benefit is based on damaged acres.

Chosen coverage levels and premiums will not change.

How do customers report crop losses?

If customers have crop losses at the time of harvest and the cause is on-farm labour disruptions due to COVID-19, they need to call Agricorp at 1-888-247-4999 to report the crop loss.

Customers will be expected to have implemented health and safety management practices recommended by public health guidelines, including measures such as distancing and personal protective equipment. For more information, visit Agriculture health and safety during COVID-19.

In the meantime, Agricorp is working with OMAFRA to implement these changes and will provide more details for customers on our website as soon as the information is available.

Production Insurance covers crop losses and AgriStability covers net income declines

Different programs cover different risks. Production Insurance covers crop losses due to specific perils, AgriStability covers net income losses due to increased costs, production losses and market disruptions, and the Risk Management Program covers fluctuating costs and market prices.

Specific perils for Production Insurance include weather, infestation, disease, wildlife, and now 2020 labour disruptions due to COVID-19.

While Production Insurance does not cover things like increased labour costs, labour shortages at processing plants, and lost markets, AgriStability and RMP can help with cash flow. Combining programs provides multiple layers of protection, which could be especially helpful to farmers in a year of extra challenges.

Here is how different programs cover different risks.

Your risks: AgriStability Production Insurance RMP/SDRM
Large declines in net income

Lost markets
Increased costs

Lower market prices

Yield reductions and quality losses caused by weather, infestation, disease, wildlife, and 2020 labour disruptions due to COVID-19

Farmers can also visit and click “Information for industry” to read more about other government assistance programs, such as The Mandatory Isolation Support for Temporary Foreign Workers Program, which is a one‑time, $50‑million program to help with the impacts of the COVID-19 pandemic.

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