March 22, 2023
Grape growers experienced excess rainfall and extreme temperature fluctuations in late 2021 and early 2022. This event resulted in severe yield loss in 2021 and made the grapevines more susceptible to temperature fluctuations in early 2022, resulting in mortality and corresponding yield loss.
In response, Agricorp has worked closely with the Grape Growers of Ontario and the Ministry of Agriculture, Food and Rural Affairs to find a way to support these grape producers.
When underwriting Production Insurance for 2023, Agricorp will adjust the 10-year final average yield (FAY) for growers who have 2022 grape yields that are more than 30% above or below their FAY.
If the actual yield is above the upper threshold (130% of a grower's FAY), the yield is adjusted two thirds of the way down to the upper threshold.
If the actual yield is below the lower threshold (70% of a grower's FAY), the yield is adjusted two thirds of the way up to the lower threshold.
Adjusting these yields lessens the impact of extreme yields on a grower's FAY and stabilizes their coverage.
Agricorp adjusters will work with grape growers to ensure their underwriting reflects their unique situations.