When you enrol in Production Insurance, you are guaranteed a level of production based on your yield history and the level of coverage you choose. A claim may be paid if an insured peril causes your yield to fall below your guaranteed production.
Production Insurance covers you for losses due to
adverse weather, disease, pests, wildlife, or other uncontrollable natural
perils, except for perils excluded in the Contract of Insurance – General Terms and the Commodity-Specific Terms: Grains and
Oilseeds on the Publications page.
Production Insurance coverage for grain and oilseed crops applies only during the period from seeding or planting until harvest. Loss or damage due to storage conditions is not insured. If your farm management practices contribute to a production loss, you may lose some or all of your insurance coverage.
The following coverages are available in addition to production loss coverage.
Unseeded acreage coverage is only available for
spring-seeded crops. This coverage provides compensation if an insured peril
other than drought prevents you and a number of other growers in the same area
from planting or seeding all or part of your acreage.
Claim payments for unseeded acreage are made to the landlord only.
You are eligible for an unseeded acreage claim only on the acres you own or cash-rent. Rates are updated each year.
For more information, see Unseeded Acreage Coverage and Replant Coverage on the Publications page.
A claim may be paid under replant coverage if you are forced to replant some or all acres of your crop due to an insured peril. Agricorp will pay a claim based on the original crop you planted, and the amount is based on a maximum per-acre rate that Agricorp sets annually for each crop.
The minimum acreage eligible for a claim under replant coverage is three contiguous acres.
Claim payments made under replant coverage are paid to sharecroppers only, as they carry the expense of planting the crop.
If an insured peril reduces the quality of a crop, a quality factor may be applied to the yield to reflect the lower prices you will receive. This adjustment increases the likelihood and size of a claim payment.
Your coverage depends on:
An AFY is calculated and used as a benchmark to determine if your actual production is below average.
Your AFY is calculated using up to the past 10 years of your actual reported yields.
Each crop is assigned an underwritten five-year AFY that is based on a variety of factors such as soil type, drainage and township averages.
Each year that you participate in the plan, your actual yield replaces an underwritten yield until your AFY is composed entirely of your own actual yields.
One bad production year doesn't significantly impact a producer's 10-year average farm yield. Unusually high and low yields are buffered to stabilize your AFY and lessen the impact of extreme yields. Buffering is applied after the yield adjustment factor.
Your yield is buffered up if it is below 70 per cent of your 10-year average (lower threshold). The yield is buffered up by two thirds of the difference between your yield and the lower threshold.
Your yield is buffered down if it is above 130 per cent of your 10-year average (upper threshold). The yield is buffered down by two thirds of the difference between your yield and the upper threshold.
For examples of how yield buffering works, see the Yield Buffering feature sheet on the Publications page.
When you apply or renew each year, you choose one coverage level. It determines your guaranteed production.
Your guaranteed production is determined by multiplying your AFY by your selected coverage level. If an insured peril causes your actual yield to fall below your guaranteed production, a production claim may be paid on the difference.
When you apply or renew each year, you select a fixed or floating claim price (where applicable). The claim price you choose is applied to your yield to calculate a dollar value for the purpose of paying a claim.