Production Insurance
Apples and apple trees

How it works

​​​​​​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 value.

Insured pe​​​rils


  • Drought
  • Frost
  • Freeze injury
  • Excessive moisture
  • Hail
  • Unavoidable pollination failure due to adverse weather conditions 
  • Excessive wind
  • Tornado
  • Russetting due to adverse weather conditions (but not for Russet or Golden Delicious varieties)

Apple tree​​​s

The fruit tree rider is added to your coverage if your trees were insured in the previous crop year, or if you notified Agricorp by September 1 and meet eligibility requirements. Newly planted trees must have been planted by June 10 to be eligible for coverage in the next crop year. 

The fruit tree rider gives you additional protection if your apple trees die as a result of one or more of these insured perils:

  • Drought
  • Excessive wind causing structural damage
  • Freeze injury
  • Flood
  • Hail
  • Ice damage
  • Lightning
  • Tornado
  • Fire blight*

*Provided good farm management practices are followed.

For more information about this coverage, including how to qualify, see the Fruit Tree and Grapevine Riders Production Insurance Document.

Losses due​​​ to unin​​sured perils

Losses due to uninsured perils, such as improper use of pesticides, third-party damage or spray drift, shortage of labour or machinery, insect infestation or plant disease, are not covered by Production Insurance unless specifically noted.

Yield losses caused by uninsured perils are removed from your guaranteed production before any claim is calculated.

If the final yield used for insurance claim purposes is less than your guaranteed production (adjusted for any loss due to uninsured perils), a production claim may be paid on the difference. If the final yield is equal to or greater than your guaranteed production (after adjustment for uninsured perils), no production claim is payable.

Calculating your coverage and claims

Your coverage depends on:

  • Your final average yield
  • Your claim price
  • Your coverage level
  • Your guaranteed production
  • Your guaranteed value

Final avera​​ge yield (FAY)

An FAY is calculated and used as a benchmark to determine if your actual production is below average.

FAY for existing particip​ants

Your FAY is based on your six most recent years of actual yields.

FAY for new participa​​n​​ts

You are assigned an underwritten FAY for the first five years of production based on a variety of factors such as location, tree age and health, soil type, etc. For more details, see the Plan Overview.

Each year that you participate in the plan, your actual yield replaces an underwritten yield until your FAY is composed entirely of your own actual yields.

Fresh and juice all​​​ocation

As an apple grower, you will be given a separate FAY for your fresh and juice crops. This allocation helps stabilize fresh to juice yields from year to year to lessen the impact of uncharacteristically low or high yields on your fresh FAY.

Claim p​​​rice

When you apply or renew, you select a claim price, which determines your guaranteed value.

The apple juice claim price is established at harvest time to reflect market conditions. It is based on the current year’s negotiated price for ground juice apples less harvesting costs.

Covera​​​ge level

When you apply or renew, you choose one coverage level from several available options. It determines your guaranteed production.

Guaranteed p​roduction

Guaranteed production is determined by multiplying your FAY by your selected coverage level. This number is used to calculate your guaranteed value.

Guarantee​​d value

Guaranteed value converts your guaranteed production into a dollar amount so your premiums can be calculated and any production claims can​​ be paid.

Guaranteed value = Guaranteed production x your selected claim price

​​Coverage options

Fresh-only claims

If you choose to insure only your fresh production, your historical fresh and juice production is collected but your guaranteed value does not include juice production. A​​ny claim calculation also does not include juice production unless it exceeds its historical production. When the juice yield exceeds the juice historical pr​​oduction, the surplus is added to the fresh yield in the claim calculation.

Enhanc​​ed basic coverage

This offers the advantage​​s of a write-off provision and salvage benefit.

Write-off provisi​​on

Sometimes a crop is so damaged by hail that it is not economically worthwhile to harvest the fres​​h apples. If hail damage exceeds the write-off value of 70 percent, you are not required to harvest any of the undamaged fruit as fresh grade. This undamaged fruit can be harvested for the juice market. The harvested yield of apples will be used as the declared yield.

Salvage ​​benefit

An apple can have lighter hail damage (meaning the skin is damaged but not broken) and sti​​ll be considered juice grade for the purpose of the hail count. With additional cost and effort, you may be able to salvage this juice grade apple into the processing non-juice market.

The salvage benefit com​​​pensates you for additional input costs required to salvage the crop and reduces the production claim.

Basic coverage with h​​​ail rider

This protects you from a reduction in the quality of your apples due to hail damage.

If one of your orchards receives a minimum of 10 per cent hail damage, a hail rider claim may be paid regardless of the hail damage in your other orchards and whether or not your overall production has decreased. See the Apple production insurance coverage options for more details about hail rider coverage.​

Choose your tree coverage option

Starting in 2017, more of your trees are eligible for Production Insurance. Before deciding on this year’s coverage, ask yourself: What changes have you made to your business? What risks does your farm face this year? Will your current coverage protect you if you experience a severe, unexpected loss? Choose either standard tree loss coverage, at no cost to you, or additional tree loss coverage, offering you greater coverage at a lower deductible level.

Below is an example to help you assess tree coverage options and choose which option best meets your business needs.



You have an apple orchard with1,000 trees. You lose 200 trees due to freeze injury.

Calculating your options

*Rates used in this example: Premium rate for additional tree coverage: 0.09%; claim price for trees: $22.72; deductible rate for standard tree coverage: 7.5%; deductible rate for additional tree coverage: 3%.


Higher deductible

Lower deductable
Step 1:
Calculate your premium
Your premium = $0
The federal and provincial governments pay the premium on your behalf.
Your premium
= premium rate*
× # of trees
× claim price*
= 0.09%
× 1,000
× $22.72
= $20.45
Step 2:
Calculate your deductible
= # of trees
× deductible rate for standard tree coverage*
= 1,000
× 7.5%
= 75 trees
= # of trees
× deductible rate for additional tree coverage*
= 1,000
× 3%
= 30 trees
Step 3:
Calculate your tree loss claim
= (# of trees lost
– deductible)
× claim price
= (200 – 75)
× $22.72
= 125
× $22.72
= $2,840.00
= (# of trees lost
– deductible)
× claim price
= (200 – 30)
× $22.72
= 170
× $22.72
= $3,862.40

Canadian Agricultural Partnership – Agricorp – Ontario – Canada