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.

Production Insurance covers you for losses due to adverse weather, disease, pests, wildlife, or other uncontrollable natural perils, except for perils excluded in your Contract of Insurance – General Terms and the Commodity-Specific Terms: Fruit on the Publications page.

Available coverage

The following options are available for apple crops. For more information about apple coverage, see the Apple Coverage Options feature sheet and the Commodity-Specific Terms: Fruit on the Publications page.

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. Any claim calculation also does not include juice production unless it exceeds its historical production. When the juice yield exceeds the juice historical production, the surplus is added to the fresh yield in the claim calculation.

Enhanced basic coverage

This offers the advantages of a write-off provision and salvage benefit.

Write-off provision

Sometimes a crop is so damaged by hail that it is not economically worthwhile to harvest the fresh apples. If hail damage exceeds the write-off value of 70 per cent, 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 still 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 compensates you for additional input costs required to salvage the crop and reduces the production claim.

Separate orchard apple hail rider coverage

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.

For more information about apple coverage, see the Apple Coverage Options feature sheet on the Publications page.

Apple tree coverage

Choose either standard tree mortality loss coverage, at no cost to you, or additional tree mortality loss coverage, offering you greater coverage at a lower deductible level.

See the Example scenario to help you choose which option best meets your needs.

Fruit tree rider coverage

The fruit tree rider is added to your coverage if your trees were insured in the previous program 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 program year.

Fruit tree rider coverage gives you additional protection if your apple trees die as a result of one or more insured perils.

For more information about this coverage, including how to qualify, see the Fruit Tree and Grapevine Riders feature sheet.

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 six years of production based on a variety of factors, including:

  • Acreage
  • Age of trees
  • Available production records
  • Drainage
  • Irrigation capabilities
  • Location of orchard
  • Other management practices
  • Regional weather patterns
  • Rootstocks
  • Soil type
  • Spacing of trees
  • Tree health
  • Varieties grown

For 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. The FAY calculations for fresh and juice crops provide stabilization 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 juice apple 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 production

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

Guaranteed production = FAY × your selected coverage level

Guaranteed value

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

Guaranteed value = guaranteed production × your selected claim price

Example scenario 

You have an apple orchard with 1,000 trees. You lose 200 trees due to freeze injury.

Calculating your options

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


Higher deductible

Lower deductible
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 coverage*
= 1,000
× 7.5%
= 75 trees
= # of trees
× deductible rate for additional 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