Calculating your coverage and claims
Your coverage depends on:
- Average farm yield
- Coverage level
- Guaranteed production
- Claim price
Average farm yield (AFY)
An AFY is calculated and used as a benchmark to determine if your actual production is below average.
If you are…||
Your AFY is calculated…|
An existing participant||Using your reported yields for up to the past 10 years.|
A new participant|
By assigning an underwritten 5-year AFY that is based on a variety of factors, such as soil type, drainage and township averages.
Each year that you participate, your actual yield replaces an underwritten yield until your AFY is composed entirely of your own yields.
Your beginning 5-year AFY is based on a 6-week harvest. If your yield falls below your guaranteed production due to immaturity or previous management decisions, your guaranteed production is adjusted accordingly.
Your initial underwritten AFY is also based on whether hybrids and/or open pollinated varieties are grown, the age of plantings, your marketable yield history, and provincial and Agricorp average yields.
When you apply or renew each year, you choose one coverage level for each crop. It determines your guaranteed production.
If an insured peril causes your actual yield to fall below your guaranteed production, a production loss claim may be paid on the difference.
Your guaranteed production is determined by multiplying your AFY by your selected coverage level.
The claim price is applied to your yield (in pounds, hundred weight pounds, bags, or tons) to calculate a dollar value for the purpose of paying a claim.