When you enrol in the yield-based Production Insurance plans for fresh vegetables, you are guaranteed a level of production based on your historical yields for each crop. A claim may be paid if an insured peril causes your yield to fall below your guaranteed production.
Production Insurance coverage for fresh vegetables 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.
- Excessive rainfall
- Excessive heat
- Cool weather
- Insect infestation*
- Plant disease*
*Provided good farm management practices are followed.
Losses due to uninsured perils
Losses due to uninsured perils such as improper use of pesticides, third-party damage or spray drift are not covered by Production Insurance.
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:
- 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.
AFY for existing plan participants
Your AFY is calculated using up to the past 10 years of your actual reported yields.
AFY for new plan participants
Each crop is assigned an underwritten five-year AFY that is based on a variety of factors such as soil type, drainage, township averages, etc.
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.
Your beginning five-year AFY is based on a six-week harvest. If your yield falls below your guaranteed production due to immaturity or previous management decisions, your guaranteed production will be 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.
Unusually high and low yields are adjusted (buffered) to stabilize and lessen the impact of extreme yields on your AFY.
- If your actual yield is above the upper threshold (130 per cent of your AFY), the yield is buffered two-thirds of the way down to the upper threshold.
- If your actual yield is below the lower threshold (70 per cent of your AFY), the yield is buffered two-thirds of the way up to the lower threshold.
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 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.