Production Insurance
Asparagus, yield basis

How it works

When you enrol Production Insurance for fresh market vegetables – average farm yield basis, you are guaranteed a level of production based on your historical yields for each commodity. 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: Fresh Market Vegetables – Average Farm Yield on the Publications page.

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.

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 participantUsing 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.

​Yield buffering

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% 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% of your AFY), the yield is buffered two-thirds of the way up to the lower threshold.

Coverage level

When you apply or renew each year, you choose 1 coverage level for each crop. It determines your guaranteed production.

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.

Claim price

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.

Canadian Agricultural Partnership – Agricorp – Ontario – Canada