Why are 5 million acres of Ontario farmland insured under Production Insurance each year?
In a word: protection.
Production Insurance protects Ontario producers from yield reductions and crop losses caused by factors beyond their control, including adverse weather, disease, pests, wildlife or other uncontrollable natural perils.
When you enrol in a Production Insurance plan for yield-based fresh market vegetables, you are guaranteed a level of production. Your coverage is based on comparing your actual yields to an average of your historical yields for each crop. A claim may be paid if an insured peril causes your yield to fall below your guaranteed production.
What Production Insurance offers
- Peace of mind (production level is guaranteed)
- Dependable collateral with financial institutions
- Affordable coverage that is cost-shared with government
- Premiums that are tax deductible as an operating expense
- Claim payments that reflect market prices
- Individual crop plans that accommodate unique aspects of each insurable crop
- Payments that are made within the year the loss occurred (in most cases)
- Enrolment extension – This year, farmers have more time to enrol. Extending the enrolment deadline gives farmers more time and flexibility to make business decisions and to assess their program coverage needs, especially in the current challenging times. New customers can call Agricorp to apply and have until November 9, 2020, to enrol.
- Reporting acres – This year, we ask that you report your acres between November 2 and November 23, 2020, giving you more time to report. An adjuster will be in touch with you to measure and confirm your final planted acres.
- Same insurance. New look – We have refreshed the renewal notice and Contract of Insurance for Production Insurance.
Production Insurance is part of the suite of programs available under the Canadian Agricultural Partnership. In most plans, producers pay 40 per cent of the total premium cost and none of the administrative cost. Together, the federal and provincial governments contribute the other 60 per cent. Administrative costs are fully funded by both levels of government.