Why are 5 million acres of Ontario farmland insured under Production Insurance each year?
In a word: protection.
Production Insurance protects Ontario producers from losses caused by factors beyond their control. The bee health plan covers colony losses caused by insured perils that occur during the overwinter period.
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 product.
- Payments that are made within the year the loss occurred (in most cases).
Starting this year, the maximum coverage level for the plan will be 70 per cent. This change is the result of claims that have consistently increased year to year and is required to ensure the plan is sustainable over the long term.
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 administration cost. Together, the federal and provincial governments contribute the other 60 per cent. Administrative costs are fully funded by both levels of government.