Production Insurance
Black tobacco


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 production losses caused by factors beyond their control, including adverse weather, disease, pests, wildlife or other uncontrollable natural perils.

When you enrol in Production Insurance for tobacco, you are guaranteed a level of production, based on your yield history and the level of coverage you choose. Claims are paid when an insured peril causes your yield to fall below your guaranteed production.

What's new

  • Making changes to your coverage – We know you are facing uncertainty about markets and input costs, which is a factor as you make important planting decisions. That is why this year the deadline to enrol and make changes for the 2022 Spring Policy is extended to May 16. 
  • Coverage extended for production losses caused by on-farm labour disruptions due to COVID-19 – Coverage added in 2020 has been extended for the 2022 program year. See below for more information. 

Coverage for production losses caused by on-farm labour disruptions due to COVID-19

On July 9, 2020, the governments of Canada and Ontario announced an enhancement to Production Insurance for eligible commodities to help farmers manage challenges beyond their control. This coverage has been extended for the 2022 program year. 

Production Insurance customers who have production losses caused by on-farm labour disruptions due to COVID-19 are insured for the 2022 program year. For more information about this coverage, see the feature sheet Understanding Coverage: 2022 On-Farm Labour Disruptions Caused by COVID-19 and the addendum to the Contract of Insurance on the Publications page.

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
  • Coverage that accommodates the unique aspects of each insurable crop
  • Payments that are made within the year the loss occurred (in most cases)

Funding partners

Production Insurance is part of the suite of programs available under the Canadian Agricultural Partnership. In most plans, producers pay 40% of the total premium cost and none of the administrative cost. Together, the federal and provincial governments contribute the other 60%. Administrative costs are fully funded by both levels of government.

DeadlinesFebruary 2023

Canadian Agricultural Partnership – Agricorp – Ontario – Canada