Calculating your annual premium
Your annual premium is based on:
- Base premium rate
- Discounts and surcharges (D or S)
- Reported number of acres
The premium is calculated using this formula:
Annual Premium = number of acres x base premium rate x D or S
Base premium rate
The base premium rate is determined at renewal time each year and is based on your chosen coverage level. It may change due to factors like past performance of the plan, changes to claim prices and the level of the Ontario Agricultural Products Insurance Fund.
Discounts and surcharges
If you have had Production Insurance for more than 1 year, your premium rate may be discounted or surcharged. Discounts and surcharges are determined by comparing your individual claim rate for a commodity to the claim rate for the commodity as a whole.
Reported number of acres
This refers to the total number of planted acres you report when you finish planting. Once you report your final planted acres, Agricorp sends your premium invoice.
