How it works
When you enrol in Production Insurance, you are guaranteed a level of production based on either your contracted tonnage or your yield history – whichever is less – and the type of coverage you choose. 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: Processing Vegetables – Average Farm Yield on the Publications page.
Production Insurance coverage for processing vegetable crops 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.
Production loss coverage
This coverage provides a single guaranteed production for each crop on the total number of acres you plant of that crop.
Unseeded acreage coverage
A claim may be paid under unseeded acreage coverage if an insured peril other than drought prevents you and a number of other growers in the same area from planting or seeding all or part of your acreage by the planting deadline.
Unseeded acreage payment = [claim price × 1/3 AFY × (total unseeded acreage – 3‑acre deductible)] – [$1 × total unseeded acreage]
Your unseeded acreage claim is based on your current year contract tonnage.
A claim may be paid under replant coverage if you need to replant some or all acres of your crop due to damage caused by an insured peril. Payments may be made whether you replant the same crop or a different crop. Replanting must be completed by the planting deadline.
Payments for replant coverage are based on the crop that was originally planted and insured. The amount is based on a maximum per-acre rate that Agricorp sets annually for each crop.
Replant payment = damaged acres × replant value/acre*
*If your actual receipts are less than the Agricorp minimum, the lower value is paid.
Minimum eligible acres
To qualify for a claim payment under replant coverage, the minimum acreage requirement is one unbroken acre.
Calculating your coverage and claims
Your coverage depends on:
- Average farm yield (AFY)
- Coverage level
- Guaranteed production
- Coverage type
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 contracted to more than one processor, you will have a separate AFY for each processor.
AFY for existing plan participants
Your AFY is calculated using five to ten consecutive years of your actual reported yields. For any year you did not grow, an underwritten value is used.
AFY for new plan participants
Each crop is assigned an underwritten five-year AFY that is based on a variety of factors, such as township averages and soil type.
Each year that you participate in the plan, your actual yield replaces an underwritten yield until your AFY is composed entirely of your own actual yields.
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 per cent 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 per cent of your AFY), the yield is buffered two-thirds of the way up to the lower threshold.
Plug-in values and underwritten yields are not buffered.
Processing carrot yields are reported in terms of dicer carrots. Agricorp applies the following yield factors to crowning dicer carrots, slicer carrots, crowning slicer carrots and white carrots.
|Type of carrot||Yield factor|
When you apply or renew each year, you choose one coverage level for each crop. It determines your guaranteed production. There are different coverage levels depending on the type of coverage you choose.
If an insured peril causes your actual yield to fall below your guaranteed production, a production claim may be paid on the difference.
The guaranteed production is the lesser of:
The AFY (as determined by Agricorp) multiplied by your selected coverage level, or
The total tonnage specified in the contract between you and your processor
If damage is reported by the replanting deadline, and Agricorp agrees that the crop should be replanted but cannot be replanted due to an insured peril, the insurance coverage or your guaranteed production is reduced by half.
The claim price is used to calculate any potential production claim.