Production Insurance
Carrots, yield basis

How it works

When you enrol Production Insurance for fresh market vegetables – average farm yield basis, you are guaranteed a level of production based on your historical yields for each commodity. 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: Fresh Market Vegetables – Average Farm Yield on the Publications page.

Production Insurance coverage for fresh vegetables 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.

Available coverage

The following coverage options are in addition to production loss coverage.

Replant coverage

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. Agricorp will pay a claim based on the original crop you planted. The amount of the claim is based on a maximum per-acre benefit rate that Agricorp sets annually for each crop.

Replant payment = damaged acres × reseed value/acre*

* If your actual seed costs are less than the Agricorp maximum, 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.

​​Unseeded acreage coverage

Unseeded acreage coverage provides compensation 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.

Unseeded acreage payment = [claim price x 1/3 AFY x (total unseeded acreage – 3-acre deductible)] – [$1 x total unseeded acreage]

Calculating y​our coverage and​​ claims

Your coverage depe​​nds on:

  • Average farm yield
  • Coverage level
  • Guaranteed production
  • Claim price

Average farm y​​​ield (AFY)

An AFY is calculated an​d used as a benchmark to determine if your actual production is below average.

AFY for existing pla​​n participants

Your AFY is calculat​ed using up to the past 10 years of your actual reported yields.

AFY for new plan ​participants

Each crop is assigned an underwritten five-year AFY that is based on a variety of factors such as soil type, drainage, township averages, etc.

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.

​Yield buffering

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% 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% of your AFY), the yield is buffered two-thirds of the way up to the lower threshold.

Yield factoring

Your AFY for early-harvest carrots (harvested before reaching maturity) is based on the harvested production of mature carrots. Your yield may be adjusted to account for any carrots being harvested before maturity.

Early-harvest carrots are assigned a potential yield that is greater than or equal to your guaranteed production. However, a lower potential yield may be applied if, upon inspection, the lower potential is due to damage incurred by an insured peril.

​Coverage level

When you apply or renew each year, you choose one coverage level for each crop. It determines your guaranteed production.

​Guaranteed production

If an insured peril causes your actual yield to fall below your guaranteed production, a production claim may be paid on the difference.

Your guaranteed production is determined by multiplying your AFY by your selected coverage level.

​Claim price

The claim price is applied to your yield (in pounds hundred weight, bags or tons) to calculate a dollar value for the purpose of paying a claim.

Canadian Agricultural Partnership – Agricorp – Ontario – Canada