Production Insurance

How it works


​When you enrol in Production Insurance, you are guaranteed a level of production based on your yield history and the level of coverage you choose. A claim may be paid if an insured peril causes your yield to fall below your guaranteed production.

Production Ins​urance coverage for grain and oilseed 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.

Insure​d​ perils

  • Drought
  • Excessive moisture
  • Excessive rainfall
  • Flood
  • Frost
  • Hail
  • Insect infestation*
  • Plant diseases*
  • Wildlife
  • Wind

* Provided good farm ​man​agement practices are followed

​Losses due to ​uninsured perils

Losses due to uninsured perils such as improper use of pesticides, third-party dama​​ge or spray drift are not covered by Production Insurance.

Yield losses caused b​y uninsured perils are removed from your guaranteed production before any claim is calculated.

If the final yield used for insurance claim purposes is less than your guaranteed production (adjusted for any loss due to uninsured perils), a production claim may b​e paid on the difference. If the final yield is equal t​o or greater than your guaranteed production (after adjustment for uninsured perils), no production claim is payable.

Calculating your coverage and cla​​ims

Your coverage depen​ds on:

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

​Average farm yield ​​​(AFY)

An AFY is calculated and u​​​sed as a benchmark to determine if your actual production is below average.

AFY for existing pla​n p​​articipants

Your AFY is calcu​​lated 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 adjustment fact​​or

Your historical yields are​ adjusted to reflect changes in practices or technology over time. An adjustment factor is applied to your actual yields for each individual crop. Underwritten yields are not factored.

​Yield bufferin​g

One bad production year doesn't significantly impact a producer's 10-year average farm yield. Unusually high and low yields are buffered to stabilize your AFY and lessen the impact of extreme yields. Buffering is applied after the yield adjustment factor.

Your yield is buffered up if it is below 70 per cent of your 10-year average (lower threshold). The yield is buffered up by two thirds of the difference between your yield and the lower threshold.

Your yield is buffered down if it is above 130 per cent of your 10-year average (upper threshold). The yield is buffered down by two thirds of the difference between your yield and the upper threshold.

For examples of how yield buffering works, see the Yield Buffering feature sheet on the Publications page.

Coverage​ l​evel

When you apply or renew each year, you choose one coverage level. It determ​​ines your guaranteed production.

Guarantee​​d production

Your guaranteed production is determined by multiplying your AFY by your selected coverage level. If an insured peril causes your actual yield to fall below your guaranteed production, a production claim may be paid o​n the difference.

Claim pr​​ice

When you apply o​​​r renew each year, you select a fixed or floating claim price (where applicable). The claim price you choose is applied to your yield to calculate a dollar value for the purpose of paying a claim.

​​Claim​ types

The following benefits ​​are in addition to regular production claims.

Refer to the Plan Overvi​​​ew for more information.

Unseeded Acreage Benefit (U​​SAB)

USAB is only available for spring-seeded crops. USAB provides compensation if an insured peril other than drought prevents you and a number of other gr​​​owers in the same area from planting or seeding all or part of your acreage.

USAB payments are based on your dominant crop. At renewal, you will be assigned a dominant cro​​p based on what you grew last year. You have the option to change the dominant crop to one of your choice, as long as you currently or recently insured that crop under Production Insurance.

To change your dominant crop, contact Agricorp before May 1. If you change your dominant crop for Production Insurance, this change will also apply to RMP: Grains and Oilseeds.

USAB claim payments are mad​​e to the landlord only.

You are eligible for USAB cla​ims on only the acres you own or cash-rent. USAB rates are updated each year.

Reseeding bene​​fit

A reseeding benefit may be paid if you are forced to reseed some or all acres of your crop due to an​ insured peril. Agricorp will pay a reseeding or replanting b​​​​enefit based on the original crop you planted. The amount of the benefit is based on a maximum per-acre benefit rate that Agrico​​​​rp sets annually for each crop.

Reseeding benefits are p​aid to sharecroppers only, as they carry the expense of planting the crop.

Corn salvage benefit

The corn salvage benefit compensates you for the additional costs associated with harvesting, handling, and marketing corn that has been damaged by an insured peril. Both conventional and organic corn are eligible. The salvage benefit applies if you have one of the following:

  • Sample grade corn
  • Deoxynivalenol (DON) in excess of 3 ppm

For sample grade corn

The salvage benefit is paid when your harvested yield of Grade 1 - 5 corn is less than your total guaranteed production and you have some sample grade corn.

Payments are made on the number of harvested bushels of sample grade corn, up to your total guaranteed production.

For corn affected by DON

The salvage benefit is paid when your corn crop is damaged by deoxynivalenol (DON) and your harvested corn with DON levels below 3 ppm is less than your total guaranteed production.

Payments are made on the number of bushels of corn damaged by DON that are above 3 ppm, up to your total guaranteed production.

The benefit amount paid for corn affected by DON rises as DON levels increase. This provides coverage that more accurately reflects the extra costs when farmers need to harvest, handle and market corn damaged by DON. ​

Canadian Agricultural Partnership – Agricorp – Ontario – Canada