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 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: Grains and
Oilseeds on the Publications page.
Production Insurance 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.
Available coverage
The following coverages are available in addition to production loss coverage.
Unseeded acreage coverage
Unseeded acreage coverage is only available for
spring-seeded crops. This coverage provides compensation if an insured peril
other than drought prevents you from planting or seeding all or part of your acreage.
Claim payments for unseeded acreage are made to the landlord only.
You are eligible for an unseeded acreage claim only on the acres you own or cash-rent. Rates are updated each year.
For more information, see Coverage for Planting on the Publications page.
Replant coverage
A claim may be paid under replant coverage if you are forced to replant some or all acres of your crop due to an insured peril. Agricorp will pay a claim based on the original crop you planted, and the amount is based on a maximum per-acre rate that Agricorp sets annually for each crop.
The minimum acreage eligible for a claim under replant coverage is 3 contiguous acres.
Claim payments made under replant coverage are paid to sharecroppers only, as they carry the expense of planting the crop.
For more information, see 
Coverage for Planting on the Publications page.
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.
For more information, see Corn Salvage Benefit on the Publications page.
Calculating your coverage and claims
Your coverage depends on:
- Average farm yield
- Coverage level
- Guaranteed production
- Claim price
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… | Your AFY is calculated… |
| An existing participant | Using your reported yields for up to the past 10 years. |
| A new participant | By assigning an underwritten 5-year AFY for each crop that is based on a variety of factors, such as soil type, drainage and township averages. Note: Each year that you participate, your actual yield replaces an underwritten yield until your AFY is composed entirely of your own yields.
|
Yield adjustment factor
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 buffering
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% 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% 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.
Coverage level
When you apply or renew each year, you choose one coverage level. It determines your guaranteed production.
Guaranteed 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 loss claim may be paid on the difference.
Claim price
When you apply or 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.
