Why are 5 million acres of Ontario farmland insured under Production Insurance each year?
In a word:
Production Insurance protects Ontario producers from
yield reductions and crop losses caused by factors beyond their control,
including adverse weather, disease, pests, wildlife or other uncontrollable
When you enrol in Production Insurance for grains and oilseeds, you are guaranteed a level of production based on your yield history and the level of coverage you choose. Claims are paid when an insured peril causes your yield to fall below your guaranteed production.
On July 9, 2020, the governments of Canada and Ontario announced an enhancement to Production Insurance for eligible commodities to help farmers manage challenges beyond their control. This coverage has been extended for the 2022 program year.
Production Insurance customers who have production losses caused by on-farm labour disruptions due to COVID-19 are insured for the 2022 program year. For more information about this coverage, see Understanding Coverage: 2022 On-Farm Labour Disruptions Caused by COVID-19 and the addendum to the Contract of Insurance on the Publications page.
Production Insurance is part of the suite of programs available under the Canadian Agricultural Partnership. For most coverage, producers pay 40% of the total premium cost and none of the administration cost. Together, the federal and provincial governments contribute the other 60%. Administrative costs are fully funded by both levels of government.