Production Insurance
Machine-harvested cucumbers (processing)

How it works

​​​​​​​​​​​​​​​​​​​​When you enrol in Production Insurance, you are guaranteed a level of production based on your yield history 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 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 yo​ur insurance coverage.

​Insured pe​​rils

  • Drought
  • Excessive rainfall
  • Flood​
  • Freeze
  • Frost
  • Hail
  • Insect infestation*
  • Plant disease*
  • Wildlife
  • Wind​

* Provided good ​​farm management practices are followed.

​ Losses due to ​uninsured ​​perils

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

Yield losses caused by un​​​insured perils are​ removed from your guaranteed production before any claim is calculated.

​​​Calculating your ​​​coverage and claims

Your coverage depends on:

  • Average farm yield (AFY)
  • Coverage level
  • Guaranteed production
  • ​Coverage type

Average fa​rm yield (AFY)

​An AFY is calculated and used as a benchmark to determine if your actual production is be​​low average. If you are contracted to more than one processor, you will have a separate AFY for each processor.

​There is no claim price. Your AFY a​​​nd yields are reported in dollars for the purpose of paying a claim.

​​AFY fo​r existing plan particip​ants

Your AF​​​Y is calculated using five to ten consecutive years of your actual reported yields. For any year yo​u did not grow, an underwritten value is used. ​

​​

​​​AFY for new plan particip​ants

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 un​til your AFY is composed entirely of your own actual yields.

​The AFY for cucumbers is converted to​ a dollar value using the average yield, historic grade distribution and price by grade.

Currency exchange period

Most industry contracts are now negotiated in US dollars. Coverage information is provided after the currency exchange period ends, when prices, a​verage farm yield and guaranteed production can be calculated in Canadian dollars. Production shortfalls are also calculated in Canadian dollars.

The final currency exchange rate Agricorp uses is based on the average daily Bank of Canada exchange rate from July to August. The currency exchange period applies to both the machine-harvested and hand-picked cucumber plans. Production Insurance covers yield reductions and production losses caused by insured perils. It does not cover risks associated with exchange rates.​​

​Yield buffe​​​ring

Unusually high and low yields are adjusted (buffered) to stabilize and lessen the impact of extreme yields on ​your AFY.

  • If your actual yi​eld 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 ar​​e not buffered.

​​​​Coverag​​​e level

When you apply or renew each year, you choose one coverage level for each crop. It det​​ermines your guaranteed production. There are different coverage levels depending on the type of coverage you choose.

Guaranteed prod​​uction

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

GP per acre = AFY x your chosen coverage level

Total GP = GP per acre x total number of acres you are growing

​Coverage​ t​​ype

Total productio​​n coverage

This coverage option provides a single guaranteed production for each crop on the total number of acres you plant to that crop, regardless of the number of sep​arate harvest periods or processors. The harvested production from a high-yielding harvest period will offset the low yield from a l​ow-yielding harvest period.

​​​Claim ty​pes

As well as the standard production claim for yields that don't meet your guaranteed productio​n, ​​you may also be eligible for the following types of claims. Refer to the Contract of Insurance for more details.

​​​Unseeded acreage​​ benefit (USAB)

A USAB may be paid if an insur​ed peril other than drought prevents you and a large number of other growers in the same area from planting or seedin​g all or part of your acreage by the planting deadline.

​​Reseeding or replanting benefit

A benefit may be paid if you are forced to reseed or replant some or all acres of your crop due to an insured peril. Benefits may be paid whether you reseed or replant the same crop or a different crop. Reseeding or replanting must be completed by the planting deadline.

The benefit is paid based on the crop that was originally planted and insured. The amount of the benefit is based on a maximum per-acre benefit rate that Agricorp sets annually for each crop.






Canadian Agricultural Partnership – Agricorp – Ontario – Canada