The Production Insurance ginseng pilot offers establishment protection for seedling gardens. A claim may be paid if an insured peril causes damage to half an acre or more and you decide to reseed your crop or overseed your crop.
If you are reseeding your crop, you are required to destroy the crop.
If you are overseeding your crop, you must manage the overseeding of gardens in agreement with Agricorp and based on good farm management practices.
- Excessive heat
- Excessive moisture
- Excessive rainfall
- Insect infestation*
- Plant disease*
*Provided good farm management practices are followed.
Losses due to uninsured perils
Losses due to uninsured perils are not eligible for a Production Insurance claim, but must be reported. Examples of uninsured perils are nonviable seed, third-party damage or planting on land previously used to grow ginseng.
Damage to shade structures is not covered under the pilot.
Calculating deductible and claims
Establishment claims may be paid if your seedlings are damaged by an insured peril and you choose to reseed or overseed. . If the total destroyed and/or overseeded acres exceed your deductible acres, a claim may be paid.
Your choice of coverage determines your deductible and premium. There are four coverage levels available: 70, 75, 80 and 85 per cent.
For example, if you have 10 acres and you choose to insure them at 80 per cent coverage, your deductible is the remaining 20 per cent, or two acres.
Deductible = planted acres x deductible%
= 10 acres x 20%
= 2 acres
If you must destroy five acres and your deductible is two acres, you may be eligible for a claim on the remaining three acres.
The ginseng claim price for 2020 is $11,150 per acre. Claim price is based on cost of production figures published by the Ontario Ministry of Agriculture and Food.
Payments for overseeding coverage are based on a farmer's eligible expenses and will not exceed the claim price.
How claims are determined
An establishment benefit may be paid if:
- Damage is reported
- Damage is due to an insured peril
- You decide to destroy the damaged acres (a minimum of half an acre) for reseeding
- You decide to maintain established seedlings (where possible) and overseed
- Acres were mapped by Agricorp before and after they are destroyed
Building on the above example, if you have a deductible of two acres and you destroy five of 10 acres, you will be eligible for a claim of $33,450, when reseeding.
Total claim = (destroyed acres – deductible) X claim price
= (5 – 2) x $11,150
For overseeding, the deductible is the same as reseeding. The claim price for overseeding coverage is based on a farmer's eligible expenses and will not exceed the claim price.