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 production losses caused by factors beyond their control, including adverse weather, disease, pests, wildlife or other uncontrollable natural perils.
When you enrol in the Production Insurance plan for honey, you are guaranteed a level of production based on your yield history and the level of coverage you choose. If an insured peril causes your actual yield or extracted honey to be below your guaranteed production, a production claim may be paid on the difference.
Making changes to your coverage – Contact Agricorp by May 10, 2023 to apply for coverage or to change your coverage. Changes to coverage include things like adding or removing commodities, changing coverage levels, and updating other options like claim prices (where applicable).
What Production Insurance offers
- Peace of mind (production level is guaranteed).
- Dependable collateral with financial institutions.
- Affordable coverage that is cost-shared with government.
- Premiums that are tax deductible as an operating expense.
- Claim payments that reflect market prices.
- Coverage that accommodates the unique aspects of each insurable crop.
- Payments that are made within the year the loss occurred (in most cases).
Production Insurance is part of the suite of programs available under the Sustainable 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.