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.
Coverage for production losses caused by on-farm labour disruptions due to COVID-19
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 the feature sheet Understanding Coverage: 2022 On-Farm Labour Disruptions Caused by COVID-19 and the addendum to the Contract of Insurance on the Publications page.
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 Canadian Agricultural Partnership. In most plans, producers pay 40% of the total premium cost and none of the administrative cost. Together, the federal and provincial governments contribute the other 60%. Administrative costs are fully funded by both levels of government.