Production Insurance
Lima beans (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 covers you for losses due to adverse weather, disease, pests, wildlife, or other uncontrollable natural perils, except for perils excluded in the Contract of Insurance – General Terms and the Commodity-Specific Terms: Processing Vegetables – Average Farm Yield on the Publications page.

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 your insurance coverage.

Coverage options     

Production loss coverage

This coverage provides a single guaranteed production for each crop on the total number of acres you plant of that crop.

Unseeded acreage coverage

A claim may be paid under unseeded acreage coverage if an insured peril other than drought prevents you and a number of other growers in the same area from planting or seeding all or part of your acreage by the planting deadline.

Unseeded acreage payment = [claim price × 1/3 AFY × (total unseeded acreage – 3‑acre deductible)] – [$1 × total unseeded acreage]

Your unseeded acreage claim is based on the current year contract acres.

Replant coverage

A claim may be paid under replant coverage if you need to replant some or all acres of your crop due to damage caused by an insured peril. Payments may be made whether you replant the same crop or a different crop. Replanting must be completed by the planting deadline.

Payments for replant coverage are based on the crop that was originally planted and insured. The amount is based on a maximum per-acre rate that Agricorp sets annually for each crop.

Replant payment = damaged acres × replant value/acre*

*If your actual receipts are less than the Agricorp minimum, the lower value is paid.

Minimum eligible acres 

To qualify for a claim payment under replant coverage, the minimum acreage requirement is three contiguous acres.

By-passed acreage coverage

By-passed acreage refers to acreage that was suitable for harvesting and processing, but was not harvested because of excessive heat and/or rainfall or other insured peril agreed to by Agricorp.

For more information, see the By-Passed Acreage Coverage feature sheet on the Publications page.

Seed cost coverage

This coverage is available when an insured peril results in a claim under replant coverage, a claim under by-passed acreage coverage, or a zero production claim. The coverage covers the cost of seeds used, up to a maximum value set out in the Ontario Processing Vegetable Growers' contract.

The processor pays the premium for the seed cost coverage, and any claim payments made under seed cost coverage are paid directly to the processor.

If there is a claim under replant coverage, the seed cost portion of the claim is paid to the processor. If there is a claim under by-passed acreage coverage, and the final yield is equal to or greater than your guaranteed production, no claim is payable under seed cost coverage. If there is a production loss claim, a claim under seed cost coverage is paid only when there is zero production and no harvest.

For more information, see the Seed Cost Coverage for Processing Crops feature sheet on the Publications page.

Calculating your coverage and claims

Your coverage depends on:

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

Average farm yield (AFY)

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

AFY for existing plan participants

Your AFY is calculated using five to ten consecutive years of your actual reported yields. For any year you did not grow, an underwritten value is used. 

AFY for new plan participants

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 until your AFY is composed entirely of your own actual yields.

If you are new to the plan or if you did not have production in one or more years used to calculate your AFY within the last five years, Agricorp will assign an underwritten value for the year based on processor averages, township averages, soil type, drainage, and various farm management criteria.

Yield buffering

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

  • If your actual yield 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 are not buffered.

Coverage level

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

Guaranteed production

If an insured peril causes your actual yield to fall below your guaranteed production (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.











​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 covers you for losses due to adverse weather, disease, pests, wildlife, or other uncontrollable natural perils, except for perils excluded in the Contract of Insurance – General Terms and the Commodity-Specific Terms: Processing Vegetables – Average Farm Yield on the Publications page.

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 your insurance coverage.

​​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.

​​​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.

​AFY for existing plan participa​​nts

Your AFY is calculated using five to ten consecutive years of your actual reported yields. For any year you did not grow, the processor average yield is used as a plug-in value.

​​AFY for new plan participants

Each crop is assigned an underwritten five-year AFY that is based primarily on the proc​​essor average yield (plug-in) and a variety of other factors such as township averages, soil type, etc.

Each year that you participate in the plan, your actual yield replaces an underwri​​tten yield until your AFY is composed entirely of your own actual yields.

If you have signed a contract with a new processor, the new processor’s five-year average yield per acre is used to determine your new beginning AFY.

​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 p​​​​​rice​

The claim price is​​ used to calculate​ any potential production claim.

​​​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 coverage

A claim may be paid under unseeded acreage coverage if an insured peril other than drought prevents you and a number of other growers in the same area from planting or seeding all or part of your acreage by the planting deadline.

Unseeded acreage payment = [claim price × 1/3 AFY × (total unseeded acreage – 3 acre deductible)] – [$1 × total unseeded acreage]

Your unseeded acreage claim is based on the current year contract acres.

​​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.

​By-passed acreage benefit

By-passed acreage refers to acreage that was suitable for harvesting and processing, but was not harvested because of excessive heat and/or rainfall, or other insured perils agreed to by Agricorp. Refer to the Production Insurance Document for more details.

​Seed cost benefit

This benefit is available when an insured peril  results in a reseeding benefit, a by-passed acreage benefit, or a zero production claim. This benefit covers the cost of the seed used, up to a maximum value set out in the Ontario Processing Vegetable Growers’ contract.

The processor pays the premium for the seed cost benefit and any seed cost benefits are paid directly to the processor.

If there is a reseeding claim, the seed cost portion of the claim is paid to the processor. If there is a bypass claim, and the final yield is equal to or greater than your guaranteed production, no seed cost benefit is payable. If there is a production claim, the seed cost benefit is paid only when there is zero production and no harvest.

Refer to the Production Insurance Document for more details.






Canadian Agricultural Partnership – Agricorp – Ontario – Canada