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 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.
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.
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.
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.
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.