Calculating your annual premium
Your annual premium is based on:
- Customer base premium rate
- Reported number of acres
- Discounts and surcharges (D or S)
The premium is calculated using this formula:
Premium = customer base premium rate × number of acres × D or S
Customer base premium rate
The customer base premium rate is determined at renewal time each year. It may change due to factors like past performance of the plan, changes to claim prices and the level of the Ontario Agricultural Products Insurance Fund.
Reported number of acres
This refers to the number of planted acres you report after planting. Once you report your final planted acres, Agricorp sends your premium invoice.
Discounts and surcharges
If you have had Production Insurance coverage for a commodity for more than one year, your premium rate may be discounted or surcharged. Discounts and surcharges are determined by comparing your individual claim rate for a commodity to the claim rate for the commodity as a whole.