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 crop losses caused by factors beyond their control, including adverse weather, disease, pests, wildlife or other uncontrollable natural perils.
When you enrol in Production Insurance for new forage seeding, you are offered an establishment benefit. A claim may be paid if an insured peril prevents your crop from establishing a stand.
- Making changes to your coverage – Contact
Agricorp by May 10, 2023 to apply for coverage or to change your coverage.
- Updated deductible – The 2023 deductible for standard new forage seeding has increased from 30% to 35% of total insured acres. This change was made to reflect a trend in increasing claims for standard new forage seeding and will help sustain this coverage long term.
What Production Insurance offers
- Peace of mind.
- 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.