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 Production Insurance for fresh market vegetables – acreage-loss basis, we compare any losses you experience against predetermined abandonment thresholds. These thresholds are based on the crop yields required to meet production costs for a typical field of that crop. A claim may be paid if your yield falls below the threshold level due to an insured peril. You may also qualify for other types of claims as well.
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
Understanding Coverage: 2022 On-Farm Labour Disruptions Caused by COVID-19 and the
addendum to the Contract of Insurance on the Publications page.
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.