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.
Making changes to your coverage – Contact Agricorp by May 10, 2023 to apply for coverage or to change your coverage. Changes to coverage include things like adding or removing commodities, changing coverage levels, and updating other options like claim prices (where applicable).
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
- Coverage that accommodates the unique aspects of each insurable crop
- Payments that are made within the year the loss occurred (in most cases)
What Production Insurance offers for fresh market vegetables – acreage-loss basis
- Multiple benefits throughout the season, including unseeded acreage coverage, replant and salvage coverage and abandonment threshold coverage
- Separate coverage for multiple plantings of short-season crops
- Single-peril (hail or frost) coverage or combined hail and frost coverage
- Spot-loss protection – coverage applies on a per-acre basis, rather than total acreage
- In most cases, crop salvage is offered without affecting compensation
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 administrative cost. Together, the federal and provincial governments contribute the other 60%. Administrative costs are fully funded by both levels of government.