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. Things like adverse weather, disease, wildlife and insect infestations.
When you enrol in the fresh market vegetable acreage loss plans, 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.
Production Insurance is part of the suite of programs available under the Canadian Agricultural Partnership. In most plans, producers pay 40 per cent of the total premium cost and none of the administrative cost. Together, the federal and provincial governments contribute the other 60 per cent. Administrative costs are fully funded by both levels of government.