Production Insurance
Pears

Overview

Why are 5 million acres of Ontario farmland insured under Production Insurance each year?

In a word: protection.

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 a Production Insurance plan for tender fruit, you are guaranteed a level of production based on your yield history and the level of coverage you choose. A claim may be paid if an insured peril causes your yield to fall below your guaranteed production.

What's new

  • Coverage extended for on-farm labour disruptions due to COVID-19  Coverage added in 2020 for production losses caused by on-farm labour disruptions due to COVID-19 is extended for the 2021 program year. For 2021, the coverage will include fruit trees and vines. For more information, read Understanding Coverage for 2021 Labour Disruptions on the Publications page.
  • Same insurance. New look – We have refreshed the renewal notice and Contract of Insurance for Production Insurance.
  • No premium deposit required – For this year, we are waiving the premium deposit – you will receive an invoice for the full premium amount in the spring of 2021.

Coverage for production loss caused by on-farm labour shortages due to COVID-19

On July 9, 2020, the governments of Canada and Ontario announced an enhancement to Production Insurance for eligible commodities in 2020 to help farmers manage challenges beyond their control.

This coverage has been extended for the 2021 program year. For 2021, the coverage will include fruit trees and vines.

Production Insurance customers who suffer production loss caused by on-farm labour shortages due to COVID-19 will be insured for the 2020 and 2021 program years.

For more information about this coverage, see Understanding Coverage for 2021 Labour Disruptions.

What Production Insurance offers

  • Peace of mind (production level is guaranteed)
  • 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
  • Individual crop plans that accommodate unique aspects of each insurable crop
  • Payments that are made within the year the loss occurred (in most cases)

​Funding​​ partners​

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.​

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Canadian Agricultural Partnership – Agricorp – Ontario – Canada