When you enrol in the yield-based Production Insurance plans for fresh vegetables, you are guaranteed a level of production based on your historical yields for each crop. A claim may be paid if an insured peril causes your yield to fall below your guaranteed production.
Production Insurance coverage for fresh vegetables applies only during the period from seeding or planting until harvest. Loss or damage due to storage conditions is not insured. If your farm management practices contribute to a production loss, you may lose some or all of your insurance coverage.
* Provided good farm management practices are followed.
Losses due to uninsured perils such as improper use of pesticides, third-party damage or spray drift are not covered by Production Insurance.
Yield losses caused by uninsured perils are removed from your guaranteed production before any claim is calculated.
If the final yield used for insurance claim purposes is less than your guaranteed production (adjusted for any loss due to uninsured perils), a production claim may be paid on the difference. If the final yield is equal to or greater than your guaranteed production (after adjustment for uninsured perils), no production claim is payable.
Your coverage depends on:
An AFY is calculated and used as a benchmark to determine if your actual production is below average.
Your AFY is calculated using up to the past 10 years of your actual reported yields.
Each crop is assigned an underwritten five-year AFY that is based on a variety of factors such as soil type, drainage, township averages, etc.
Each year that you participate in the plan, your actual yield replaces an underwritten yield until your AFY is composed entirely of your own actual yields.
Unusually high and low yields are adjusted (buffered) to stabilize and lessen the impact of extreme yields on your AFY.
When you apply or renew each year, you choose one coverage level for each crop. It determines your guaranteed production.
If an insured peril causes your actual yield to fall below your guaranteed production, a production claim may be paid on the difference.
Your guaranteed production is determined by multiplying your AFY by your selected coverage level.
The claim price is applied to your yield (in pounds hundred weight, bags or tons) to calculate a dollar value for the purpose of paying a claim.
The following benefits are in addition to regular production claims.
Refer to the Plan Overview for more information.
A reseeding benefit may be paid if you are forced to reseed some or all acres of your crop due to an insured peril. Agricorp will pay a reseeding or replanting benefit based on the original crop you planted. The amount of the benefit is based on a maximum per-acre benefit rate that Agricorp sets annually for each crop.
Reseed benefit = damaged acres x reseed value/acre*
* If your actual receipts are less than the Agricorp maximum, the lower value is paid.
USAB provides compensation if an insured peril other than drought prevents you and a number of other growers in the same area from planting or seeding all or part of your acreage.
USAB claim payments are based on the dominant crop you grew in the previous year.
USAB benefit = [claim price x 1/3 AFY x (total unseeded acreage – deductible)] – [$1 x total unseeded acreage]