When you enrol Production Insurance for fresh market vegetables – average farm yield basis, you are guaranteed a level of production based on your historical yields for each commodity. A claim may be paid if an insured peril causes your yield to fall below your guaranteed production.
Production Insurance covers you for losses due to adverse weather, disease, pests, wildlife, or other uncontrollable natural perils, except for perils excluded in the Contract of Insurance – General Terms and the Commodity-Specific Terms: Fresh Market Vegetables – Average Farm Yield on the Publications page.
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.
The following coverage options are in addition to production loss coverage.
A claim may be paid under replant coverage if you need to replant some or all acres of your crop due to damage caused by an insured peril. Agricorp will pay a claim based on the original crop you planted. The amount of the claim is based on a maximum per-acre benefit rate that Agricorp sets annually for each crop.
Replant payment = damaged acres × reseed value/acre*
* If your actual seed costs are less than the Agricorp maximum, the lower value is paid.
To qualify for a claim payment under replant coverage, the minimum acreage requirement is one unbroken acre.
Unseeded acreage coverage 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.
Unseeded acreage payment = [claim price x 1/3 AFY x (total unseeded acreage – 3-acre deductible)] – [$1 x total unseeded acreage]
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.
A small onion yield conversion is calculated when a claim may be payable and the amount of small onions is greater than the natural occurrence of small onions in the total yield, which is five per cent of the total yield.
If the natural occurrence of small onions is greater than the actual number of small onions, the onions harvested will be the yield to count.
If the natural occurrence of small onions is less than the actual number of small onions, the conversion is calculated.
Total yield to count = actual number of large onions + converted number of small onions
Converted number of small onions – natural occurrence of small onions + (actual number of small onions – natural occurrence of small onions) × 0.4
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.