Production Insurance for sour cherries provides multi-peril protection for all processing crops.
Choose either standard tree loss coverage, at no cost to you, or additional tree loss coverage, offering you greater coverage at a lower deductible level.
See the Example scenario to help you choose the option that best meets your needs.
Fruit tree rider coverage
The fruit tree rider is added to your coverage if your trees were insured in the previous crop year, or if you notified Agricorp by September 1 and meet eligibility requirements. Newly planted trees must have been planted by June 10 to be eligible for coverage in the next crop year.
The fruit tree rider gives you additional protection if your sour cherry trees die as a result of one or more insured perils.
For more information about this coverage, including how to qualify, see the Fruit Tree and Grapevine Riders feature sheet.
FAY for existing participants
Your FAY is based on your yields from your six most recent years.
FAY for new participants
You are assigned an underwritten FAY for the first six years of production based on a variety of factors, including:
- Age of trees
- Available production records
- Irrigation capabilities
- Location of orchard
- Other management practices
- Regional weather patterns
- Soil type
- Spacing of trees
- Tree health
- Varieties grown
For each year that you participate in the plan, your actual yield replaces an underwritten yield until your FAY 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 FAY.
- If your actual yield is above the upper threshold (130 per cent of your FAY), the yield is buffered two-thirds of the way down to the upper threshold.
- If your actual yield is below the lower threshold (70 per cent of your FAY), the yield is buffered two-thirds of the way up to the lower threshold.
An estimated claim price is set at the time of renewal to calculate a customer's guaranteed value. A final claim price will be set at harvest time to calculate a guaranteed value for the declared yield. The final claim price will be used for claim purposes.
When you apply or renew each year, you choose one coverage level from several available options. It determines your guaranteed production.
Guaranteed production is determined by multiplying your FAY by your selected coverage level. This number is used to calculate your guaranteed value.
= FAY × your selected coverage level
Guaranteed value converts your guaranteed production into a dollar amount so your premiums can be calculated and any production loss claims can be paid.
Guaranteed value = guaranteed production × claim price