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 grains and oilseeds Production Insurance plans, you are guaranteed a level of production, based on your yield history and the level of coverage you choose. Claims are paid when an insured peril causes your yield to fall below your guaranteed production.
oats plans are now available. If you grow barley or oats, you now have the option to choose one of the new crop-specific plans or continue with the existing spring grains plan.
- The new plans have their own claim prices and premium rates that better reflect their unique markets and risks.
- Farm management requirements, program timelines and planting deadlines will be the same as the spring grains plan.
- If you choose a new crop plan for Production Insurance, the changes will be carried over to RMP: Grains and Oilseeds.
- To choose a new plan, contact Agricorp by May 1.
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)
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 administration cost. Together, the federal and provincial governments contribute the other 60 per cent. Administrative costs are fully funded by both levels of government.