When you enrol in Production Insurance, 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.
Production Insurance covers you for losses due to adverse weather, disease, pests, wildlife, or other uncontrollable natural perils, except for perils excluded in your Contract of Insurance – General Terms and the Commodity-Specific Terms: Fruit on the Publications page.
Production loss coverage
Coverage for insured perils begins in the fall and ends when harvest is complete or the coverage period date is reached, whichever comes first.
Coverage dates vary by area, depending on when you crop was planted, the available crop heat units and other specific geographical characteristics. For more information, see the Eligibility page. If you are unsure of your coverage period date, contact Agricorp.
Calculating your coverage and claims
Your coverage depends on:
- Your final average yield
- Your claim price
- Your coverage level
- Your guaranteed production
- Your guaranteed value
Final average yield (FAY)
An FAY is calculated and used as a benchmark to determine if your actual production is below average.
FAY for existing participants
Your FAY is based on your six most recent years of actual yields.
FAY for new participants
You are assigned an underwritten FAY for the first six years of production based on a variety of factors, including:
- Available production records
- Irrigation capabilities
- Location of patches
- Other management practices
- Overwintering row covers
- Regional weather patterns
- Soil type
- Row spacing of plants
- Plant 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 yields.
Reporting intended acres
At the time of underwriting you must provide Agricorp with your intended acres and planting date for all strawberries including crop not yet planted but expected to be harvested in the crop year.
Upon completion of planting, an Agricorp adjuster will visit your farm to validate your acreage and plant stand for insurance purposes. Any difference between your intended acres and the accepted final planted acres will be adjusted on your Strawberry Crop Underwriting Report. Any premium difference this may generate will either be refunded or collected.
You are expected to keep accurate yield records, which Agricorp adjusters use to collect your yields in July and October each year.
It is important to keep daily picking records for accurate yield reporting. Agricorp will accept harvested yield as part of your declared yield beyond the coverage period date; however, any damage caused by insured perils after this date is not insurable.
When you apply or renew, you select a
claim price, which determines your guaranteed value.
Fresh claim price option – your fresh production is valued at the fresh claim price and your processing production is valued at the processing claim price.
Processing claim price option – both your processing and fresh production are valued at the processing claim price.
When you apply or renew each year, you choose one coverage level from several available options. It determines your guaranteed production.
Note: You must insure all of your strawberries (both fresh and processing).
Guaranteed production is determined by multiplying your FAY by your selected coverage level. This number is used to calculate your guaranteed value.
Guaranteed production = FAY × your selected coverage level
Guaranteed value converts your guaranteed production into a dollar amount so your premium can be calculated and any production loss claims can be paid.
Guaranteed value = guaranteed production × your selected claim price