How it works

​When you enrol in Production Insurance, you are guaranteed a level of production based on your yield history and the type of coverage you choose. A claim may be paid if an insured peril causes your yield to fall below your guaranteed production.​​

​​Production Insurance coverage for processing vegetable crops 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 yo​ur insurance coverage.

​Insured perils

• Drought
• Excessive heat
• Excessive moisture
• Excessive rainfall
• Flood
• Frost
• Hail
• Insect infestation*​
• Plant disease*
• Wildlife
• Wind

* Provided good farm management practices are followed.

​ Losses due to ​uninsured ​​perils

Losses due to uninsured perils such as improper use of pesticides, third-p​​arty damage or spray drift are not covered by Production Insurance.

Yield losses caused by un​​​insured perils are​ removed from your guaranteed production before any claim is calculated.

​​​Calculating your ​​​coverage and claims

Your coverage depends on:

• Average farm yield (AFY)
  
• Coverage level
  
• Guaranteed production
  
• ​Coverage type
  

Average fa​rm yield (AFY)

​An AFY is calculated and used as a benchmark to determine if your actual production is be​​low average. If you are contracted to more than one processor, you will have a separate AFY for each processor.

​AFY for existing plan participa​​nts

Your AFY is calculated using five to ten consecutive years of your actual reported yields. For any year you did not grow, the processor average yield is used as a plug-in value.

​​AFY for new plan participants

Each crop is assigned an underwritten five-year AFY that is based primarily on the proc​​essor average yield (plug-in) and a variety of other factors such as township averages, soil type, etc.

Each year that you participate in the plan, your actual yield replaces an underwri​​tten yield until your AFY is composed entirely of your own actual yields.

If you have signed a contract with a new processor, the new processor’s five-year average yield per acre is used to determine your new beginning AFY.

​Yield buffe​​​ring

Unusually high and low yields are adjusted (buffered) to stabilize and lessen the impact of extreme yields on ​your AFY.

• If your actual yi​eld is above the upper threshold (130 per cent of your AFY), 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 AFY), the yield is buffered two-thirds of the way up to the lower threshold.
  

Plug-in values and underwritten yields ar​​e not buffered.

​​​​Coverag​​​e level

When you apply or renew each year, you choose one coverage level for each crop. It det​​ermines your guaranteed production. There are different coverage levels depending on the type of coverage you choose.

Guaranteed prod​​uction

If an insured peril causes your actual yield to fall below your guaranteed producti​on (GP), a production claim may be paid on the difference.

GP per acre = AFY x your chosen coverage level

Total GP = GP per acre x total number of acres you are growing

​Coverage​ t​​ype

Total productio​​n coverage

This coverage option provides a single guaranteed production for each crop on the total number of acres you plant to that crop, regardless of the number of sep​arate harvest periods or processors. The harvested production from a high-yielding harvest period will offset the low yield from a l​ow-yielding harvest period.

​Separate harvest coverage (SHC)

This coverage option provides a guaranteed production (GP) for each separate harvest period and processor. The harvested production from a high-yielding harvest period will not offset the low yield from a low-yielding harvest period. You may have a maximum of three harvest periods (and three GPs) for each processor.

For example, if you have three harvest periods, you will have three guaranteed productions. If you have a contract with two processors, you will have two guaranteed productions.

To qualify for SHC:

• You must have at least 30 acres for each separate harvest period with each processor
• When acreage is grown for only one processor, there must be at least three days between harvest periods
• You and the processor must intend to have separate harvest periods at the time of application
• Agricorp must agree to the separate units.

If after planting, you don’t meet these requirements, Agricorp will automatically insure you with total production coverage at the highest level available.

​Claim p​​​​​rice​

The claim price is​​ used to calculate​ any potential production claim.

​​​Claim ty​pes

As well as the standard production claim for yields that don't meet your guaranteed productio​n, ​​you may also be eligible for the following types of claims. Refer to the Contract of Insurance for more details.

​​​Unseeded acreage​​ benefit (USAB)

A USAB may be paid if an insur​ed peril other than drought prevents you and a large number of other growers in the same area from planting or seedin​g all or part of your acreage by the planting deadline.

​​Reseeding or replanting benefit

A benefit may be paid if you are forced to reseed or replant some or all acres of your crop due to an insured peril. Benefits may be paid whether you reseed or replant the same crop or a different crop. Reseeding or replanting must be completed by the planting deadline.

The benefit is paid based on the crop that was originally planted and insured. The amount of the benefit is based on a maximum per-acre benefit rate that Agricorp sets annually for each crop.

​By-passed acreage benefit

By-passed acreage refers to acreage that was suitable for harvesting and processing, but was not harvested because of excessive heat and/or rainfall, or other insured perils agreed to by Agricorp. Refer to the Production Insurance Document for more details.

​Seed cost benefit

This benefit is available when an insured peril  results in a reseeding benefit, a by-passed acreage benefit, or a zero production claim. This benefit covers the cost of the seed used, up to a maximum value set out in the Ontario Processing Vegetable Growers’ contract.

The processor pays the premium for the seed cost benefit and any seed cost benefits are paid directly to the processor.

If there is a reseeding claim, the seed cost portion of the claim is paid to the processor. If there is a bypass claim, and the final yield is equal to or greater than your guaranteed production, no seed cost benefit is payable. If there is a production claim, the seed cost benefit is paid only when there is zero production and no harvest.

Refer to the Production Insurance Document for more details.