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 your insurance coverage.
* Provided good farm management practices are followed.
Losses due to uninsured perils such as improper use of pesticides, third-party damage or spray drift are not covered by Production Insurance.
Yield losses caused by uninsured perils are removed from your guaranteed production before any claim is calculated.
Your coverage depends on:
An AFY is calculated and used as a benchmark to determine if your actual production is below average. If you are contracted to more than one processor, you will have a separate AFY for each processor.
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.
Each crop is assigned an underwritten five-year AFY that is based primarily on the processor 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 underwritten 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.
Unusually high and low yields are adjusted (buffered) to stabilize and lessen the impact of extreme yields on your AFY.
Plug-in values and underwritten yields are not buffered.
When you apply or renew each year, you choose one coverage level for each crop. It determines your guaranteed production. There are different coverage levels depending on the type of coverage you choose.
If an insured peril causes your actual yield to fall below your guaranteed production (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
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 separate harvest periods or processors. The harvested production from a high-yielding harvest period will offset the low yield from a low-yielding harvest period.
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:
If after planting, you don’t meet these requirements, Agricorp will automatically insure you with total production coverage at the highest level available.
The claim price is used to calculate any potential production claim.
As well as the standard production claim for yields that don't meet your guaranteed production, you may also be eligible for the following types of claims. Refer to the Contract of Insurance for more details.
A USAB may be paid if an insured peril other than drought prevents you and a large number of other growers in the same area from planting or seeding all or part of your acreage by the planting deadline.
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 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.
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.