Production Insurance
Winter wheat

How it works

​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 the Contract of Insurance – General Terms and the Commodity-Specific Terms: Grains and Oilseeds on the Publications page.

Production Ins​urance coverage for grain and oilseed 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.

Available coverage

The following coverages are available in addition to production loss coverage.


You may replant winter wheat that does not survive through the winter. If you choose not to replant, the guaranteed production on the acres involved may be reduced.

Replant coverage

A claim may be paid under replant coverage if you are forced to replant some or all acres of your crop due to an insured peril. Agricorp will pay a claim based on the original crop you planted, and the amount is based on a maximum per-acre rate that Agricorp sets annually for each crop.

The minimum acreage eligible for a claim under replant coverage is 3 contiguous acres.

Claim payments made under replant coverage are paid to sharecroppers only, as they carry the expense of planting the crop.

For more information, see Coverage for Planting on the Publications page.

Quality factoring

If an insured peril reduces the quality of a winter wheat crop, a quality factor may be applied to the yield to reflect the lower prices you will receive. This adjustment increases the likelihood and size of a claim payment.

The quality factor is based on historical price differences between Grades 1 and 2 and lower grades of wheat. If your winter wheat is Grade 3 or feed grade, your yield is factored downward.

Your actual yield, not the factored yield, is used in determining your AFY.

Note: Quality factoring is not available for organic winter wheat.

Germination guarantee for pedigreed seed winter wheat

If your production of pedigreed seed winter wheat is downgraded to the commercial market due to an insured peril (i.e., the seed production is below germination standards for certified seed as determined by an accredited lab test), a price ratio is used to factor the actual yield downward. The price ratio is calculated by dividing the floating claim price for conventional winter wheat by the floating claim price for pedigreed seed winter wheat.

Your actual yield, not the factored yield, is used in determining your AFY.

Calculating your coverage and cla​​ims

Your coverage depen​ds on:

  • Average farm yield
  • Coverage level
  • Guaranteed production
  • Claim price

Average farm yield (AFY)

An AFY is calculated and used as a benchmark to determine if your actual production is below average.

If you are…Your AFY is calculated…
An existing participantUsing your reported yields for up to the past 10 years.
A new participant

By assigning an underwritten 5-year AFY for each crop that is based on a variety of factors, such as soil type, drainage and township averages.

Note: Each year that you participate, your actual yield replaces an underwritten yield until your AFY is composed entirely of your own yields.

Yield adjustment fact​​or

Your historical yields are​ adjusted to reflect changes in practices or technology over time. An adjustment factor is applied to your actual yields for each individual crop. Underwritten yields are not factored.

Note: Yield adjustment factoring is not available for organic winter wheat.

​Yield bufferin​g

One bad production year doesn't significantly impact a producer's 10-year average farm yield. Unusually high and low yields are buffered to stabilize your AFY and lessen the impact of extreme yields. Buffering is applied after the yield adjustment factor.

  • Your yield is buffered up if it is below 70% of your 10-year average (lower threshold). The yield is buffered up by two thirds of the difference between your yield and the lower threshold.
  • Your yield is buffered down if it is above 130% of your 10-year average (upper threshold). The yield is buffered down by two thirds of the difference between your yield and the upper threshold.

For examples of how yield buffering works, see the Yield Buffering feature sheet.

Coverage​ l​evel

When you apply or renew each year, you choose one coverage level. It determ​​ines your guaranteed production.

Guarantee​​d production

Your guaranteed production is determined by multiplying your AFY by your selected coverage level. If an insured peril causes your actual yield to fall below your guaranteed production, a production loss claim may be paid o​n the difference.

Claim pr​​ice

When you apply o​​​r renew each year, you select a fixed or floating claim price (where applicable). The claim price you choose is applied to your yield to calculate a dollar value for the purpose of paying a claim.

Canadian Agricultural Partnership – Agricorp – Ontario – Canada