November 29, 2018 | Updated: December 6, 2018
Agricorp continues to work with industry, field experts, government and customers affected by DON. The majority of affected customers are in western and southwestern Ontario. As harvest progresses, Agricorp is receiving more information about DON levels, markets and quantities of unaffected corn.
Agricorp's main priority has been making sure customers understand how their coverage works in their individual circumstances so that they can make the best decisions for their farm businesses.
To date, 20 per cent of insured farmers have reported their final yields, with an average farm yield of 186 bushels per acre.
Two ways Production Insurance responds
Production Insurance is a yield based program. It provides producers with a guaranteed level of production, as well as a salvage benefit to help cover the extra costs of harvesting, feeding or finding an alternative market for 2018 damaged corn. Payments are made on eligible bushels up to a customer's yield guarantee. Producers can receive production claims,
salvage benefits, or both, depending on their individual circumstances.
Customers are reporting high yields for 2018 corn and these higher yields can offset low-yielding fields affected by DON, resulting in no production claim payment. Adjusters are currently having these important conversations with affected customers to help them understand how Production Insurance coverage works.
Production claim
- Payments are made when an insured peril, like DON, causes the yield to fall below a producer's guarantee.
- If the crop is proven unmarketable, a customer may decide to have Agricorp assign a zero yield for the affected crop and the crop must be destroyed.
- The final yield will then be reduced to exclude corn that was assigned a zero yield and destroyed.
- Final harvested yields are required to determine and finalize claims. Each year, the yield reporting date is December 15. If the corn crop is not harvested, customers need to contact Agricorp regardless, to provide an update on the progress of harvest, any acres remaining in the field, and the DON levels in the crop. This information helps Agricorp determine next steps in the claims process.
- Regardless of their situation, all customers need to contact Agricorp by December 15.
Salvage benefit for 2018 corn
- The corn salvage benefit pays customers $0.79 per eligible bushel.
- Many producers are reporting high corn yields for 2018. In these cases, the number of eligible bushels for the corn salvage benefit is the lesser of the customer's:
Production Insurance yield guarantee
OR
Production Insurance yield guarantee minus total harvested bushels under 5 ppm.
- Payments are made to help cover extraordinary costs to harvest and then market, feed or find an alternative use for damaged crops with DON levels over 5 ppm.
- Customers should provide their records, such as DON test results and weigh slips so Agricorp can finalize their yield for Production Insurance.
Talk to an adjuster
Agricorp adjusters continue to meet one-on-one with affected customers to discuss their claim positions and ensure customers understand their options before deciding what to do with their crop. Adjusters can:
- Explain how coverage and claims work in a customer's individual situation
- Review DON level testing and how that impacts their claim position
- Discuss next steps for harvest, such as the option of harvesting corn with no DON or low DON levels first, depending on local market options.
Keeping accurate records
Reporting accurately is important to make sure producers get the right compensation in the event of a claim. It also ensures a producer's AFY (average farm yield) is correct for future years.
Producers should keep accurate records of DON tests, rejection slips and yield declarations to support the claims investigation.
| Type of record | Tips for accuracy | Why it’s important to be accurate |
|---|
| DON level tests | | - DON levels are highly variable from region to region, from field to field, and within fields
- DON level tests can affect a producer’s marketing opportunities and eligibility for a claim
- As adjusters work with customers to determine the marketability of a crop, accurate information on rejection slips is important to support the claims investigation
|
| Yield declaration | - Keep records of on-farm storage measurements, settlement statements, weigh slips, DON level tests, receipts and other supporting documentation for at least six years
| - Agricorp ensures the integrity of Production Insurance by verifying information used for payments
- Agricorp may review a producer’s yield declarations to verify the yield reported, which could include a farm visit by an adjuster
- Reporting accurate yields is necessary to ensure producers receive correct compensation in the event of a claim
- Accurate yields ensure a producer’s AFY is correct for future years
|
It is a customer's responsibility to report complete and accurate information to ensure they remain eligible for a claim. Inaccurate reporting could void insurance coverage. For more information about reporting accurately, customers can read the
Payments Based on Self-Declared Yields feature sheet or the
Contract of Insurance.
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