July 2, 2024
As Ontario combines get ready to harvest winter wheat, Agricorp is reminding farmers with Production Insurance how their coverage works.
Production Insurance helps protect winter wheat farmers from yield reductions and quality losses caused by factors beyond their control, including adverse weather and plant disease.
For yield reductions, farmers are guaranteed a level of production based on their yield history and the level of coverage they choose. A claim may be paid if an insured peril causes yields to fall below their guaranteed production.
For quality losses, if plant diseases reduce the quality of a winter wheat crop, a quality factor may be applied to the yield to reflect the lower prices farmers 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 a farm’s winter wheat is Grade 3 or feed grade, their yield is factored downward.
For more information and to see an example, see the feature sheet 
How Quality Factoring Works.
