Production Insurance
Machine-harvested cucumbers (processing)
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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 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: Processing Vegetables – Average Farm Yield on the Publications page.

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.

Available coverage

Production loss coverage

This coverage provides a single guaranteed production for each crop on the total number of acres you plant.

Unseeded acreage coverage

A claim may be paid under unseeded acreage coverage if an insured peril other than drought prevents you and a number of other growers in the same area from planting or seeding all or part of your acreage by the planting deadline.

Unseeded acreage payment = [claim price × 1/3 AFY × (total unseeded acreage – 3 acre deductible)] – [$1 × total unseeded acreage]

Your unseeded acreage claim is based on the current year contract acres.

Replant coverage

A claim may be paid under replant coverage if you need to replant some or all acres of your crop due to damage caused by an insured peril. Payments may be made whether you replant the same crop or a different crop. Replanting must be completed by the planting deadline.

Payments for replant coverage are based on the crop that was originally planted and insured. The amount is based on a maximum per-acre rate that Agricorp sets annually for each crop.

Replant payment = damaged acres × replant value/acre*

*If your actual receipts are less than the Agricorp maximum, the lower value is paid.

Minimum eligible acres

To qualify for a claim payment under replant coverage, the minimum acreage requirement is one unbroken acre.

​​​Calculating your ​​​coverage and claims

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Your coverage depends on:

  • Average farm yield (AFY)
  • Coverage level
  • Guaranteed production
  • ​Claim price (for some processing crops only)

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 participants

Your AFY is calculated using five to ten consecutive years of your actual reported yields. For any year you did not grow, an underwritten value is used. 

AFY for new plan participants

Each crop is assigned an underwritten five-year AFY that is based on a variety of factors, such as township averages and soil type.

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.

Agricorp assigns a five-year beginning yield by grade based on the industry hand-picked or machine harvested distribution.

​The AFY for cucumbers is converted to​ a dollar value using the average yield, historic grade distribution and price by grade.

Currency exchange period

Most industry contracts are now negotiated in US dollars. Coverage information is provided after the currency exchange period ends, when prices, a​verage farm yield and guaranteed production can be calculated in Canadian dollars. Production shortfalls are also calculated in Canadian dollars.

The final currency exchange rate Agricorp uses is based on the average daily Bank of Canada exchange rate from July to August. The currency exchange period applies to both the machine-harvested and hand-picked cucumber plans. Production Insurance covers yield reductions and production losses caused by insured perils. It does not cover risks associated with exchange rates.​​

​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 production

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

Claim price

There isn't a claim price for cucumbers. The price is included in the value of the crop because the crop is insured in dollars.

For cucumbers, dollar values are based on the current year's negotiated price by grade from the OPVG. Contract prices negotiated in U.S. dollars will be converted into Canadian dollars using a final currency exchange rate, available once the currency exchange period ends.








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Canadian Agricultural Partnership – Agricorp – Ontario – Canada
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