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. If an insured peril causes your actual yield or extracted honey to be below your guaranteed production, a production claim may be paid on the difference.

Production Insurance covers you for losses due to adverse weather, disease, pests, wildlife, or other uncontrollable natural perils, except for perils excluded in your Contract of Insurance – General Terms and the Commodity-Specific Terms: Honey on the Publications page.

Calculating your coverage​​​ and cla​ims

Your coverage depe​​​​nds on:

• Your average farm yield
  
• Claim price
  
• Your coverage level
  
• Your guaranteed production
  

Average farm yi​​​eld (AFY)

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

AFY for existing plan particip​ants

Your AFY is calculated using up to t​​he past 10 years of your actual reported yields.

AFY for new plan particip​​ants

You are assigned an underwritten AF​Y for the first five years of production based on:

• Any available production records
  
• Experience and management practices
  
• Owned equipment
  
• Regional averages
  

Each year that you parti​​cipate in the plan, your actual yield replaces an underwritten yield until your AFY is composed entirely of your own actual yields.

Yield b​​uff​​ering

Unusually high and low yield​​s are adjusted to stabilize and lessen the impact of extreme yields o​n your ​​AFY.

• If your actual yield is 130 per cent above the upper threshold, the yield is buffered two-thirds of the way down to the upper threshold.
  
• If your actual yield is below 70 per cent of the lower threshold, the yield is buffered two-thirds of the way up to the lower threshold.
  

Yield ​​​​​penalty

Bees moved out of province and/or used for pollination services must be back in Ontario or on their home farm by July 1 or a penalty will be applied. For each day after July 1, the AFY is reduced by one percent per hive, per day for claim purposes.

Claim ​​price

Each year, Agricorp determines a claim price based on the previous year’s average price of bul​​k honey sold to packers and to other beekeepers. The claim price is used to calculate any claim.

Coverage le​​vel

When you apply or renew, yo​​​u choose a coverage level. It will determine your guaranteed production.

Guaranteed produ​​ction

Your guaranteed production is determined by multiplying your AFY by your selected coverage level. If an insure​​d peril causes your actual yield to be below your guaranteed production, a production claim may be paid on the difference.