Ontario winter wheat yields covered by Production Insurance hit a record high in 2016, with a provincial average of 96 bushels per acre. That’s 20 per cent higher than the 10-year average. Production Insurance customers also harvested nearly twice as many acres this year, with more than 790,000 acres compared to about 460,000 in 2015. The following map shows yields for soft red winter wheat.
2016 soft red winter wheat yields
How do strong yields affect program coverage?
High yields have a positive impact on Production Insurance coverage. Coverage is based on a producer's individual yield history, using 10 years of data to calculate their
average farm yield (AFY). An above-average yield raises a producer's AFY, which means they have higher coverage when they need it. High yields also result in lower claims, which help keep base premiums stable across a plan and can also lead to individual premium discounts. Lower payments to producers in 2016 have led to lower premium rates for 2017.
Every year is different
This year's high yields mean that Production Insurance payments for winter wheat in 2016 will be less than $2 million. But claims for winter wheat have varied over the past five years, reaching more than $17 million in 2011. To prepare for future years when they may receive a payment, producers should consider direct deposit. With direct deposit, payments are:
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Fast – No waiting for a cheque in the mail
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Safe – No risk of cheques being lost, stolen, damaged or stuck in the mail
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Convenient – No going to the bank to deposit a cheque
Producers can sign up or get more information at
agricorp.com/directdeposit.
