Production Insurance
Banana peppers, yield basis
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How it works

When you enrol Production Insurance for fresh market vegetables – average farm yield basis, you are guaranteed a level of production based on your historical yields for each commodity. 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: Fresh Market Vegetables – Average Farm Yield on the Publications page.

Production Insurance coverage for fresh vegetables 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

The following coverage options are in addition to production loss coverage.

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. Agricorp will pay a claim based on the original crop you planted. The amount of the claim is based on a maximum per-acre benefit rate that Agricorp sets annually for each crop.

Replant payment = damaged acres × reseed value/acre*

* If your actual seed costs 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.

Banana or bell pepper salvage benefit

This benefit helps cover the costs associated with removing peppers damaged by hail or by sunscald or blossom end-rot caused by drought or heat, so the plants may recover and set new fruit.

The benefit compensates you for wages and related labour costs plus 30%, up to a maximum of $485 per acre. The combined value of any salvage and production loss claims cannot exceed the total liability for the contract.

This benefit is available only if Agricorp determines that there is enough growing time left in the season to regenerate new fruit. For banana peppers, this is on or before August 1, and for bell peppers, this is on or before August 15.

Salvage benefit = total labour cost + 30%

Note: Notify Agricorp immediately after damage occurs. An Agricorp adjuster will inspect the crop to assess the severity of the damage, confirm the cause of damage, and assess a potential yield.

Calculating y​our coverage and​​ claims

Your coverage depe​​nds on:

  • Average farm yield
  • Coverage level
  • Guaranteed production
  • Claim price

Average farm y​​​ield (AFY)

An AFY is calculated an​d used as a benchmark to determine if your actual production is below average.

AFY for existing pla​​n participants

Your AFY is calculat​ed using up to the past 10 years of your actual reported yields.

AFY for new plan ​participants

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

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.

​Yield buffering

Unusually high and low yields are adjusted (buffered) to stabilize and lessen the impact of extreme yields on your AFY.

  • If your actual yield is above the upper threshold (130% 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% of your AFY), the yield is buffered two-thirds of the way up to the lower threshold.

​Coverage level

When you apply or renew each year, you choose one coverage level for each crop. It determines your guaranteed production.

​Guaranteed production

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

The guaranteed production is the lesser of:

  • Your AFY (as determined by Agricorp) multiplied by your selected coverage level, or
  • The total tonnage specified in the contract between you and your processor

​Claim price

The claim price is applied to your yield (in pounds hundred weight, bags or tons) to calculate a dollar value for the purpose of paying a claim.
Canadian Agricultural Partnership – Agricorp – Ontario – Canada
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