When you enrol in Production Insurance for fresh market vegetables, acreage-loss basis, you are covered for major losses at the field level.
We compare any losses you experience against predetermined abandonment thresholds. These thresholds are based on the crop yields required to meet average production costs for a typical field of that crop. An abandonment claim may be paid if your yield falls below the threshold level due to an insured peril.
Production Insurance coverage for fresh vegetables applies only during the period from seeding or planting until harvest. Loss or damage is evaluated in the field, and is not covered due to storage conditions. If your farm management practices contribute to a production loss, you may lose some or all of your insurance coverage.
Available coverage
- Insured peril options
- Abandonment threshold coverage
- Loss in storage coverage
- Graded harvest commodity coverage
- Unseeded acreage coverage
- Replant or salvage coverage
Insured peril options
- Multi-peril
- Hail only
- Frost only
- Hail and frost only
For more information about these insured peril options, see the Commodity-Specific Terms: Fresh Market Vegetables – Acreage Loss on the Publications page.
Note: If you have insurable crops in two different commodity groups (e.g., root vegetable and leafy vegetable), you can select different peril options for each group (e.g., multi-peril coverage for the root vegetables and hail-only coverage for leafy vegetables).
Abandonment threshold coverage
A claim payment under abandonment threshold coverage may be made if your yield is lower than the abandonment threshold established for each commodity. An Agricorp representative can authorize an abandonment threshold at any time after appraising the damage in the field.
Each commodity class has a predetermined abandonment threshold that is based on the average yield needed to break even.
Abandonment threshold claim payment = insurable value × coverage level × damaged acres
Notes:
The abandonment threshold may be adjusted downward if your actual crop yield is close to the abandonment threshold due to lower planting density, low productivity caused by agronomic conditions, or if you fail to follow good farm management practices. The abandonment threshold cannot be adjusted upward.
- Any non-incurred expenses will be deducted from any claim payment.
Loss in storage coverage
A claim payment under loss in storage coverage may be made if a progressive disease, identified before harvest, causes a loss of commodity during storage that reduces the sample yield below the abandonment threshold. A claim payment for this loss is only available for onions, rutabagas, summer cabbage, winter cabbage, squash, red beets and carrots.
Graded harvest commodity coverage
This coverage is available for processing cauliflower, processing celery, cucumbers, peppers, carrots and yellow onions only. This coverage may also be available for a commodity if you request a revised grading standard for the commodity and Agricorp agrees to it.
Unseeded acreage coverage
This coverage provides compensation if an insured peril other than drought prevents you from planting or seeding all or part of your acreage. Unseeded acreage coverage compensates you for products and work done where an insured peril prevents you from planting the intended commodity.
Unseeded acreage claim payment = [cost/acre x (total unseeded acres – 3‑acre deductible)] – [$1 × total unseeded acreage]
Note: To be eligible for unseeded acreage coverage, your area must be affected by prolonged abnormal weather.
Replant or salvage coverage
This coverage provides compensation if you need to do additional work to reduce or eliminate crop losses caused by an insured peril. Any claim payment made under replant or salvage coverage will be based on work expenses incurred to complete the work and inputs used to replant or salvage the commodity.
To be eligible:
- Any work must be above and beyond what is normally required to avoid or reduce yield losses
- Agricorp must first authorize the work and you must complete all replant or salvage work required.
If an insured crop has been destroyed and replanted to another crop, the acreage concerned is no longer insured.
Replant or salvage claim payment = number of acres × cost/acre
For more information about all coverage options, see the
Commodity-Specific Terms: Fresh Market Vegetables – Acreage Loss on the Publications page.
Coverage levels
You choose one coverage level from several available options to suit your individual risk management needs.
For coverage levels and rates, see the Rates page.
Calculating your coverage
Your coverage is determined by calculating the total insurable value.
Total insurable value = insurable value by commodity class × number of acres of commodity class
The total insurable values for each commodity (e.g. carrots) within each commodity group (e.g., root vegetables) are added together to determine your total coverage.
Insurable value options
For each commodity, there is an insurable value expressed in dollars per acre. The insurable value is the basis of your premium and any abandonment claim you might receive. The total amount paid for all types of coverage for one acre cannot exceed the insurable value of that acre.
