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. A claim may be paid if an insured peril causes your yield to fall below your guaranteed value.

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: Fruit on the Publications page.

Available coverage

You can choose one of several coverage levels and claim price options for these categories:

• Labrusca
• Hybrid
  
• Vinifera
  

Each category is covered separately. If an insured peril reduces the yield of one category below the guaranteed production, you are eligible for a claim on the difference regardless of the yield of your other categories.

Grapevine coverage

Choose either standard vine mortality loss coverage, at no cost to you, or additional vine mortality loss coverage, offering you greater coverage at a lower deductible level. 

See the Example scenario for an example to help you choose which option best meets your needs.

Grapevine rider coverage

The grapevine rider is added to your coverage if your vines were insured in the previous crop year, or if you notified Agricorp by September 1 and meet eligibility requirements. Newly planted vines must have been planted by June 25 to be eligible for coverage in the next crop year.

The grapevine rider gives you additional protection if your grapevines die as a result of one or more insured perils.

For more information about this coverage, including how to qualify, see the Fruit Tree and Grapevine Riders feature sheet.

Calculating your coverage and claims

Your coverage depends on:

• Your final average yield
• Your final average Brix (if applicable)
• Your claim price
• Your coverage level
• Your guaranteed production
• Your guaranteed value

Final average yield (FAY)

An FAY is calculated and used as a benchmark to determine if your actual production is below average.

FAY for existing participants

Your FAY is based on your 5 to 10 most recent years of actual yields.

FAY for new participants

You are assigned an underwritten FAY for the first 5 to 10 years of production based on a variety of factors, including:

• Acreage
• Age of vines
• Available production records
• Brix
• Drainage
• Location of vineyard
• Other management practices
• Regional weather patterns
• Rootstocks
• Spacing of vines
  
• Varieties grown
• Vine health

For each year that you participate in the plan, your actual yield replaces an underwritten yield until your FAY is composed entirely of your own actual yields.

Final average Brix for Brix varieties

Final average Brix is calculated using your Brix history. You will start with 5 years of Brix history. Final average Brix is used to determine your claim price using the prices listed in the Brix schedule. 

​Yield Buffering

Unusually high and low yields are buffered to stabilize and lessen the impact of extreme yields on your FAY.

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

For more information, see Final Average Yield.

Quality factor for non-Brix scheduled varieties

If an insured peril reduces the quality of a crop, a quality factor may be applied to the yield to better reflect the price you receive.

This factored yield is used for claim purposes and future FAY calculations and is applied regardless of whether a claim is payable.

If a non-Brix scheduled grape crop is reduced in quality due to an insured peril and is sold to a winery for less than the price of undamaged fruit, the yield of damaged grapes will be factored down.

The quality factor is determined by dividing the negotiated price for harvested Brix by the negotiated price for 100% Brix for that variety.

Grape yields may be factored down if:

• A grape crop is damaged by hail close to harvest and the grapes must be harvested prematurely at a lower Brix value, or
• The Brix value of a variety of grapes falls below industry standard due to an insured peril.

Quality factors are not applied to grapes used for ice wine because growers receive different prices for grapes crushed for ice wine.

Claim price

When you apply or renew, you select a claim price that determines your guaranteed value.

Grape claim prices are determined by class. Each class is valued based on last year’s negotiated industry price, as determined by the Grape Growers of Ontario, minus harvesting costs and board fees.

Coverage level

When you apply or renew each year, you choose one coverage level from several available options. It determines your guaranteed production.

Guaranteed production

Guaranteed production is determined by multiplying your FAY by your selected coverage level. This number is used to calculate your guaranteed value.

Guaranteed production = FAY × your selected coverage level

Guaranteed value

Guaranteed value converts your guaranteed production into a dollar amount so your premium can be calculated and any production loss claims can be paid.

Guaranteed value = guaranteed production × your selected claim price

Guaranteed value for Brix varieties = your historical yield × claim price based on your final average Brix

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