Production Insurance - Vegetables

Production insurance helps producers manage their risk of crop losses caused by hail, spring frost, excessive rain, flooding, drought, etc.

Vegetable crops eligible for purchase of production insurance coverage include:

Beets Broccoli Brussels sprouts Cabbage - early Cabbage - late Cauliflower Carrots Fresh market corn Lettuce (leaf and head)

Onions Parsnips Process beans Process peas Rutabaga Potatoes Nugget potatoes Seed potatoes

How to apply for vegetable coverage

To apply, please make an appointment with a production insurance representative.

Please review the forms to prepare the application. These forms don't need to be filled out prior to the appointment and can be completed with the assistance of a representative:

• Application for continuous production insurance (PDF, 424KB) (Schedule A) 
• Tax reporting form (PDF, 469KB) (Schedule A-1)
• Land inventory (PDF, 412KB) (Schedule L-1) If the land is leased or rented, a legal lease or rental agreement must be submitted with the application.
• Farm map(s) (PDF, 421KB) (Schedule L-2)
• Vegetable field inventory and seeded crop report (PDF, 432KB) (Schedule F-7)
• File a notice of loss (PDF, 390KB)

* Application and payment deadlines are March 31 of each year.

Renewing production insurance

It's recommended you contact a production insurance representative when it’s time to renew. Declaration of production from the previous crop year is required as part of the renewal process. Please use these forms:

• Vegetables:  declaration of production (PDF, 498KB) (Schedule D-14v) 
• Stored vegetables:  declaration of production (PDF, 470KB) (Schedule D-22) 

Coverage, options and premiums

There are two methods to insure eligible vegetable crops:

1. Quantity-based
2. Acreage-loss

Consider both options carefully before deciding.  After the offer is written, we'll send an Offer Statement of Premiums and Coverage (SPC), and an options report which details available coverage (choose quantity based coverage or acreage loss coverage), options and premiums. Please let us know if you require any assistance in choosing coverage, options and premiums.

Quantity-based coverage

Vegetable crops eligible for quantity-based coverage include:

• Cabbage (early and late)
• Carrots
• Onions
• Potatoes (PE, E1, E2, E3 and nugget)
• Process (beans, broccoli, brussel sprouts, cauliflower, corn and peas) 

The 50 percent deductible (minimum) is the lowest amount of coverage available and means there must be a loss of over half the crop before a claim is paid. This may not be enough to adequately protect the operation and there is no opportunity to increase the insurable value of crops.

The 20 or 30 percent deductibles protect a larger portion of crops and allow an increase in the value of coverage (up to the maximum calculated value).

Advantages Greater protection from major losses Many options to tailor coverage Individualized coverage not industry average Coverage against reduced yields

Limitations Large deductible on "minimum” coverage Production records must be maintained (third party verification) Claims calculated once harvest is completed Not offered on lettuce or fresh market broccoli, fresh market corn, beets, rutabaga, parsnips, cauliflower and brussels sprouts

Acreage-loss coverage

Vegetables crops eligible for acreage loss based coverage include:

• Broccoli
• Brussels sprouts
• Cabbage
• Carrots
• Cauliflower
• Lettuce (head and leaf)
• Onions
• Potatoes (nugget, E1, E2 and E3)

The 20 percent deductible (minimum) is the lowest amount of coverage available and means 20 percent of the crop must be lost before there is a claim paid. This may not be enough to adequately protect the operation and there is no opportunity to increase the insurable value of the crop. The 10 percent deductible protects a larger portion of vegetable acreage.

Once you have chosen the deductible (10 or 20 percent), you may elect to increase the insurable value of the vegetable acreage from 80 to 100 percent of the (calculated) value. The 100 percent (calculated) value increases the amount for which the vegetable acreage is insured.

Advantages Designed for fresh market produce Quicker payment for early season losses Not dependent on production records Offered with two deductibles (10 or 20 percent) and two prices (80 or 100 percent of calculated value)

Limitations Coverage limited to industry average production costs Does not cover reduced yields Crop cannot be harvested and must be destroyed before claims are paid Not offered on process beans and peas

Vegetable policy wording

Refer to the vegetable policy wording to learn more about the terms of the insurance contract:

• Quantity-based vegetable policy (PDF, 798KB)
• Acreage-based vegetable policy (PDF, 781KB)

How to pay for vegetable coverage

For the most up-to-date and accurate information read the policy wording for the continuous specified perils production insurance contract for each crop.

Once you have chosen coverage, options and premiums please sign and submit the 'Offer Statement of Premiums' and 'Coverage and Options Report(s)' and payment.

Payment can be made by using debit, Visa, MasterCard, cash, or cheque payable to the Minister of Finance. Credit card payments are accepted over the phone.