Following a difficult crop year in 2000, during which commodity prices reached record lows and excess moisture negatively affected production, Crop Insurance is a better option than ever before. The application deadline for insuring crops for the 2001 crop year is May 1. All 2001 renewal packages have been sent out, and customers who are already enrolled in Crop Insurance should complete these important documents before the deadline date.
New for 2001 is an additional coverage level of 85% for corn and soybeans, which gives growers more coverage levels to choose from. Premium rates for most crops have either remained the same or decreased, even after a very difficult year for Ontario farmers. This supports the view that plans are well protected from poor years such as 2000 through sound financial management and the pooling of risk. The unseeded acreage benefit, which supports insured growers in the event that they cannot plant some or all of their spring-seeded crops, has also been improved.
Two pilot programs have been extended for the 2001 crop year. The Forage 2001 Pilot Program is based on the relationship between rainfall and forage production, and offers an alternative to the existing yield-simulation plan. This pilot program continues to be offered in the counties of Grey-Bruce, Prescott-Russell, and Renfrew. The enrollment for 2001 has been expanded to 300 participants.
The Optional Unit Coverage Pilot Program offers growers the flexibility of insuring distinct farm units separately, with no offsetting of yields between units or locations.
For more information, producers are encouraged to call AGRICORP’s Customer Action Centre, toll-free, at 1-888-247-4999 by May 1, 2001.
The insurance coverage you have always wanted, just a phone call away!
AGRICORP, the providers of Crop Insurance in Ontario, is extending their Optional Unit Coverage (OUC) Pilot Program for the 2001 crop year. OUC offers grains and oilseed producers the opportunity to insure all the farms within their operation under separate contracts, based on differing risk, such as soil type or geographic location. The significant advantage of this program is that yields and claims are calculated on a unit basis. Therefore a yield in one unit of corn may produce a claim while a yield in another unit of corn may not.
Coverage levels in this program are based on the number of units a grower has and the size of the smallest unit within the operation. These criteria are used to determine the OUC deductible. This deductible is applied to the highest level of coverage available under conventional Crop Insurance for the insured crop (e.g., 90% for corn).
Optional Unit Coverage will be available to 100 producers in 2001, on a first come, first served basis. Demand for this innovative product has been growing, as producers are looking for flexible risk management options that can be tailored to their needs. Optional Unit Coverage is designed to respond to the changing environment Ontario farmers face today. Increasing farm size often means producers have to go further from their home operation to find available land. This land may have different characteristics and, therefore, differing yield potentials. OUC is a perfect fit for this type of situation.
To qualify for Optional Unit Coverage a producers must have a total land base of 200 acres or more, have experienced different levels of risk among units (for example, due to drainage, different soil profiles, or distance between units), and have at least one year’s production records for each unit.
If you are interested in learning more about this program, call our Customer Action Centre today at 1-888-247-4999. The last day to enroll in Crop Insurance for 2001 is May 1.