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Ontario Grain Farmer Magazine is the flagship publication of Grain Farmers of Ontario and a source of information for our province’s grain farmers. 

Assurance in the face of wet weather


during the summer of 2013, many parts of the province experienced a barrage of bad weather. In June, some areas saw more than twice the average monthly rainfall, which heightened the risk of crop damage and lower yields. By July, Agricorp—the Ontario government agency that delivers risk management programs to producers—had already received over 3,800 customer reports of crop damage from excess rain, moisture and flooding. Here is how their different programs work together to help you.


Production Insurance — protecting yields
Production Insurance protects producers from threats like adverse weather, disease, wildlife and insect infestations, covering production loss and yield reductions caused by insured perils. Over five million acres of Ontario farmland are insured under Agricorp’s Production Insurance program each year.

What it does: Helps producers maintain cash flow in poor crop years with claim payments that compensate them for crop damage or low yields. In most plans, producers pay 40 percent of the total premium cost and none of the administration cost.

Types of claims: Reseeding, unseeded acreage benefit, and production claims.

How it works: Producers enrolled in the program pay an annual premium and are guaranteed a level of production based on yield history and the level of coverage they choose.

How claims are paid: For most plans, claims are paid if an insured peril causes yields to fall below guaranteed production.

AgriStability — protecting farm income
AgriStability protects producers from severe declines in farming income caused by any combination of production loss, increased costs or market conditions.

What it does: Helps to supplement income for producers when their net farming income falls below 70 percent of their average income. The program considers the entire farm operation and not just one commodity.

Types of claims: Interim payments in cases of financial distress, year-end payments.

How it works: Producers enrolled in the program pay an annual fee and receive a payment when their margin falls below 70 percent of their historical reference margin. Payments are cost-shared by the federal and provincial governments on a 60:40 basis.

How claims are paid: At the end of the producer’s tax year, claims are paid when tax and AgriStability forms are submitted to Agricorp. Producers can also apply to receive an advance on their estimated payments before the end of their fiscal year if they are in financial distress.

Risk Management Program: Grains and Oilseeds — protecting value
The Risk Management Program (RMP) helps producers manage risks beyond their control, like fluctuating costs and market prices. The program is available for Ontario’s grains and oilseeds, livestock and edible horticulture sectors.

What it does: Helps producers offset losses caused by low commodity prices and rising production costs.

Types of claims: Unseeded acreage benefit and semi-annual payments.

How it works: Producers enrolled in the program pay an annual premium, and are compensated when the cost to produce their crop becomes higher than its market value.

How claims are paid: Payments are automatically made if a crop’s average market prices fall below the annual support level (based on the industry average cost of producing the crop). This can happen either once or twice a year during the pre and/or post-harvest periods.

For more information on how Agricorp’s programs can protect your business, visit or call 1-888-247-4999 to speak to a customer care representative. •


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