Forage Insurance

The forage insurance program proved its worth again in 2016. After 2012, the program underwent some significant enhancements, and this resulted in the highest payout to date in 2016. The insufficient rainfall program had 978 endorsements with 676 claims totalling $6.5 million. The insufficient rainfall program now allows the producer to choose multiple rainfall stations, select from 4 different coverage plans and if the rainfall amounts go below 85% then a payout is triggered. The excess rainfall program insures a 5 day 1st cut harvest window within a 10 day period that can fall between May 22 and July 10. Payment is triggered if there is no 5 day period with less than 5 mm or 7 mm of rain. 2016 saw 288 endorsements in the excess rainfall program and 56 claims, triggering a payment of $750,000. Payments are made close to the time of trigger and can provide much needed cashflow to offset the impacts of drought or excess moisture. The long term forage rainfall claim rates are comparable to that of corn and soybean plans: corn (3.9%), soybeans (5.2%), and forage (7.6%)

www.agricorp.com/en-ca/Programs/ProductionInsurance/ForageRainfall/Pages/Overview.aspx


For more information:
Toll Free: 1-877-424-1300
E-mail: ag.info.omafra@ontario.ca