New Agriculture Insurance Programme by The Canada Newfoundland
The Canada Newfoundland and Labrador AgriInsurance Program is funded by Growing Forward 2: A Federal - Provincial - Territorial Framework Agreement on Agriculture, Agri-Food, and Agri-Based Products Policy.
The Newfoundland and Labrador Crop Insurance Agency offers crop-specific insurance coverage. AgriInsurance is designed as a management tool to provide producers with some measure of income protection against uncontrollable natural perils.
Coverage offered to producers is available under two scenarios: 1. Based on the producer's pre-harvest cost of production; 2. based on 70% of the five-year average market price for the crop.
- Under both options, the producer's investment is protected against the effects of drought, excessive moisture, wind, frost, hail, snow, wildlife, disease and insects.
- Losses due to poor farming practices, negligence or lack of insect, disease or weed control, are not cover under AgriInsurance.
- The Agency further requires that insured producers follow control practices as recommended by the Department of Natural Resources for the control of late blight and clubroot.
- The administration cost of the program is jointly funded under the Growing Forward 2 agreement between Agriculture and Agri-Food Canada and the provincial Department of Natural Resources on a 60:40 percent basis respectively.
- The total premium costs are shared between the federal government, the provincial government and the producer on a 36:24:40 percent basis respectively.
Crops Insured:
There are currently separate insurance plans for: potato, turnip, cabbage, beet, carrot on mineral soils, carrot on peat-based soils and parsnip.
There is a basic requirement of one acre of crop and insurance must be purchased on the entire crop planted (not just the high risk areas).
How Crop Insurance Works:
- A producer must apply for AgriInsurance prior to April 30 of that year.
- Producers select the coverage level and price option for which they intend to insure their crops at time of application.
- Those applicants who do not indicate their intentions will be offered the Agency's default coverage of 60 percent at the Cost of Production price option.
- Once an application has been approved by the Crop Insurance Agency, an Agricultural Inspector meets with the producer and measures the planted acreage using a GPS and then creates a map of the planted acreage.
Claim Benefits:
The AgriInsurance program is equipped with two claim benefits. A Re-seeding Benefit is used in the event of a germination loss on insured crops.
The grower may receive a claim adjustment enabling them to replant the crop in the same season if the crop was lost as a result of one of the insurable perils and the crop can be replanted up to the planting deadline. The regular insurance is available at the time of harvest.
If a producer finds that the crop has been damaged by an insurable peril and yields are below the Production Guarantee, as determined by the Crop Insurance Agency, the producer must file a "Notice of Crop Damage and Request for Inspection" with the Agency.
Once it has been established that the claim is justified, the producer will be paid an adjustment to cover the loss as agreed to in the Contract of Insurance.
In both cases, the "Notice of Crop Damage and Request for Inspection" must be filed by the producer within five (5) days of noticing the loss.
Application Procedure:
AgriInsurance applications are mailed out to producers during the first week of April.
If you do not receive an application by mail, you should contact your area Agricultural Inspector or your area Agricultural Representative.
The application form may also be downloaded from this site Application for AgriInsurance. The application deadline is April 30th of each year.
Completed forms should be sent to: Newfoundland and Labrador Crop Insurance Agency Forestry and Agrifoods Agency Agrifoods Branch P.O. Box 2006 Corner Brook, NL A2H 6J8 Tel:1-709-637-2077 Fax: 709-637-2591.
For More Details, Please visit: http://www.faa.gov.nl.ca/agrifoods/plants/prodinsur.html
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