Crop insurance claims skyrocketing in Ontario

More than 5,000 damage reports have been filed by farmers as of Aug. 1, the province’s crop insurance agency announced Wednesday.

That figure is projected to grow as unruly weather continues.

“Although it’s still too early to assess the overall impact to Ontario crops, we know that some crops will not survive,” Agricorp CEO Randy Jackiw said in a statement.

The agency is “realigning our workflows to make sure we are in a position to respond as needed, despite claim volumes.”

The average turnaround for claims is 12 days and farmers should see money by Christmas, a government source told the Sun.

Drought has ravaged eastern Ontario, while hail and frost have wreaked havoc on fruit, vegetables and grain and oilseed crops across the province.

Corn and soybeans are the largest high-value crops.

An estimated 15,061 participants voluntarily buy production insurance from the province.

Farmers pay 40%, while the federal and provincial governments absorb 60%, splitting it 60/40.

Corn premiums can range from about $6 to $14 an acre.

Coverage is yield-based and calculated from the average farm yield over the last 10 years.

Corn growers can choose from four coverage levels: 75, 80, 85 or 90%, and select a floating or fixed claim price at the time of application or renewal.

They must decide early in the year and meet a May 1 deadline.

Roughly 85% opt for the floating claim price set at harvest time, according to Agricorp, while the fixed claim price is determined at renewal time.

If there is suspected or noticeable crop damage, farmers must contact Agricorp to file a damage report.

An adjuster is sent for an assessment and determines if a claim will be paid.

The amount of liability isn’t determined until prices are set at the end of harvest.

As of July 27, approximately 1,203 damage reports for corn were filed, according to the agency, and final claim amounts and details will be known after harvest.

More growers -18,861 of them – choose to go with AgriStability, which covers increased production and input costs such as feed.

Coverage is based on the average yield from the last five years.

Producers likely won’t see money until mid-2013, after the fiscal year-end.

Growers can apply for an advance on their total estimated payment.

kelly.roche@sunmedia.ca

@ottawasunkroche

PAYOUTS:

-Production claims are paid when an insured peril causes the declared yield to fall below the guaranteed production

-Claim amounts are based on the production shortfall multiplied by the claim price

-Production insurance also allows for the early harvest of stressed corn to be used as silage or feed

Source: Agricorp

http://www.ottawasun.com/2012/08/01/crop-insurance-claims-skyrocketing-in-ontario

More than 5,000 damage reports have been filed by farmers as of Aug. 1, the province’s crop insurance agency announced Wednesday.

That figure is projected to grow as unruly weather continues.

“Although it’s still too early to assess the overall impact to Ontario crops, we know that some crops will not survive,” Agricorp CEO Randy Jackiw said in a statement.

The agency is “realigning our workflows to make sure we are in a position to respond as needed, despite claim volumes.”

The average turnaround for claims is 12 days and farmers should see money by Christmas, a government source told the Sun.

Drought has ravaged eastern Ontario, while hail and frost have wreaked havoc on fruit, vegetables and grain and oilseed crops across the province.

Corn and soybeans are the largest high-value crops.

An estimated 15,061 participants voluntarily buy production insurance from the province.

Farmers pay 40%, while the federal and provincial governments absorb 60%, splitting it 60/40.

Corn premiums can range from about $6 to $14 an acre.

Coverage is yield-based and calculated from the average farm yield over the last 10 years.

Corn growers can choose from four coverage levels: 75, 80, 85 or 90%, and select a floating or fixed claim price at the time of application or renewal.

They must decide early in the year and meet a May 1 deadline.

Roughly 85% opt for the floating claim price set at harvest time, according to Agricorp, while the fixed claim price is determined at renewal time.

If there is suspected or noticeable crop damage, farmers must contact Agricorp to file a damage report.

An adjuster is sent for an assessment and determines if a claim will be paid.

The amount of liability isn’t determined until prices are set at the end of harvest.

As of July 27, approximately 1,203 damage reports for corn were filed, according to the agency, and final claim amounts and details will be known after harvest.

More growers -18,861 of them – choose to go with AgriStability, which covers increased production and input costs such as feed.

Coverage is based on the average yield from the last five years.

Producers likely won’t see money until mid-2013, after the fiscal year-end.

Growers can apply for an advance on their total estimated payment.

kelly.roche@sunmedia.ca

@ottawasunkroche

PAYOUTS:

-Production claims are paid when an insured peril causes the declared yield to fall below the guaranteed production

-Claim amounts are based on the production shortfall multiplied by the claim price

-Production insurance also allows for the early harvest of stressed corn to be used as silage or feed

Source: Agricorp

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