Manitoba Agricultural Services Corporation

Eligibility

 

Eligible Producers

To qualify for Crop Coverage Plus, you must:

• have an active AgriInsurance contract (as of March 31st in the growing year)
• be eligible for and have selected the {program_details::low_coverage}% coverage level on all eligible crops
• select the CCP option
• grow more than one eligible crop

As a landlord, your tenant determines the coverage selection for your contract.

Eligible Crops

Eligible crops include:

Barley, black beans, cranberry beans, fababeans, kidney beans, pinto beans, small red beans, white pea beans, other dry edible beans, soybeans, buckwheat, Argentine canola, Polish canola, grain corn, open pollinated corn, flax, hemp grain, mixed grain, Chilean lentils, Persian type lentils, proso millet, mustard, oats, field peas, fall rye, annual ryegrass seed, canaryseed, tall fescue seed, perennial ryegrass seed, rapeseed, non-oil sunflowers, oil sunflowers, triticale, durum wheat, extra strong wheat, feed wheat, red spring wheat, hard white spring wheat, prairie spring wheat, and winter wheat.

Eligible pedigreed seed crops include:

Alfalfa, barley, canola, flax, oats, field peas, Timothy, rapeseed, red spring wheat, hard white wheat, prairie spring wheat, durum wheat, extra strong wheat, and winter wheat.

Eligible Causes of Loss

Crop Coverage Plus covers the same insurable perils as if the crop was insured separately, including:

• Drought, excessive heat, excessive moisture, excessive rainfall, fire, flood, frost, hail, wind (including tornadoes), and winterkill
• Disease and pests (if you've previously implemented appropriate control measures)
• Big game - bear, deer, elk, moose, or wood bison
• Waterfowl - ducks, geese, and sandhill cranes

Eligible Benefits

All additional program benefits are the same if crops are insured individually or under the CCP option, and are dependent on the types of crops insured.

Eligible Benefits & Options	Description
Excess Moisture Insurance (EMI)	compensates insured producers who are unable to seed their crop by June 20th due to overly wet conditions
EMI Higher Dollar Option	enables producers to buy up their EMI coverage from $50 to $65 per acre
EMI Zero Deductible Option	enables producers to buy down their EMI deductible to zero
Forage Restoration Benefit	compensates partial or full eligible forage stands damaged or lost due to overly wet conditions
Forage Establishment Insurance	provides financial assistance to producers when an eligible forage crop or perennial ryegrass fails to establish

 

Costs & Coverage

To qualify for the Crop Coverage Plus (CCP) option, your must select the {program_details::low_coverage}% coverage level for all eligible crops you grow. You might be eligible for higher coverage (up to {program_details::high_coverage}%) and qualify for a premium discount.

The crop mix and the risk area of your crops determine their premiums, coverages and, if applicable, premium discounts. For this reason, coverage cannot be calculated until after MASC receives your Seeded Acreage Report (SAR).

A premium discount applies if your coverage could have exceeded but was limited to {program_details::high_coverage}% coverage. In all instances, your premium will never exceed the premiums that you would pay for the {program_details::low_coverage}% coverage level.

If a producer's calculated coverage level does not exceed {program_details::low_coverage}%, CCP is not in effect and all crops will be insured individually at the {program_details::low_coverage}% coverage level. Insurance under CCP takes into consideration any losses for quality in the same manner as for individual crop insurance.

Deadlines

March 31st - Last day to apply for a AgriInsurance contract and select the Crop Coverage Plus option.

Claims

Crop Coverage Plus insures a group of crops against quantity and quality losses. For this reason, your indemnity cannot be calculated until the yields from all crops in the group are determined.

 

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Reseed Claims

Reseed claims under the Crop Coverage Plus option are determined on a crop-by-crop basis. You should receive your indemnity shortly after MASC receives and adjusts your claim.

To qualify for a reseed claim:

• the crop must have been damaged or destroyed by an eligible cause of loss before June 20th
• you must have MASC's written consent to destroy the original crop
• the crop may be reseeded to the same crop or to a different crop. If you reseed to another crop, the crop must be selected for insurance and seeded by the extended coverage seeding deadline

The indemnity on a reseed claim is {program_details::reseed_rate}% of the per acre dollar coverage of the original crop.

Coverage levels are generally higher under the CCP option; therefore, reseed benefit payments are higher under CCP coverage than for separately insured crops.

Reseed benefits apply if the appraised yield is less than your probable yield (measured in tonnes per acre). You may only apply for one reseed claim per field per year (except if the first crop is fall rye or winter wheat).

Stage 1 Claims

A Stage 1 claim covers all insured crops except alfalfa seed, pedigreed Timothy seed, or perennial ryegrass seed for losses due to an eligible cause.

Stage 1 claims are assumed if the damage occurs between the time a crop was seeded and June 20, except for fall rye or winter wheat. For fall rye or winter wheat, a claim may only be made after January 1st of the year in which the crop will be harvested.

Note: If loss or damage occurred before June 20th and the producer could not destroy and reseed the crop because of excess moisture, the claim will be treated as a Stage 2 loss.

Crops damaged during the Stage 1 period are eligible for {program_details::stage1_rate}% of the producer's coverage. If your combined production after harvest falls below combined coverage, you will receive an indemnity.

Under the Crop Coverage Plus option, MASC insures all eligible crops and acres you've grown during the year. If only a portion of the acreage is damaged, the possible indemnity is held as a credit until after you harvest your crops. The harvested production for all crops combined with the Stage 1 loss is used to calculate the post-harvest claim.

Note: You only receive an indemnity if the combined harvested production falls below the combined coverage. This cannot be determined until after all crops insured by the CCP option are harvested (or destroyed after MASC has appraised the crop). Consequently, even if an entire crop within the group is destroyed and appraised as Stage 1, your eligibility for indemnity cannot be determined until after you finish harvesting all crops.

Your management decisions will determine the type of indemnity that you will receive. You may decide to a) reseed to the same crop, b) reseed to a different crop, or c) leave the crop until it is ready to harvest.

Reseed / Stage 1 Claim Examples

In the following three examples:

A producer seeds 300 acres of canola, 100 acres of flax, 800 acres of red spring wheat (RSW), and 400 acres of barley. On June 8, 140 acres of his canola are damaged by frost. Because his canola was damaged before June 15, he may reseed his crop and receive a reseed benefit equal to 25% of his coverage. He's selected the CCP option, so his calculated coverage is increased to 85% at no additional cost over the 80% coverage level.

	Canola	Flax	RSW	Barley
Probable Yield	32 bu/acre	30 bu/acre	40 bu/acre	65 bu/acre
CCP Calculated Coverage	85%	85%	85%	85%
Actual Coverage (CCP Coverage x Probable Yield)	27.2 bu	25.5 bu	34 bu	55.25 bu
Appraised Production	21 bu/acre	30 bu/acre	53 bu/acre	72 bu/acre
Dollar Value	${canola::per_bushel}/bu	${flax::per_bushel}/bu	${wheat::per_bushel}/bu	${barley::per_bushel}/bu

 

 

 

In both of the above examples, the producer receives the same reseed benefit. Reseed benefits are based on the destroyed crop, not the new crop. At this time, he is not entitled to a Stage 1 indemnity, as the CCP option is based on a producer's total production. If, after harvest, his combined production falls below his coverage, he will be eligible for an indemnity. However, if his actual harvested production is equal to or greater than his production guarantee, he is ineligible for an indemnity.

Note: The 'Appraisal to Count' - the appraisal above one-half of coverage - is counted to encourage producers to leave the crop to harvest. MASC yield experience shows that, in most cases, it is better to leave a seeded crop with a yield potential close to coverage than to reseed late in the season.

Appraised Production to count:	= 21 bu appraised production per acre - (0.5 x 27.2 producer's bu coverage per acre) = 7.4 bu/acre
Production Indemnity:	= 27.2 bu/acre x 50% stage indemnity - 7.4 bu production to count = 6.2 bu shortfall (held as an interim credit)

In this case, the producer must pay the full premium on the original canola crop and the new wheat crop, and must also seed the wheat before the extended coverage seeding deadline.

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Stage 2 Claims

Producers whose crops are damaged due to an eligible cause after June 20th and subsequently destroyed instead of being left to harvest are eligible for a Stage 2 claim. You must have MASC's written consent to destroy the crop, and all appraised production above production to count is considered to be harvested production.

Indemnity is {program_details::stage2_rate}% of coverage for all CCP eligible crops. Stage 2 payments are not made until all acres of all crops are appraised and harvested or destroyed.

Stage 2 Example

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Harvested Production (H) Claims

Indemnity is paid at 100% of coverage.

Harvested production claims are adjusted to account for any appraised production for Stage 1 and Stage 2 period crop damage/destruction, and for losses due to uninsurable causes.

Indemnities paid to producers take into consideration the amount paid or payable on reseed claims.

Grade Factor: MASC adjusts a producer's harvested production to account for losses to the crop's quality due to an insurable cause. Each crop year, MASC establishes a grade factor for all crops and for various grades within a crop. MASC uses these grade factors to adjust for quality losses.

The grade factor is calculated by comparing the market value of the poor quality grade to the market value at the guaranteed grade. For example, for #2 CWRSW (Canadian Western Red Spring Wheat), the market value of the guaranteed grade is ${wheat::per_bushel}/bu. For CW (Canadian Western) feed wheat, the market value of the actual production (off grade) is ${wheat2::per_bushel}/bu. The grade factor is ${wheat2::per_bushel} / ${wheat::per_bushel} = ..

Note: The off-grade values and grade factors used in these calculations are for demonstration purposes only. Actual values are not available until later in the season.

Harvested Production (H) Claim Example

Claim and Appeal Procedures

 

Claiming for Losses

If your actual harvested production falls below your production value guarantee, you must file a claim on or before November 30th by completing and submitting a Harvested Production Report (HPR). Some claims may be calculated and paid using the information provided on the HPR.

Claim Prodecure

1. Contact your local MASC Insurance office.
2. An MASC adjustor will visit the site and evaluate the damage or loss, determine the cause of loss, and measure all harvested production.
3. After evaluating the crop, the adjustor completes an assessment form. Sign the form if you agree with the assessment, which will then be forwarded to Head Office for payment processing. Generally, MASC will issue a cheque within three weeks of finalizing the claim. If you do not agree with the assessment, you should not sign the form.
4. If you are not satisfied with MASC's initial appraisal, MASC will complete a second evaluation. If, after the second assessment, you still do not agree with MASC's appraisal, you have the right to appeal the assessment.

Making an Appeal

If you do not accept MASC's second assessment or you reconsider the decision after signing a claim, you have 7 days to appeal the assessment to the Appeal Tribunal.

For more information, please see Appeals.