Production Insurance

What is the program objective?

The objective of the Production Insurance program is to ensure that producers in the agriculture and agri-food industry across Canada have access to affordable insurance program, by funding a portion of producers' premiums and provincial administrative expenses and by offering reinsurance.

What are the expected results of the program?

The program will stabilize a producer's income by minimizing the economic effects of production losses caused by natural hazards like drought, flood, hail, frost, excessive moisture and diseases.

Is the program a new, existing or transition program?

The Production Insurance program was introduced at the beginning of fiscal year 2003-04; its predecessor, the Crop Insurance program, had existed since the late 1950s.

Program description

Production Insurance is a federal-provincial-produce cost-shared program that stabilizes a producer's income by minimizing the economic effects of production losses caused by natural hazards. Production Insurance is a provincially delivered program to which the federal government contributes a portion of total premiums and administrative costs. The federal government also provides a reinsurance arrangement (deficit financing) to provinces. Currently, five provinces ( Alberta , Saskatchewan , Manitoba , New Brunswick and Nova Scotia ) participate in this arrangement.

When will the program be available, end or transition?

The new Production Insurance program has been in place in all provinces (not territories) since April 1, 2003 . Work to develop new options under Production Insurance has taken place during 2003 and 2004, with a full range of new insurance products expected to be available by 2006, after transition is complete. Changes were introduced beginning in the 2004 program year.

Who should apply for the program?

The program is currently available to virtually all producers in all provinces. Eligibility criteria for this program will continue to evolve as provinces add new commodities to their lists of insurable agricultural commodities.

What funding is available?

Premiums for Production Insurance coverage are cost-shared between the producer, the province and the federal government.

Who will deliver the service?

Each province currently has either a Crown Corporation or a branch of the provincial agriculture department responsible for administering the Production Insurance program.

Whom do I contact for more information?

Director, PIRMD, Programs Team
Sir John Carling Building
930 Carling Avenue , Room 377
Ottawa , ON K1A 0C5
Tel: 613 759-7518
E-mail: gpikor@agr.gc.ca