HomeMy WebLinkAboutThe Lucknow Sentinel, 1989-03-08, Page 51V/'
Form Edition '89 patio 7A
ERS
nsurane
As every farrier snows, growing crops
is big business and there are many, natural
hazards a farmer cannot control: drought,
eaacessive raids, flood, frost, hail, etc.
What is crop insurance?
Crop insurance is a guarantee for the
farmer to obtain a certain level of produc-
tion from his farm. If production is less
Mantle guarantee, the farmer has a claim
for the difference. The claim depends on
the price option chosen.
The program is adininistered by
Agriculture Canada and the Ontario
Ministry of Agriculture and Food.
Premium payments for crop insurance
are split 50/50 between the farmer and the
Federal Government. The Province of On-
tario picks up the administrative costs,
which in 1988 amounted to $4.1 million.
Most crops are° covered, with individual
crops having a specific plan. In this way
the characteristics unique to each crop,
such as yield levels or prices, may be ac-
commodated. By having individual crop
plans, a farmer could have a claim on one
crop even though the production on
another crop is above the guarantee.
Average farm yield
The amount of coverage a farmer can
buy is based on his own average farm
yield.
For the first time buyer, no records are
available to use in figuring average yield.
Afar ° s begiaaniaag.average yield is then _
based on ari area average, with an
allowance for good management practice.
The program recognizes that management
varies from farm .to farxn, so the beginninf;
average farm yield may be higher or lower
than the area average.
Once a farmer is through his first year ,
his.annual yields are recordedand averag-
ed with .his beginning average farm yield
to establish leis revised average farm
yield. After -five years, only afarmer's..ac-
tual production records determine his
average farm yield.
This yield is determined for each dif-
ferent crop.
Production Guarantee
The program guarantees a farmer • a
percentage of .his average farm yield. The
first year a farmer carries crop insurance,
he is guaranteed 75 percent of his average
farm yield. Each year thereafter,
coverage moves up a step if there is no
claim; stays at the same step if a claim is
less .than the premium paid for that crop
that year, or down a step if a claim ex-
ceeds the premium paid. At the end of a
five year period, when a farmer has earn-
ed 80 percent coverage, a claim does not
reduce his percent coverage. Coverage
can increase to 80 percent, but will never
be less .than 70 percent of a participant's
average farm yield.
Other ;Benefits /Options
Other benefits include reseeding. If, .due
to.an insured peril, reseeding.is necessary
a:participant will be paid"$30 per.acre for
corn, soybeans, white .beans .and °spring
grain; $50.per acre on coloured beans. The
benefit is paid whether reseeding is to the
same crop or any other crop.
Price options and premium rates are
chosen by the applicant 'depending upon
his own needs at the time of application or
renewal.
Usually each crop plan has a maximum
established price for insurance that ap-
proximately equals the market price
minus the cost of harvesting. The Commis-
sion cannot be totally accurate on this
price since the details of each plan must be
finalized prior to the insurance year. In ad-
dition, lower price options are offered for
the farmer who wishes to cover only sorrne
of his costs.
If weather prevents planting or see ng,
The Crop insurance Unseeded Acreage
Benefit provides compensation to cover
farmers for input costs on unseeded
acreage.
Farmers interested in the unseeded
acreage benefit are required to pay a
premium of $1.00 per acre on his TOTAL
ACREAGE intended for spring seeded
crops. Under this section there are some
ineligibles, minimums and deductibles.
Contact your agent or refer to the Crop In-
surance brochure for full details on this
coverage.
CONTACT HERBICIDE APPLICATOV
QLoader Models 0T'aui Models
oFvorof Mount Trael.or Models 'Rand Held Models
'3 or 4 Wheel ATV Models
MANUFACTURED
Paull Vogels
R.R. 2 KEPPEN, ONTARIO NOM 2E0
(519) 522-1030
new -life
rn ,ed
ALACED DAL
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New for 1980
-._ Fioatfng-=P-rice-Option-__-
The Canada -Ontario Crop Insurance
Commission has developed a mechanism
that will set the insured value of a crop as
close as possible to harvest time prices.
This will put insureds m a better position to
purchase the equivalent of their produc-
tion shortage from „local markets.
'The °commission ,:be ;using !average
quotes received'bythe FarmMarketNews
for sample areas wdtiineeriods
Fromthe:price established toy the" Fenn
Market News, the commission -wil deduct
drying .and trucking. costs where ap-
plicable.
For complete details contact your local
agent.
Ceiling and Floor Values
There is no ceiling on the .upward move-
ment of the market. In order to protect in-
sureds against a.falling market, the corp -
mission will place a minimum value on
each commodity.
•
The content of this report does not cover
the program completely, but simply points
out some facets of Crop Insurance. In-
ter-estedapplicants should refer to Regula-
tions made under the Crop Insurance Act
(Ontario) .or contact local .agents.
Residents of Ashfield, West Wawanosh,
Colborne:and Goderich Townships contact
Lyons and Mulhern Insurance Brokers in
Goderich. For those in Kinloss, Culross,
Turnberry and East Wawanosh
Townships, contact Neil Edgar, R. 3,
Wingham.
If you don't :know your local agent, call
the OMAF office in your area.
,„ , 24°'9 .: 9 or ,.. DAIRY
f
SUPPLEMENT with your grain
f1/4
DAI•
RY SUPPLEMENT
Rumen Bypass Top Dress, Extra
Energy & Protein For High Producing Cows
Crop insurance Example
Based or 1989 price options ;and premium rates
A farmer in his fifth year in the program, insuring 45 acres of Soybeans.
$5.20
(30 bu./A.) at 80% 24 .baa./A.
$8.046bu.
($240.00) at 80% _ .$19100
45
$8i O.00
41,350.00
$2,880.00
Premium Per Acre
Guaranteed Production Per Acre
Price Option Chosen
Coverage Per Acre
Total Acreage Grow
TOTAL VALUE OF COVERAGE
Reseeding
Unseeded Acreage Benefit Total Value
'Testing .of your
feet available
Your grain
;picked up, mixed
and delivered
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