New Crop Insurance
New Crop Insurance Initiative provides protection for new and non-traditional crops that don’t fall into current multi-peril insurance coverage programs. Examples of crops that are eligible for New Crop Insurance include soybeans, dryland hemp, spelt, borage, caraway and certain varieties of potatoes and perennial crops grown for seed.
It is an area-based program which provides protection to new and non-traditional crops and does not require pre-harvest or post-harvest inspections. Field inspections are required for hail claims to assess damage for Hail Endorsement and Straight Hail Insurance, and a field inspection may be required for acres left unseeded. Clients need to contact AFSC in any of these circumstances.
Each crop type will have a coverage level calculated for it on a provincial level based on the specific costs for that crop. Dryland and irrigated acres will have different costs covered. This means that for the same crop type grown on dryland and under irrigation, there will be two coverage levels. For example, dryland soybeans will have different coverage than irrigated soybeans.
Initially, the coverage will be based on selected direct cost of production (COP) associated with seedbed preparation, seeding, spraying, harvesting and a land opportunity cost factor. The specific costs are:
- Fertilizer, pesticide, herbicide
- Seed and seed treatment
- Fuel and oil
- Utility and water cost associated with irrigation
- Land utilization cost
In the spring, AFSC will determine the cost of production value that will be offered for the start-up period.
Variable Price Benefit will not be offered to crops insured under the New Crop Insurance Initiative.
Spring Price Endorsement will not be offered to crops insured under the New Crop Insurance Initiative.