Agriculture Financial Services Corporation (AFSC) offers insurance for both dryland and irrigated crops and provides a production guarantee based on a calculated individual coverage for each client. Indemnities are calculated and paid based on actual production and reflect conditions on the client’s farm.

AFSC sets a spring insurance price and determines the designated grade for each crop. Additional benefits and endorsements are offered to protect against price fluctuations between the spring insurance price and the calculated fall market price.

Clients elect crop types, percentage of coverage and the options they want. When crop production (harvested and appraised) falls below the production guarantee, and the loss is due to an insured peril, the production shortfall amount will be paid at the final calculated price option, determined grade, and dollar value of the crop.


Coverage is a fundamental part of any insurance policy and is based upon a long-term average yield. Clients choose crops to insure and elect a coverage level as a per cent of their individual coverage for each crop. Options and Endorsements, such as the Straight Hail Auto-Elect option, Hail Endorsement and Spring Price Endorsement, may also be elected.

Coverage levels of 50, 60, 70 or 80 per cent can be elected for most insurable crops:

  • Sugar Beets coverage – is available up to 90 per cent.
  • Camelina and Canary Seed – coverage is limited to 50, 60 or 70 per cent coverage levels.
  • Processing Vegetable crops – coverage is limited to 70 or 80 per cent coverage levels.


In the spring, AFSC forecasts expected crop prices for the coming crop year. In the fall AFSC reviews the pricing to determine whether the crop’s fall market price is substantially lower or higher than the spring insurance price and sets fall prices accordingly.

Production Insurance includes the Variable Price Benefit, which applies to most crops. Compensation is provided for each insured crop when there is a production shortfall below the insurance coverage guarantee, and the price of the insured crop increases by 10 per cent or more from the spring insurance price to the fall market price. VPB is limited to a 50 per cent change.

Spring Price Endorsement offers protection for with-in year price declines of more than 10 per cent between the spring insurance price and the fall market price. The Endorsement is limited to a 50 per cent change. Once triggered, it will pay back up to 90 per cent of the spring insurance price on production produced, or deemed to be produced, up to the coverage elected.