Spring Price Endorsement
The Spring Price Endorsement is purchased on a crop-specific basis and offers protection for price declines of 10 per cent or more from the spring insurance price to the fall market price.
Spring Price Endorsement is purchased as an endorsement on a crop specific basis. It cannot be purchased at the 50 per cent coverage level for Production Insurance. Spring Price Endorsement offers 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 percent of the spring insurance price on production produced, or deemed to be produced, up to the coverage elected.
For Production Insurance, the endorsement provides clients with protection, on a crop specific basis, from within-year price declines on production that is grown, up to the coverage purchased, at 90 per cent of the spring insurance price.
For Silage Greenfeed and Corn Heat Unit Insurance, the Spring Price Endorsement provides clients with protection from within-year price declines on deemed production up to the coverage purchased, at 90 per cent of the spring insurance price.
The spring insurance price is a forecast of the average market price for the coming crop year. In late January every year, the Market Analysis Division and the Crop Insurance and Companion Programs Division of Agriculture and Agri-Food Canada, in conjunction with the provincial Price Review Committee, set a price for each insured crop’s designated grade.
The Spring Insurance Price is multiplied by the coverage level chosen under Production Insurance to determine client’s dollar coverage at the start of the year. It is also used in the calculation of dollar coverage for the Silage Greenfeed and Corn Heat Unit Insurance programs.
The fall market price for SPE is the same price used for the Variable Price Benefit. For production-based products, grade factors for each crop are determined at the same time as the fall market prices.