Post-harvest reporting and the accompanying process are now simpler than ever before. With these changes, producers can expect quicker processing of claim payments and a more consistent experience on all claims.
Agriculture Financial Services Corporation (AFSC) is committed to simplifying its processes and improving clients’ experience across all programs and offerings. Recent changes have included streamlining the hail claims process and moving wildlife damage reporting online, allowing producers to report damage at any time.
This fall, Annual Crop Insurance clients who are in a claim position, may:
- qualify for faster payment through the payment by declaration option; or
- chose to receive either a 50 per cent advance or a preliminary payment.
The Harvested Production Report (HPR) remains a key part of post-harvest reporting. This report, which must be filed by November 15 for annual crop insurance, gives the first indication if the client is in a production shortfall and eligible for coverage. Information from this report is also used to determine premium rates for future coverage.
Payment by Declaration
When clients file their HPR, they are declaring their reported production for that crop year. If certain criteria are met, including the dollar amount of the shortfall and the grade of the crop, clients can be compensated for their production loss through a payment by declaration. An on-farm inspection is not required and the full amount owing to the client can be paid in a more timely fashion. In most situations, clients can choose to defer the indemnity to the following year.
To ensure program integrity, AFSC conducts a percentage of production reviews on payments by declaration. If your HPR is selected for a review, an adjuster will contact you to make an appointment.
To be eligible for payment by declaration, clients should be confident of the grade, weight and dockage reported on their HPR. Clients can test their samples at a licensed terminal or through the Canadian Grain Commission’s Harvest Sample program.
Clients who have crops in a production shortfall, but who are not eligible for payment by declaration, can receive a portion of their estimated claim as an early payment through either a 50 per cent advance or a preliminary payment. The claim will be finalized later in the year, either through sales receipts, if all production has been sold, or with an on-farm inspection.
If a crop qualifies for both advances, clients can choose which advance type they want, and on which crops. If there is more than one crop with a shortfall and clients want an advance of both crops, clients will need to take the same advance type for both crops.
If a client chooses, they can receive 50 per cent of the calculated claim for the crop now. The balance is paid when the claim is finalized later in the year. Clients also have the option of choosing a preliminary payment, which allows them to receive a higher percentage of the claim payment immediately. To calculate the amount of a preliminary payment, AFSC adds an additional 20 per cent to the client’s reported production, and if the crop remains in a shortfall, AFSC will advance the client the full amount of their claim with the 20 per cent production added in. Again, the balance will be paid when the claims is finalized later in the year.
Clients do not have to take an advance on all crops and can choose to defer their advances to the following year.
To ensure the ongoing integrity and viability of the program, AFSC will be conducting random production reviews. Clients who are selected for review will be contacted by an AFSC adjuster to set-up an appointment. During the on-farm visit, all insured crops will be measured and graded, and if clients have sold production, they should have their sales receipts available for review.
In the case of clients who received payment by declaration, only the crops that were in a production shortfall will be measured. If the production has already been sold, clients should have their sales receipts available for review.