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Producers may select coverage at 50, 60, 70 or 80 per cent of their average yield, cost shared at 60 per cent by governments, 40 per cent by producers. Coverage is only available to 70 per cent for Khorasan wheat/Kamut®.
If you are insuring both conventional and organic crops, the coverage selections made on a crop must be the same for both organic and conventional acres. For example, if you choose 70 per cent coverage on your organic flax, you must also select 70 per cent coverage on your conventional flax crop.
On average, Crop Insurance has paid higher claims on organic acres; therefore, premium rates are 25 per cent higher for organic than conventional crops, reflecting the increased insurance risk.
Organic prices are set higher than conventional prices depending on the crop. Crop Insurance determines organic insured prices each year using a factor that reflects the average historical differences between organic and conventional prices for each crop.
The price for Khorasan wheat is determined from contract prices adjusted to a farmgate basis.
How does Crop Insurance calculate premiums?
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