Home > Our Programs > Annual Crop Weather Based Insurance Program

The Annual Crop Weather Based Insurance Program can be used in addition to existing coverage or as stand-alone coverage for traditional and non-traditional crops. This simplified, area-based program provides payments for a lack of precipitation or an early fall frost (i.e. temperature at or less than 0°C) determined at the selected weather station. The Annual Crop Weather Based Program was developed as a non-intrusive program for those producers who did not wish to deal with the day to day requirements that multi-peril customers deal with, such as farm visits and form completion and return.

Coverage

All acres insured under this program must be cultivated with the intention to seed and harvest in 2008. You must select a weather station within 100 kilometres of your land. You are limited to selecting one weather station per quarter section, but different stations may be selected for different quarters.

Legal land descriptions, annual crop acres and weather stations must be updated. Failing to update this information will result in uninsured acres under this option. If you wish to cancel or change your selections, you must contact Crop Insurance.

Premiums

The enhanced $25 top-up option is structured differently. The first $10 of coverage is cost shared at 40 per cent producer and 60 per cent governments while the remaining $15 coverage top-up is paid 66.7 per cent by producers and 33.3 per cent by governments.

To calculate premium scenarios for weather stations in your area, visit the Annual Crop Weather Based Insurance Program premium and coverage “what-if” calculations online or contact your customer service office.

A statement of insurance confirming your insurance selections and premiums will be sent to you in May.

Claims

Payments are based on a lack of precipitation or an early fall frost (i.e. temperature at or less than 0°C) determined for the selected weather station. The precipitation and temperature determined at the selected weather station will be the only method of determining payment. Claims do not have to be filed, but are automatically calculated in November and after all weather stations have recorded 0ºC.

This is not an individual production program. Indemnities are not tied to your yields, the amount of precipitation or the temperature on the specific parcel of land you insure.

For example, frost occuring on your farm but not at your selected weather station will result in a zero payment. Insurance coverage for specific yield losses is provided under the core multi-peril Crop Insurance program, which must be purchased seperately.

Read more on the precipitation data Crop Insurance uses to calculate claims.

Only quality controlled data will be used in claim calculations. Quality control measures include verification of all weather station data by a third party (independent of Crop Insurance) using procedures approved by an accredited meteorologist. Precipitation includes all rainfall and snow amounts.

Precipitation Payment

A claim is triggered when the precipitation from May 1 to August 31 falls below 70 per cent of normal at the selected weather station. For each percentage point of precipitation below 70 per cent, 2.5 per cent of liability will be paid. Total liability will be paid when the precipitation for the four-month period falls to 30 per cent of average according to the monthly weightings. (Example)

Recognizing the importance of timely precipitation, the months are weighted as:

The average per cent of normal precipitation for the four months will be used for calculating an indemnity. The calculation includes a monthly maximum of 150 per cent of normal. Precipitation greater than 150 per cent of normal for the given month will not be included.

Early Fall Frost Payment

A claim is triggered if the daily temperature recorded at the selected weather station falls to or below 0ºC between the midpoint of the defined growing season and three days before the average first fall frost date (referred to as your three-day deductible). Claims are paid at two per cent of liability for each day between the date the early frost occurred and the third day preceding the average first fall frost date. (Example)

If you have claims for both lack of precipitation and frost, only the greater of the two will be paid.

2007 indemnities by station are available through the Annual Crop Rainfall Monthly Statistics. You may also view the historical claims paid data from previous years online.