Ontario bill expanding Agricorp insurance coverage passes second reading

The Ontario legislature has voted to send to committee a bill proposing to expand the range of agricultural products eligible for crop insurance under Ontario’s Agricorp, with one former broker suggesting farmers are talking about the need for coverage for bovine spongiform encephalopathy (BSE), or mad cow disease.

“Our province’s inability to offer production insurance plans for commodities beyond crops and perennial plants represents a significant gap,” said James Bradley, Liberal MPP for St. Catharines, in the legislature Wednesday.

With Bill 40, the Agriculture Insurance Act (Amending the Crop Insurance Act, 1996), the ruling Liberals propose to give the Ontario minister of agriculture, food and rural affairs the power to designate – by regulation – additional products eligible for coverage under Agricorp.

Agricorp is a Guelph-based crown corporation.

With support from all three parties, the bill passed second reading and was referred to the Standing Committee on Finance and Economic Affairs. The government bill was tabled last year by Jeff Leal, the Liberal minister of agriculture, food and rural affairs.

“I went to the Ontario beef association’s AGM recently-the beef farmers-and I sat at a table with members from the Renfrew riding,” said Teresa Armstrong, a former insurance broker who is now NDP MPP for London-Fanshawe, during debates last week at Queen’s Park. “They talked about the need for BSE insurance. That was a real devastation when that happened to livestock and farmers’ livelihoods. So it’s good to see that this bill will open up those doors and discussions to extend that coverage.”

Agricorp covers production losses and yield reductions – caused by insured losses – for vegetables, fruit and honey, forage, tobacco and perennial plants. Agricorp’s risk management program is available for the cattle, edible horticulture, grains and oilseeds, hog, sheep and veal sectors. It is intended to help producers manage risks such as fluctuating costs and market prices.

“We know that business risk management programs like production insurance help producers deal with situations that are outside their control, such as weather, disease and extreme market fluctuation,” Bradley said March 11. “Production insurance makes timely payments to producers and eliminates the need for costly ad hoc responses to adverse conditions.”

Coverage available from Agricorp also includes margin declines caused by any combination of production losses, adverse market conditions or increased costs.