Ontario passes Agriculture Insurance Act, expanding production insurance

Ontario has passed the Agriculture Insurance Act, which will allow more types of agricultural products to be covered by the province’s production insurance program.

Production insurance is part of a suite of business risk management programs designed to help farmers manage losses due to events beyond their control, such as weather, pests and disease, the Ministry of Agriculture, Food and Rural Affairs explained in a release on Wednesday, when Bill 40 received royal assent.

Production insurance is currently available for almost 90 commercially grown crops in Ontario, including grains, oilseeds and certain fruits and vegetables. The “new legislation will expand eligibility for the production insurance program for more agricultural products,” the ministry said in a media release, noting when the bill was first proposed that “expanded production insurance would give farmers who produce agricultural products other than crop and perennial plants access to the protection they need to safeguard their important investments.”

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The Agriculture Insurance Act will also give the province more flexibility to work with industry partners to develop potential future production insurance plans for more sectors like apiculture and pork, the ministry reported.

In 2013, there were more than 14,000 producers insured under Ontario’s Production Insurance program, representing more than five million acres in crop land.

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“Our government is pleased to give a broader range of producers the opportunity to access production insurance,” Jeff Leal, Minister of Agriculture, Food and Rural Affairs, said in the release. “This legislation will enable producers to manage the multitude of risks they face every day.”

Amy Cronin, chair of Ontario Pork, applauded the passing of the bill, saying that “broadening the scope of production insurance beyond crops is an important piece in supporting a positive business environment for the livestock industry in Ontario. Production insurance can be instrumental in providing stability against risks that are beyond the control of pork farmers,” she added.