Amendment of O.Reg. 267/15, Designation of Agricultural Products to Make Tender Fruit Trees Eligible for Production Insurance
Regulation - Minister
Bill or Act:
Agricultural Products Insurance Act (Ontario), 1996
Summary of Decision:
The proposed amendment to Ontario Regulation 267/15, Designation of Agricultural Products, under the Agricultural Products Insurance Act, 1996 to include tender fruit trees was posted for 45 days.
An amendment comes into force on September 1, 2016 to add the following to the list of Designated Agricultural Products: peach trees, nectarine trees, plum trees, pear trees and cherry trees.
June 1, 2016
Summary of Proposal:
Production Insurance Plans (PIPs) are voluntary in nature and are aimed at helping farmers mitigate the risk from reduced yields due to uncontrollable events, such as weather, pests and disease. Current PIPs for apple, grape and tender fruit farmers cover their fruit production. Apple and grape farmers currently receive protection against tree or vine mortality. In the event that an insured peril results in the death of their apple trees or grape vines, farmers are compensated for the cost of removing and replacing the tree or vine.
The proposed amendment will extend this compensation to tender fruit farmers, allowing for the removal and replacement costs if their trees die as a result of an insured peril.
Implementing the amendment will have a number of positive impacts for both farmers and the Province, such as:
• Enhances risk management tools to help create a business environment that encourages sector growth. By helping farmers manage risks through insurance, they have the confidence to reinvest in their businesses instead of saving extra money to survive unforeseen threats.
• Creates fairness across the sector by allowing tender fruit farmers to access risk mitigation resources already available to apple and grape farmers.
• Helps Ontario tender fruit farmers compete with farmers in other Canadian jurisdictions who already have access to tree mortality coverage.
The proposed amendment is a sign of the government's commitment to make PIPs more widely available to Ontario's farmers. OMAFRA remains committed to working with its partners in the agricultural sector to explore the feasibility of expanding PIPs to different agricultural products where there is demand from industry to do so.
Marc LaBerge, Senior Policy Advisor
Farm Finance Branch
1 Stone Road West
September 1, 2016