Regulation - Minister

Proposed change to the AgriInsurance Program - Designation of Agricultural Products.

Regulation Number(s):
O. Reg. 267/15
Instrument Type:
Regulation - Minister
Bill or Act:
Agricultural Products Insurance Act
Summary of Proposal:
AgriInsurance, also referred to as Production Insurance (PI) is a federal-provincial cost-shared program under the Sustainable Canadian Agricultural Partnership. It was established in 1966 under the Crop Insurance Act and is continued under the Agricultural Products Insurance Act, 1996 (APIA). AgriInsurance operates like a basic insurance program and covers losses and yield reductions caused by natural hazards for 71 agricultural products. In 2023, there were about 14,009 customers representing 5.4 million acres insured and $4.9 billion in liability.

Agricorp (a crown Agency) delivers the AgriInsurance Program on behalf of the province. Under the APIA, Agricorp must offer contracts of insurance for agricultural products designated by regulation. The contracts of insurance outlines the legal responsibilities of all parties and outlines general terms and conditions applicable to all AgriInsurance plans. Changes are required to meet industry needs and ensure that the regulation is aligned with the status quo. The following amendment is proposed to O. Reg. 267/15 under the APIA:

Amendment to add rye to the list of designated agricultural products:
Stakeholders have asked Agricorp and the province to develop a PI plan for fall rye grown for grain production which is used in the distilling and milling industry. Growers have expressed interest in increasing future opportunities for the crop. However, some producers have expressed caution about introducing rye due to the lack of insurance availability. A regulatory amendment to add rye as a designated agricultural product is required prior to Agricorp being able to develop and offer any contracts of insurance under the AgriInsurance Program.
Analysis of Regulatory Impact:
Adding rye to O. Reg. 267/15 will allow Agricorp to provide producers the option of choosing whether or not they want to insure their rye crop.

As a result of the regulatory change Agricorp would be required to offer contracts of insurance in respect of rye as soon as reasonable possible after the designation. AgriInsurance is a federal-provincial-producer cost-shared program and insurance plans must be developed and delivered in accordance with the Sustainable Canadian Agricultural Partnership Multilateral Framework Agreement.

o Offering contract of insurance for fall rye producers would help those enrolled manage the financial impact of crop losses and yield reductions caused by natural hazards such as drought, excessive moisture, and frost.

o The primary costs will be premium costs which will be cost shared between the producer, and the federal and provincial governments on a 40:36:24 basis. The rye plan would be integrated with the existing grains and oilseeds plans, and as such would not have a material impact on delivery costs each year. Administration costs are cost shared by federal and provincial governments on a 60:40 basis.
Further Information:
Proposal Number:
Posting Date:
May 22, 2024
Comments Due Date:
July 8, 2024
Contact Address:
Branch: Farm Finance
Address: 1 Stone Road West; Guelph ON N1G 4Y2
Comment on this proposal via email