Crop Insurance Plan for Potatoes

Link to law: https://www.novascotia.ca/just/regulations/regs/clipotato.htm

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Crop Insurance Plan for Potatoes
made under Section 6 of the

Crop and Livestock Insurance Act

R.S.N.S. 1989, c. 113

O.I.C. 2002-407 (September 13, 2002, effective April 1, 2000), N.S. Reg. 114/2002

as amended to O.I.C. 2015-57 (March 10, 2015), N.S. Reg. 43/2015

Citation

1     These regulations may be cited as the Crop Insurance Plan for Potatoes.

Purpose

2     The purpose of this plan is to provide for insurance against a reduction in yield of potatoesresulting from one or more of the perils designated in Section 4.

Interpretation

3     In this plan,

 

“Act” means the Crop and Livestock Insurance Act;

Definition added: O.I.C. 2012-6, N.S. Reg. 12/2012.

 

“average insurable yield” means the average insurable yield of an insurable potatocrop determined in accordance with subsection 10(3);

Definition replaced: O.I.C. 2006-345, N.S. Reg. 129/2006.

 

“designated perils” means the perils designated in Section 4 for the purpose of thisplan;

 

“final seeding report” means a signed declaration of all planted acreage of potatoessubmitted to the Commission by an insured person pursuant to Section 15;

 

“potatoes” means potatoes produced in Nova Scotia for table stock, seed, orprocessing under a contract between a grower and a processor;

 

“terms and conditions of the Contract of Insurance” means the terms and conditionsset out in the Contract of Insurance in Form 1 to the General Field Crop InsurancePlans Regulations made under the Act;

Definition added: O.I.C. 2012-6, N.S. Reg. 12/2012.

 

“total guaranteed production” means the guaranteed production determined pursuantto Section 10;

 

“Zone 1” means the area of the Province that consists of the Municipality of theDistrict of West Hants, Kings County and Annapolis County;

Definition added: O.I.C. 2006-345, N.S. Reg. 129/2006.

 

“Zone 2” means all areas of the Province outside Zone 1.

Definition added: O.I.C. 2006-345, N.S. Reg. 129/2006.

Section 3 amended: O.I.C. 2012-6, N.S. Reg. 12/2012.

Designation of perils

4     The following are designated as perils for potatoes:

 

                (a)    drought;

 

                (b)    wind;

 

                (c)    excessive moisture;

 

                (d)    frost;

 

                (e)    hail;

 

                (f)    insects;

 

                (g)    plant disease; and

 

                (h)    wildlife.

Designation of crop year

5     The crop year for potatoes is the period from April 20 in any year to December 20 of thesame year.

Section 6 repealed: O.I.C. 2012-6, N.S. Reg. 12/2012.

Section 7 repealed: O.I.C. 2012-6, N.S. Reg. 12/2012.

Deadline for notice of cancellation of insurance

8     For the purpose of clause 4(1)(a) of the terms and conditions of the Contract of Insurance,a notice of cancellation of insurance under this plan must be given no later than March 15in advance of the crop year for which the cancellation is to be effective.

Section 8 and heading replaced: O.I.C. 2012-6, N.S. Reg. 12/2012.

Coverage

9     (1)    All acreage of potatoes owned or operated by an insured person and to be harvestedshall be offered for insurance coverage.

 

       (2)    The Commission may insure all or part of the area of potatoes offered for insurancecoverage.

Subsection 9(2) replaced: O.I.C. 2006-345, N.S. Reg. 129/2006.

 

       (3)    Upon application in writing by an insured person, the Commission may insure apotato crop on the basis of variety, area, agronomic practice or specified perils.

Subsection 9(3) added: O.I.C. 2006-345, N.S. Reg. 129/2006.

Total guaranteed production

10   (1)    An insured person shall select a coverage level of 70%, 80%, 85% or 90% of theaverage insurable yield of an insurable potato crop for the purpose of determining theguaranteed production for that crop in a crop year.

 

       (2)    The total guaranteed production for an insured potato crop shall be determined bymultiplying the selected coverage level by the average insurable yield for the totalarea of that insured potato crop.

 

       (3)    The average insurable yield of an insurable potato crop is the potential production ofthat crop as determined by the Commission from the insured person’s yield records,subject to a methodology developed by an actuary and approved by the Commission.

 Section 10 replaced: O.I.C. 2006-345, N.S. Reg. 129/2006.

Established prices

11   (1)    Subject to subsection (2), for each crop year, the Commission shall establish priceoptions for each insurable potato crop, and shall announce these options to insuredpersons before the beginning of the crop year.

 

       (2)    The Commission shall not establish a price option that is greater than the base priceestablished by contract for the sale of a potato crop.

 

       (3)    An insured person shall select one of the price options as the established price to beused for calculating premium and indemnity in their contract of insurance.

Section 11 replaced: O.I.C. 2006-345, N.S. Reg. 129/2006.

Maximum indemnity

12   The maximum indemnity for which the Commission is liable under a contract of insuranceshall be the amount obtained by multiplying the total guaranteed production by theestablished price selected pursuant to subsection 11(3).

Premium

13   (1)    The base premium rate shall be based on a methodology set by an actuary andapproved by the Commission.

Subsection 13(1) replaced: O.I.C. 2006-345, N.S. Reg. 129/2006.

 

       (2)    The base premium rate shall be adjusted by giving a discount when indemnity is lessthan total premiums paid or adding a surcharge when indemnity exceeds totalpremiums, and adjustments shall be calculated using the following formula:

(LR-1) x (n÷(20+n))

 

where “LR” equals total indemnity divided by total premiums and “n” equals thenumber of years insured in the plan.

 

       (3)    Despite subsection (2), the maximum discount shall be 50% and the maximumsurcharge shall be 100%.

 

       (4)    Despite subsections (1), (2) and (3), the minimum annual premium payable by aninsured person in each crop year is $50.

 

       (5)    The premium determined pursuant to subsections (1), (2) and (3) includes premiumpayments made by the Government of Canada under the Farm Income ProtectionAct (Canada) and the Province under the Act.

 

14   (1)    An insured person shall pay the premium less any premium deposit to theCommission not later than August 1 for the current crop year.

 

       (2)    Interest of 1.5% per month or a minimum of $5.00 per month will be charged by theCommission on an overdue account.

Final seeding report

15   (1)    No later than 10 days after the final planting date, an insured person shall file a finalseeding report with the Commission on a seeding report form provided by theCommission for this purpose.

Subsection 15(1) replaced: O.I.C. 2006-345, N.S. Reg. 129/2006.

 

       (2)    The final seeding report filed with the Commission shall not be amended by aninsured person without the consent in writing of the Commission.

 

       (3)    The Commission may revise the final seeding report in any or all respects and adjustthe premium accordingly, and in this case shall notify an insured person in writingrespecting the revision and adjustment.

 

       (4)    An insured person shall be deemed to have agreed with the revision and adjustmentby the Commission under subsection (3), unless within 10 days from mailing ordelivery of the notification by the Commission, the insured person notifies theCommission in writing that the insured person rejects the revision and adjustment.

 

       (5)    When the Commission has received notice from an insured person under subsection(4), it may notify the insured person in writing that the contract of insurance does notapply for the crop year in which the final seeding report was filed and, whennotification is given, shall refund any premium deposit paid in respect of that cropyear.

 

       (6)    A final seeding report revised under subsection (3) shall, failing notice undersubsection (4), constitute the final seeding report for the crop year.

 

       (7)    Where an insured person fails to file a final seeding report in any crop year, theCommission may

 

                (a)    prepare the final seeding report; or

 

                (b)    deem the insured acreage to be nil.

 

       (8)    Where the Commission prepares a final seeding report under subsection (7),

 

                (a)    the Commission shall mail or deliver a copy of the report to the insured person;and

 

                (b)    the insured person shall pay the premium for the crop year in respect of whichthe report was prepared.

Incorrect acreage in final seeding report

16   (1)    The Commission may measure the insured acreage by any method that it considersappropriate.

 

       (2)    Despite Section 10, where the actual measured acreage of potatoes in a crop year isless than the insured acreage, the total guaranteed production and the amount ofinsurance shall be reduced accordingly and no refund of premium shall be made.

 

       (3)    Despite Section 10, where the actual acreage of potatoes in a crop year exceeds theinsured acreage, the measured area yield will be pro-rated to the insured acres incalculating indemnity payable.

Final planting date

17   (1)    The final date for planting potatoes shall be June 15 in Zone 1 and June 8 in Zone 2.

 

       (2)    Despite subsection (1), the Commission may insure any area of potato planted up to7 days after the final planting date, but shall reduce the coverage on that area by 5%for each day after the final planting date that the area remains unplanted.

Section 17 replaced: O.I.C. 2006-345, N.S. Reg. 129/2006.

Section 18 repealed: O.I.C. 2012-6, N.S. Reg. 12/2012.

Harvesting

19   (1)    All acreage of potatoes planted by an insured person in a crop year shall be harvestedunless the Commission consents in writing to a written request by the insured personto

 

                (a)    use any part of the planted acreage for any other purpose; or

                (b)    abandon or destroy any part of the insured crop.

 

       (2)    Any insured acreage used for a purpose other than the purpose that was reported byan insured person in the final seeding report without the consent of the Commissionin writing, shall be adjusted at a level not to exceed the guaranteed production ineffect.

 

       (3)    Potatoes harvested prior to August 1 shall be deemed to have a yield no less than theguaranteed production per acre.

 

       (4)    Potatoes harvested during August shall have actual yields adjusted to a mature yieldequivalent using a method approved by the Commission.

Section 20 repealed: O.I.C. 2012-6, N.S. Reg. 12/2012.

Final date for insurance protection

21   (1)    The final date for harvest is October 24 or any other date determined by theCommission, and the Commission may establish a potential yield for any insuredacreage not harvested by that date.

 

       (2)    The final date for insurance protection is December 20.

 

       (3)    Coverage during the period between the final date for harvest determined pursuant tosubsection (1) and the final date for insurance protection prescribed in subsection (2)shall be limited to storage losses resulting from one or more of the field-related perilsdesignated in Section 4.

Harvest yield report

22   No later than 30 days after the completion of harvest, an insured person must file a harvestyield report with the Commission on a harvest yield report form provided by theCommission for this purpose..

Section 22 replaced: O.I.C. 2009-39, N.S. Reg. 21/2009.

Evaluation of loss

23   For the purpose of determining the reduction in yield of an insured crop in a crop year andany indemnity payable, the value of each crop shall progress through stages 1 to 3, asprescribed in Sections 24, 25 and 26, and the final adjustment of loss pursuant to Section27.

Stage 1

24   (1)    Stage 1 comprises the period from April 20 to June 30 in the crop year.

 

       (2)    Where loss or damage from one or more designated perils occurs during Stage 1 toan area that meets the minimum area requirement in subsection (2A), theCommission, upon application in writing by the insured person, may consent inwriting to a request to replant the damaged area, subject to any consent givenpursuant to subsection (5), or to a request to abandon or destroy the insured crop onthe damaged area.

Subsection 24(2) amended: O.I.C. 2015-57, N.S. Reg. 43/2015.

 

       (2A) The minimum area of damage required for a Stage 1 claim is as set out in thefollowing table:

Area of Potatoes Planted

Minimum Area of DamageRequired for Stage 1 Claim

Less than 60 acres

5% of total area

60 acres or more

3 acres

Subsection 24(2A) added: O.I.C. 2015-57, N.S. Reg. 43/2015.

 

       (3)    Where the Commission approves the abandonment of an insured crop on a damagedarea pursuant to subsection (2) and the area is removed from production, theinsurance for the year shall be deemed to be cancelled on the portion of the insuredcrop that is on the damaged area and an adjustment of the total guaranteedproduction for the area shall be made, less any potential production applied to thearea multiplied by 50% of the established price.

 

       (4)    Whether or not an insured person has made an application pursuant to subsection (2),where loss or damage occurs during Stage 1, the Commission may notify the insuredperson in writing that it intends to terminate insurance coverage on the portion of theinsured crop that is on the damaged area and calculate the amount of loss pursuant tosubsection (3) for the damaged area.

 

       (5)    The Commission may consent in writing to a written request to replant any damagedarea prior to the final planting date and, when consent is given, shall compensate theinsured person by 30% of the established price multiplied by the guaranteedproduction per acre for that damaged area.

 

       (6)    When a damaged area is replanted upon consent given pursuant to subsection (5), thecontract of insurance shall continue to apply to the replanted area, and the loss fromthe damage shall not be used in the calculation of the average insurable yield insubsequent insurance years.

Stage 2

25   (1)    Stage 2 comprises the period from July 1 to the final harvest date in the crop year, inrespect of any portion of the insured crop that is not harvested.

 

       (2)    Where loss or damage occurs during Stage 2, the Commission, upon application inwriting by an insured person, may consent in writing to the use of the damaged areafor another purpose and the Commission shall determine the number of damagedacres and the potential production.

 

       (3)    When

 

                (a)    consent is given to use a damaged area for another purpose pursuant tosubsection (2) and the damaged area is used for that purpose; or

 

                (b)    the harvesting of any portion of the insured crop is not completed on the finalharvest date determined by subsection 21(1) and the harvesting was preventedby a designated peril,

 

then the amount of loss that is taken into account in the final adjustment of loss shallbe calculated by multiplying the difference between the guaranteed production forthe damaged or unharvested acres and the potential production determined undersubsection (2) for the damaged acreage by 80% of the established price.

 

       (4)    When the damaged area is not used for another purpose or the crop is not abandonedor destroyed despite the Commission’s consent, the amount of loss calculated undersubsection (3) shall not be taken into account in the final adjustment of loss.

Stage 3

26   (1)    Stage 3 applies to the insured area with respect to which harvesting has beencompleted.

 

       (2)    When the actual production of the harvested area is less than the guaranteedproduction for the area, the amount of loss

 

                (a)    shall be taken into account in the final adjustment of loss for the total insuredarea; and

 

                (b)    shall be calculated by multiplying the difference between the guaranteedproduction and the actual production by the established price.

Final adjustment of loss

27   (1)    The indemnity payable respecting the total insured area in the final adjustment ofloss shall be the sum of the amounts of loss calculated for each of Stage 1, Stage 2and Stage 3.

 

       (2)    When the actual production exceeds the guaranteed production of the area, theindemnity payable pursuant to subsection (1) shall be reduced by the amountobtained by multiplying the excess by the established price.

Section 28 repealed: O.I.C. 2012-6, N.S. Reg. 12/2012.