Crop Insurance Plan for Spring Grain
made under Section 6 of the
Crop and Livestock Insurance Act
R.S.N.S. 1989, c. 113
O.I.C. 2003-88 (March 14, 2003), N.S. Reg. 50/2003
as amended up to O.I.C. 2012-6 (January 10, 2012), N.S. Reg. 15/2012
1 These regulations may be cited as the Crop Insurance Plan for Spring Grain.
2 The purpose of this plan is to provide for insurance against a reduction in yield of springgrain resulting from one or more of the perils designated in Section 4.
3 In this plan,
“Act” means the Crop and Livestock Insurance Act;
Definition added: O.I.C. 2012-6, N.S. Reg. 15/2012.
“average insurable yield” means the average insurable yield of an insurable springgrain crop determined in accordance with subsection 10(3);
Definition replaced: O.I.C. 2006-345, N.S. Reg. 132/2006.
“designated perils” means the perils designated in Section 4 for the purpose of thisplan;
“final seeding report” means a signed declaration of all planted area of spring grainsubmitted to the Commission by an insured person pursuant to Section 15;
“mixed grain” means any seed mixture that is seeded to be harvested for grain andthat includes both oats and barley;
“pedigreed seed” refers to a variety of oats, barley and wheat that has the minimumclassification of “Certified” seed issued by the Canadian Seed Growers’ Associationand that is produced in Nova Scotia only for seed production;
“spring grain” means varieties of oats, barley, wheat and mixed grain accepted by theCommission for insurance coverage;
“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. 15/2012.
“total guaranteed production” means the total guaranteed production determinedpursuant to 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. 132/2006.
“Zone 2” means all areas of the Province outside Zone 1.
Definition added: O.I.C. 2006-345, N.S. Reg. 132/2006.
Designation of perils
4 The following are designated as perils for spring grain:
(e) excessive moisture;
(g) plant disease; and
Designation of crop year
5 The crop year for spring grain is the period from March 15 in any year to September 30 ofthe same year.
Section 6 repealed: O.I.C. 2012-6, N.S. Reg. 15/2012.
Section 7 repealed: O.I.C. 2012-6, N.S. Reg. 15/2012.
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 15of the crop year for which the cancellation is to be effective.
Section 8 and heading replaced: O.I.C. 2012-6, N.S. Reg. 15/2012.
9 (1) All the area of spring grain owned or operated by an insured person and to beharvested shall be offered for insurance coverage.
(2) The Commission may insure all or part of the area of spring grain offered forinsurance coverage.
Subsection 9(3) replaced: O.I.C. 2006-345, N.S. Reg. 132/2006.
(3) Upon application in writing by an insured person, the Commission may insure aspring grain crop on the basis of variety, area, agronomic practice or specified perils.
Subsection 9(3) added: O.I.C. 2006-345, N.S. Reg. 132/2006.
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 spring grain for the purpose of determiningthe guaranteed production for that crop in a crop year.
(2) The total guaranteed production for an insured spring grain crop shall be determinedby multiplying the selected coverage level by the average insurable yield for the totalarea of that insured spring grain crop.
(3) The average insurable yield of an insurable spring grain crop is the potentialproduction of that crop as determined by the Commission from the insured person’syield records, subject to a methodology developed by an actuary and approved by theCommission.
Section 10 replaced: O.I.C. 2006-345, N.S. Reg. 132/2006.
11 (1) For each crop year, the Commission shall establish price options for each insurablespring grain crop, and shall announce these options to insured persons before thebeginning of the crop year.
(2) For pedigreed seed, the price options shall be increased by $25 per tonne.
(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. 132/2006.
12 The maximum indemnity for which the Commission is liable under a contract ofinsurance shall be the amount obtained by multiplying the total guaranteed production bythe established price selected pursuant to subsection 11(3).
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. 132/2006.
(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.
Subsection 13(4) replaced: O.I.C. 2006-345, N.S. Reg. 132/2006.
(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.
Whole farm adjustment option
13A (1) An insured person may elect to include a whole farm adjustment option in theircontract of insurance.
(2) An insured person who elects to include a whole farm adjustment option in theircontract of insurance
(a) pays a reduced premium in accordance with a discount schedule developed byan actuary for this purpose and approved by the Commission; and
(b) is paid a reduced indemnity in accordance with Section 29 for an insured cropthat has a yield lower than the total guaranteed production for that crop ifanother insured crop exceeds its total guaranteed production.
Section 13A added: O.I.C. 2005-148, N.S. Reg. 85/2005.
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 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. 132/2006.
(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 area 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 area in final seeding report
16 (1) The Commission may measure the insured area by any method that it considersappropriate.
(2) Despite Section 10, where the actual measured area of spring grain in a crop year isless than the insured area, 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 area of spring grain in a crop year exceeds theinsured area, the measured area yield will be pro-rated to the insured area incalculating indemnity payable.
Final planting date
17 (1) The final date for planting spring grain shall be June 15 in Zone 1 and June 8 inZone 2.
(2) Despite subsection (1), the Commission may insure any area of spring grain plantedup to 7 days after the final planting date, but shall reduce the coverage on that areaby 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. 132/2006.
Section 18 repealed: O.I.C. 2012-6, N.S. Reg. 15/2012.
Carry-over of stored grain
19 If, prior to harvest, an insured person believes that they will have a claim on an insuredcrop, and if the insured person has any carry-over of spring grain in storage, the insuredperson must report the carry-over in writing, before the beginning of harvest, or theCommission may regard the carry-over as new production.
20 (1) All spring grain planted by an insured person in a crop year shall be harvested unlessthe Commission consents in writing to a written request by the insured person to
(a) use any part of the planted area for any other purpose; or
(b) abandon or destroy any part of the insured crop.
(2) Any insured area used for a purpose other than the purpose that was reported by aninsured person in the final seeding report without consent pursuant to subsection (1)shall be adjusted at a level not to exceed the guaranteed production in effect.
(3) Each harvested spring grain crop is to be placed in a separate storage.
(4) Unless prior permission is granted and measurements recorded, failure to keep eachharvested spring grain crop in a separate storage may jeopardize any indemnityotherwise payable.
Section 21 repealed: O.I.C. 2012-6, N.S. Reg. 15/2012.
Final date for harvest
22 The final date for harvest shall be September 30 or any other date as may be determined bythe Commission, and the Commission may establish a potential yield for any insured areanot harvested by this date.
Harvest yield report
23 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 23 replaced: O.I.C. 2009-39, N.S. Reg. 23/2009.
Evaluation of loss
24 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 25, 26, 27 and 28, and the final adjustment of loss pursuant toSection 29.
25 (1) Stage 1 comprises the period from the date on which seeding of spring grain iscompleted to a date 30 days later.
(2) Where loss or damage from one or more designated perils occurs to an insured cropduring Stage 1, the Commission, upon application in writing by the insured person,may consent in writing to a request to abandon or destroy the insured crop on thedamaged area.
(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 the amount of loss for the insured crop shall becalculated by multiplying the guaranteed production of the damaged area by theproduct of the established price and the applicable stage 1 payout rate set out in thefollowing table:
Stage 1 Payout Rate as% of 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.
26 (1) Where loss or damage from one or more designated perils occurs to 2 hectares ormore of an insured crop during Stage 1, the Commission may consent in writing to awritten request to reseed the damaged area prior to the final planting date and, whenconsent is given, shall compensate the insured person pursuant to subsection (2) or(3).
(2) When the Commission consents to the reseeding of a damaged area pursuant tosubsection (1), the Commission shall pay the insured person an amount equal to 25%of the established price multiplied by the guaranteed production for that damagedarea.
(3) When a damaged area is reseeded in accordance with this Section to an insuredspring grain crop, the contract of insurance shall continue to apply to the reseededarea.
27 (1) Stage 2 comprises the period from the end of Stage 1 to the final harvest date in thecrop year, in respect of any portion of the insured crop that is not harvested.
(2) Where loss or damage from one or more designated perils occurs to an insured cropduring Stage 2, the Commission, upon application in writing by an insured person,may consent in writing to the use of the damaged area for another purpose and theCommission shall determine the size of the damaged area and the potentialproduction.
(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 pursuant to Section 22 and the harvesting wasprevented by 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 area and the potential production determined undersubsection (2) for the damaged area by 80% of the established price.
(4) When a 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.
28 (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.
(3) When a spring grain crop is insured as pedigreed seed, and is rejected for pedigreedseed status as a result of damage from a designated peril, the amount of loss shall becalculated by multiplying the number of tonnes harvested by $25.
Final adjustment of loss
29 (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.
(3) Despite subsections (1) and (2), if an insured person elects to include a whole farmadjustment option under Section 13A, and the actual production of an insured cropexceeds that crop’s total guaranteed production, the excess must be used to calculatea reduction in any indemnity payable for another insured crop under subsections (1)and (2), by multiplying the amount of the excess by the established price andapplying the result against the amount that would otherwise by [be] payable undersubsections (1) and (2).
Subsection 29(3) added: O.I.C. 2005-148, N.S. Reg. 85/2005.
Section 30 repealed: O.I.C. 2012-6, N.S. Reg. 15/2012.
Section 31 repealed: O.I.C. 2012-6, N.S. Reg. 15/2012.