Crop Insurance Plan for Tree Fruit
made under Section 6 of the
Crop and Livestock Insurance Act
R.S.N.S. 1989, c. 113
O.I.C. 2003-268 (June 20, 2003), N.S. Reg. 121/2003
as amended to O.I.C. 2015-165 (June 9, 2015), N.S. Reg. 233/2015
1 This plan may be cited as the Crop Insurance Plan for Tree Fruit.
Section 1 replaced: O.I.C. 2012-6, N.S. Reg. 17/2012.
2 The purpose of this plan is to provide for
(a) insurance against a reduction in yield or quality of tree fruit resulting from oneor more of the perils designated in Section 4; and
(b) apple storage coverage for fresh or processing apples of certain varieties instorage that are lost as a result of one or more of the perils designated inSection 4.
3 (1) In this plan,
“Act” means the Crop and Livestock Insurance Act;
Definition added: O.I.C. 2012-6, N.S. Reg. 17/2012.
“average insurable yield” means the average insurable yield of an insurable tree fruitcrop determined in accordance with subsection 10(3);
Definition replaced: O.I.C. 2006-345, N.S. Reg. 134/2006.
“designated perils” means the perils designated in Section 4 for the purpose of thisplan;
“production guarantee report” means a report by the Commission pursuant toSection 13 respecting the amount of coverage being offered to an insured person;
“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. 17/2012.
“total guaranteed production” means the total guaranteed production determinedpursuant to Section 10; and
“tree fruit” means all varieties of apples, peaches and pears produced in Nova Scotiathat are accepted by the Commission for insurance coverage.
Definition replaced: O.I.C. 2011-145, N.S. Reg. 170/2011.
Subsection 3(1) amended: O.I.C. 2012-6, N.S. Reg. 17/2012.
(2) For the purpose of this plan,
(a) a bushel of apples weighs 42 lbs.;
(b) a bushel of peaches weighs 50 lbs.;
(c) a bushel of pears weighs 50 lbs.;
(d) a bin of fresh apples, fresh peaches or fresh pears contains 17 bushels; and
(e) a bin of processing or juice apples or processing or juice pears contains 18bushels.
Subsection 3(2) replaced: O.I.C. 2011-145, N.S. Reg. 170/2011.
Designation of perils
4 The following are designated as perils for tree fruit:
(a) winter injury;
Clause 4(a) replaced: O.I.C. 2012-6, N.S. Reg. 17/2012.
(b) spring frost;
(d) fall frost;
(f) excessive moisture;
(g) unavoidable pollination failure;
(h) off crop due to adverse weather not described in the other designated perils;
(i) for McIntosh variety apples, prior to 12:00 noon on October 13 in eachcrop year, and
(ii) for all apple varieties other than McIntosh and for all pear varieties, priorto 12:00 noon on October 23 in each crop year;
(j) wildlife, excluding mouse damage.
Clause 4(j) added: O.I.C. 2012-6, N.S. Reg. 17/2012.
Designation of crop year
5 The crop year for tree fruit is the period from December 1 in any year to November 30 ofthe following year.
Section 6 repealed: O.I.C. 2012-6, N.S. Reg. 17/2012.
Section 7 repealed: O.I.C. 2012-6, N.S. Reg. 17/2012.
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 November30 in 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. 17/2012.
9 (1) All the area of apples owned or operated by an insured person and to be harvestedmay be offered for insurance coverage.
(2) All the area of peaches owned or operated by an insured person and to be harvestedmay be offered for insurance coverage.
(3) All the area of pears owned or operated by an insured person and to be harvestedmay be offered for insurance coverage.
(4) If only one crop is offered for insurance coverage by an insured person pursuant tosubsection (1), (2) or (3), that crop must be the major tree fruit crop produced by theinsured person.
(5) The Commission may insure all or part of the area offered for insurance coverage.
(6) Upon application in writing by an insured person, the Commission may insure a treefruit crop on the basis of variety, area, agronomic practice or specified perils.
Section 9 replaced: O.I.C. 2011-145, N.S. Reg. 170/2011.
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 tree fruit crop for the purpose of determiningthe guaranteed production for that crop in a crop year.
(2) The total guaranteed production for an insured tree fruit crop shall be determined bymultiplying the selected coverage level by the average insurable yield for the totalarea of that insured tree fruit crop.
(3) The average insurable yield of an insurable tree fruit crop is the potential productionof that crop as determined by the Commission from the insured person’s yieldrecords, subject to a methodology developed by an actuary and approved by theCommission.
Section 10 replaced: O.I.C. 2006-345, N.S. Reg. 134/2006.
11 (1) For each crop year, the Commission shall establish price options for each insurabletree fruit crop, and shall announce these options to insured persons before thebeginning of the crop year.
(2) Subject to subsection (3), an insured person shall select one of the price options asthe established price to be used for calculating premium and indemnity in theircontract of insurance.
(3) The price option selected by an insured person as the established price shall notexceed the actual average price received by the insured person for their insurable treefruit crop over the immediately preceding 2 years.
Section 11 replaced: O.I.C. 2006-345, N.S. Reg. 134/2006.
12 The maximum indemnity for which the Commission is liable under the contract ofinsurance shall be the amount obtained by multiplying the total guaranteed production bythe established price prescribed in to Section 11.
Production guarantee report
13 (1) The Commission shall issue a production guarantee report to an insured person on orbefore April 30 of the crop year to which it applies.
(2) A production guarantee report must
(a) set out detailed information about the expected yield and grade of the insuredperson’s crop;
(b) state the amount of insurance coverage offered by the Commission to theinsured person; and
(c) state the total guaranteed production offered by the Commission to the insuredperson.
(3) The premium payable for a crop year shall be based on the amount of insurancecoverage stated in the production guarantee report for the crop year.
(4) If the Commission receives information indicating that the productive capability of atree fruit orchard has changed, it may revise the production guarantee report in any orall respects and adjust the premium accordingly and, if so, shall notify the insuredperson in writing respecting the revision and adjustment.
(5) An insured person shall be deemed to have agreed with the revision and adjustmentby the Commission under subsection (4) unless, within 10 days following mailing ordelivery of the notification by the Commission, the insured person notifies theCommission in writing that the insured person rejects the revision and adjustment.
(6) If the Commission receives notice from an insured person under subsection (5), itmay notify the insured person in writing that the contract of insurance does not applyfor the crop year to which the production guarantee report applies and, if so, shallrefund the premium deposit paid in respect of that crop year.
(7) A production guarantee report that is revised under subsection (4) shall, failingnotice under subsection (5), be the production guarantee report for the crop year.
14 (1) The base premium rate shall be based on a methodology set by an actuary andapproved by the Commission.
(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 under 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.
Subsection 14(5) amended: O.I.C. 2012-6, N.S. Reg. 17/2012.
Section 14 replaced: O.I.C. 2006-345, N.S. Reg. 134/2006.
15 (1) An insured person shall pay the premium less the premium deposit required byclause 6(b) to the Commission 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.
Section 16 repealed: O.I.C. 2012-6, N.S. Reg. 17/2012.
17 (1) All the area of tree fruit owned or operated by an insured person in a crop year shallbe harvested unless the Commission consents in writing to a written request by aninsured person to abandon or destroy any part of the insured crop.
(2) If part of an insured crop is abandoned or destroyed without the consent required bysubsection (1), the guaranteed production shall be adjusted at a level not to exceedthe total guaranteed production in effect.
Section 18 repealed: O.I.C. 2012-6, N.S. Reg. 17/2012.
Final date for harvest
19 (1) The final date for harvest in a crop year shall be 1 of the following:
(a) 12:00 noon on October 23 for all varieties of apples, except for the variety Spy,and all varieties of pears;
(b) 12:00 noon on October 26 for the variety Spy;
(c) 12:00 noon on September 30 for all varieties of peaches;
(d) a date determined by the Commission.
(2) The Commission may establish a potential yield for any insured area not harvestedby the final harvest date.
Section 19 replaced: O.I.C. 2011-145, N.S. Reg. 170/2011.
Harvest yield report
20 On or before January 15 annually, an insured person must file a harvest yield report on aharvest yield report form provided by the Commission for this purpose.
Section 20 replaced: O.I.C. 2009-39, N.S. Reg. 28/2009.
Evaluation of yield loss
21 For the purpose of determining the reduction in yield of tree fruit in a crop year and anyindemnity payable,
(a) the actual production of the total area harvested for apples, the actualproduction of the total area harvested for peaches and the actual production ofthe total area harvested for pears shall be taken into account separately; and
(b) the actual production shall be adjusted based on the quality blend of apples, thequality blend of peaches or the quality blend of pears harvested, based on amethod approved by the Commission.
Section 21 replaced: O.I.C. 2011-145, N.S. Reg. 170/2011.
Deadline for notice of claim resulting from reduction in yield
22 For the purpose of clause 11(2)(b) of the terms and conditions of the Contract ofInsurance, a notice of claim under this plan as a result of a reduction in yield must begiven no later than January 15 in the year following the end of the crop year for which theclaim is being made.
Section 22 and heading replaced: O.I.C. 2012-6, N.S. Reg. 17/2012.
Apples eligible for storage coverage
23 (1) All late-variety apples, except Gravenstein apples, that are placed in storage for thepurpose of marketing as fresh or processing apples are eligible for apple storagecoverage under a contract of insurance.
Subsection 23(2) repealed: O.I.C. 2015-165, N.S. Reg. 233/2015.
Section 24 repealed: O.I.C. 2012-6, N.S. Reg. 17/2012.
Final date for apple storage coverage
25 (1) The final date for apple storage coverage is
(a) December 31 in the year of harvest for fresh and processing apples in coldstorage; or
(b) June 30 of the year following the year of harvest for fresh apples in controlledatmosphere storage.
(2) Coverage during the period between the final date for harvest determined pursuant toSection 19 and the final date for insurance protection pursuant to subsection (1) shallbe limited to storage losses resulting from one or more of the designated perils.
Evaluation of apple storage loss
26 (1) The volume of all apples in storage in the Province on November 15 in a crop yearshall be the basis for evaluating claims under this Section.
(2) Before an insured person is eligible to make a claim for apple storage loss, thestorage losses must affect at least
(a) 10% of all apples in storage; or
(b) 60% of all apples of a specific variety in storage.
Subsection 26(2) replaced: O.I.C. 2015-165, N.S. Reg. 233/2015.
Subsection 26(3) repealed: O.I.C. 2015-165, N.S. Reg. 233/2015.
(4) Each pound of fresh or processing apples that is lost in storage and for which aninsured person is eligible to make a claim pursuant to subsection (2) shall be valuedfor the purpose of the insured person’s production guarantee report at 80% of itsestablished price.
Subsection 26(4) amended: O.I.C. 2015-165, N.S. Reg. 233/2015.
(5) No indemnity shall be paid for loss in storage unless an insured person establishes tothe satisfaction of the Commission that the loss
(a) resulted directly from one or more designated perils; and
(b) was not caused by management of the storage facility.
Subsection 26(5) replaced: O.I.C. 2015-165, N.S. Reg. 233/2015.
Final adjustment of apple storage loss
27 An indemnity payable to an insured person for production losses and for storage losses shall not exceed the value of the total guaranteed production as stated on the productionguarantee report made pursuant to Section 13.
Section 28 repealed: O.I.C. 2012-6, N.S. Reg. 17/2012.