Crop Insurance Plan for Winter Grain
made under Section 6 of the
Crop and Livestock Insurance Act
R.S.N.S. 1989, c. 113
O.I.C. 2002-487 (November 1, 2002), N.S. Reg. 134/2002
as amended to O.I.C. 2013-310 (September 3, 2013), N.S. Reg. 298/2013
1 These regulations may be cited as the Crop Insurance Plan for Winter Grain.
2 The purpose of this plan is to provide for insurance against a reduction in yield of wintergrain 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. 21/2012.
“average insurable yield” means the average insurable yield of an insurable wintergrain crop determined in accordance with subsection 10(3);
Definition replaced: O.I.C. 2006-345, N.S. Reg. 137/2006.
Definition of “contract of insurance” repealed: O.I.C. 2012-6, N.S. Reg. 21/2012.
“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 winter grainsubmitted to the Commission by an insured person pursuant to Section 15;
“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. 21/2012.
“total guaranteed production” means the total guaranteed production determinedpursuant to Section 10;
“winter grain” means all varieties of winter wheat, fall rye and triticale accepted bythe Commission for insurance coverage;
Definition replaced: O.I.C. 2011-145, N.S. Reg. 171/2011.
“Zone 1” means the area of the Province that includes Hants West, Kings andAnnapolis Counties;
Definition replaced: O.I.C. 2013-310, N.S. Reg. 298/2013.
“Zone 2” means the area of the Province that includes East Hants, Halifax andColchester counties;
Definition replaced: O.I.C. 2013-310, N.S. Reg. 298/2013.
“Zone 3” means all areas of the Province outside Zone 1 and Zone 2.
Definition added: O.I.C. 2013-310, N.S. Reg. 298/2013.
Section 3 clause letters removed: O.I.C. 2012-6, N.S. Reg. 21/2012.
Designation of perils
4 The following are designated as perils for winter grain:
(c) excessive moisture;
(g) plant disease;
(h) wildlife; and
(i) winter kill.
Designation of crop year
5 The crop year for winter grain is the period from September 1 in any year to August 31 ofthe next year.
Section 6 repealed: O.I.C. 2012-6, N.S. Reg. 21/2012.
Section 7 repealed: O.I.C. 2012-6, N.S. Reg. 21/2012.
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 September15 in the crop year for which the cancellation is to be effective.
Section 8 and heading replaced: O.I.C. 2012-6, N.S. Reg. 21/2012.
9 (1) All the area of winter 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 winter grain offered forinsurance coverage.
Subsection 9(2) replaced: O.I.C. 2006-345, N.S. Reg. 137/2006.
(3) Upon application in writing by an insured person, the Commission may insure awinter 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. 137/2006.
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 winter grain crop for the purpose ofdetermining the guaranteed production for that crop in a crop year.
(2) The total guaranteed production for an insured winter grain crop shall be determinedby multiplying the selected coverage level by the average insurable yield for the totalarea of that insured winter grain crop.
(3) The average insurable yield of an insurable winter 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. 137/2006.
11 (1) For each crop year, the Commission shall establish price options for each insurablewinter grain crop, and shall announce these options to insured persons before thebeginning of the crop year.
(2) 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. 137/2006.
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(2).
13 (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) to (3) includes premium paymentsmade by the Government of Canada under the Farm Income Protection Act(Canada) and the Province under the Act.
Subsection 13(5) amended: O.I.C. 2012-6, N.S. Reg. 21/2012.
Section 13 replaced: O.I.C. 2006-345, N.S. Reg. 137/2006.
14 (1) An insured person shall pay the premium less any premium deposit to theCommission not later than April 30 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. 137/2006.
(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 winter 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 winter 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 in Zone 3 is September 20, or another date determined forthe year by the Commission.
(2) The final date for planting in Zone 2 is September 27, or another date determined forthe year by the Commission.
(3) The final date for planting in Zone 1 is October 7, or another date determined for theyear by the Commission.
Section 17 replaced: O.I.C. 2013-310, N.S. Reg. 298/2013.
Section 18 repealed: O.I.C. 2012-6, N.S. Reg. 21/2012.
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 grain in storage, the insured personmust report the carry-over in writing before the beginning of harvest, or the Commissionmay regard the carry-over as new production.
20 (1) All winter 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 winter grain crop is to be placed in a separate storage.
(4) Unless prior permission is granted and measurements recorded, failure to keep eachharvested winter grain crop in a separate storage may jeopardize any indemnityotherwise payable.
Section 21 repealed: O.I.C. 2012-6, N.S. Reg. 21/2012.
Final date for harvest
22 The final date for harvest shall be August 31 or any other date as may be determined by theCommission, and the Commission may establish a potential yield for any insured area notharvested 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. 24/2009.
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 and 27, and the final adjustment of loss pursuant to Section28.
25 (1) Stage 1 comprises the period from the date on which seeding of winter grain iscompleted to May 25 in the crop year.
(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 replant the damaged area to another crop or toa request to abandon or destroy the insured crop on the damaged 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,
(a) the insurance for the year shall be deemed to be cancelled on the portion of theinsured crop that is on the damaged area; and
(b) the amount of loss for the insured crop shall be calculated by multiplying theguaranteed production on the damaged area, less any potential productionapplied to the area, by the product of the established price and the applicableStage 1 payout rate set out in the following table:
Rate as % of Established Price
Clause 25(3)(b) replaced: O.I.C. 2011-145, N.S. Reg. 171/2011.
(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) Stage 2 comprises the period from May 26 to the final harvest date in the crop 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.
27 (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
28 (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 29 repealed: O.I.C. 2012-6, N.S. Reg. 21/2012.
Section 30 repealed: O.I.C. 2012-6, N.S. Reg. 21/2012.