AFSC Benefit Eligibility for Unharvested Crops

October 26, 2016

 

AFSC Benefit Eligibility for Unharvested Crops

 

Highlights

  • Producers who cannot harvest a crop due to snow cover must detail unharvested acres on their Crop Harvest Production Report.

  • Crop Harvest Production Reports are due on November 15, 2016.

  • Depending on eligibility, insured clients may receive a Basic Unharvested Acreage Benefit and/or Supplementary Unharvested Acreage Benefit

Wet weather conditions throughout the 2016 harvest season are challenging the ability of producers to get crops off the field. If you have Annual Crop Insurance with Agriculture Financial Services Corporation (AFSC), you may be eligible for an Unharvested Acreage Benefit. Any client who holds Annual Crop Insurance with AFSC must detail unharvested acres on their Crop Harvest Production Reports, which must be filed by November 15, 2016.

There are two types of Unharvested Acreage Benefits that a producer may be eligible to receive - the Basic Unharvested Acreage Benefit and the Supplementary Unharvested Acreage Benefit. When calculated, these advances are deducted from the final post-harvest indemnity. Insured producers may be liable to repay some or all of the Supplementary Unharvested Acreage Benefit if the sum exceeds the post-harvest indemnity.
 

Basic Unharvested Acreage Benefit

The Basic Unharvested Acreage Benefit provides a payment of 25 per cent of the producer’s coverage on a per-acre basis for unharvested acres. The unharvested acres must be in excess of 20 per cent of the total insured acres for that crop. The advance covers the difference between the total harvested acres and the number of eligible unharvested acres.

 

Example: A producer has 1000 insured acres, but can only harvest 700. After deducting 20 per cent of the total insured acres (1000 - 200 acres), only 800 acres are eligible for a Basic Advance. Because the producer has already harvested 700 acres, the producer receives a Basic Unharvested Acreage Benefit payment on the remaining 100 eligible unharvested acres.


Eligibility 

  • Crop Harvest Production Reports (including details of unharvested acres) must be filed by November 15, 2016.

  • The Harvest Production Report must show confirmation that a minimum of 20 per cent of insured crop acres were left unharvested.

  • Adjusted production, excluding unharvested acres, must be less than the total coverage for all insured crop acres.

  • AFSC must determine that unharvested acres were not a result of management practices.

  • AFSC must consider it impractical for the producer to have harvested the crop.

Supplementary Unharvested Acreage Benefit

If the Basic Unharvested Acreage Benefit is less than 50 per cent of the estimated Post Harvest Indemnity, a Supplementary Unharvested Acreage Benefit will be calculated and issued.

Eligibility:

  • Crop Harvest Production Reports must be filed by November 15, 2016 (including details of unharvested acres).

  • The Basic Unharvested Acreage Benefit is less than 50 per cent of the estimated Post Harvest Indemnity.

Note: An insured producer may be eligible for the Supplementary Unharvested Acreage Benefit without receiving a Basic Unharvested Acreage Benefit. Contact your local Branch Office for more details.

For more information about the Unharvested Acreage Benefit, call the client contact centre at 1.877.899.2372, email info@afsc.ca or visit your local Branch Office.

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