Crop Insurance Plan for Weather
made under Section 6 of the
Crop and Livestock Insurance Act
R.S.N.S. 1989, c. 113
O.I.C. 2006-343 (effective July 24, 2006), N.S. Reg. 124/2006
amended to O.I.C. 2021-15 (effective January 26, 2021), N.S. Reg. 27/2021
Table of Contents
Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.
Click here to go to the text of the regulations.
Citation
Purpose
Interpretation
Designated perils
Deadline for notice of cancellation of insurance
Insurance coverage limits
Coverage periods
Established dollar-value-per-acre options
Insured crop value
Premium
Designated weather stations
Final acreage declaration
Guaranteed rainfall
Evaluation of loss
Additional coverage for fodder crops
Citation
1 This Plan may be cited as the Crop Insurance Plan for Weather.
Purpose
2 The purpose of this plan is to provide for insurance against a loss in crops as a result of
designated perils related to weather.
Interpretation
3 In this plan,
“Act” means the Crop and Livestock Insurance Act;
“crop year” means the period from May 1 to August 31 in the same year;
“designated peril” means a peril designated in Section 4;
“fodder crop” means a crop that is grown and managed to produce stored livestock
feed and is accepted by the Commission for coverage under this plan, but does not
include a pasture crop;
“forage crop” means
(i) a pasture crop, or
(ii) a fodder crop;
“pasture crop” means a crop of any mixture that is grown and managed for grazing
livestock;
“terms and conditions of the Contract of Insurance” means the terms and conditions
set out in the Contract of Insurance in Form 1 to the General Crop Insurance Plans
Regulations made under the Act.
Designated perils
4 All of the following are designated as perils under this plan:
(a) insufficient rainfall, as determined under Section 15;
(b) extended periods of rain during the month of June in a crop year for fodder
crops, as determined under Section 16.
5 [repealed]
6 [repealed]
Deadline for notice of cancellation of insurance
7 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 April 30 of
the crop year for which the cancellation is to be effective.
Insurance coverage limits
8 (1) Except as provided in subsection (4), any insurable crop offered for insurance may
be insured under this plan.
(2) For forage crops, a person may apply to insure a pasture crop, a fodder crop or both
types of crops, but pasture and fodder crops must be accounted for separately under a
contract of insurance.
(3) The Commission may insure all or part of an insurable crop under this plan.
(4) A crop insured under any other plan under the Act is not insurable under this plan.
Coverage periods
9 (1) A crop is only insurable under this plan for the coverage period for the crop as set
out in this Section, and no indemnity is available for a claim arising for loss
occurring before or after the coverage period.
(2) The coverage period for a fodder crop is one of the following, as selected by the
person applying for insurance:
(a) from May 1 to June 30 in a crop year;
(b) from May 1 to July 31 in a crop year;
(c) from May 1 to August 31 in a crop year.
(3) The coverage period for a pasture crop or a forage crop that consists of both a
pasture crop and a fodder crop is the period from May 1 to August 31 in a crop year.
Established dollar-value-per-acre options
10 (1) Before the beginning of each crop year, the Commission must establish and publish
dollar-value-per-acre options for insurable crops.
(2) An applicant for insurance under this plan must select one of the options established
under subsection (1) as the dollar value per acre to be used for calculating premium
and indemnity in their contract of insurance.
Insured crop value
11 (1) The Commission may measure an insured area by any method it considers
appropriate.
(2) The total crop value is calculated by multiplying the number of insured acres by the
dollar value per acre for the crop under a contract of insurance.
Premium
12 (1) The base premium rates set by the Commission for insurance under this plan must be
based on a methodology set by an actuary and approved by the Commission.
(1A) The base premium rate must be adjusted by a factor approved by the Commission in
consultation with an actuary.
(2) The premium may include premium payments made by the Government of Canada
under the Farm Income Protection Act (Canada) and the Province under the Act.
(3) An additional premium surcharge must be applied to all insured areas of crops for
which additional coverage for fodder crops, as provided for in Section 16, is
included in a contract of insurance.
(4) An applicant for insurance under this plan must pay their share of the total premium
at the time they file their application.
(5) The minimum premium payable by an insured person in a crop year is $50.00.
Designated weather stations
13 (1) Before the beginning of each crop year, the Commission must designate weather
stations to record weather data for the purpose of this Plan.
(2) An applicant for insurance under this plan must select one of the designated weather
stations as their choice for the weather station to be used for weather data used in
calculating coverage and indemnity under their contract of insurance.
(3) The Commission may assign a different designated weather station than the one
selected by the applicant to collect weather data for the purpose of calculating
coverage and indemnity under the applicant’s contract of insurance.
(4) An insured person’s designated weather station, as selected by the applicant or as
assigned by the Commission, must be identified in their contract of insurance.
(5) The Commission must notify an insured person in writing when the designated
weather station identified in their contract of insurance differs from the weather
station the person selected under subsection (2).
Final acreage declaration
13A(1) No later than April 30 in a crop year, an insured person must file a final acreage
declaration with the Commission stating the final acreage to be insured against
drought and the final acreage to be insured against excess rainfall on a form provided
by the Commission.
(2) If an insured person fails to file a final acreage declaration in any crop year, the
Commission may
(a) set the final acreage for each of the insured person’s crops for that crop year; or
(b) deem the insured area to be nil for that crop year.
(3) On setting the final acreage for an insured person’s crop under clause (2)(a), the
Commission must notify the insured person of the final acreage by regular mail or
any other manner of secure delivery that the Commission considers appropriate.
Guaranteed rainfall
14 The guaranteed rainfall under a contract of insurance is 80% of the long term average
rainfall for the coverage period as recorded at the designated weather station identified in
the person’s contract of insurance.
Evaluation of loss
15 (1) The amount of an indemnity payable for insufficient rainfall is calculated by the
following formula:
WRL x VPMR x 1.2
where: WRL = the total weighted rainfall loss for the coverage period
determined from the monthly weighted rainfall losses and surpluses
calculated under subsection (4), and
VPMR = the value per millimeter of rain determined under subsection (5).
(2) The daily rainfall amount used to calculate monthly rainfall amounts and rainfall loss
under a contract of insurance is capped at a maximum of 70 mm and the monthly
rainfall amount used must be 130%, or less, of the long term average rainfall for that
month recorded at the designated weather station identified in the person’s contract
of insurance.
(3) The amount of rainfall loss under a contract of insurance must be calculated by
subtracting the monthly rainfall amount, capped as set out in subsection (2), from the
guaranteed rainfall for that month.
(4) The monthly rainfall loss or surplus determined under subsection (3) must be
multiplied by the following weighted factor:
Month
|
Weighted Factor
|
May
|
1.1
|
June
|
1
|
July
|
1
|
August
|
0.9
|
(5) The value per millimeter of rain must be calculated by dividing the total crop value
by the long-term average rainfall for the coverage period as recorded at the
designated weather station identified in the insured person’s contract of insurance.
Additional coverage for fodder crops
16 (1) In this Section, “rain day” means a day for which 5 mm or more of rainfall is
recorded at the designated weather station identified in the insured person’s contract
of insurance.
(2) An applicant for insurance under this plan may opt to purchase additional coverage
for a fodder crop to cover a weather event consisting of 3 consecutive rain days
recorded during June 1 to June 30 in a crop year.
(3) The indemnity payable to an insured person under this Section is 20% multiplied by
the dollar value per acre for the crop under their contract of insurance.
(4) An insured person may only claim for 2 weather events under this Section in a crop
year.
(5) A rain day cannot be included in more than one weather event under this Section.
17 [repealed]
18 [repealed]
19 [repealed]