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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 by O.I.C. 2012-6 (January 10, 2012), N.S. Reg. 17/2012
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 one or more of the perils designated in Section 4; and
(b) apple storage coverage for fresh or processing apples of certain varieties in storage that are lost as a result of one or more of the perils designated in Section 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 fruit crop 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 this plan;
“production guarantee report” means a report by the Commission pursuant to Section 13 respecting the amount of coverage being offered to an insured person;
“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 Field Crop Insurance Plans 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 determined pursuant to Section 10; and
“tree fruit” means all varieties of apples, peaches and pears produced in Nova Scotia that 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 18 bushels.
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 each crop year, and
(ii) for all apple varieties other than McIntosh and for all pear varieties, prior to 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 of the 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 November 30 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 harvested may be offered for insurance coverage.
(2) All the area of peaches owned or operated by an insured person and to be harvested may be offered for insurance coverage.
(3) All the area of pears owned or operated by an insured person and to be harvested may be offered for insurance coverage.
(4) If only one crop is offered for insurance coverage by an insured person pursuant to subsection (1), (2) or (3), that crop must be the major tree fruit crop produced by the insured 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 tree fruit 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 the average insurable yield of an insurable tree fruit crop for the purpose of determining the guaranteed production for that crop in a crop year.
(2) The total guaranteed production for an insured tree fruit crop shall be determined by multiplying the selected coverage level by the average insurable yield for the total area of that insured tree fruit crop.
(3) The average insurable yield of an insurable tree fruit crop is the potential production of that crop as determined by the Commission from the insured person’s yield records, subject to a methodology developed by an actuary and approved by the Commission.
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 insurable tree fruit crop, and shall announce these options to insured persons before the beginning of the crop year.
(2) Subject to subsection (3), an insured person shall select one of the price options as the established price to be used for calculating premium and indemnity in their contract of insurance.
(3) The price option selected by an insured person as the established price shall not exceed the actual average price received by the insured person for their insurable tree fruit 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 of insurance shall be the amount obtained by multiplying the total guaranteed production by the 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 or before 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 insured person’s crop;
(b) state the amount of insurance coverage offered by the Commission to the insured person; and
(c) state the total guaranteed production offered by the Commission to the insured person.
(3) The premium payable for a crop year shall be based on the amount of insurance coverage stated in the production guarantee report for the crop year.
(4) If the Commission receives information indicating that the productive capability of a tree fruit orchard has changed, it may revise the production guarantee report in any or all respects and adjust the premium accordingly and, if so, shall notify the insured person in writing respecting the revision and adjustment.
(5) An insured person shall be deemed to have agreed with the revision and adjustment by the Commission under subsection (4) unless, within 10 days following mailing or delivery of the notification by the Commission, the insured person notifies the Commission in writing that the insured person rejects the revision and adjustment.
(6) If the Commission receives notice from an insured person under subsection (5), it may notify the insured person in writing that the contract of insurance does not apply for the crop year to which the production guarantee report applies and, if so, shall refund the premium deposit paid in respect of that crop year.
(7) A production guarantee report that is revised under subsection (4) shall, failing notice 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 and approved by the Commission.
(2) The base premium rate shall be adjusted by giving a discount when indemnity is less than total premiums paid or adding a surcharge when indemnity exceeds total premiums, 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 the number of years insured in the plan.
(3) Despite subsection (2), the maximum discount shall be 50% and the maximum surcharge shall be 100%.
(4) Despite subsections (1), (2) and (3), the minimum annual premium payable by an insured person in each crop year is $50.
(5) The premium determined under subsections (1), (2) and (3) includes premium payments made by the Government of Canada under the Farm Income Protection Act (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 by clause 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 the Commission 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 shall be harvested unless the Commission consents in writing to a written request by an insured 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 by subsection (1), the guaranteed production shall be adjusted at a level not to exceed the 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 harvested by 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 a harvest 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 any indemnity payable,
(a) the actual production of the total area harvested for apples, the actual production of the total area harvested for peaches and the actual production of the 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, the quality blend of peaches or the quality blend of pears harvested, based on a method 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 of Insurance, a notice of claim under this plan as a result of a reduction in yield must be given no later than January 15 in the year following the end of the crop year for which the claim 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 the purpose of marketing as fresh or processing apples are eligible for apple storage coverage under a contract of insurance.
(2) Despite subsection (1), apples shall be excluded from apple storage coverage if they are
(a) placed in a storage facility that is not registered with the Nova Scotia Fruit Growers’ Association prior to November 15 in a crop year; or
(b) placed in a controlled atmosphere storage facility that does not comply with the Packaged Apples Controlled Atmosphere Designation Regulations made under Section 166 of the Agriculture and Marketing Act.
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 cold storage; or
(b) June 30 of the year following the year of harvest for fresh apples in controlled atmosphere storage.
(2) Coverage during the period between the final date for harvest determined pursuant to Section 19 and the final date for insurance protection pursuant to subsection (1) shall be 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 year shall be the basis for evaluating claims under this Section.
(2) Storage losses must occur in at least 3 separate eligible storage facilities and affect at least 10% of all apples in storage before an insured person is eligible to make a claim for apple storage loss.
(3) Despite subsection (2), if at least 60% of all apples of a specific variety of apples that are in storage is lost in storage because of a designated peril, an insured person is eligible to make a claim for apple storage loss respecting that variety.
(4) Each pound of fresh or processing apples that is lost in storage and for which an insured person is eligible to make a claim pursuant to subsection (2) or (3) shall be valued for the purpose of the insured person’s production guarantee report at 80% of its established price.
(5) Despite subsections (2) and (3), no indemnity shall be paid for loss in storage unless an insured person establishes to the satisfaction of the Commission that the loss resulted directly from one or more designated perils.
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 production guarantee report made pursuant to Section 13.
Section 28 repealed: O.I.C. 2012-6, N.S. Reg. 17/2012.