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Crop Insurance Plan for Spring Grain

made under Section 6 of the

Crop and Livestock Insurance Act

R.S.N.S. 1989, c. 113

O.I.C. 2003-88 (March 14, 2003), N.S. Reg. 50/2003

as amended up to O.I.C. 2012-6 (January 10, 2012), N.S. Reg. 15/2012


Citation

1     These regulations may be cited as the Crop Insurance Plan for Spring Grain.


Purpose

2     The purpose of this plan is to provide for insurance against a reduction in yield of spring grain resulting from one or more of the perils designated in Section 4.


Interpretation

3     In this plan,

 

“Act” means the Crop and Livestock Insurance Act;

Definition added: O.I.C. 2012-6, N.S. Reg. 15/2012.

 

“average insurable yield” means the average insurable yield of an insurable spring grain crop determined in accordance with subsection 10(3);

Definition replaced: O.I.C. 2006-345, N.S. Reg. 132/2006.

 

“designated perils” means the perils designated in Section 4 for the purpose of this plan;

 

“final seeding report” means a signed declaration of all planted area of spring grain submitted to the Commission by an insured person pursuant to Section 15;

 

“mixed grain” means any seed mixture that is seeded to be harvested for grain and that includes both oats and barley;

 

“pedigreed seed” refers to a variety of oats, barley and wheat that has the minimum classification of “Certified” seed issued by the Canadian Seed Growers’ Association and that is produced in Nova Scotia only for seed production;

 

“spring grain” means varieties of oats, barley, wheat and mixed grain accepted by the Commission for insurance coverage;

 

“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. 15/2012.

 

“total guaranteed production” means the total guaranteed production determined pursuant to Section 10;

 

“Zone 1” means the area of the Province that consists of the Municipality of the District of West Hants, Kings County and Annapolis County;

Definition added: O.I.C. 2006-345, N.S. Reg. 132/2006.

 

“Zone 2” means all areas of the Province outside Zone 1.

Definition added: O.I.C. 2006-345, N.S. Reg. 132/2006.


Designation of perils

4     The following are designated as perils for spring grain:

 

                (a)    drought;

                (b)    frost;

                (c)    hail;

                (d)    wind;

                (e)    excessive moisture;

                (f)    insects;

                (g)    plant disease; and

                (h)    wildlife.


Designation of crop year

5     The crop year for spring grain is the period from March 15 in any year to September 30 of the same year.


Section 6 repealed: O.I.C. 2012-6, N.S. Reg. 15/2012.


Section 7 repealed: O.I.C. 2012-6, N.S. Reg. 15/2012.


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 March 15 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. 15/2012.


Coverage

9     (1)    All the area of spring grain owned or operated by an insured person and to be harvested shall be offered for insurance coverage.

 

       (2)    The Commission may insure all or part of the area of spring grain offered for insurance coverage.

Subsection 9(3) replaced: O.I.C. 2006-345, N.S. Reg. 132/2006.

 

       (3)    Upon application in writing by an insured person, the Commission may insure a spring 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. 132/2006.


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 spring grain for the purpose of determining the guaranteed production for that crop in a crop year.

 

       (2)    The total guaranteed production for an insured spring grain crop shall be determined by multiplying the selected coverage level by the average insurable yield for the total area of that insured spring grain crop.

 

       (3)    The average insurable yield of an insurable spring grain 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. 132/2006.


Established prices

11   (1)    For each crop year, the Commission shall establish price options for each insurable spring grain crop, and shall announce these options to insured persons before the beginning of the crop year.

 

       (2)    For pedigreed seed, the price options shall be increased by $25 per tonne.

 

       (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.

Section 11 replaced: O.I.C. 2006-345, N.S. Reg. 132/2006.


Maximum indemnity

12   The maximum indemnity for which the Commission is liable under a contract of insurance shall be the amount obtained by multiplying the total guaranteed production by the established price selected pursuant to subsection 11(3).


Premium

13   (1)    The base premium rate shall be based on a methodology set by an actuary and approved by the Commission.

Subsection 13(1) replaced: O.I.C. 2006-345, N.S. Reg. 132/2006.

 

       (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.

Subsection 13(4) replaced: O.I.C. 2006-345, N.S. Reg. 132/2006.

 

       (5)    The premium determined pursuant to 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.


Whole farm adjustment option

13A (1)  An insured person may elect to include a whole farm adjustment option in their contract of insurance.

 

       (2)    An insured person who elects to include a whole farm adjustment option in their contract of insurance

 

                (a)    pays a reduced premium in accordance with a discount schedule developed by an actuary for this purpose and approved by the Commission; and

 

                (b)    is paid a reduced indemnity in accordance with Section 29 for an insured crop that has a yield lower than the total guaranteed production for that crop if another insured crop exceeds its total guaranteed production.

Section 13A added: O.I.C. 2005-148, N.S. Reg. 85/2005.

 

14   (1)    An insured person shall pay the premium less any premium deposit 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.


Final seeding report

15   (1)    No later than 10 days after the final planting date, an insured person shall file a final seeding report with the Commission on a seeding report form provided by the Commission for this purpose.

Subsection 15(1) replaced: O.I.C. 2006-345, N.S. Reg. 132/2006.

 

       (2)    The final seeding report filed with the Commission shall not be amended by an insured person without the consent in writing of the Commission.

 

       (3)    The Commission may revise the final seeding report in any or all respects and adjust the premium accordingly, and in this case shall notify an insured person in writing respecting the revision and adjustment.

 

       (4)    An insured person shall be deemed to have agreed with the revision and adjustment by the Commission under subsection (3) unless, within 10 days from 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.

 

       (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 not apply for the crop year in which the final seeding report was filed and, when notification is given, shall refund any premium deposit paid in respect of that crop year.

 

       (6)    A final seeding report revised under subsection (3) shall, failing notice under subsection (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 the Commission 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 which the report was prepared.


Incorrect area in final seeding report

16   (1)    The Commission may measure the insured area by any method that it considers appropriate.

 

       (2)    Despite Section 10, where the actual measured area of spring grain in a crop year is less than the insured area, the total guaranteed production and the amount of insurance shall be reduced accordingly and no refund of premium shall be made.

 

       (3)    Despite Section 10, where the actual area of spring grain in a crop year exceeds the insured area, the measured area yield will be pro-rated to the insured area in calculating indemnity payable.


Final planting date

17   (1)    The final date for planting spring grain shall be June 15 in Zone 1 and June 8 in Zone 2.

 

       (2)    Despite subsection (1), the Commission may insure any area of spring grain planted up to 7 days after the final planting date, but shall reduce the coverage on that area by 5% for each day after the final planting date that the area remains unplanted.

Section 17 replaced: O.I.C. 2006-345, N.S. Reg. 132/2006.


Section 18 repealed: O.I.C. 2012-6, N.S. Reg. 15/2012.


Carry-over of stored grain

19   If, prior to harvest, an insured person believes that they will have a claim on an insured crop, and if the insured person has any carry-over of spring grain in storage, the insured person must report the carry-over in writing, before the beginning of harvest, or the Commission may regard the carry-over as new production.


Harvesting

20   (1)    All spring grain planted by an insured person in a crop year shall be harvested unless the 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 an insured 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 spring grain crop is to be placed in a separate storage.

 

       (4)    Unless prior permission is granted and measurements recorded, failure to keep each harvested spring grain crop in a separate storage may jeopardize any indemnity otherwise payable.


Section 21 repealed: O.I.C. 2012-6, N.S. Reg. 15/2012.


Final date for harvest

22   The final date for harvest shall be September 30 or any other date as may be determined by the Commission, and the Commission may establish a potential yield for any insured area not harvested by this date.


Harvest yield report

23   No later than 30 days after the completion of harvest, an insured person must file a harvest yield report with the Commission on a harvest yield report form provided by the Commission for this purpose.

Section 23 replaced: O.I.C. 2009-39, N.S. Reg. 23/2009.


Evaluation of loss

24   For the purpose of determining the reduction in yield of an insured crop in a crop year and any indemnity payable, the value of each crop shall progress through Stages 1 to 3, as prescribed in Sections 25, 26, 27 and 28, and the final adjustment of loss pursuant to Section 29.


Stage 1

25   (1)    Stage 1 comprises the period from the date on which seeding of spring grain is completed to a date 30 days later.

 

       (2)    Where loss or damage from one or more designated perils occurs to an insured crop during Stage 1, the Commission, upon application in writing by the insured person, may consent in writing to a 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 damaged area pursuant to subsection (2), and the area is removed from production, the insurance for the year shall be deemed to be cancelled on the portion of the insured crop that is on the damaged area and the amount of loss for the insured crop shall be calculated by multiplying the guaranteed production of the damaged area by the product of the established price and the applicable stage 1 payout rate set out in the following table:


Crop

Stage 1 Payout Rate as % of Established Price

Oats

65%

Barley

65%

Mixed Grain

65%

Feed Wheat

50%

Milling Wheat

50%

 

       (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 insured person in writing that it intends to terminate insurance coverage on the portion of the insured crop that is on the damaged area and calculate the amount of loss pursuant to subsection (3) for the damaged area.


Reseeding

26   (1)    Where loss or damage from one or more designated perils occurs to 2 hectares or more of an insured crop during Stage 1, the Commission may consent in writing to a written request to reseed the damaged area prior to the final planting date and, when consent is given, shall compensate the insured person pursuant to subsection (2) or (3).

 

       (2)    When the Commission consents to the reseeding of a damaged area pursuant to subsection (1), the Commission shall pay the insured person an amount equal to 25% of the established price multiplied by the guaranteed production for that damaged area.

 

       (3)    When a damaged area is reseeded in accordance with this Section to an insured spring grain crop, the contract of insurance shall continue to apply to the reseeded area.


Stage 2

27   (1)    Stage 2 comprises the period from the end of Stage 1 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 crop during 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 the Commission shall determine the size of the damaged area and the potential production.

 

       (3)    When

 

                (a)    consent is given to use a damaged area for another purpose pursuant to subsection (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 final harvest date determined pursuant to Section 22 and the harvesting was prevented by a designated peril,

 

then the amount of loss that is taken into account in the final adjustment of loss shall be calculated by multiplying the difference between the guaranteed production for the damaged or unharvested area and the potential production determined under subsection (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 abandoned or destroyed despite the Commission’s consent, the amount of loss calculated under subsection (3) shall not be taken into account in the final adjustment of loss.


Stage 3

28   (1)    Stage 3 applies to the insured area with respect to which harvesting has been completed.

 

       (2)    When the actual production of the harvested area is less than the guaranteed production for the area, the amount of loss

 

                (a)    shall be taken into account in the final adjustment of loss for the total insured area; and

 

                (b)    shall be calculated by multiplying the difference between the guaranteed production and the actual production by the established price.

 

       (3)    When a spring grain crop is insured as pedigreed seed, and is rejected for pedigreed seed status as a result of damage from a designated peril, the amount of loss shall be calculated by multiplying the number of tonnes harvested by $25.


Final adjustment of loss

29   (1)    The indemnity payable respecting the total insured area in the final adjustment of loss shall be the sum of the amounts of loss calculated for each of Stage 1, Stage 2 and Stage 3.

 

       (2)    When the actual production exceeds the guaranteed production of the area, the indemnity payable pursuant to subsection (1) shall be reduced by the amount obtained by multiplying the excess by the established price.

 

       (3)    Despite subsections (1) and (2), if an insured person elects to include a whole farm adjustment option under Section 13A, and the actual production of an insured crop exceeds that crop’s total guaranteed production, the excess must be used to calculate a reduction in any indemnity payable for another insured crop under subsections (1) and (2), by multiplying the amount of the excess by the established price and applying the result against the amount that would otherwise by [be] payable under subsections (1) and (2).

Subsection 29(3) added: O.I.C. 2005-148, N.S. Reg. 85/2005.


Section 30 repealed: O.I.C. 2012-6, N.S. Reg. 15/2012.


Section 31 repealed: O.I.C. 2012-6, N.S. Reg. 15/2012.