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Crop Insurance Plan for Grapes

made under Section 6 of the

Crop and Livestock Insurance Act

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

O.I.C. 2015-332 (October 20, 2015), N.S. Reg. 342/2015


1     This plan may be cited as the Crop Insurance Plan for Grapes.


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


3     In this plan,


“Act” means the Crop and Livestock Insurance Act;


“average insurable yield” means the average insurable yield of an insurable grape crop determined in accordance with subsection 8(3);


“designated perils” means the perils designated in Section 4;


“production guarantee report” means a report by the Commission under Section 11 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;


“total guaranteed production” means the total guaranteed production determined under Section 8.

Designation of perils

4     The following are designated as perils for grapes:


                (a)    winter injury;


                (b)    spring frost;


                (c)    hail;


                (d)    fall frost;


                (e)    drought;


                (f)    excessive moisture;


                (g)    unavoidable pollination failure;


                (h)    off-crop due to adverse weather not described in the other designated perils;


                (i)     wind;


                (j)     wildlife for which there is no known control, excluding mice;


                (k)    disease for which there is no known control;


                (l)     insects for which there is no known control.

Designation of crop year

5     The crop year for grapes is the period from November 15 in any year to November 14 of the following year.

Deadline for notice of cancellation of insurance

6     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 October 31 in advance of the crop year for which the cancellation is to be effective.


7     (1)    All of the grape crop that is owned or operated by an insured person and is to be harvested must be offered for insurance coverage.


       (2)    The Commission may insure all or part of a grape crop offered for insurance coverage.


       (3)    French hybrid, Labrusca, and Vinifera varieties of grapes must be insured separately from each other.

Total guaranteed production

8     (1)    An insured person must select a coverage level of 70%, 80%, 85% or 90% of the average insurable yield of an insurable grape crop to determine the guaranteed production for that crop in a crop year.


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


       (3)    The average insurable yield of an insurable grape crop is the potential production of that crop as determined by the Commission from the insured person’s yield records, using a methodology developed by an actuary and approved by the Commission.

Established prices

9     (1)    For each crop year, the Commission must establish price options for each insurable grape crop, and announce these options to insured persons before the beginning of the crop year.


       (2)    An insured person must select the maximum price or a lower option set by the Commission as the established price.


       (3)    The price option an insured person selects as the established price for their insurable grape crop must not exceed the actual average price received by the insured person for their insurable grape crop over the immediately preceding 2 years.

Maximum indemnity

10   The maximum indemnity that the Commission is liable for under a contract of insurance is the amount obtained by multiplying the total guaranteed production by the established price selected under Section 9.

Production guarantee report

11   (1)    The Commission must 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 include all of the following information with respect to the crop year to which it applies:


                (a)    detailed information about the expected yield of the insured person’s crop;


                (b)    a statement of the amount of insurance coverage offered by the Commission to the insured person;


                (c)    a statement of the total guaranteed production for the insured crop.


       (3)    The premium payable for a crop year is based on the amount of insurance coverage stated in the production guarantee report for the crop year.


       (4)    On receiving information indicating that the productive capability of a vineyard has changed, the Commission may revise the production guarantee report in any or all respects and adjust the premium accordingly and, in that case, must notify the insured person in writing.


       (5)    An insured person is deemed to agree with the Commission’s revision and adjustment under subsection (4) unless, no later than 10 days after the date the Commission’s notice is mailed or delivered, the insured person notifies the Commission in writing that they reject the revision and adjustment.


       (6)    On receiving notice from an insured person under subsection (5), the Commission may notify the insured person in writing that the contract of insurance does not apply for the crop year that the production guarantee report applies to and, in that case, the Commission must refund the premium deposit paid in respect of that crop year.


       (7)    Unless the insured person notifies the Commission under subsection (5) that they reject the Commission’s revision and adjustment, a production guarantee report that is revised under subsection (4) is the production guarantee report for the crop year.


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


       (2)    The premium determined under subsection (1) includes premium payments made by the Government of Canada under the Farm Income Protection Act (Canada) and the Province under the Act.


       (3)    Despite subsection (1), the minimum annual premium payable by an insured person in each crop year is $50.


       (4)    An insured person must pay interest of 1.5% per month or $5 per month, whichever is greater, on an overdue account.


13   (1)    All of the grape crop owned or operated by an insured person in a crop year must be harvested unless


                (a)    the insured person makes a written request to the Commission to abandon or destroy any part of the insured crop; and


                (b)    the Commission consents in writing to the written request made under clause (a).


       (2)    If part of an insured crop is abandoned or destroyed without the consent required by subsection (1), the guaranteed production must be reduced accordingly, and no premium refund is payable.

Final date for harvest

14   (1)    The final date for harvest in a crop year is October 31, unless the Commission sets another date.


       (2)    The Commission may establish a potential yield for any insured area not harvested by the final harvest date.

Harvest yield report

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

Evaluation of yield loss

16   To determine the reduction in yield of grapes in a crop year and any indemnity payable, the actual production of the total area harvested for each of French hybrid grapes, Labrusca grapes and Vinifera grapes must be taken into account separately.