Excess Moisture Insurance

Excess Moisture Insurance

Purpose

Excess Moisture Insurance (EMI) provides protection against the inability to seed land due to continuous excess moisture (flooding or rainfall in the spring).

Eligibility

All acres that are ready for crop seeding on or before June 20 (including perennial forages, sod and pasture if these acres are destroyed by June 10 and are ready for seeding) are eligible.

EMI is not provided on the following:

  • Land under sod, pasture or perennial forage, unless the acreage was destroyed on or before June 10 and is ready for spring seeding.
  • Fall rye, winter wheat or fall seeded forages.
  • Land which was not seeded due to excess moisture in the previous year and which could have been worked in that previous year but was not.
  • Land that MASC has deemed to be uninsurable due to high risk of flooding and/or excess moisture.
  • Land added to a producer’s policy after March 31 is only eligible for EMI if it was purchased on or before June 30.

Coverage

  • Basic EMI coverage of $75 per acre is included as part of the AgriInsurance program for all MASC policy holders, subject to a standard 5 per cent deductible.
  • The deductible is calculated on the number of acres that would normally be available for seeding in the spring excluding cultivated land that was seeded the previous fall and land that is in perennial crop, sod, pasture, or bush.
  • An insured’s EMI deductible percentage increases five per cent for each year that they have an EMI claim (that exceeds their base deductible acres) and decreases 5 per cent in each non-claim year to the minimum standard of 5 per cent.
  • If an insured is in a tenant/landlord arrangement and has a claim on one unit, the deductible on the other unit(s) will also increase.
  • November 30 (before the crop year) is the last day to make changes to your EMI selections, including the RDO and HDVO.
  • March 31 is the last day to add rented land for EMI coverage, or apply for, add or delete crops, or to cancel an AgriInsurance policy.

High Dollar Value Options (HDVO)

Producers have the option to buy up coverage from the basic $75 per acre to $100 or $125 per acre. Only one buy-up level can be selected, which will apply to all acres on the producer’s policy.

Reduced Deductible Option (RDO)

This option allows producers to reduce their deductible to five per cent. The Canada Production Insurance Regulations (Federal) require that all insurance programs have a deductible.

Insureds selecting the EMI Reduced Deductible Option are charged additional premium on all acres eligible for EMI.

Cost

  • Basic EMI coverage is provided automatically as part of the AgriInsurance program. EMI premium is based on all cultivated land, not just acres too wet too seed.
  • Producers pay 40 per cent of the premium for the basic $75 per acre coverage.
  • Producers pay 40 per cent of premiums for the HDVOs, up to $100 per acre coverage.
  • Producers pay 67 per cent of the premiums for the top $25 per acre of the $125 per acre option.
  • Producers pay 100 per cent of the RDO premium.
  • The remainder of EMI premiums are funded by the federal and provincial governments.

Claims

Excess Moisture Insurance compensates producers who cannot seed their crops before June 20 due to excessively wet conditions. Excess Moisture Insurance is a basic component of the AgriInsurance program.

A claim is calculated on the number of acres not seeded due to excess moisture, less the EMI deductible multiplied by the Dollar Value ($75, $100 or $125).

An EMI indemnity will not be paid if there are less than 10 acres that were not seeded due to excess moisture on a whole farm basis or by unit if a landlord policy is involved.

Claim Deadline: Claims must be filed early so that an adjustor can verify the acreage and assess the inability to seed.

Claims must be filed by submitting a completed Seeded Acreage Report (SAR) no later than June 22.

  • Claims registered after June 22, but on or before June 30, will be charged a late filing fee of 25 per cent of the claim (to a maximum of $1,000).
  • Claims filed after June 30 will not be accepted.

Claim Process: Excess Moisture Insurance claims are automatically initiated by information you enter on your Seeded Acreage Report. After submitting your Seeded Acreage Report, an adjustor will typically complete an in-field verification of the claim. Once verified, your claim will be processed and payment will be made via your preferred payment method.

EMI Coverage and Producer Share of Premium Costs per acre (2025 crop year)

Producer Deductible

$75 Basic Coverage

$100 HDVO

$125 HDVO

$75 Reduced Deductible Option

$100 HDVO & Reduced Deductible

$125 HDVO & Reduced Deductible

5% Deductible

$1.11

$1.64

$2.81

n/a

$n/a

n/a

10% Deductible

$1.11

$1.92

$3.63

$2.16

$3.32

$5.38

15% Deductible

$1.11

$2.35

$4.85

$4.28

$6.58

$10.14

20% Deductible

$1.11

$3

$6.63

$7.49

$11.51

$17.27

25% Deductible

$1.11

$3.98

$9.24

$11.78

$18.21

$27.03

30% Deductible

$1.11

$5.44

$13.01

$17.16

$26.84

$39.76

35% Deductible

$1.11

$7.61

$18.45

$23.61

$37.61

$55.95

40% and above

$1.11

n/a

n/a

n/a

n/a

n/a

Claim Example 1: Basic EMI Coverage

A producer has 400 acres of cropland. The producer reports that 50 acres were unseeded due to excess moisture. The producer has a 10 per cent deductible and did not select an EMI High Dollar Value Option (HDVO).

Eligible Acres:

= 400

Deductible EMI Acres (10 per cent):

= 10 per cent x 400
 = 40 deductible EMI acres

Acres not seeded:

 = 50

EMI Indemnity:

 = (50 acres – 40 acres) x $75
 = $750

Producer Premium:

 = 400 eligible acres x $1.11

= $444

Claim Example 2: RDO Selected

Using the information in Claim Example 1, if the producer had instead selected the EMI RDO:

  • Only 5 per cent of acres (20) are deductible;
  • 30 acres (50 – 20) would be eligible for an indemnity (30 x $75 = $2250); and
  • Producer premium for EMI with the RDO is $884 (400 acres x $2.16)

Claim Example 3: RDO and HDVO Selected

Using the information in Example 1, if the producer selects the EMI RDO and the $100 HDVO:

  • Only 5 per cent of acres (20) are deductible;
  • 30 acres (50 – 20) would be eligible for a higher dollar payment (30 x $100 = $3000); and
  • Producer premium for EMI with the RDO and $100 HDVO is $1328 (400 acres x $3.32)

Claim Example 4: Below Minimum Acreage

Using the same information as in Example 1, but the producer has eight acres not seeded and has selected the EMI RDO.

  • No claim is payable, as the number of unseeded acres is less than the 10 acre minimum.

Other Program Details

Once the EMI RDO or one of the EMI HDVOs is selected, it remains in effect year after year until the producer deselects it.

Landlords with an AgriInsurance policy will have EMI coverage. The landlord will have the same deductible and dollar value as their tenant and are required to pay their share of the related premium cost.