Part V Vegetable Crops Insuring Agreement

Part V Vegetable Crops Insuring Agreement Processing Vegetables Average Farm Yield Basis A. General This Part applies to processing butternut squash, processing carrots, processing cucumbers, processing green and wax beans, processing green peas, processing lima beans, processing potatoes, processing red beets, sugar beets, processing sweet corn, and processing tomatoes, all as defined in this Part. The insurance provided by this Part is limited to the acreage of insured crop grown under contract to a licensed processor. Agricorp agrees to pay the indemnities set out in this Part for loss of or damage to an insured crop caused by an insured peril, in accordance with the provisions of this Part and any Production Insurance Document applicable to the insured crop. The limits on the amounts payable under this Part are shown in the Application as approved by Agricorp, or the confirmation of insurance, or Renewal Notice applicable to the insured crop. Except as specifically provided otherwise, the provisions of Part I of this document apply to this Part. Where there is any conflict between the provisions of Part I and the provisions specifically set out in this Part, or between the provisions of Part I and the provisions of any Production Insurance Document to which this Part applies, this Part or the Production Insurance Document, as the case may be, take precedence. Where there is any conflict between a provision in this Part and a provision in a Production Insurance Document to which this Part applies, the provisions in this Part take precedence. All acres of insurable crop must have been offered to Agricorp for insurance in order for this Part to apply. Except where provided otherwise, the insurance provided by this Part shall be in force for the crop year in respect of which it is made, and shall continue in force for each crop year thereafter until it is cancelled or terminated in accordance with the terms of the Contract. The insurance provided by this Part is subject to such additional conditions or limitations as may be set out in an applicable Production Insurance Document. B. Definitions In this Part: y-passed acreage or by-passed crop means acreage that was suitable for harvesting and processing but was not harvested because of excessive rainfall and/or excessive heat or other insured perils as determined by Agricorp in its sole discretion. Suitable to harvest means a crop has reached the minimum level of maturity. Suitable to process means a crop is of consumable quality. Acreage or crop that is by-passed for any reason other than that an insured peril prevented harvesting is not by-passed acreage or y-passed crop within the meaning of the Contract. hand-picked processing cucumbe means hand-picked cucumbers grown for This may also be referred to as cucumbers-hand. achine-harvested processing cucumbe means machine-harvested cucumbers grown for This may also be referred to as cucumbers-machine. ultiple harvest perio means two or more separate harvest periods with one contracted processor or multiple contracted processors. rocessing means canning, dehydrating, drying, freezing, pickling, or processing with sugar or sulphur dioxide or any other chemical or by heat, and combining or mixing one or more processing crops under a processing contract. rocessing butternut squas means butternut squash grown for rocessing carrots means carrots grown for rocessing cucumbers means hand-picked processing cucumbers or machine-harvested processing cucumbers. rocessing green and wax be means green and wax beans grown for rocessing green pe means green peas grown for rocessing lima beans means lima beans grown for rocessing potatoe means potatoes grown for rocessing red beets means red beets grown for rocessing sweet cor means sweet corn grown for rocessing tomatoe means tomatoes grown for quota clause is a negotiated limit to the processo liability for unharvested acreage as described in the growe industry contract. cancelled, amended, or replaced. 5.1

Seed Cost Benefit means a claim paid by Agricorp to compensate the Insured or processor for the cost of the seed utilized to plant the original crop. separate harvest perio means multiple harvest periods separated by at least three days of a minimum of 30 acres for each harvest period. The harvest period is established once plantings are completed. sugar beet means sugar beets grown under a processing contract. zero production means yield decreased by an insured peril to the point that it is not economically feasible to harvest the crop which determination is at the discretion of Agricorp. C. Insured Perils Except where otherwise provided, the insurance provided by this Part applies only during the period from seeding or planting until harvest. Loss or damage due to storage conditions, howsoever caused, is not insured. The insured perils that apply to the crops insured under this Part are as set out below. hand-picked processing cucumbers: drought, excessive rainfall, flood, frost, hail, wildlife, wind, freeze, insect infestation and plant disease provided good farm machine-harvested processing cucumbers: drought, excessive rainfall, flood, frost, hail, wildlife, wind, freeze, processing butternut squash: drought, excessive heat, excessive rainfall, flood, frost, hail, wildlife, wind, freeze, processing carrots: drought, excessive heat, excessive rainfall, flood, frost, hail, wildlife, wind, freeze, insect infestation and plant disease provided good farm processing green and wax beans: drought, excessive heat, blossom set failure due to adverse weather conditions, excessive moisture, excessive rainfall, flood, frost, hail, wildlife, wind, insect infestation and plant disease provided good farm processing green peas: drought, excessive heat, excessive moisture, excessive rainfall, flood, frost, hail, wind, wildlife and blossom set failure due to adverse weather conditions, processing lima beans: drought, excessive heat, excessive moisture, excessive rainfall, flood, frost, hail, wildlife, wind, processing potatoes: drought, excessive moisture, excessive rainfall, flood, frost, hail, insect infestation and plant disease provided good farm management practices are followed, wildlife and wind. processing red beets: drought, excessive moisture, excessive rainfall, flood, frost, hail, wildlife, wind, freeze, sugar beets: drought, excessive moisture, excessive rainfall, flood, frost, hail, wildlife, wind, snow, freeze, insect infestation and plant disease provided good farm processing sweet corn: drought, excessive heat, excessive moisture, excessive rainfall, flood, frost, hail, wildlife, wind, processing tomatoes: abnormally cool weather, drought, excess rainfall, flood, frost, hail, sun scald, wildlife, wind, blossom set failure due to adverse weather conditions, D. Final Acreage Reporting The Insured shall report to Agricorp in each crop year the final acreage planted, in the form specified by Agricorp immediately following completion of seeding or planting and in any event not later than the date specified by Agricorp. In respect of machine-harvested processing cucumbers, processing green peas, processing green and wax beans, processing lima beans, processing sweet corn and processing tomatoes, the processor shall declare the final acreage and report the final acreage by the date specified by Agricorp. In respect of sugar beets, acres planted to sugar beets must be reported to Agricorp immediately after planting. In respect of processing butternut squash, processing carrots, hand-picked processing cucumbers, processing potatoes sugar beets and processing red beets, the final acreage report declaring final acreage shall be reported within ten days after seeding or planting. E. Indemnities 1. Production Shortfall Indemnity Agricorp will pay a production shortfall indemnity where, as a result of an insured peril, harvested production is less than guaranteed production. The amount of indemnity payable will be determined in accordance with the provisions of the Contract including, but not limited to, all limitations on insurable acreage or insurable crops, deductibles, and any other restriction on the amount cancelled, amended, or replaced. 5.2

payable, and on the basis of the applicable coverage level. 2. Production Shortfall Indemnity, Separate Harvest Coverage (SHC) This section applies to processing sweet corn, processing green peas and processing green and wax beans only. Where the insured crop has more than one harvest period in a crop year, the Insured may choose a separate production guarantee for each harvest period up to a maximum of three per processing contract. Acreage grown for two or more different processors that meets the criteria of a minimum of three days between harvest periods and a minimum of 30 acres for each harvest period is deemed to be grown in separate harvest periods. The harvested production from one harvest period will not offset the harvested production from another harvest period. If an insured peril reduces the yield on acreage insured under this coverage below the guaranteed production, Agricorp will pay a production shortfall indemnity on the difference in respect of that acreage, in accordance with the provisions of Part I, this Part and any applicable Production Insurance Document. 3. By-Passed Acreage Indemnity This section applies to processing green and wax beans, processing green peas, processing lima beans, and processing sweet corn. Where acreage that is planted to these crops was suitable to harvest and suitable to process but was not harvested because of excessive rainfall, excessive heat, or other insured perils acceptable to Agricorp, a by-passed acreage indemnity, as defined in this Part, is payable. Where such an indemnity is payable, the basis of payment is as set out in the Production Insurance Document applicable to the insured crop. For processing sweet corn and processing green and wax beans, planted acreage resulting in production in excess of the Insure quota in a processing contract with a processor is not eligible for the By-Passed Acreage Indemnity where the processor has invoked the quota clause in the processing contract. Where a processor invokes the quota clause in a processing contract, yield in excess of guaranteed production on harvested early maturing acres will be set off against the lost yield from unharvested acres for the purpose of determining whether there has been a production shortfall to which the production shortfall indemnity applies. This benefit is available in the event of damage to processing tomatoes due to blossom end rot or hail. The amount and basis of the benefit is set out in the Production Insurance Document applicable to the insured crop. 5. Seed Cost Benefit This section applies to Processing Green Peas, Processing Green and Wax Beans, Processing Lima Beans and Processing Sweet Corn only. This benefit is available where an insured peril results in a reseeding claim, a by-pass claim, or zero production claim. The seed cost claim will be the cost of the seed utilized up to a maximum value as set out in the Ontario Processing Vegetable Growers Crop Agreement for the specific crop year. Where the Insured has reached guaranteed production on the total planted acres in the total production plan or separate harvest period, then this benefit will not apply. The amount and basis of the benefit is set out in the Production Insurance Document applicable to the insured crop. 6. The Quota Clause This section applies to Processing Sweet Corn and Green and Wax Beans only. If an Insured harvests their maximum contracted tonnage with the processor and the processor invokes the quota clause, as set out in the Ontario Processing Vegetable Growers Crop Agreement for the specific crop year, any acreage remaining unharvested will not be eligible for the by-passed acreage benefit or a production claim unless the Insured has Separate Harvest Coverage in which case each unit is evaluated separately. If the processor invokes the quota clause, the annual yield will be calculated based on the total harvested yield plus the potential yield from all unharvested acres on which the quota was invoked. The potential yield to be added for unharvested acres will be the average harvested yield per acre grown in that year. Where the Insured has Separate Harvest Coverage and the quota clause is applied, the average yield per acre in the harvest period will be added to the quota acres in the harvest period. Agricorp must be notified at the time the quota clause was invoked by the processor and/or the Insured. The quota acres will be measured to ensure that an accurate yield is recorded for all acres. This high yield may offset low yields on additional plantings and acreage. 4. Processing Tomato Salvage Benefit F. Unseeded Acreage Benefit (USAB) cancelled, amended, or replaced. 5.3

Eligible crops: all crops insured under this Part except processing green peas, processing potatoes, processing red beets, and sugar beets. Agricorp will pay Unseeded Acreage Benefits in accordance with the provisions of the Contract. The amount of insurance payable on eligible unseeded acreage is set out in the Contract and is subject to all limitations on insurable acreage or insurable crops, deductibles, and any other restriction on the amount payable. All acres of insurable crop must have been offered to Agricorp for insurance under this benefit in order for this benefit to apply. The Insured must notify Agricorp by the deadline established by Agricorp when an insured peril prevents the Insured from planting all or part of their seeded acreage. The deadlines for reporting for USAB purposes are June 5 for processing tomatoes, June 15 for hand-picked processing cucumbers, processing butternut squash, processing carrots, processing lima beans and processing sweet corn and June 30 for processing green and wax beans and machine-harvested processing cucumbers. If the insured acreage increases by more than ten percent (10%) over the previous ye planted acreage, the Insured must notify Agricorp of the acreage increase by May 1. Failure to report increased acreage over the previous year may result in denial of benefits on some or all unseeded acres. No Unseeded Acreage Benefit is payable in respect of: a. sod fields not properly prepared by May 1, or by any other date specified by Agricorp; b. woodlots, orchards, and fall-seeded land; c. acreage intended for summer fallow; d. acreage not in crop in the previous year; e. affected acreage unless a significant number of other Insureds were similarly affected in the area where the insured acreage is located; f. acreage exceeding the acreage indicated on the Application or Renewal; g. acreage declared unacceptable by Agricorp; h. unseeded acres of three or less acres for tiled land, or unseeded acres of six or less acres on untiled land. The following deductibles apply: a. On tiled land: the greater of three acres or one percent of the acres that remain unseeded. b. On untiled land: the greater of six acres or three percent of the acres that remain unseeded. c. An additional deductible in an amount of $1.00 per acre, or as otherwise specified by Agricorp, will be deducted from the claim for all eligible acres. An additional deductible in an amount per acre as specified in the applicable Production Insurance Document will be deducted from the claim in the case of either tiled or untiled land. Specific conditions are as follows: machine-harvested processing cucumbers, processing green and wax beans, processing lima beans, processing sweet corn, and processing carrots: USAB claims will not be paid if the number of unseeded acres is three or less..usab acres are based on the original acres contracted with the processor. Processing tomatoes: USAB claims will not be paid if the number of unseeded acres is one acre or less. The USAB acres are based on the original acres contracted with the processor. processing butternut squash and hand-picked processing cucumbers: Hand-picked processing cucumbers and processing butternut squash qualify for unseeded acreage benefit under Part 2, Section F. The land in which the hand-picked processing cucumbers or processing butternut squash was to be planted must be part of the total acreage insured. All of the Insure springseeded crops must be insured. Unseeded acreage claims are paid based on the original contracted tonnage. The original contracted tonnage will be used to determine intended acres. Eligible USAB acres will be the difference between intended acres and final acres planted. G. Reseeding or Replanting Benefits This section applies to all of the crops insured under this Part V. Where it is necessary to reseed or replant an insured crop because of damage to an insured crop occurring before the applicable reseeding or replanting deadline and caused by an insured peril, Agricorp shall pay reseeding or replanting benefits in respect of any insured crop to which this benefit applies in accordance with the Contract. Reseeding or replanting benefits are paid whether the crop is reseeded or replanted to the same crop or to any other crop. If it is reseeded or replanted to the same crop, insurance will continue on the total number of acres planted to that crop. If it is reseeded or replanted to a different insurable crop it will be insured as well, provided that the application for insurance on that crop was made by the applicable deadline, or an application was made for the Unseeded Acreage Benefit. The reseeding or replanting benefit is paid based on the crop that was originally planted. The total number of acres on which a reseeding or replanting benefit is paid in a crop year shall not exceed the total number of insured acres originally planted for that crop. The minimum acreage eligible for a reseeding or replanting benefit for processing carrots and hand-picked processing cucumbers is one contiguous acre. The minimum acreage cancelled, amended, or replaced. 5.4

eligible for a reseeding or replanting benefit for processing butternut squash, processing green and wax beans, processing green peas, processing lima beans, processing potatoes, processing red beets, sugar beets, and processing sweet corn is three contiguous acres. A replanting benefit for processing tomatoes is payable under this provision if an insured peril results in replanting in excess of eight percent (8%) of the Insure original plant order or in damage to at least one contiguous acre. The replanting benefit will cover the cost of transplants exceeding eight percent (8%) of the Insure original plant order, in addition to labour and tillage costs, where applicable. The cost of transplants will be the lesser of the cost of 14,000 transplants per acre (industry standard) or the cost of actual transplants used, using the rate per plant specified in the Ontario Processing Vegetable Growers Crop Agreement for the specific crop year. A benefit is also payable under this provision if a damaged processing tomato crop cannot be replanted back to processing tomatoes but the land can be replanted to an alternative insured crop within the time specified by Agricorp in the Contract. If the reseeding or replanting rate is less than the full recommended rate, this benefit will be prorated by the ratio of the rate used to the full recommended rate. Permission to reseed or replant must be provided by Agricorp prior to reseeding or replanting for this benefit to apply. The reseeding or replanting must be completed by the planting dates in the Contract. If an insured peril significantly damages an insured crop prior to the planting dates, the Insured will be compensated for the costs of reseeding or replanting up to the maximum in accordance with the provisions of the applicable Production Insurance Document. H. General Conditions For those processing crops that are contracted by weight, the guaranteed production is the lesser of: a. the average farm yield as determined by Agricorp multiplied by the selected coverage; or, b. the total tonnage specified in the processing contract between the Insured and the processor. The maximum amount of insurance available under this Part in respect of any insured crop except processing potatoes is the lesser of: a. the insurance price of the total guaranteed production on all planted acres of that crop; or, b. the contracted tonnage set out in the processing contract between the Insured and the processor multiplied by the insurance price. The insurance provided by this Part is subject to additional conditions or limitations as set out in any applicable Production Insurance Document. I. Specific Crop Conditions processing butternut squash, processing carrots, handpicked processing cucumbers, machine-harvested processing cucumbers, processing green and wax beans, processing green peas, processing lima beans, processing red beets, and processing tomatoes: The insurance price will be based on the negotiated price specified in the Ontario Processing Vegetable Growers Crop Agreement for the specific crop year, unless otherwise specified in the applicable Production Insurance Document. Where the negotiated price specified in the Ontario Processing Vegetable Growers Crop Agreement or other contract agreements is negotiated in U.S. currency, Agricorp will convert these prices to Canadian currency using a specific exchange rate period at their own discretion. processing carrots and processing potatoes: No indemnity shall be paid as a result of losses incurred during storage due to any cause or occurring after harvest or after storage commenced. If a crop breaks down or otherwise manifests damage during storage solely as a result of damage caused by an insured peril that occurred prior to harvest, an indemnity is payable in accordance with the provisions of the Contract provided that: a. notice of the peril and or the damage was provided to Agricorp and the crop was inspected by Agricorp prior to harvest; and, b. the damaged crop is clearly identified in storage to the satisfaction of Agricorp; and, c. the Insured has made reasonable efforts to mitigate the damage including, but not limited to, reasonable efforts to sell the damaged crop (the net amount so received shall be deducted from the amount otherwise payable); and, d. no indemnity is payable until the Insured has disposed of the damaged portion of the crop in a manner satisfactory to Agricorp. processing peas: Processing peas planted within a 4-year rotation will not be eligible for production insurance, i.e., once peas are grown in a field, a minimum of 3 consecutive years must elapse with no peas grown in that field before Agricorp will insure the next pea crop grown again in the field. processing potatoes: Yields are based on the gross production (field run) of potatoes or as determined by Agricorp. cancelled, amended, or replaced. 5.5

sugar beets: The yield of potatoes harvested prior to maturity will be adjusted by Agricorp to reflect the yield that would have been achieved if the potatoes had been grown to maturity. Factors are based on annually determined maturity dates. For potatoes that are harvested prior to these dates, the yield is deemed to be equal to the guaranteed production. A deductible as set out in the Contract applies to any indemnity payable for acres not harvested. Provisions for unharvested acres: processing butternut squash, processing carrots, processing red beets and processing tomatoes: Any acreage left unharvested will be excluded from the determination of the harvested yield for farm yield under the following conditions: a. the unharvested crops are in a harvestable and processable state and this is confirmed in writing to Agricorp by the contracted processor of the Insured; b. the Insured has met their guaranteed production based on the lesser of the contracted tonnage or their average farm yield multiplied by the per cent coverage selected on the harvested acres; c. the Insured notifies Agricorp immediately after the processor informs the Insured that they are not accepting any more of the contracted crop at the processing plant; and, d. only acreage left unharvested at the end of the season will be excluded. This unharvested acreage exception does not apply during the harvest season where: a. A claim is paid as a result of an insured peril; or, b. The Insured or processor does not harvest the crop in a harvest period and no insured peril is identified; or, c. An insured peril occurs but no claim is triggered because harvested yield is greater than their guaranteed production. J. Cancellation For the purpose of clause L.2 of Part I of the Contract, the date for processing green peas, processing green and wax beans, processing lima beans, and processing tomatoes is May 1. For processing sweet corn, it is May 10. The Contract of Insurance Terms and Conditions are available by calling 1-888-247-4999 or by visiting www.agricorp.com. (Version française disponible) cancelled, amended, or replaced. 5.6