Tribunal orders Agricorp to increase grape crop insurance payout Thursday, August 11, 2011 by SUSAN MANNAgricorp must increase the insurance payment it made to grape farmers Joseph and Thomas Knizat for crop losses last year, the Ontario Agriculture Food and Rural Affairs Appeal Tribunal has ruled.Knizat Farm Inc. of Niagara-on-the-Lake was insured to recover 85 per cent of the farm average yield on two owned and three rented vineyards in 2010. After harvest the Knizats were paid 58 per cent on the three rented vineyards rather than the 85 per cent they thought they were entitled to receive, says the Tribunal’s written decision, issued in July. “Agricorp didn’t pay the entire claim up to the insured valued of 85 per cent because a portion of the loss was ‘loss due to uninsured peril’ under the contract of insurance,” the written decision states.The Knizats first filed a complaint with Agricorp’s issues review committee. The complaint was denied. The growers then filed an appeal with the Tribunal.The Tribunal found Agricorp’s current evaluation for payment under the contract for crop insurance to be inadequate and “that a more accurate payout figure relative to the maximum insured value should be applied.” It ordered that the 58 per cent figure be adjusted “to reflect a payout equivalent to 70 per cent effective immediately.”Stephanie Charest, Agricorp communications consultant, says they haven’t made a decision about appealing the Tribunal’s ruling.The Knizats couldn’t be reached for comment.The Tribunal’s decision states Agricorp provided some explanation for some of the losses in some grape varieties but didn’t specifically address the overall average approach the Knizats presented. The presence of frost can also weaken the plants’ ability to deal with disease and grow to their full potential.“The Tribunal panel finds that additional consideration should have been given for the impact of frost damage that occurred in the rented vineyard properties.” It’s also evident Thomas Knizat used his best efforts to protect his grapes from the uninsured perils of black rot and powdery mildew with the proper spraying of all of his grape crops in each of his vineyards.The panel heard some differences among the witnesses about the history of previous damage in the vineyards due to black rot and powdery mildew. But Agricorp did insure the rented vineyards despite their concern and it required the insurance be established at 85 per cent. Thomas Knizat requested a reduction to 80 per cent but Agricorp’s current policy wouldn’t allow that and the premium was paid based on 85 per cent coverage.“The Tribunal panel finds the current assessment resulting in a payment overall of 58 per cent to be too low and that a more accurate number relative to the payout on the insurance policy in accordance with the premium purchased would be closer to 70 per cent,” the decision states. BF Bye bye to SoyFoods Canada Sit back and let the tractor do the steering
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