The corn salvage benefit for 2018 covers cases where DON (deoxynivalenol) levels in harvested corn exceed five parts per million (5 ppm). The benefit is designed to help producers cover costs to harvest and then market, use as feed or find an alternative use for damaged corn.
Many producers have high corn yields for 2018. In these cases, the number of eligible bushels for the corn salvage benefit is the lesser of the customer’s: Production Insurance yield guarantee OR Production Insurance yield guarantee minus total harvested bushels under 5 ppm.
In cases where a customer’s total harvested yield falls below their guarantee, they may be eligible for a salvage benefit for their bushels with DON levels over 5 ppm. They may also receive a production claim.
While considering how the salvage benefit will work for individual situations, producers need to understand their claim positions and marketing options.
How the salvage benefit works for DON-affected corn
For the 2018 crop, the corn salvage benefit will apply to harvested corn with DON levels over 5 ppm. The combined sum of bushels under 5 ppm and bushels covered by the salvage benefit cannot exceed a customer’s guaranteed production. Customers will be paid $0.79 per eligible bushel to cover the extraordinary costs of corn with DON levels over 5 ppm.
To be eligible, customers must have supporting documentation, including weigh slips and DON level tests, and will be paid once their yield is finalized.
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