The Newfoundland and Labrador Crop Insurance Agency (NLCIA) is a Crown Corporation of the Province of Newfoundland and Labrador. In March 2013, officials from both the Provincial and Federal governments signed the Growing Forward 2 Framework Agreement. A subsection of this Agreement states the parameters of and allows for the cost-sharing of the Agri-Insurance program. The Agency provides an affordable and effective Agri-Insurance program for vegetable producers and operates within the Crop Insurance Act.
Agri-Insurance is designed as a management tool to provide producers with financial protection for crop loss due to uncontrollable natural perils. The producer's investment is protected against the effects of drought, excessive moisture, wind, frost, hail, snow, wildlife, disease and insects. However, Agri-Insurance does not cover losses due to poor farming practices, negligence or lack of insect, disease or weed control.
The administration cost of the program is jointly funded under the Growing Forward 2 agreement between Agriculture and Agri-Food Canada and the provincial Department of Fisheries, Forestry, and Agrifoods on a 60:40 percent basis respectively. The total premium costs are shared between the Federal government, the Provincial government and the producer on a 36:24:40 percent basis respectively.
As per the Crop Insurance Act Section 3(2) "The membership of the Agency shall consist of not less than three and not more than seven members to be appointed by the Lieutenant-Governor in Council."
Those who make up the NLCIA should collectively possess the following core competencies:
Members of the NLCIA should be available to meet up to two times per year. Agency members may also be expected to spend additional time to review materials and prepare for board and committee meetings. Agency members may be asked to participate in conference calls and/or respond to emails in a timely manner.
As per Section 3(4) of the Crop Insurance Act: "Members of the Agency shall hold office at the pleasure of the Lieutenant-Governor in Council".
Producer members have historically been appointed for a two-year term; however appointments for a five-year term would provide greater continuity and long-term planning.