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Hay/Grain/Crop Farming

Industry Code: 01600

Exempt

This industry covers the many facets of growing crops including grains and oilseeds as well as vegetable for processing purposes. The principle source of revenue from such a venture comes from crop production. Farmers who do not have a sufficient land base for proper rotation will rent or lease land for this purpose. Farmers in this industry will also grow forage for crop rotation purposes; however, this industry does not include livestock production.

Operation Details:

Most modern farming activities in this industry are mechanized and require a variety of farm implements, equipment and facilities. Maintenance and repair of farm machinery and buildings is integral to farm operations and is included here, as is the storage and hauling of produce, when part of a farm.

Crop farming includes (but is not limited to) grain (wheat, barley, oats, etc), oilseed (canola/rapeseed, alfalfa, etc) and vegetables (potatoes, carrots, peas, etc). Activities include seeding, cultivating, spraying, harvesting, storage and transportation of the product. Field-grown vegetables are usually grown under contract to local food processors, and may require washing, stemming, topping, grading, and packaging prior to sale, which is incidental when provided in conjunction with growing. Smaller vegetable operations such as market gardens and greenhouses (typically under 35 hectares, seeding and harvesting by hand) are classified under Industry 01800 – Greenhouses/Market Gardens.

Underwriting Considerations:

Farms that clear land for the express purposes of hay/grain/crop farming, or cut timber or mill timber for the express purpose of building on the farm, do not require additional industries. Such activities, when performed in support of the farm, are included in the hay/grain/crop farming industry. Permits and licenses can be used to distinguish between farming related operations and commercial logging and milling.

Farm coverage also includes limited capital construction of farm buildings. However, the appropriate construction industry should be used with significant undertakings (involving foundations and/or general contractors to manage extensive projects such as large shops and dairy/hog barns). Farm coverage is not extended to construction or renovation of residences, even where they are located on the farm and are considered as the farm office - in these cases, a separate optional application under Industry 40405 - Residential General Contractor is required.

Farming businesses may be involved in other business activities that are not integral to a traditional hay/grain/crop farming operation. Farming businesses involved in value-added processing, custom or contract work other than an exchange of services, will require an appropriate classification for such operations, separate from the hay/grain/crop farming industry. When determining if an additional classification is required, policy 07-01, part II should be reviewed.

Premium Rate History:

Activities:

Crop Farms
Vegetable Farms
Grain Farms
Hay Farms

Rate Group History:

In 2016, new rate groups were established to better define the various types of farming operations being conducted in Alberta. The Crop Production rate group encompasses industries that pertain to the farming of field crops.

Effective January 31, 2020, farm and ranch employers with six or more waged non-family workers can choose to have their workplace insurance coverage under the Workers’ Compensation Act or through a private insurance provider. Employers are not required to have workplace insurance if they have five or fewer non-family workers, or hire workers for less than six consecutive months.

This industry covers the many facets of growing crops including grains and oilseeds as well as vegetable for processing purposes. The principle source of revenue from such a venture comes from crop production. Farmers who do not have a sufficient land base for proper rotation will rent or lease land for this purpose. Farmers in this industry will also grow forage for crop rotation purposes; however, this industry does not include livestock production.

Premium Rate History:

Activities:

Crop Farms
Vegetable Farms
Grain Farms
Hay Farms

Operation Details:

Most modern farming activities in this industry are mechanized and require a variety of farm implements, equipment and facilities. Maintenance and repair of farm machinery and buildings is integral to farm operations and is included here, as is the storage and hauling of produce, when part of a farm.

Crop farming includes (but is not limited to) grain (wheat, barley, oats, etc), oilseed (canola/rapeseed, alfalfa, etc) and vegetables (potatoes, carrots, peas, etc). Activities include seeding, cultivating, spraying, harvesting, storage and transportation of the product. Field-grown vegetables are usually grown under contract to local food processors, and may require washing, stemming, topping, grading, and packaging prior to sale, which is incidental when provided in conjunction with growing. Smaller vegetable operations such as market gardens and greenhouses (typically under 35 hectares, seeding and harvesting by hand) are classified under Industry 01800 – Greenhouses/Market Gardens.

Underwriting Considerations:

Farms that clear land for the express purposes of hay/grain/crop farming, or cut timber or mill timber for the express purpose of building on the farm, do not require additional industries. Such activities, when performed in support of the farm, are included in the hay/grain/crop farming industry. Permits and licenses can be used to distinguish between farming related operations and commercial logging and milling.

Farm coverage also includes limited capital construction of farm buildings. However, the appropriate construction industry should be used with significant undertakings (involving foundations and/or general contractors to manage extensive projects such as large shops and dairy/hog barns). Farm coverage is not extended to construction or renovation of residences, even where they are located on the farm and are considered as the farm office - in these cases, a separate optional application under Industry 40405 - Residential General Contractor is required.

Farming businesses may be involved in other business activities that are not integral to a traditional hay/grain/crop farming operation. Farming businesses involved in value-added processing, custom or contract work other than an exchange of services, will require an appropriate classification for such operations, separate from the hay/grain/crop farming industry. When determining if an additional classification is required, policy 07-01, part II should be reviewed.

Rate Group History:

In 2016, new rate groups were established to better define the various types of farming operations being conducted in Alberta. The Crop Production rate group encompasses industries that pertain to the farming of field crops.

Effective January 31, 2020, farm and ranch employers with six or more waged non-family workers can choose to have their workplace insurance coverage under the Workers’ Compensation Act or through a private insurance provider. Employers are not required to have workplace insurance if they have five or fewer non-family workers, or hire workers for less than six consecutive months.