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Harvesting/Baling - Custom

Industry Code: 01601

Exempt

This industry covers the custom cutting, swathing, baling and harvesting (cutting and gathering) of mature corn, legumes, grasses or grains. Any trucking performed by these employers as a direct result of the harvesting is incidental.

Operation Details:

The separation of the grain or seed from the straw or husk is done with the use of power-driven machines called combine harvesters or harvester threshers. These machines cut crops, gather them in, and then beat, flail or mash as well as clean the product while the machine continues to move across the field. Most crops are swathed first with either a self-propelled or pull-type swather and then combined as threshing machines are not used anymore.

Forage is made from swathed legumes like alfalfa, which are picked up with a forage harvester and ground using a tub grinder. Silage is made from legume forage using an anaerobic fermentation process to preserve fodder (i.e. corn, legumes, grasses, etc.) and produce a winder feed for livestock.

Non-farming businesses that exclusively provide services to farmers (such as feed lots, feed lot/corral cleaning, and fertilizer sales/distribution) are classified elsewhere, with the exception of custom combining/harvesting/baling as a stand-alone business, which is included here. Swathing involves cutting down the crop and gathering it into rows which can be easily picked up by a combine, which separates grain and seed from the straw or husk, which is then beaten, flailed, mashed, and/or cleaned while the machine continues to move across the field. Alternatively, swathed crops can be baled into rectangular or cylindrical blocks, and either left in the field or stacked in barns or arranged in windrows. Trucking that is incidental to the above services is included as well.

Underwriting Considerations:

Farms that clear land for the express purposes of 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 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 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 farming industry. When determining if an additional classification is required, policy 07-01, part II should be reviewed.

Businesses performing out of province/country operations (such as custom combining) must meet (or be granted a waiver of) the criteria of Section 28 of the Workers' Compensation Act before coverage can be extended outside of Alberta.

Premium Rate History:

Activities:

Custom Baling
Custom Combining
Custom Harvesting
Custom Threshing

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 custom cutting, swathing, baling and harvesting (cutting and gathering) of mature corn, legumes, grasses or grains. Any trucking performed by these employers as a direct result of the harvesting is incidental.

Premium Rate History:

Activities:

Custom Baling
Custom Combining
Custom Harvesting
Custom Threshing

Operation Details:

The separation of the grain or seed from the straw or husk is done with the use of power-driven machines called combine harvesters or harvester threshers. These machines cut crops, gather them in, and then beat, flail or mash as well as clean the product while the machine continues to move across the field. Most crops are swathed first with either a self-propelled or pull-type swather and then combined as threshing machines are not used anymore.

Forage is made from swathed legumes like alfalfa, which are picked up with a forage harvester and ground using a tub grinder. Silage is made from legume forage using an anaerobic fermentation process to preserve fodder (i.e. corn, legumes, grasses, etc.) and produce a winder feed for livestock.

Non-farming businesses that exclusively provide services to farmers (such as feed lots, feed lot/corral cleaning, and fertilizer sales/distribution) are classified elsewhere, with the exception of custom combining/harvesting/baling as a stand-alone business, which is included here. Swathing involves cutting down the crop and gathering it into rows which can be easily picked up by a combine, which separates grain and seed from the straw or husk, which is then beaten, flailed, mashed, and/or cleaned while the machine continues to move across the field. Alternatively, swathed crops can be baled into rectangular or cylindrical blocks, and either left in the field or stacked in barns or arranged in windrows. Trucking that is incidental to the above services is included as well.

Underwriting Considerations:

Farms that clear land for the express purposes of 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 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 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 farming industry. When determining if an additional classification is required, policy 07-01, part II should be reviewed.

Businesses performing out of province/country operations (such as custom combining) must meet (or be granted a waiver of) the criteria of Section 28 of the Workers' Compensation Act before coverage can be extended outside of Alberta.

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.