RMA offers the following three crop insurance programs related to forage:
- Forage Production APH Plan
- Forage Seeding Dollar Plan
- Pilot Forage Seed AH Plan
The following information provided only a general overview of the indicated forage policies. For further information, including policy provisions and FCI-35 documentation for your county, visit the RMA website http://www.rma.usda.gov/. Contact a crop insurance agent for a complete evaluation of your risk management needs.
Forage Production APH Plan
The following information provided only a general overview of the indicated forage policy. For further information, including policy provisions and FCI-35 documentation for your county, visit the RMA website http://www.rma.usda.gov/. Contact a crop insurance agent for a complete evaluation of your risk management needs.
The Forage Production APH Plan is the only plan of insurance available for forage production in Nevada. The production guarantee is based on your individual yield history.
Availability
Policies are offered in all Nevada counties as follows: Churchill, Clark, Douglas, Elko, Esmeralda, Eureka, Humboldt, Lander, Lincoln, Lyon, Mineral, Nye, Pershing, Storey, Washoe, White Pine, and Carson City counties. Organic farming practices are covered with an adjustment factor.
Crop Insured
The crop insured will be all the forage in the county in which you have a share and may be a pure stand of alfalfa OR a stand of alfalfa and grass in which 60 percent or more of ground cover is alfalfa.
A crop must also have been grown one or more years after the year of establishment, meet adequate stand requirements (e.g., 8.0 living plants per square foot in year one, 5.3 in year two, and 4.0 in years three through eight), and not be established for more than nine crop years.
Causes of Loss
· Adverse weather conditions (including hail, frost, freeze, drought, and excess precipitation);
· Failure of irrigation water supply (if caused by an insured cause of loss);
· Fire (if due to natural causes);
· Insects and Plant Diseases (but not damage due to insufficient or improper application of pest or disease control measures); and,
· Wildlife.
Important Dates
· Sales Closing/Cancellation Date: October 31, 2007;
· Acreage Reporting Due Date: November 15, 2007 (You must report all of your forage production in the county by this date);
· Premium Billing Date: July 1, 2008;
· Production Reporting Date: November 14, 2008.
Insurance Period
Insurance coverage will begin October 16, 2007 on acreage that has an adequate stand and that was seeded prior to the 2004 crop year. Insurance coverage will begin April 15, 2008 on acreage that has an adequate stand and that was spring seeded in 2007 (seeded prior to 7/01/07).
Insurance will end at the earliest of: 1) Total destruction of the forage crop, 2) removal from the windrow or the field for each cutting, 3) final adjustment of a loss, 4) the date grazing commences on the forage crop (grazing is allowed during winter dormancy of the crop; see special provisions of insurance), 5) abandonment of the forage crop, or 6) October 15, 2008.
Coverage Levels and Premium Subsidies
Forage production may be insured at the coverage levels shown in the table below. Crop insurance premiums are subsidized as shown. For example if you select the 75% coverage level, your coverage will be 75% of your approved APH yield, the premium subsidy is 55%, and your premium share is 45% of the base premium. Catastrophic coverage (CAT) is available at 50% of your APH yield and 55% of the established price election. The total cost for CAT coverage will be an administrative fee of $100 per crop per county, regardless of the acreage. Administrative fees, in addition to premium costs for coverage levels above CAT are $30 per crop per county.
|
Item |
Percent |
|
Coverage Level |
50 |
55 |
60 |
65 |
70 |
75 |
|
Premium Subsidy |
67 |
64 |
64 |
59 |
59 |
55 |
|
Your Premium Share |
33 |
36 |
36 |
41 |
41 |
45 |
Price Elections
The price of compensation per ton in case of loss is $111.00 for Nevada policies.
Insurance Units
Your insurable acreage will be grouped into one or more units in order to establish the approved yield, calculate a guarantee, and determine any indemnity.
Basic Unit: A basic unit includes all of your insurable forage production acreage in the county by share arrangement. Premiums are reduced by ten percent for a basic unit.
Optional Unit: If a basic unit consists of two or more sections of land, and certain record keeping requirements are met, you may apply for optional units by section. The 10% premium discount will not apply.
Indemnity Calculation
A loss occurs when the tons of forage production produced for the unit fall below the production guarantee as a result of damage from a covered cause of loss.
For example, assume 3.4 tons per acre APH yield, 65% coverage level, 100% of the established price, and basic unit coverage.
|
3.4 |
|
tons per acre APH yield |
|
x .65 |
|
coverage level |
|
2.2 |
|
tons/acre guarantee |
|
- 1.8 |
|
tons/acre actual production |
|
0.4 |
|
ton/acre loss |
|
$ 111.00 |
|
price election |
|
$ 44.40 |
|
gross indemnity per acre |
|
- $ 8.40 |
|
premium per acre (depends on county) |
|
$ 25.00 |
|
net indemnity per acre |
Link to Complete Forage Production Crop Provisions
Link to RMA's Actuarial Documents for County-Specific Information
Find a Crop Insurance Agent
Forage Seeding Dollar Plan
The following information provided only a general overview of the indicated forage policy. For further information, including policy provisions and FCI-35 documentation for your county, visit the RMA website http://www.rma.usda.gov/. Contact a crop insurance agent for a complete evaluation of your risk management needs.
The Forage Seeding Dollar Plan is available for forage seeding production in four Nevada counties.
Availability
Policies are offered in Churchill, Humbolt, Lyon, and Pershing counties. Organic farming practices are covered with an adjustment factor.
Crop Insured
The crop insured will be all the current year planted perennial alfalfa you have in the county in which you have a share and may be a pure stand of alfalfa OR a stand of alfalfa and grass in which 60 percent or more of ground cover is alfalfa. A minimum of sixteen live plants per square foot will be considered to be a normal stand for loss adjustment purposes. Acreage planted with the intention of grazing is not insurable.
Contact a crop insurance agent for further explanation.
Causes of Loss
· Adverse weather conditions (including hail, frost, freeze, drought, and excess precipitation);
· Failure of irrigation water supply (if caused by an insured cause of loss);
· Fire (if due to natural causes);
· Insects and Plant Diseases (but not damage due to insufficient or improper application of pest or disease control measures); and,
· Wildlife.
Important Dates
· Sales Closing/Cancellation Date: July 31, 2004;
· Final Planting Date: Fall Seeded: September 15, 2004;
· Final Planting Date: Spring Seeded: May 20, 2005, except Lyon County (June 15, 2005);
· Acreage Reporting Due Date: Fall Seeded: November 15, 2004 (You must report all of your forage production in the county by this date);
· Acreage Reporting Due Date: Spring Seeded: May 31, 2005, except Lyon County (June 15, 2005) (You must report all of your forage production in the county by this date);
· Premium Billing Date: July 1, 2005.
Insurance Period
Coverage begins when the forage seeding is planted and ends the earliest of: (1) total destruction of the crop, (2) the first harvest of the unit after the late harvest date specified in the special provisions for your county, (3) final adjustment of a loss, (4) abandonment of the crop, (5) the date grazing commences on the crop, or (6) April 14, 2006 (spring planted acreage) and October 15, 2005 (fall planted acreage).
Coverage Levels and Premium Subsidies
Instead of guaranteeing production, the policy guarantees a dollar amount of coverage, depending on the level of coverage selected (table A below). Crop insurance premiums are subsidized as shown in table B below. For example, if you select the 75-percent coverage level, the premium subsidy is 55 percent and your premium share is 45 percent of the base premium. The total cost for CAT coverage will be an administrative fee of $100 per crop per county, regardless of the acreage. Administrative fees, in addition to premium costs, for coverage levels above CAT are $30 per crop per county.
Table A - Dollar Guarantee by Coverage Level
|
Coverage Level |
CAT |
50 |
55 |
60 |
65 |
70 |
75 |
|
Amount of Coverage |
$52 |
$93 |
$102 |
$112 |
$121 |
$130 |
$139 |
Table B - Premium Subsidies
|
Item |
Percent |
|
Coverage Level |
50 |
55 |
60 |
65 |
70 |
75 |
|
Premium Subsidy |
67 |
64 |
64 |
59 |
59 |
55 |
|
Your Premium Share |
33 |
36 |
36 |
41 |
41 |
45 |
Insurance Units
Basic Unit: A basic unit includes all of your insurable forage production acreage in the county by share arrangement. Premiums are reduced by ten percent for a basic unit.
Optional Unit: If a basic unit consists of two or more sections of land, and certain record keeping requirements are met, you may apply for optional units by section. The 10-percent premium discount will not apply.
Indemnity Calculation
A loss occurs when the crop value falls below the guaranteed dollar amount as a result of damage from a covered cause of loss.
For example, assume one basic, spring-planted unit at a 65% coverage level and 100 planted acres, with 30 acres having a fully established stand and 70 acres having only a 50% percent stand.
|
Liability |
|
100 |
|
acres |
|
x $ 121 |
|
amount of insurance per acre |
|
$ 12,100 |
|
liability |
|
Total Established Stand |
|
30 |
|
acres established |
|
x $ 121 |
|
insurance per acre |
|
$ 3,630 |
|
total established stand |
|
Amount of Loss |
|
$ 12,100 |
|
liability |
|
- $ 3,630 |
|
total established stand |
|
$ 8,740 |
|
amount of loss |
|
Net Indemnity |
|
$ 8,740 |
|
amount of loss |
|
$ 908 |
|
estimated premium |
|
$ 7,832 |
|
net indemnity |
|
|
|
|
Link to Complete Forage Seeding Crop Provisions
Link to RMA's Actuarial Documents for County-Specific Information
Find a Crop Insurance Agent
Pilot Forage Seed APH Plan
The following information provided only a general overview of the indicated forage policy. For further information, including policy provisions and FCI-35 documentation for your county, visit the RMA website http://www.rma.usda.gov/. Contact a crop insurance agent for a complete evaluation of your risk management needs.
The Pilot Forage Seed APH Plan is available for forage seed production in two Nevada counties. The production guarantee is based on your individual yield history.
Availability
Policies are offered in Humbolt and Pershing counties for a variety of type/practice combinations. Organic farming practices are covered with an adjustment factor.
Crop Insured
The crop insured will be all types and practices of each forage seed crop you elect to insure, that is grown in the county and for which a premium rate is provided by the actuarial documents. You must have a share in the crop, meaning you are at risk of a financial loss at least equal to the amount of insurance on such acreage, and the crop must be grown solely for harvest as certified forage seed or seed grown under a forage seed contract executed on or before the acreage reporting date. The following additional requirements also apply:
· Adequate Stand / Minimum Plants Requirements: For established stands of alfalfa seed greater than or equal to 0.44 living plants per square foot (19,166 plants per acre); For Fall or Spring Planted Seed-to-Seed Stands greater than or equal to 1.5 living plants per square foot (65,340 plants per acre). Insurance attaches to acreage with adequate stands of live plants the later of the date specified in the crop provisions, or the date we accept your application.
· Age Limitation: In accordance with Section 7(c)(4) of the crop provisions, acreage of alfalfa seed will not be insurable beyond the earlier of the originator's stipulated maximum age of stand for the applicable variety or the sixth and succeeding crop years after the crop year of initial seeding, unless otherwise agreed in writing by us.
· Coverage for the insured crop grown using an organic farming practice is provided in both counties. An organic rate factor is specified on the coverage and rate table.
· APH yields: In addition to any requirements for separate APH yields (databases) contained in the policy and in FCIC approved procedures, separate databases for certified and transitional acreage are required for any insured crop grown using an organic farming practice. Only acreage and production history from each acreage type of the organic farming practice will be contained in the applicable database. Each database will include production and acreage from any applicable buffer zone. Any acreage and production records of the insured crop from transitional acreage will be used to establish the certified organic approved APH yield when such acreage initially qualifies as certified organic acreage. A variable T-yield will be used to complete the database, if required. Yields shown on the Transitional Yield and YA Substitution Table apply to the organic farming practice.
Contact a crop insurance agent for further explanation.
Causes of Loss
Insurance is provided against the following causes of loss that occur during the insurance period.
· Adverse weather conditions (including hail, frost, freeze, drought, and excess precipitation);
· Failure of irrigation water supply (if caused by an insured cause of loss);
· Fire (if due to natural causes);
· Insects and Plant Diseases (but not damage due to insufficient or improper application of pest or disease control measures); and,
· Wildlife.
Exclusions specified in the Crop Provisions include the following:
1. The crop not being timely harvested, unless such delay in harvesting is solely and directly caused by a cause of loss specified in sections 9(a)(1) through (6);
2. Insufficient supply of pollinators, as determined by us, unless lack of pollinators or pollination is solely and directly caused by a cause of loss specified in sections 9(a)(1) through (6);
3. Failure of the certification standard or forage seed company contract acceptance caused by failure to follow proper isolation requirements or inadequate weed control, as determined by us, unless such failure is solely and directly due to a cause of loss specified in sections 9(a)(1) through (6); or
4. Failure of the certification standard or forage seed contract acceptance due to failure to follow all other certification or contract requirements, as determined by us, unless such failure is solely and directly caused by a cause of loss specified in sections 9(a)(1) through (6).
Important Dates
· Sales Closing/Cancellation Date: October 31, 2004;
· Acreage Reporting Due Date: Non-Spring Planted Seed-to-Seed: June 30, 2005 (You must report all of your forage production in the county by this date);
· Acreage Reporting Due Date: Spring Planted Seed-to-Seed: April 15, 2005 (You must report all of your forage production in the county by this date);
· Premium Billing Date: August 1, 2005.
Insurance Period
Insurance attaches on acreage with an adequate stand on the later of the date we accept your application or a) November 1 for fall planted seed-to-seed year and established stands of forage seed crops coverage or b) May 15 for spring planted seed-to-seed year stands of forage seed crops. The calendar dates for the end of the insurance period is October 31.
Coverage Levels and Premium Subsidies
Forage seed production may be insured at the coverage levels shown in the table below. Crop insurance premiums are subsidized as shown. For example if you select the 75% coverage level, your coverage will be 75% of your approved APH yield, the premium subsidy is 55%, and your premium share is 45% of the base premium. Catastrophic coverage (CAT) is available at 50% of your APH yield and 55% of the established price election. The total cost for CAT coverage will be an administrative fee of $100 per crop per county, regardless of the acreage. Administrative fees, in addition to premium costs for coverage levels above CAT are $30 per crop per county.
|
Item |
Percent |
|
Coverage Level |
50 |
55 |
60 |
65 |
70 |
75 |
|
Premium Subsidy |
67 |
64 |
64 |
59 |
59 |
55 |
|
Your Premium Share |
33 |
36 |
36 |
41 |
41 |
45 |
Price Elections
The price of compensation per pound in case of loss is $1.02 for Nevada policies.
Insurance Units
Your insurable acreage will be grouped into one or more units in order to establish the approved yield, calculate a guarantee, and determine any indemnity.
Basic Unit: A basic unit includes all of your insurable forage production acreage in the county by share arrangement. Premiums are reduced by ten percent for a basic unit.
Optional Unit: If a basic unit consists of two or more sections of land, and certain record keeping requirements are met, you may apply for optional units by section. The 10% premium discount will not apply.
Indemnity Calculation
Indemnity / settlement calculations are described fully in the Crop Provisions. Additional questions should be directed to a Crop Insurance Agent.
Link to Complete Pilot Forage Seed Crop Provisions
Premium Calculation Worksheet
Underwriting Standards
Actuarial Documents: Humboldt (Special Provisions; Coverage and Rates)
Actuarial Documents: Pershing (Special Provisions; Coverage and Rates)