When an insured elects the YC option on an application or Policy Change form by the applicable deadline, a yield cup helps reduce the effect of a catastrophic year on an approved actual production history (APH) yield by preventing a yield from decreasing the average yield by more than 10 percent compared to the prior year’s approved APH yield. Notification of damage to a crop by the insured to the insurance company. This fact sheet is for educational purposes and only gives a general overview of the crop insurance program. CLU IDs are unique to each individual field across the country, whereas the same Farm Serial Number (FSN) may exist from county to county and/or state to state. A member of the Tokio Marine HCC group of companies. The number referred to is the calendar year the crop is harvested. An agency within the U.S. Department of Agriculture which promotes understanding and use of cooperative-based businesses to market and distribute agricultural products. They are adjusted for trends caused by new technology, improved farming practices, and other factors affecting yield. A private crop insurance company that enters into the Standard Reinsurance Agreement with FCIC. Transitional Yield (T-Yield) is calculated using the insured’s actual yields and, if applicable, assigned yields. Situations by a third party, which are outside the control of the insured and result in losses. It can be the date the crop is destroyed or harvested, the final loss adjustment, abandonment, or the calendar date contained in the Crop Provisions or Special Provisions for the end of the insurance period, or as otherwise specified in the Crop Provisions. An insurance plan protecting the amount of production (how much the crop yields) the crop produces. A nine-digit number issued by the government to U.S. citizens, permanent residents, and temporary (working) residents. The estimated price the crop will be sold for in the future. This agreement allows the insurance provider to write crop insurance. For example, a social security number or an employee identification number. The insured is also the name that the insurance is under. An area of land typically used for agricultural purposes. Also known as the Agriculture Department, a federal entity responsible for laws related to farming, forestry, and food. The amount of production (how much the crop yields) or revenue (income) a producer is “promised” to receive under his policy. A form the insured uses to report the number of acres planted, the percent share he/she has in those acres, and the plant dates. If yields are reduced due to UUF/Third Party Damage, this option protects the insured’s overall average / approved APH yield. FAQs on crop and livestock insurance, risk protection, regulations, compliance, and more. These provisions apply to the following types of coverage: Revenue Protection, Revenue Protection with Harvest Price Exclusion and Yield Protection. To file a complaint of discrimination, write: USDA, Office of the Assistance Secretary for Civil Rights, 400 Independence Avenue, SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users). When needed, an approved insurance provider (AIP) will request documentation to support a peak inventory value report. Common Questions. This could vary by crop and region. This document provides the form standards insurance providers use to create branded forms such as an application and acreage report. Quality adjustment factor is part of the loss adjustment process when quality issues are present due to plant pathogens, such as vomitoxin or aflatoxin. An organization with a legal identity separate from those of its members, for example, a corporation. It includes general information such as definitions, entity types, and signature requirements. Since production numbers are averaged with the APH (actual production history) database, a catastrophic year can bring down the overall averages. The term commodity broadens the area of coverage to include more than crops. For additional information, see proag.com/wfrp. For additional information, see proag.com/mpci-individual-plans, This plan is similar to revenue protection, except the amount of protection is based on the projected price only. Resources for Individuals looking into farming for the first time. The amount of interest a farmer has in the insured commodity is called the share. Farming using technologies such as global positioning system (GPS) and geographic information systems (GIS) management tools for the purpose of improving crop management. Each share arrangement (different shareholders) is a different basic unit. Required information sent to the agent within 72 hours (no longer than 15 days after the end of insurance) of discovering damage. Settings for cookies can be changed at any time within your browser. Find a crop or livestock insurance agent in your area along with directions to their office. Cookie Information By continuing to … For additional information, see proag.com/products/mpci/individual-plans/. Resources and tools for those just starting out. An endorsement providing additional coverage for a portion of an underlying crop insurance policy deductible. During this period of time, commodity prices are tracked on RMA’s website. The coverage is based on the rainfall within a specific grid rather than specific farm locations. The deadline by which an insured must report the number of acres planted, the percent of share he/she has in those acres and the date(s) the acreage was planted. A number issued by the Internal Revenue Service for federal tax reporting for those not eligible for a Social Security Number (SSN). An inspection completed before harvest as part of quality assurance. Money the Federal government / the Risk Management Agency (RMA) pays approved insurance providers (AIPs) to cover the administrative and operating expenses of providing crop insurance. The dollar amount paid to purchase crop insurance. A loss occurs when the annual crop value is less than the amount of insurance. The specific natural hazards which can cause damage to a crop or commodity, for example, flood. For example, in crop insurance, it is important a POA is in place when a person signs the acreage report on behalf of his/her spouse. Data and publications from the RMA website prior to the redesign. Crops watered using pipes, sprinklers or ditches. This occurs when an insured is unable to plant the crop by the final plant date (FPD). A regional office of the Risk Management Association. For additional information, see proag.com/crop-hail/. ProAg is an equal opportunity provider. This calculation method is called an “appraisal”. The late planting period begins after the final plant date, and it lasts for 25 days. When two or more crops are planted in the same field within in the same growing season. RMA Insurance. Limitations designed to reduce the effect of catastrophic years on approved yields by preventing the yield from falling below a percentage of the T-Yield (county average) based on the number of years of records provided by the insured. All crop insurance providers work under the same contract/agreement. Basic units include all insurable acreage of a crop in a county the insured has a share. An organized market trading in agricultural products, other raw materials and contracts based on them. The electronic record-keeping system for a farmer’s production history. A factor used when the dollar claim (determined) liability is greater than the dollar acreage report liability. If the price of the crop/commodity declines causing the insured to receive less than the amount of money he/she was promised (dollar guarantee), a claim is paid regardless of the amount of the crop / commodity he/she produced. The amount of insurance is based on the cost of growing a crop in a specific area. The crop year(s) available for this option are determined by RMA and are based on the county’s averages. A liaison with the government on crop insurance issues, this is a non-profit trade association representing all authorized crop insurance providers. As time progressed, futures contracts were added. A Federal agency who works with American Indians, Indian tribes and Alaska Natives. The amount per acre an insured is guaranteed in the event of damage to his/her crop. A form used by an adjuster inspecting perennials before insurance attaches. Provides technical and financial assistance to farmers and ranchers who want to make improvements regarding conservation. When an insured must plant the crop again on the same acreage for harvest in the same year. The FCIC promotes the economic stability of agriculture through a sound system of crop insurance. For example, wheat planted and harvested in 2017 would be referred to as the 2017 crop year. The Yield and Revenue Protection plans (as well as ARPI) use regional commodity exchanges to come up with the projected and harvest prices. Specific answers may trigger a pre-acceptance inspection report (PAIR). An insured who had crop insurance the previous year, regardless of the specific insurance company he/she used. In most cases, the basic provisions for a plan may be called the “policy” and may refer to numerous documents providing general rules and requirements. RMA Website Archive. Growing a single crop on the same land year after year. The reinsurance year begins July 1 of the preceding calendar year and ends June 30 of the current calendar year. A county average yield used to make up the required four years of history in the actual production history (APH) database. For example, a field of corn might yield, or produce, 110 bushels per acre. Since production numbers are averaged within an APH (actual production history) database, a catastrophic year can bring down the overall averages. FCIC issues the final county yield in the calendar year following the insured crop year. For additional information, see proag.com/mpci-area-plans/. A per acre dollar amount of insurance determined separately for each commodity type, which results in the premium amount. Learn more about this ‘A++’ (Superior) Ranked Insurer.