Federal Crop Insurance Policies for Vegetable Crops in New England

 

Federal Crop Insurance Policies for Vegetable Crops in New England*

 
Connecticut Fresh Market Sweet Corn, Potatoes
Maine Fresh Market Sweet Corn, Green Peas, Potatoes
Massachusetts Fresh Market Sweet Corn, Potatoes
New Hampshire Fresh Market Sweet Corn
Rhode Island Fresh Market Sweet Corn, Potatoes
Vermont Fresh Market Sweet Corn

*Not all counties in a state offer the policies listed above, check with a Federal Crop Insurance agent to see if a crop is covered in your county.

Fresh Market Sweet Corn

Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont.
Acreage planted to sweet corn to be harvested and sold as fresh market sweet corn is insurable for irrigated and non-irrigated acreage. To be insured, the producer must have grown sweet corn for commercial sale or participated in managing a sweet corn farming operation in at least one of the three previous crop years.
Exclusion: Sweet corn inter-planted with another crop or in established grasses or legumes is not insurable. (However, using approved cover crop practices may not affect insurability.)

Causes of Loss

This policy protects against crop loss due to drought, excess rain, excess wind, freeze, hail, failure of irrigation water supply, fire, and wildlife.
Note: This policy does not cover any loss of production due to disease or insect infestation, unless effective control measures do not exist for such infestation. This policy also does not cover failure to market the sweet corn, unless such failure is due to actual physical damage caused by an insured cause of loss that occurs during the insurance period.

Insurance Period

Coverage begins when the sweet corn is planted. Coverage ends the earliest of (1) total destruction of the crop, (2) harvest of the acreage insured, (3) abandonment of the crop, (4) final adjustment of a loss, or (5) end of insurance date - September 30 for CT, MA, and RI; September 5, September 15, September 30 for ME, NH, and VT depending on location.

Reporting Requirements

A report of all insured acreage of fresh market sweet corn in the county must be submitted to your crop insurance agent by July 15.

If a loss occurs, you must notify your crop insurance agent within 72 hours of your initial discovery of damage (but not later than 15 days after end of insurance period).

Definitions

Allowable Cost: An amount not to exceed $4.15 per container for harvesting and marketing costs (e.g., picking, hauling, packing, shipping, etc.) is subtracted from the average price received to determine value of sold production.
Container: Fifty ears of fresh sweet corn.
Minimum Value: A minimum value of $6.50 per container will be used to determine value of any sold production valued at less than $6.50 after subtracting allowable cost.
Reference Maximum Dollar Amount: The value per acre established for the state.
Coverage Amount: A guaranteed dollar amount of coverage that you select prior to planting. Equals the reference maximum dollar amount times the level of coverage selected.
Stage Guarantee: If a covered crop loss occurs during the first stage of growth (from planting through beginning of tasseling), the indemnity is reduced to 65% of the guarantee.

Coverage Levels & Premium Subsidies

Instead of guaranteeing production, this policy guarantees a dollar amount of coverage, depending on the level of coverage selected. Crop insurance premiums are subsidized as shown. For example if you select the 75% coverage level, the premium subsidy is 55% and your premium share is 45% of the base premium:

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

 

Catastrophic Risk Protection (CAT) is the equivalent of 27.5% of the reference maximum dollar amount stated in the actuarial tables. CAT is 100% subsidized with no premium cost to you except for an administrative fee of $300, regardless of the acreage.

Loss Example

A loss occurs when the crop value falls below the guaranteed dollar amount as a result of damage from a covered cause of loss.

Note: Revenue losses caused by low market prices or low consumer demand are not covered.

The example below is based on a dollar guarantee of $1,723 per acre. It assumes 50 containers per acre produced and sold for $12 each, less allowable cost of $4.15, yields a net value of $7.85 per container.

$1,723  Dollar amount of coverage selected per acre
-   393  Production value per acre (50 containers @ $7.85)
=$1,330  Loss per acre
The net indemnity payment will be the loss per acre times the acres covered minus the grower’s premium payment for insurance coverage.

Potatoes

Connecticut, Maine, Massachusetts, Rhode Island
Potatoes planted with certified seed for harvest as either certified seed stock or for human consumption may be insured. The policy does not cover any acreage where potatoes are 1) inter-planted with another crop or 2) planted into an established grass or legume.

Causes of Loss

This policy protects against crop loss due to drought, excess rain, excess wind, freeze, hail, failure of irrigation water supply, fire, and wildlife.
Note: This policy does not cover any loss of production due to disease or insect infestation, unless effective control measures do not exist for such infestation. For added premium cost, additional endorsements related to storage and quality coverage are available.

Insurance Period

Coverage begins when potatoes are planted. Coverage ends the earliest of (1) total destruction of the crop, (2) harvest of the crop, (3) abandonment of the crop, (4) final adjustment of a claim, or (5) end of insurance date – Oct. 20 for ME; Oct. 31 for CT, MA and RI.

Reporting Requirements

You must provide an acreage report to your crop insurance agent of all the acres of potatoes in the county in which you have an ownership share by July 15.
If damage occurs, you must notify your crop insurance agent within 72 hours of your initial discovery of damage.

Definitions

Certified Seed: Potatoes entered into the potato certified seed program and meet all requirements for production to be used to produce a seed crop for the next crop year or potato crop for harvest for commercial uses in the next crop year.
Approved Actual Production History (APH) Yield: A yield based on your actual yields, county average yields, or a combination of both. APH is used to determine your production guarantee.
Production Guarantee: Hundredweight (CWT) guaranteed per acre determined by multiplying your approved APH yield by the coverage level percentage you select.
Tuber Rot: Any soft, mushy, or leaky condition of potato tissue including, but not limited to, breakdown caused by Southern Bacterial Wilt, Ring Rot, or Late Blight.

Coverage Levels & Premium Subsidies

Coverage levels range from 50 to 85% of your average yield. Crop insurance premiums are subsidized as shown below. For example if you select the 75% coverage level, the premium subsidy is 55% and your premium share is 45% of the base premium.

Item   Percent          
Coverage LEVEL 50 55 60 65 70 75 80 85
Premium Subsidy 67 64 64 59 59 55 48 38
Your Premium Share 33 36 36 41 41 45 52 62

 

Catastrophic Risk Protection (CAT) is fixed at 50% of your average yield and 55% of the price election. CAT is 100% subsidized with no premium cost to you except for an administrative fee of $300, regardless of the acreage.

Loss Example

A loss occurs when your actual production per acre falls below the guaranteed production per acre.

The example below assumes an average yield of 260 CWT per acre, 65% coverage level, no options or endorsements and one basic unit.

       260 CWT per acre average yield (APH)
X     0.65 Coverage level percentage (expressed as a decimal) =169 CWT per acre guarante

       169 CWT per acre guarantee
-        89 CWT per acre production =80 CWT per acre loss
       
80 CWT per acre loss X $10.00 Price election (price election varies by state)   = $ 800 Indemnity per acre

The net indemnity payment will be the loss per acre times the acres covered minus the grower’s premium payment for insurance coverage.

Download More Information from the Web
On-line fact sheets for the New England states are available at www.rma.usda.gov/aboutrma/fields/nc_rso/

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To file a complaint of discrimination, complete, sign and mail a program discrimination complaint form, (available at any USDA office location or online at www.ascr.usda.gov), to: United States Department of Agriculture; Office of the Assistant Secretary for Civil Rights; 1400 Independence Ave., SW; Washington, DC 20250-9410. Or call toll free at (866) 632-9992 (voice) to obtain additional information, the appropriate office or to request documents. Individuals who are deaf, hard of hearing, or have speech disabilities may contact USDA through the Federal Relay service at (800) 877-8339 or (800) 845-6136.