Insurance For Specialty Type Barley and Soybeans

Insurance For Specialty Type Barley and Soybeans Available for the 2010 CY Barley: Colorado, Idaho, Minnesota, Montana, North Dakota, Oregon, South Da...
Author: Ruby Ferguson
0 downloads 0 Views 177KB Size
Insurance For Specialty Type Barley and Soybeans Available for the 2010 CY Barley: Colorado, Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota, and Washington Soybeans: Arkansas, Iowa, Michigan, Minnesota, Missouri, North Dakota, Ohio, and Virginia

Revised 1/14/2010

Specialty Type History • Specialty Type grain and oilseeds defined as: – Types of grain and oilseeds that generally have specific desirable quality attributes – Generally command a premium price

• RMA contracted study to research specialty types of grain – Determined covering quality is not possible – Cover the price premium recognize yield drag

Specialty Type History • Contractor indentified specialty types of barley and soybean – Recommended using contract price only – Requiring separate APH’s

Specialty Type Implementation • RMA added specialty type codes and definitions to SPOI’s. – A Special Provisions of Insurance (SPOI) statement for APH will show: • If a contract price is available and • Requires producers to provide a copy of contract by acreage reporting date

– All acreage of each specialty type must be under contract to qualify for the contract price election. – Specialty types not insured using a contract price will receive the price election applicable to the “all others” type

Specialty Type Implementation (cont.) • APH SPOI statement will require the production contract to clearly specify the type, – e.g. waxy hulless barley

• No listings of variety names in actuarial materials, or website • Statement on CRC/RA SPOI’s allow specialty types be excluded from coverage provided an APH policy is purchased from same AIP for the type(s)

Specialty Type cont. • Exclusion can be by type • APH policy can have a different coverage level • CAT must use published price electioncontract price not available

Specialty Type Implementation (cont.) • APH will be by type – Recertification not required if no change in database (database entries don’t change) – Recertification is required if current database is composed of multiple types

New Types • Barley (APH & RA-11/30 filed counties only) Colorado, Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota, and Washington • New Specialty Use Barley Types – – – – –

All Others (Spring) Malting (Spring) Waxy Hulled (Spring) Waxy Hulless (Spring) Hulless (Spring)

Type code 872 Type code 873 Type code 874 Type code 875 Type code 876

Winter type specialty barley will not be available until 2011

Specialty Type Barley Specifics (cont.) • All Others-All insurable barley other than malting, waxy hulled, waxy hulless, and hulless barley • Malting-Barley varieties approved for malting by the American Malting Barley Association for the current crop year, or any variety grown under the terms of a malting barley contract • Waxy Hulled-Barley having a waxy appearance and an adhering palea and lemma • Waxy Hulless-Barley having a waxy appearance and a non-adhering palea and lemma • Hulless-Barley having a non-adhering palea and lemma, not including waxy hulless barley

Specialty Type Barley Specifics (cont.) PRICE ELECTION LIMIT FACTOR * • Malting (contract price only) (1.85) • Waxy Hulled (1.95) • Waxy Hulless (2.30) • Hulless (1.20) *Limit Factor applied to published price election

Malting Barley Specifics (cont.) • Three ways to insure malting barley: – APH policy, or a Revenue Assurance based on price election published by RMA, or calculated in accordance with the applicable crop provisions; – APH or RA plan of insurance with an available Malting Barley Price and Quality Endorsement, the prices used to determine the underlying base coverage are as stated above, and an additional value price election is determined in accordance with the Endorsement: or – APH plan of insurance based on a price contained in a production contract

Barley Projected Harvest Price • Projected Harvest Price - The projected harvest price is the simple average of the final daily settlement prices in February for the Chicago Board of Trade (CBOT) September corn futures contract, rounded to the nearest whole cent, multiplied by 0.821 and rounded to the nearest whole cent. The projected harvest price will be released on or before March 5 of the current crop year.

Barley Fall Harvest Price • Fall Harvest Price - The fall harvest price is the simple average of the final daily settlement prices in August for the Chicago Board of Trade CBOT) September corn futures contract, rounded to the nearest whole cent, multiplied by 0.821 and rounded to the nearest whole cent. • The fall harvest price will be released on or before September 5 of the current crop year. – In addition to the Fall Harvest Price definition contained within the Revenue Assurance Crop Provisions, for all crops the following change is applicable: • The Fall Harvest Price will not be greater than 200 percent of the Projected Harvest Price.

Specialty Type Implementation

Soybeans • RMA added specialty type codes and definitions to SPOI’s – An SPOI statement for APH plan of insurance will show if a contract price election is available and will require producers to provide a copy of their production contract by the acreage reporting date – All acreage of each specialty type must be under contract to qualify for the contract price election – Specialty types not insured using a contract price election will automatically receive the price election applicable to the “all others” type (i.e. all other barley or all other soybeans)

Specialty Type Soybean Specifics Specialty Soybean Types are available for all practices in all applicable counties in: AK, IA, MI, MN, MO, ND, OH, and VA • Type 095-All Others • Type 882-Large seeded food grade • Type 883-Small seeded food grade • Type 884-Low linolenic acid • Type 885-Low saturated fat • Type 886-high protein

Specialty Type Soybean Specifics (cont.) • All Other- All insurable soybeans other than large seeded food grade, small seeded food grade, low linolenic acid, low saturated fat, and high protein soybeans • Large seeded food grade-Soybeans commonly used for tofu, soymilk, and miso having a minimum seed size of 20g/100 seeds • Small seeded food grade-Soybeans commonly used for sprouts having a minimum seed size of 10g/100 seeds, or for natto soybeans having a minimum seed size of 8g/100 seeds

Specialty Type Soybean Specifics (cont.) • Low linolenic acid-Soybeans used to produce soybean oil with a linolenic acid level of three percent or less • Low saturated fat-Soybeans containing 50% less saturated fat than conventional soybeans and are used to produce soybean oil with 8% or less total saturated fats • High protein-Soybeans containing protein levels of 43% or greater

Soybeans-new specialty use types • Specialty types may be excluded from an RA or CRC policy if an APH policy is purchased – You may elect to exclude coverage for the specialty type(s) under this policy (RA/CRC) provided you purchase an APH policy for the excluded type(s). • The APH policy may have a different coverage level or price election percentage. You may exclude any or all of the specialty type(s) you produce; however, you must continue to insure (all other type) soybeans not excluded under this policy

• APH and T-yields are required • Yield Drag

Special Provisions of Insurance: Language from Actuarial table • You may elect to use the price contained in your production contract (contract price) as your price election only if the total number of insured acres of the specialty type does not exceed 110% of insured specialty type acreage under the contract (the number of acres under contract is determined as indicated on the next slide):

SPOI language • Acreage must be under contract with a business enterprise equipped with facilities appropriate to handle and store specialty type of soybean production. • Contract must be executed by you and the business enterprise, in effect for the crop year, and you must provide a copy to us no later than the acreage reporting date. To be considered a contract, the executed document must contain:

Executed document (contract) must contain: a. A requirement that you plant, grow and deliver specialty soybeans to the business enterprise; b. The amount of production that will be accepted or a statement that all production from a specified number of acres will be accepted. To determine the number of acres under contract; 1.

For acreage only based processor contracts and, acreage and production based processor contracts which specify a maximum number of acres, the lesser of: I. II.

The insured acres; (planted acreage and acreage that is prevented from being planted); or The maximum number of acres specified in the contract

Continued from Actuarial 2. For production only based processor contracts, the lesser of: I. II.

The number of acres determined by dividing the production stated in the processor contract by the approved yield; or The insured acres (planted acreage and acreage that is prevented from being planted).

APH Soybean • (c) The price to be paid for the contracted production or a method to determine such price; – (1) If the contract provides for a premium amount over a price determined after the acreage reporting date, the contract price will be the result of adding the premium amount to the "all other" soybean price election on the acreage reporting date. – (2) The price used will be the price in the contract without regard to incentives or discounts. – (3) In no case will the contract price exceed the amount determined by multiplying the conventional soybean price election by the price election limit factor shown below. – (4) If you have more than one contract price for any specialty type, the price used will be the weighted average contract price. (d) Other such terms that establish the obligations of each party to the contract; and (e) The contract must clearly indicate the specific specialty type or verification must be provided that the contracted variety is one of the specialty types listed above.

Specialty Type Soybean *PRICE ELECTION LIMIT FACTOR – Large seeded food grade-----1.5 – Small seeded food grade-----1.3 – Low linolenic acid--------------1.15 – Low saturated fat--------------1.15 – High protein---------------------1.15 • Limit Factor applied to published price election

Exhibit 35 • Exhibit 35: – Yield Determinations for Combined or Divided Practices, Types, Varieties (P/T/V), or T-Yield Map Areas (TMA) – Use for dividing Barley databases

Dividing APH Databases • When a type that required a separate APH yield is divided into more than one type requiring separate APH yields (e.g., No Types Specified into Malting, Hulless, etc.), the insured must establish production and acreage history according to the new actuarial structure. • Note: An existing APH database established for one type may not be duplicated to establish an APH database for a different type for those types that require separate APH yields (databases).

Rules for Dividing APH Databases • For all units: – One year at a time; start with most recent – Most recent crop year’s acres and production must be filed according to type. If not, then: • For Carryover insured, assigned yields will apply • For New insureds, follow standard APH procedures

– Prior crop years must then be separated • 3 options (in order of listing) • Only one of the three methods can be elected within a crop year for the crop/county – for all units

3 Options for Separating 2010 and Prior Years’ Barley Databases • 1) RECERTIFY – Actual acres and production by type • 2) APPORTION – Production based on acres and Transitional Yields • All Other Spring and Malting Spring have same T-ylds. All other types are different, and lower.

• 3) ATTRIBUTE – All acres and production to the highest yielding type Note: Once insured elects method (2) or (3), he/she cannot go back to the prior method

Option 1 • Certify / Recertify acres and production separately for each new type – Recertify year by year until records are not available and then move to apportioning, then attributing if needed Exception: On any unit for any year, if only one type was planted on the unit, that unit’s actual acres and production may be re-certified without regard to instructions for apportioning or attributing the acreage and production for other units for that year.

Certify / Recertify • Acceptable production report(s) MUST be filed for each type specified in the 2010 actuarial filing for barley. • Enter the certified/recertified production, acres, actual yields, and assigned yields into the database • If less than 4 years of acceptable records are available and other production history is not available that could be apportioned or attributed, enter the applicable variable TYield

19-A (APH)

Recertify Method 2 POLICY NUMBER MPCI

I. M. INSURED

1 NAME

4 CROP

ACTUAL PRODUCTION HISTORY WORKSHEET

Barley

5 STATE

00100

3 UNIT NUMBER

6 LEGAL DESCRIPTION

PNW

Sec. 01 T00N R00W 7 CROP YEAR

8 COUNTY

9 FARM NUMBER

Any County

2010

11111 NTS

11 Crop.: 0091 12 Type:

997

All Other Spring

11 Crop.: 0091

13 Practice: 003

12 Type:

10 YEAR

14 PROD.

15 ACRES

16 YIELD

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

19,840 19,200 16,640 19,520 30,080 17,600 15,750 22,400 29,000

320.0 320.0 320.0 320.0 640.0 320.0 250.0 400.0 500.0

62 60 52 61 47 55 63 56 58

RCRT RCRT RCRT RCRT CERT

872

13 Practice: 003

18 AVERAGE YIELD

12 Type:

13 Practice: 003

15 ACRES

16 YIELD

14 PROD.

15 ACRES

16 YIELD

3,950 11,600 8,000 5,500

0.0 50.0 200.0 150.0 100.0

Z 79 58 53 55

17,600 11,800 10,800 21,000 23,200

320.0 200.0 200.0 350.0 400.0

55 59 54 60 58

TOTAL

58

873

14 PROD.

TOTAL 17 T-YIELD

Malting Spring

11 Crop.: 0091

17 T-YIELD 18 AVERAGE YIELD

TOTAL

245 58 61

17 T-YIELD 18 AVERAGE YIELD

286 58 57

I certify that the information I have furnished as reflected on this form is complete and accurate for the commodity(ies), unit(s) and year(s) shown. I understand this form may be reviewed or audited and that information inaccurately reported or failure to retain records to support information on this form, may result in a recomputation of the approved APH Yield. I also understand that failure to report completely and accurately may result in voidance of my crop insurance contract and may result in criminal or civil false claims penalties (18 U.S.C. 1006 and 1014; 7 U.S.C. 1506; 31 U.S.C. 3729 and 3730). 19 INSURED’S SIGNATURE DATE

Option 2 • When you can no longer recertify, APPORTION commingled production to known (as an example: AOS and Malt) acres; then move to attributing if needed – Use commingled production worksheet if the new types have different T-Yields – If T-Yields are the same, prorate the production to planted acres

Option 2 • When APPORTIONING, refer to CIH Section 6E(2) for separating commingled production procedure: • Separate production may be determined: – Insured provides yield estimate from past records – Use of Multipurpose Production & Yield Report Worksheet – Prorated when T’s are the same and insured is unable to provide yield estimate and acreage of the type is known.

19-A (APH) I. M. INSURED

1 NAME

4 CROP

ACTUAL PRODUCTION HISTORY WORKSHEET

2

Barley

Apportion Method POLICY NUMBER MPCI

5 STATE

00100

3 UNIT NUMBER

6 LEGAL DESCRIPTION

PNW

Sec. 01 T00N R00W 7 CROP YEAR

8 COUNTY

9 FARM NUMBER

Any County

2010

11111 NTS

11 Crop.: 0091 12 Type:

997

All Other Spring

11 Crop.: 0091

13 Practice: 003

12 Type:

10 YEAR

14 PROD.

15 ACRES

16 YIELD

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

19,840 19,200 16,640 19,520 30,080 17,600 15,750 22,400 29,000

320.0 320.0 320.0 320.0 640.0 320.0 250.0 400.0 500.0

62 60 52 61 47 55 63 56 58

APP APP RCRT RCRT RCRT RCRT CERT

872

13 Practice: 003

18 AVERAGE YIELD

12 Type:

13 Practice: 003

15 ACRES

16 YIELD

14 PROD.

15 ACRES

16 YIELD

6,090 15,040

100.0 320.0 0.0 50.0 200.0 150.0 100.0

61 47 Z 79 58 53 55

13,398 15,040 17,600 11,800 10,800 21,000 23,200

220.0 320.0 320.0 200.0 200.0 350.0 400.0

61 47 55 59 54 60 58

3,950 11,600 8,000 5,500

TOTAL

58

873

14 PROD.

TOTAL 17 T-YIELD

Malting Spring

11 Crop.: 0091

17 T-YIELD 18 AVERAGE YIELD

TOTAL

353 58 59

17 T-YIELD 18 AVERAGE YIELD

394 58 56

I certify that the information I have furnished as reflected on this form is complete and accurate for the commodity(ies), unit(s) and year(s) shown. I understand this form may be reviewed or audited and that information inaccurately reported or failure to retain records to support information on this form, may result in a recomputation of the approved APH Yield. I also understand that failure to report completely and accurately may result in voidance of my crop insurance contract and may result in criminal or civil false claims penalties (18 U.S.C. 1006 and 1014; 7 U.S.C. 1506; 31 U.S.C. 3729 and 3730). 19 INSURED’S SIGNATURE DATE

PRORATE:

30,080 Tot Prod / 640 Acres = 47 bu per acre; 47 x 320 acres planted in database = 15,040

COMMINGLED WORKSHEET: If T-Yields are differnt Crop Year Type T-Yield Acres Extension 2004 AOS 58 X 320 = 18,560 Waxy Hulled 52 320 16,640 35,200

X

Factor (Act Prod / Ext Total) .85 (30,080/35,200) = .85

Production 15,776 14,144

Option 3 • When you can no longer recertify or apportion, ATTRIBUTE all acres and production to the highest ranking practice • If you need to complete the database for the type with the lower T-Yield, determine the annual yields as follows: – – – –

Lower Pub. T-Yld / Highest Pub. T-Yld = %Factor %Factor X Approved APH Yield from the type data was attributed to Use “F” yield descriptor Example Hulless T 49 bu = .72 X AOS APH 63 = 45 All Other T 68 bu 45 bu will be used as an F yield to complete a database

19-A (APH)

Attribute Method 2 POLICY NUMBER MPCI

I. M. INSURED

1 NAME

4 CROP

ACTUAL PRODUCTION HISTORY WORKSHEET

Barley

5 STATE

00100

3 UNIT NUMBER

6 LEGAL DESCRIPTION

PNW

Sec. 01 T00N R00W 7 CROP YEAR

8 COUNTY

9 FARM NUMBER

Any County

2010

11111 NTS

11 Crop.: 0091 12 Type:

997

All Other Spring

11 Crop.: 0091

13 Practice: 003

12 Type:

10 YEAR

14 PROD.

15 ACRES

16 YIELD

2003 2004 2005 2006 2007 2008 2009

19,520 30,080 17,600 15,750 22,400 29,000

320.0 640.0 320.0 250.0 400.0 500.0

61 47 55 63 56 58

ATT ATT RCRT RCRT RCRT RCRT CERT

872

13 Practice: 003

18 AVERAGE YIELD

12 Type:

876

13 Practice: 003

14 PROD.

15 ACRES

16 YIELD

14 PROD.

15 ACRES

16 YIELD

6,090 15,034

320.0 640.0 0.0 240.0 350.0 450.0 500.0

61 47 Z 65 58 57 60

17,600 150 2,100 3,350 0

320.0 10.0 50.0 50.0 0.0

55 15 42 67 Z

15,600 20,300 25,650 30,000

TOTAL 17 T-YIELD

Hulless Spring

11 Crop.: 0091

TOTAL

58

17 T-YIELD 18 AVERAGE YIELD

TOTAL

58

17 T-YIELD

42

18 AVERAGE YIELD

I certify that the information I have furnished as reflected on this form is complete and accurate for the commodity(ies), unit(s) and year(s) shown. I understand this form may be reviewed or audited and that information inaccurately reported or failure to retain records to support information on this form, may result in a recomputation of the approved APH Yield. I also understand that failure to report completely and accurately may result in voidance of my crop insurance contract and may result in criminal or civil false claims penalties (18 U.S.C. 1006 and 1014; 7 U.S.C. 1506; 31 U.S.C. 3729 and 3730). 19 INSURED’S SIGNATURE DATE

No Actual or Assigned Yields in the database being combined or divided: Step 1 – For carryover insured who didn’t file records, enter assigned yield. For zero planted acres, enter “Z”. – For new insured, standard APH procedures (actual records, variable t-yields, etc.) apply to applicable P/T/V/TMA

Step 2 – Complete the 4-year database with the current t-yield or RO determined yield.

Step 3 – Calculate the approved APH.

ERROR: syntaxerror OFFENDING COMMAND: --nostringval-STACK: /Title () /Subject (D:20100114165018-06’00’) /ModDate () /Keywords (PDFCreator Version 0.9.5) /Creator (D:20100114165018-06’00’) /CreationDate (jdawson) /Author -mark-

Suggest Documents