Policyholder Updates

What's New? 

July 31, 2020

  • Informational Memorandum: COM-20-003: 1st crop CCIP / 2nd crop RIVI - Annual Forage Double Cropping 
  • Read the full RMA Bulletin HERE.

July 27, 2020

  • Informational Memorandum OA-20-002: Customer Survey
  • Read the full RMA bulletin HERE

 

2021 Crop Insurance Provision Changes

As your Approved Insurance Provider (AIP), NAU Country takes pride in keeping you up-to-date on crop insurance changes. The Federal Crop Insurance Corporation (FCIC) has made 2021 provision revisions.

The following Informational Memorandums have been issued by the Risk Management Agency (RMA). We have provided a summary of each of the changes, but to find out more you can click on the link(s) below to be routed directly to the bulletin(s).

  • PM-20-045 - Area Risk Protection Insurance Basic Provisions, Common Crop Insurance Policy Basic Provisions, and Coarse Grains Crop Provisions Changes
    • The following changes to provisions and regulations listed below are for the 2021 and succeeding crop years with a contract change date after June 30, 2020.
      • Area Risk Protection Insurance (ARPI) Regulations
      • Common Crop Insurance Policy (CCIP)
      • Basic Provisions
      • Coarse Grains Crop Provisions
  • PM-20-044 - Multi County Enterprise Unit (MCEU) Changes
    • The following documents are available on the RMA's website:
      • MCEU Pilot Endorsement (21-MCEU)
      • MCEU Frequently Asked Questions
      • MCEU Fact Sheet
  • PM-20-041 - Dry Pea Crop Provisions Changes
    • Changes are effective for the 2021 and succeeding crop years to the following:
      • Allow insurance on Fava/Faba beans;
      • Add program dates for AZ and CA;
      • Add a moisture adjustment to gross production;
      • Update the policy for consistency with other crops with coverage on both fall and spring-planted acreage in the same county; and
      • Clarify policy provisions.
  • PM-20-040 - Malting Barley Endorsement (MBE) Changes
    • The following changes to MBE are effective for the 2021 and succeeding crop years:
      • Expansion to 35 Ohio counties (listed in bulletin);
      • Quality adjustment will now be determined using Local Market Price; and
      • Quality adjustment will now impact barley actual production history.
  • PM-20-038 - Sugarcane Actual Production History (APH) Plan of Insurance and Sugarcane Crop Replacement Endorsement (CRE) Changes
    • Changes are being made for the 2021 and succeeding crop years to the Sugarcane Policy and Sugarcane CRE. Some of the changes being made are below:
    • Policy Changes:
      • Account for APH determination for acreage cut for seed when 100 percent of the unit if cut for seed; and
      • Clarify the date by which acreage cut for seed must be reported;
    • CRE Changes:
      •  Add option B to provide crop replacement coverage without depreciation; and
      • Specify the default coverage option when election is not made.
  • PM-20-034 - Margin Protection Plan of Insurance
    • The Margin Protection Plan of Insurance changes are effective for the 2021 and succeeding crop years.
    • The RMA uses fertilizer prices posted by the Chicago Mercantile Exchange (CME) group to establish guarantees and determine indemnities under the Margin Protection (MP) Plan of Insurance. The CME has recently discontinued posting swaps prices for Urea (as of January 2020) and Diammonium Phosphate (DAP) (following the March 2020 contract). As a result of the change in available price data, RMA is updating the MP price provisions to utilize futures prices for Urea and DAP.
  • PM-20-033 - Canola and Rapeseed Crop Provisions
    • The FCIC revised the Canola and Rapeseed Crop Provisions for 2021 and succeeding crop years. These provisions were revised to clarify policy provisions and for consistency with other crop provisions that offer coverage on both fall and spring-planted acreage of the crop in the same county. 
  • PM-20-029 - Forage Seeding and Forage Production Crop Insurance Changes
    • Changes are being made for the 2021 and succeeding crop years to the Forage Seeding and Forage Production insurance policies.
  • PM-20-021 - Dairy Revenue Protection (DRP) Provisions
    • FCIC approved revisions to the Dairy Revenue Protection (DRP) plan of insurance, under section 508(h) of the Federal Crop Insurance act. The following revisions are applicable for the 2021 and succeeding crop years. 
      • Add a Weighting Factor Option and Nonfat Solids Price to the Component Pricing Option;
      • Modify the policy to allow Class B milk to be insured;
      • Modify the minimum declared protein from 4.00 to 4.50 making the range 2.75 - 4.50;
      • Modify declared Butterfat from 5.00 to 5.50 making the range 3.25 - 5.50 pounds;
      • Other minor editorial changes.
  • PM-20-005 - Pecan Trees
    • FCIC approved modifications to the Pecan Tree Crop Insurance Program under section 508(h) of the Federal Crop Insurance Act. The following changes are applicable for the 2021 and succeeding crop years:
      • Increasing the Occurrence Loss Option trigger to 10 percent, with corresponding adjustments to rates;
      • Adding an additional method to qualify for optional units when orchards on contiguous land are separated by the minimum distance specified in the Special Provisions; and
      • Allowing different coverage level and percentage of price election to be elected for each type.
  • PM-20-004 - Florida Fruit Trees
    • FCIC revised the Florida Fruit Tree Crop Provisions and Insurance Standards Handbook to clarify the optional unit structure provisions and procedure. The changes are applicable for the 2021 and succeeding crop years.

 

2020 Crop Insurance Provision changes

  • PM-19-071 - Sugar Beets
    • The FCIC amended the Sugar Beet Crop Provisions for the 2020 and succeeding crop years in all counties with a November 30 contract change date and 2021 and succeeding crop years for all other counties, with the following changes:
      • Revised the maximum early harvest adjustment to the higher of the producer’s approved actual production history yield or the actual yield of the sugar beets harvested after full maturity from the unit;
      • Replaced the definition of “processor contract” with “production agreement,” which does not require a price or formula based on third party data;
      • Revised the production agreement deadline from the time of loss to the acreage reporting date;
      • Clarified when to apply the early harvest adjustment;
      • Added procedures allowing third parties to test raw sugar content in addition to the processor; and
      • Added salvage value procedures for damaged production.
  • PM-19-070 - Coarse Grains
    • The FCIC revised the Coarse Grains Crop Provisions to allow separate enterprise or optional units by following another crop (FAC) and not following another crop (NFAC) cropping practices for grain sorghum and soybeans when allowed by the actuarial documents, and to make other technical edits. The changes will be effective for the 2020 and succeeding crop years.
  • PM-19-068 - Hybrid Seed Rice
    • The FCIC revised the Hybrid Seed Rice Crop Provisions to remove the definition of “adjusted yield” and clarify definitions for “amount of insurance per acre” and “county yield”. The changes are applicable for the 2020 and succeeding crop years..
  • PM-19-067 - Sweet Potatoes
    • The FCIC Board of Directors approved changes to the Sweet Potato crop insurance program, under section 508(h) of the Federal Crop Insurance Act, on September 20, 2019. The following changes are applicable for the 2020 and succeeding crop years:
      • Allowance of optional units;
      • Removal of the 4-year production requirement for insurance;
      • Increase in the allowable acreage expansion from 110 to 115 percent of historical acreage;
      • Revision to loss adjustment procedures for irregularly-shaped fields.
  • PM-19-066 - Hybrid Sweet Corn
    • The FCIC revised the Hybrid Sweet Corn Seed Crop Provisions to clarify the definitions of hybrid sweet corn seed processor contract and amount of insurance per acre. The changes are applicable for the 2020 and succeeding crop years.
  • PM-19-061 - Fresh Market Beans
    • FCIC revised the Fresh Market Bean Crop Provisions to allow separate coverage levels by type (planting period) and to make other policy clarifications. The changes are applicable for the 2020 crop year.

You can access your policy provisions at any time by going to https://www.naucountry.com/myprovisions.

Please contact your NAU Country Agent with any questions.