Post Application Coverage Endorsement (PACE)
The Post Application Coverage Endorsement (PACE) is an endorsement that can be added to an underlying policy that provides additional coverage in the circumstance a producer is prevented from post/split applying nitrogen in accordance with the policy. Insureds can select a coverage level percent from 75% to 90%, in 5% increments.
PACE can be purchased for non-irrigated corn (grain-type, non-organic). It is available in select counties in Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. Contact your NAU Country Marketing Representative for further information about availability.
How does PACE work?
At the Sales Closing Date (SCD), you must elect PACE, select the PACE coverage level, provide the intended split of nitrogen to be applied pre-application and post-application as percentages of the total application (the sum of the percentages) must equal
100%, and the intended total nitrogen application rate per acre.
The insurance period is based on the post-application window to approximate the V3 - V10 growth stages based on planting date and growing degree day accumulation in specific counties. For calendar dates that the post-application window starts and ends, refer to the actuarial documents for your county.
In the event of a loss, you must provide a Notice of Loss (NOL) that you were prevented from applying the post-application nitrogen to an insured crop within 72 hours after the end of the insurance period or within 72 hours of being physically prevented from post-applying nitrogen, whichever is later.
To be eligible for PACE you must:
- Have an underlying insurance policy of Yield Protection (YP), Revenue Protection (RP), or Revenue Protection with the Harvest Price Exclusion (RP-HPE).
- Use and have documentation of a split application of a nitrogen practice. Proper documentation includes records of:
- Insured name.
- Date of purchase.
- Type of fertilizer purchased.
- Brand name (if applicable).
- Nitrogen, phosphorus, and potassium content.
- Total amount of nitrogen purchased.
- Have been physically unable to complete the nitrogen application process due to weather and field conditions to make a claim.
Indemnity payments:PACE indemnities are based on your approved yield, share, PACE coverage level percent, and final PACE Loss Factor when you are physically prevented from post-applying nitrogen due to a covered cause of loss. Your final PACE Loss Factor depends on the amount of pre- and post-apply nitrogen. The lower the pre-apply nitrogen percent, the higher the preliminary PACE Loss Factor (and premium). In the event of a claim, your indemnity is equal to your approved yield x your share x PACE coverage level percent x the maximum of the projected price and harvest price x your final PACE Loss Factor x your elected acres.
For example, suppose the approved yield is 200 bu./acre, projected and harvest price is $5.50, PACE coverage level percent is 90%, final PACE Loss Factor is 15%, the share is 100%, and elected PACE loss acres is 100. Your PACE indemnity would be 200 x $5.50 x 90% x 100% x 15% = $149/acre, or $14,900.
- Sales Closing, Cancellation, and Termination Dates: March 15.
- Acreage Reporting Date: July 15.
- Premium Billing Date: August 15.
- Contract Change Date: November 30.
For more information view the PACE Product Overview here!