RMA Crop Production and Revenue Insurance Products

2. RMA Crop Production and Revenue Insurance Products Lesson Overview • In this lesson, we will learn about: • Wyoming acres of annually-planted crops, and acres insured • Multiple Peril Crop Insurance • Catastrophic Risk Protection (CAT) • Crop Revenue Insurance (CRC) • Group Risk Plan (GRP) • Group Risk Income Protection (GRIP) • Forage Insurance • Seed and Specialty Crop Insurance • Alfalfa Seed Protection Insurance • Nursery Crop Insurance • Adjusted Gross Revenue-Lite (AGR-Lite)

3. RMA Crop Production and Revenue Insurance Products • Forage Insurance: Topic Overview • In this topic, you will learn about: • Wyoming acres of annually-planted crops, and acres insured • Multiple Peril Crop Insurance • Catastrophic Risk Insurance (CAT) • Crop Revenue Insurance (CRC) • Group Risk Plan (GRP) • Group Risk Income Protection (GRIP) • Forage Insurance • Seed and Specialty Crop Insurance • Adjusted Gross Revenue-Lite (AGR-Lite)

4. RMA Crop Production and Revenue Insurance Products Wyoming Acres of Forage Crops and Insured Acres

5. RMA Crop Production and Revenue Insurance Products Forage Seeding Irrigated Forage Seeding Insured Counties for Irrigated Forage Seeding, MPCI (Dollar Value) Coverage Forage Seeding Non-Irrigated Forage Non-Irrigated Seeding Insured Counties for Non-Irrigated Forage Seeding, MPCI (Dollar Value) Coverage *Acreage data are not available at this county or state level from NASS sources *Acreage data are not available at this county or state level from NASS sources

6. RMA Crop Production and Revenue Insurance Products Insurability under MPCI for Forage Seeding: • Insurable Crop • Spring-seeded perennial alfalfa, perennial grasses, or a mixture • Insurable Types • Alfalfa and alfalfa/grass mixtures as determined by the number of live alfalfa plants per square foot • Insurable Practices • Alfalfa and alfalfa/grass mixtures under irrigation in all Wyoming counties • Alfalfa and alfalfa/grass mixtures under non-irrigated (dryland) production in certain Wyoming counties • Insurable Units • Forage seeding insurance may be insured at the basic unit level, or under specific conditions the optional unit level in Wyoming • Insurability Requirements • Must be spring planted during the current year to establish a normal stand intended for harvest • Must not be grown with the intent to be grazed • New stand may not be grazed any time during the insurance period • The new stand may not be inter-planted with another crop except barley, flax, oat or wheat

7. RMA Crop Production and Revenue Insurance Products Insurability under MPCI for Forage Seeding • Insurable Units • Forage seedings may be insured at the optional or basic unit levels • Percent of Insurance • 67% to 100% of the reference dollar amount • CAT is available at a 55% of the referenced dollar amount • Coverage Levels • The level of coverage is influenced by the selection of the amount of insurance but includes the 50, 55, 60, 65, 70 and 75% coverage levels • CAT is available at 50% coverage level • Reference Dollar Amounts • Dollar amounts for irrigated forage seeding are announced annually • Dollar amounts for non-irrigated forage seeding are announced annually

8. RMA Crop Production and Revenue Insurance Products The Insurance Period • The insurance period begins at the seeding date of the forage crop. • The insurance period ends at the earliest date of any of the following causes: • Total destruction of the insured crop • First harvest after August 5 of the year of establishment • Final adjustment of a loss • Abandonment of the insured crop

9. RMA Crop Production and Revenue Insurance Products Coverage Levels and Percentages of Dollar Amounts

10. RMA Crop Production and Revenue Insurance Products Forage Seeding Insurance Dollar Amounts of Insurance* Minimum and Maximum Dollar Amounts of Insurance are 50 and 75 percent of the Reference Dollar Amounts, respectively * Producers may seek current year Reference Dollar Amounts by selecting Data to view Price Addendums shown at: http://www.rma.usda.gov/ ** Certain Reference Dollar Amounts are adjusted, based on more complete information subsequent to the initial announcement and are listed as Additional Price in the web site *** The Amount of Insurance for spring-seeded crops such as alfalfa and alfalfa grass mixtures are announced when sufficient information is available and a considerable time prior to the sales closing dates for the insurance

11. RMA Crop Production and Revenue Insurance Products Indemnity and Production to Count • Indemnity = Total Dollar Coverage – Production to Count • Production to Count is the dollar amount of the established stand, which includes acreage • With at least 75% of a normal stand, • That has been abandoned or otherwise used without consent, • Has been damaged by uninsured causes, or • Has been harvested and not reseeded

12. RMA Crop Production and Revenue Insurance Products Forage Seeding Insurance Normal stands of forage seeding, by type and practice

13. RMA Crop Production and Revenue Insurance Products • Per acre Indemnity for Forage Seeding • If the stand is between 55% and 75%, there is a 50% reduction in the per acre indemnity

14. RMA Crop Production and Revenue Insurance Products Forage Seeding Example

15. RMA Crop Production and Revenue Insurance Products Forage Seeding Insurance-Exercise 1 • Total Dollar Coverage = $38,400 • Total “Production to Count” • Irrigated Value: • 100 acres x $96 per acre = $9600 • Total Production to Count = $9600 • Indemnity = $38,400 - $9600 = $28,800 • Brandon received the $28,800 indemnity on the 300 acres where he realized only a 37.5% stand of irrigated alfalfa

16. RMA Crop Production and Revenue Insurance Products Forage Seeding Insurance – Exercise 2 • Total Dollar Coverage= $38,400 • Total “Production to Count” • Irrigated Value: • 100 acres x $96 per acre = $9600 • Total Production to Count = $9600 • Indemnity = $38,400 - $9600 = $28,800 x ½ = $14,400 Brandon received an indemnity of $14,400 for the 300 acres of irrigated alfalfa with a 62.5% stand

17. RMA Crop Production and Revenue Insurance Products Alfalfa Hay Insured Counties for Alfalfa Hay, MPCI Coverage* Alfalfa Hay Production* Lincoln, Sheridan, Johnson, Campbell, Crook, Weston, Converse, Niobrara, Platte, Goshen and Laramie counties have coverage for irrigated and non0irrigated production. All other counties have coverage for only irrigated production * All counties in Wyoming report production of Alfalfa Hay

18. RMA Crop Production and Revenue Insurance Products MPCI-Forage Production Insurance • Insurable Crop • Forage planted for harvest consisting of planted perennial alfalfa, perennial grasses, or a mixture • Insurability Requirements • The forage must not be grown with a non-forage crop • The forage is first insurable as forage for production in the year after establishment; and • The forage has an adequate stand of living alfalfa plants

19. RMA Crop Production and Revenue Insurance Products MPCI-Forage Production Insurance • Insurable Types • Alfalfa, Alfalfa/grass and Grass/alfalfa Mixtures • Insurable Practices • Both irrigated and non-irrigated forage for harvest are insurable • Insurable Units • Optional or basic unit level • Coverage Level • 50, 55, 60, 65, 70 and 75 of APH • Price Election • 55% to 100% of maximum price election • Maximum price elections (Established Prices) are announced annually for Alfalfa, Alfalfa Grass Mixture, and Grass Alfalfa Mixture • Forage Production Established Prices*

20. RMA Crop Production and Revenue Insurance Products MPCI-Forage Production Insurance

21. RMA Crop Production and Revenue Insurance Products MPCI-Forage Production Insurance • CAT is available at the 50% coverage level and 55% of the maximum price election • Insured Period Beginning • May 22nd following the year of seeding for spring-seeded acreage • October 16th following the year of seeding for fall-seeding acreage • In subsequent years – October 16th

22. RMA Crop Production and Revenue Insurance Products MPCI-Forage Production Insurance (Cont.) • Insured Period ends at the earliest date when one of the following occurs: • Total destruction of the forage crop • Final adjustment for a loss • Abandonment of the crop • Removal from the windrow for each cutting • Date grazing commences • Note: Coverage will continue for acreage that is grazed after it has gone into winter dormancy provided all livestock are removed from the acreage prior to emergence of the forage from winter dormancy. • October 15th

23. RMA Crop Production and Revenue Insurance Products MPCI-Forage Production Insurance Forage Types Definitions • Three types of forage: • Alfalfa • Alfalfa/grass mixtures • Grass/alfalfa mixtures • Mixtures are distinguished by the number of living alfalfa plants per square foot • Insurable after the year-of-stand establishment

24. RMA Crop Production and Revenue Insurance Products MPCI-Forage Production Insurance Forage Types Definitions (Cont.) • Irrigated alfalfa and alfalfa/grass are “overaged” after the 7th year • Non-irrigated alfalfa and alfalfa/grass are overaged after the 5th year and must be insured as grass/alfalfa • Grass/alfalfa includes all overage alfalfa and alfalfa/grass • At least 0.2 living alfalfa plants per square foot • No age limitation

25. RMA Crop Production and Revenue Insurance Products Minimum Number of Living Alfalfa Plants per Square Foot, By Type

26. RMA Crop Production and Revenue Insurance Products APH Yields for Forage Production • Yields, acreage, and production records must be written and verifiable • For forage production that is sold, forage sales records must be: • Generated in the same time period with harvesting • Substantiated by marketing records of a buyer such as settlement sheets, certified weight tage, or load receipts • Include the buyer’s name, net weight, type and delivery date • For forage production that is stored, determination of production must be based on weights or measurements and conversion factors consistent with procedures used for loss adjustment

27. RMA Crop Production and Revenue Insurance Products APH Yields for Forage Productions • Weight determination of forage • Large round bales: If the automated baler is acceptable, multiply the number of bales by the average weight of at least two bales and multiply by the average bale weight • Small bales: Weight 3 to 4 bales per insurable unit per harvest • Loose hay: Consult your RMA or a loss adjustor • Forage production fed: • After forage is fed without being sold, feed records must specify the number of head and type of livestock • Records must include estimated weights and number of days fed • Feed records are only acceptable for the current crop year

28. RMA Crop Production and Revenue Insurance Products APH Yields for Forage Production • RMA suggestions: • Weigh bales on a certified scale • Take photographs of stack yards to verify bale count • Keep records by insured unit, type, and cutting

29. RMA Crop Production and Revenue Insurance Products Irrigated Alfalfa Example

30. RMA Crop Production and Revenue Insurance Products Irrigated Alfalfa-Exercise • Adam and his son harvest 2 tons for the first cutting and 0.8 tons for the second cutting and were not able to obtain a third cutting Will they receive an indemnity? (Yes/No)

31. RMA Crop Production and Revenue Insurance Products Non-irrigated Grass/Alfalfa Mixture:

32. RMA Crop Production and Revenue Insurance Products Non-irrigated Grass/Alfalfa – Exercise • Peg and Al harvest only 0.8 ton for the year. Will they receive an indemnity? (Yes/No)

33. RMA Crop Production and Revenue Insurance Products Forage Insurance: Topic Summary • In this topic, you learned about: • Forage insurance for irrigated and non-irrigated seeding protection, and production of alfalfa hay or alfalfa/grass mixtures • How forage production insurance applies to alfalfa, alfalfa/grass, grass/alfalfa mixtures