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NCIS Malting Barley Training Unit 1996-NCIS 773 Malting Barley Price and Quality Endorsement

NCIS Malting Barley Training Unit 1996-NCIS 773 Malting Barley Price and Quality Endorsement. 1996 Malting Barley. In-depth look at the 1996 Malting Barley Price and Quality Endorsement Understanding of the concept Work examples

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NCIS Malting Barley Training Unit 1996-NCIS 773 Malting Barley Price and Quality Endorsement

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  1. NCIS Malting Barley Training Unit1996-NCIS 773Malting Barley Price and Quality Endorsement

  2. 1996 Malting Barley • In-depth look at the 1996 Malting Barley Price and Quality Endorsement • Understanding of the concept • Work examples • Update can serve as a base on which companies can build their training

  3. 1996 Malting Barley ND WA MT MN SD OR ID WY NE CO OFFERED IN 10 STATES

  4. 1996 Malting Barley • 2 Malting Barley Endorsements offered for 1996 crop year • 1995-NCIS 773 Malting Barley Endorsement • 1996-NCIS 773 Malting Barley Price and Quality Endorsement

  5. 1996 Malting Barley Malting Barley Price & Quality Endorsement • 1996-NCIS 773 • New for the 1996 crop year • Continuous endorsement • Endorsement to Small Grains Policy Provisions

  6. 1996 Malting Barley Malting Barley Price & Quality Endorsement • 1996-NCIS 773, continued... • Provides coverage for malting barley production and quality losses at a higher $ • Only malting endorsement available in ‘97

  7. 1996 Malting Barley Malting Barley Price & Quality Endorsement • 1996-NCIS 773, continued... • No offer of coverage under this endorsement due to: • Failure to elect an option • Elect Option B, but have no contract

  8. 1996 Malting Barley • Options A and B - Sales Closing • Must elect an option on or before final SCD Options A (1) and B (2) available • Only one Option applicable at a time

  9. 1996 Malting Barley Option A & B - Sales Closing • Federal Agriculture Improvement and Reform Act: • Applications may be accepted through May 2, 1996 for: • Spring planted barley • Barley if Option A or B is purchased

  10. 1996 Malting Barley Option A & B - Sales Closing • Availability due to FAIR: • New insured can buy limited or additional malting barley coverage • CAT insured can buy limited or additional coverage

  11. 1996 Malting Barley Option A & B - Sales Closing • Availability due to FAIR: • Previous malting barley insured with ‘95 endorsement may: • Cancel 1995 endorsement and add the ‘96 endorsement; • Increase coverage (level or price) under the ‘96 endorsement

  12. 1996 Malting Barley Option A & B - Sales Closing • Availability due to FAIR: • Previous malting barley insured with ‘96 endorsement may: • Change from Option A or B to a different Option (A or B); or • Increase coverage (level or price)

  13. 1996 Malting Barley Option A: Coverage for production and quality at a greater price • Available for: • Producers of production contracted after the SCD; • Non-contracted production; or • A combination of contracted and non-contracted production

  14. 1996 Malting Barley Option A - Sales Closing • Evidence of past malting barley production • Sale records of at least 4 crop years prior to the one immediately preceding the current crop year • By practice • Due by the PRD

  15. 1996 Malting Barley Option A - Sales Closing • Evidence of past malting barley production, continued... • Sale records must clearly indicate sold production is malting variety

  16. 1996 Malting Barley Option A - Sales Closing • Evidence of past malting barley production, continued... • Sale records must show: • approved variety of Malting Barley • listed in the actuarial; • FCIC RSO approved via written agreement; • recommended by AMBA • quantity delivered and price received

  17. 1996 Malting Barley Option A - Sales Closing • Failure to provide evidence: • Ineligible for coverage under this endorsement

  18. 1996 Malting Barley Option A - Sales Closing • Level election: • Is the same for feed and malting barley • Found in the actuarial • No CAT

  19. 1996 Malting Barley Option A - Sales Closing • Price election: • Additional value price election; or • % of maximum value price election • Not to exceed the maximum price election found in Special Provisions • Price % does not have to match feed barley • Not the contract price

  20. 1996 Malting Barley Option A - Sales Closing • Price election, continued: • % of maximum value price election selected • additional value price election equals the percentage elected times the maximum value price election; or • % x max = additional value price election

  21. 1996 Malting Barley Option A - Sales Closing • Example 1: • farmer elected 100% of $2.15 market price for feed barley • farmer elected 95% of $.50 maximum value price for malting barley • 95% x $.50 = $.48 or .95 x $.50= $.48 • Malting barley price is $.48 • Feed barley price is $2.15

  22. 1996 Malting Barley Option A - Production Reporting • Unit structure: • One basic unit • By county • Without regard to: • share; • ownership; or • rental arrangement

  23. 1996 Malting Barley Option A - Production Reporting • Required production records: • Sale records of at least 4 crop years prior to the one immediately preceding current crop year • By practice • Due by the Production Reporting Date

  24. 1996 Malting Barley Option A - Production Reporting • Example 2: Crop Production Acres Yield Descriptor Year code 1991 1850 50 37 A 1992 2000 53 38 A 1993 1825 52 35 A 1994 1856 50 37 A 1995

  25. 1996 Malting Barley Option A - Production Reporting • Unit structure: • Separate databases for feed and malting barley • Separate basic unit for feed and malting barley • One basic unit database for malting barley • Set up unit/database structure the first year endorsement is in force

  26. 1996 Malting Barley • Option A - Production Reporting • Example 3: • Feed barley (MBV) at 100% share • Feed barley (MBV) at 50/50% with Joe • Malting barley Unit 0100 = feed barley (MBV) land at 100% share Unit 0200 = feed barley (MBV) land 50/50% with Joe Unit 0300 = malting barley

  27. 1996 Malting Barley Option A - Production Reporting • Reporting production • Feed barley database includes • Feed barley and • malting barley • Malting barley database includes • Malting barley • Insured must keep production separate

  28. 1996 Malting Barley Option A - Production Reporting • Example 4: Unit 0100 Ave. Yld. = 40 Crop Production Acres Yield Descriptor Year code 1991 1040 26 40 A 1992 1300 30 43 A 1993 1140 30 38 A 1994 1073 29 37 A 1995 2000 50 40 A

  29. 1996 Malting Barley Option A - Production Reporting • Example 4, cont.: Unit 0200 Ave. Yld.=36 Crop Production Acres Yield Descriptor Year code 1991 810 24 34 A 1992 851 23 37 A 1993 770 22 35 A 1994 777 21 37 A 1995 0 Z

  30. 1996 Malting Barley Option A - Production Reporting • Example 4, cont.: Unit 0300 Ave. Yld.=37 Crop Production Acres Yield Descriptor Year code 1991 1850 50 37 A 1992 2000 53 38 A 1993 1825 52 35 A 1994 1856 50 37 A 1995

  31. 1996 Malting Barley Option A - Production Reporting • Example 4, continued: • acres and production in the malting barley database may not be identical to the acres in the feed barley database • acres and production in the malting barley database will not include acres and production from a non-malting variety of barley

  32. 1996 Malting Barley Option A - Production Reporting • Feed barley databases for carryover insureds • Carryover insureds who have established APH databases for only one type: • Basic barley databases become feed barley databases • Malt barley databases become feed barley databases

  33. 1996 Malting Barley Option A - Acreage reporting • Insurable malting barley acreage: • All barley acreage planted to an approved malting barley type • Listed in actuarial • Insured has a share • Planted as grain for malting barley purposes

  34. 1996 Malting Barley Option A - Acreage reporting • Not insurable malting barley acreage: • Acreage of non-approved malting or non-malting barley variety • Insured as feed barley • Prevented Planting acreage

  35. 1996 Malting Barley Option A - Acreage reporting • Reporting acreage: • All acreage • By practice • By type • By share

  36. 1996 Malting Barley Option A - Acreage Reporting • Example 5: Line Crop Location Percent Share- Acres Unit Average # Sec.Twn.Rng Interest holder # APH Yield 1 Barley 6-5N-5W 100% NONE 41.2 0100 40 2 Barley 6-5N-5W 100% NONE 41.2 0300 37 3 Barley 6-5N-5W 50% JOE 36 0200 36 4 Barley 6-5N-5W 50% JOE 36 0300 36

  37. 1996 Malting Barley Option A - Acreage Reporting • Example 5a: • Add a separate line for non-malting variety barley acres for clarification • However, it is possible to add the non-malting barley variety acres into the malting barley variety line of acreage for the feed barley unit

  38. 1996 Malting Barley Option A - Acreage reporting • Guarantee: • Lower of: • The calculated production guarantee for the coinciding feed barley database; or • The calculated production guarantee for the malting barley database

  39. 1996 Malting Barley Option A - Acreage Reporting • Example 6: 65% level elected Line Crop Type Practice Percent Acres Unit Ave. Guarantee # Interest # Yld. Per Acre 1 Barley 092 004 100% 41.2 0100 40 26.0 2 Barley 0921 004 100% 41.2 0300 37 24.1 3 Barley 092 004 50% 36 0200 36 23.4 4 Barley 0921 004 50% 36 0300 36 23.4

  40. 1996 Malting Barley Option A - Acreage Reporting • Example 6, continued: • Total line guarantee = guarantee per acre x line acres

  41. 1996 Malting Barley Option A - Acreage Reporting • Example 6, continued: • Total malting barley guarantee is the sum of the malting barley line totals 992.9 + 842.4 = 1,835.3 bushels

  42. 1996 Malting Barley Option A - Premium • Premium calculation: • Feed barley rate is applicable to coinciding malting barley line • Malting barley rate class option factor of 1.1 applicable instead of actuarial option factor

  43. 1996 Malting Barley Option A - Premium • Example 7: Line Crop Acres Unit Average Guarantee R-span Base # # Yield Per Acre Rate 1 Barley 41.2 0100 40 26.0 R08 .150 2 Barley 41.2 0300 37 24.1 R08 .150 3 Barley 36 0200 36 23.4 R07 .170 4 Barley 36 0300 36 23.4 R07 .170

  44. 1996 Malting Barley Option A - Premium • Example 7, continued: • Guarantee x $ x share x acres = liability • Base rate x Option factor x BUD = factored rate • liability x factored rate = line premium due

  45. 1996 Malting Barley Option A - Premium • Example 7, continued: • Guarantee x $ x share x acres = liability • Base rate x Option factor x BUD = factored rate • liability x factored rate = line premium due

  46. 1996 Malting Barley Option A - Premium • Example 7, continued: • Total premium x Producer % table factor = Producer premium • Producer premium + Administrative fee = Final amount due

  47. 1996 Malting Barley Option B: Coverage for production and quality at a greater price • Available for: • Producers of contracted production only

  48. 1996 Malting Barley Option B - Sales Closing • Level: • Is the same for feed barley • Found in the actuarial • No CAT

  49. 1996 Malting Barley Option B - Sales Closing • Price Election: • Additional value price election is not due until acreage reporting

  50. 1996 Malting Barley Option B - Production Reporting • Unit structure: • No separate database is required

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