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Tobacco Crop Insurance Update

Tobacco Crop Insurance Update. New Tobacco Provisions for 2010. Guarantee Tobacco (flue cured) and Quota Tobacco (burley) crop provisions will be combined into the Tobacco Crop Provisions. Tobacco Contracts.

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Tobacco Crop Insurance Update

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  1. TobaccoCrop Insurance Update

  2. New Tobacco Provisions for 2010 • Guarantee Tobacco (flue cured) and Quota Tobacco (burley) crop provisions will be combined into the Tobacco Crop Provisions

  3. Tobacco Contracts • First draft of new tobacco provisions required producer to have a contract with a tobacco company as a condition of insurance • Final draft – contract not required

  4. Units • 2009 - Basic units by share • Optional units by FSN • 2010 - Basic units by FSN • Optional units – as allowed by Special Provisions of Insurance

  5. Units • 2009 & 2010 – Enterprise Units • Combines all basic and optional units in a county • Additional Premium Discount • Farm Bill • Increased Premium Discount for Enterprise Units starting in 2009

  6. Units • 2009 – Enterprise units only available on flue-cured in North Carolina • 2009 – Must choose enterprise units to qualify for 80 and 85 percent coverage level • 2010 – Check with your agent for any changes in availability of enterprise units or 80/85 coverage level

  7. Subsidy Levels for 2009 Coverage Level Percent Subsidy Enterprise Unit Subsidy 80 80 80 80 80 80 77 68 53 50 55 60 65 70 75 80 85 67 64 64 59 59 55 48 38

  8. Quality Adjustment • 2009 - Mature tobacco production that is damaged by insurable causes may be adjusted for quality based on the average value of the damaged production, if the value is less than the RMA price election • 2010 – same as 2009, EXCEPT, production to count will only be reduced if the average value for damaged tobacco is less than 75% of the price election.

  9. 2008 US Summary Report

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