Nursery Crop Insurance

1. Nursery Crop Insurance New York Crop Insurance Education Program Risk Management Agency USDA New York State Department of Agriculture & Markets

2. Causes of Loss • Adverse weather; • Fire; • Wildlife; • Earthquake; or • Volcanic eruption. • Insurance is also provided against the following if due to a cause of loss listed above. • A loss in plant values because of an inability to market such plants, provided such plants would have been marketed during the crop year; • Failure of the irrigation water supply; or • Failure of, or reduction in, the power supply.

3. Uninsurable losses • We do not insure against any loss caused by: • Disease or insect infestation, unless: • A disease or insect infestation occurs for which no effective control measure exists

4. Uninsurable losses continued • The inability to market the nursery plants as a result of: • The refusal of a buyer to accept production; • Boycott; or an order from a public official prohibiting sales including, but not limited to, a stop sales order, quarantine, or phytosanitary restriction on sales;

5. Uninsurable losses continued • Cold temperatures, if cold protection is required on the eligible plant list, unless: • You have installed adequate cold protection equipment or facilities and there is a failure or breakdown of the cold protection equipment or facilities resulting from an insurable cause of loss. • The lowest temperature or its duration exceeded the ability of the required cold protection equipment to keep the insured plants from sustaining cold damage.

6. Uninsurable losses continued • Collapse or failure of buildings or structures, unless the damage to the building or structures results from a cause of loss. • Any cause of loss, if the only damage suffered is a failure of plants to grow to an expected size. • Failure to follow recognized good nursery practices.

7. Nursery • At least 50% of the gross income must be from the wholesale marketing of plants. • Note: Amount of insurance is based on reported insurable plant inventory values

8. Insured Crop Year • 2011 Crop Year: Starts June 1, 2010, ends May 31, 2011 (Sales Closing: 05/01/10) • Subsequent Crop Years will start on 06/01 and ends on 05/31 • Continuous enrollment available with 30 day waiting period for protection to begin.

9. Coverage and Price Election Choices Only You Can Decide What Coverage Is Right For You! • Catastrophic Coverage (CAT) 50% of your average yield and 55% of the Price Election • Buy-Up Coverage 50% to 75% of your average yield and up to 100% of the Price Election

10. Federal Government Subsidy

11. Plant Types Buy-up Insurance Buy-up Insurance Small Fruits Herbaceous Perennials Roses Ground Cover and Vines Annuals Foliage Palms and Cycads Liners • Deciduous Trees (Shade & Flower • Broadleaf Evergreen Trees • Coniferous Evergreen Trees • Fruit and Nut Trees • Deciduous Shrubs • Broadleaf Evergreen Shrubs

12. Insured Crop and Plants • The crop insured will be all nursery plants and plant types in each practice, contained on the Eligible Price List, in which you have a share, and that:

13. Insured Crop and Plants • Are shown on the Eligible Plant List • Includes plants grown in the nursery, that meet the minimum size requirements, but are not included on the growers’ wholesale catalog/price list. Note: you may submit a supplement to the catalog on or before the sales closing date to add plants.

14. Insured Crop and Plants • Are not grown for sale as Christmas trees; • Are not stock plants, or plants being grown solely for harvest of buds, flowers, or greenery; • May produce edible fruits or nuts provided the plants are made available for sale; and • Are not produced in nursery containers that contain two or more different genera, species, subspecies, varieties or cultivars.

15. Wholesale catalog or price list • At a minimum, your Wholesale catalog or price list must: • Be type-written and legible; • Show an issue date on the cover page (may be handwritten); • Contain the name, address, and phone number of your nursery; • Be provided to customers and used in the sale of your plants; and • List each plant’s name (scientific or common), field grown plant or container size, and wholesale price.

16. Coverage Levels • You may select either catastrophic risk protection or additional coverage for each insured practice. • $300 Administrative Fee owed for each practice.

17. Insurance Attachment • For New Policies: • Insurance attaches 30 days after the date you submit your request.

18. Minimum Container Size • Minimum container size is 1” in diameter • Liners are defined as plants in standard nursery containers with a diameter equal to or greater than 1 inch but less than 3 inches

19. Production Inventory Value Report (PIVR) • PIVR must be submitted at time of application • PIVR must be submitted by May 1, prior to start of crop year for insurance to attach on June 1st. • Insurance doesn’t attach until PIVR is submitted, subject to a 30-day wait • Previous crop year PIVR cannot be rolled-over

20. PEAK INVENTORY ENDORSEMENT • Peak Inventory Value Report - A report that increases the value of insurable plants over the value reported on the PIVR, and declares the coverage commencement, and coverage termination dates. • Limited to 200% of basic unit value

21. Rehabilitation Endorsement • New Endorsement - covers cost for rehabilitation of Field Grown plants • Available only for Buy-up insurance • Endorsement must be elected: • At time of application for initial crop year; or, • Prior to start of crop year if already insured under policy • If endorsement is elected, all Field Grown plants must be insured.

22. Pilot Nursery Grower’s Price Endorsement Pilot Endorsement Available: Connecticut, Massachusetts, New York, Pennsylvania, Maryland, New Jersey, North Carolina, South Carolina, Virginia, Georgia, Florida, Louisiana, Mississippi, Tennessee, Kentucky, Arkansas, Washington, Oregon and Alaska

23. Pilot Nursery Grower’s Price Endorsement • You may use your wholesale plant price that is reported on your Upgraded Plant Report. • This price is greater than the price contained in the Plant Price Schedule but is less than, or equal to the price in your catalog or price list.

24. Loss Example • $100,00 – Plant Inventory Value • X 65% Coverage = $65,000 Amt. of Ins. • In the event of a Loss $100,000 Field Market Value Before Loss -$50,000 Field Market Value After Loss = $50,000 Value of loss -$35,000 Deductable = $15,000 Indemnity Payment

25. Building the 2010 Revenue Bridge -Crop Ins. is the Foundation Slide courtesy of Steve Johnson, IASU JAN FEB MAR OCT NOV DEC APR MAY JUN JUL AUG SEP

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