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 Alfalfa Seed Production Insurance-Overview • Let’s look at some of the specifics of this pilot crop insurance applied to alfalfa seed production: • Pilot Program • Insurable Types • Insurable Practices • Insurable Units • Coverage Levels • Price Election

4. RMA Crop Production and Revenue Insurance Products Alfalfa Seed Production Insurance - Overview • Base Prices • For contracted production, the contract price • For non-contracted Production, the established price • Producers may seek current crop year Established Prices by selecting Date to view Prices Addendums shown at: http://www.rma.usda.gov

5. RMA Crop Production and Revenue Insurance Products

6. RMA Crop Production and Revenue Insurance Products Alfalfa Seed Production Example • A producer will be indemnified when the production-to-count is less than the value guarantee • An indemnity will be calculated by: Indemnity = Value Guarantee – Production-to-Count

7. RMA Crop Production and Revenue Insurance Products Alfalfa Seed Production Example (cont.) • Production-to-count at less than the base price is calculated using the following specified procedure: (a) Divide the discounted price by the base price (b) Multiply the price ratio by the quantity of lower quality seed (c) Multiply the pounds determined in (b) by the base price

8. RMA Crop Production and Revenue Insurance Products Alfalfa Seed production Exercise • Dick harvested and sold 350 pounds of certified alfalfa seed per acre at the expected base price of $1.07 per pound. He also harvested 100 pounds per acre of seed that did not meet all of the quality requirements and was sold at $0.80 per pound. • Will Dick be paid an indemnity? • Let’s look at the calculations

9. RMA Crop Production and Revenue Insurance Products • Calculations • 1. Value Guarantee =$642/acre; total value guarantee = $64,200 • 2. Production-to-Count/acre = • 350 pounds/acre @ $1.07/pound = $374.50 • 100 pounds/acre @ $0.80/pound • $0.80/pound/$1.07/pound = 0.748 • 0.748 x 100 pounds/acre = 74.8 pounds/acre • 74.8 pounds/acre x $1.07/pound = $80.04/acre • 3. Indemnity per Acre = $642 -($374.50 + 80.04) = $187.46 • 4. Total Indemnity = $187.46/acre x 100 acres =$18,746

10. RMA Crop Production and Revenue Insurance Products Alfalfa Seed Production Insurance: Summary • In this lesson, we have learned about: • Alfalfa seed production insurance, an APH insurance available in Park and Big Horn counties under a pilot program • Insurance is available for alfalfa seed production under a production contract or when produced under certification standards