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RISK MANAGEMENT

Explore the comprehensive policy provisions for fruit risk management in 2003, including coverage options, calculation methods, insured perils, exclusions, uninsured perils, and production criteria. Learn about key deadlines, requirements, and responsibilities for ensuring effective fruit insurance. Contact Spartan Insurance or GreenStone Farm Credit Services for further information.

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RISK MANAGEMENT

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  1. RISK MANAGEMENT Fruit Policy Provisions 2003

  2. 2003 Price Elections

  3. Insurability Requirements

  4. Deadlines & Responsibilities • Sales Closing Date is November 20th • Production and Acreage Reporting Date is January 5th • Premium Due Date is September 15th • Production Report • Update the Pre-Acceptance Worksheet

  5. Coverage Available • CAT – Minimum level available at 50% of Average Production and 55% of Price Election (Cost is $100/county/crop) • BuyUp – 50%, 55%, 60%, 65%, 70% & 75% of Average Production and 100% of Price Election

  6. Actual Production History (APH) • Basis from which coverage and premium is calculated • Uses up to 10 years of production history (depending upon crop) • Can be broken down by unit (section) for buyup policies (except blueberries)

  7. How Coverage is Calculated • Producer’s APH x Level of Coverage = Guaranteed Production • Example: 500 bu APH (Apples) x 65% level = 325 bu guarantee overall • Indemnity payment is bushels below guarantee x price election • Example: 275 bu overall harvested = 50 bu x $6.95 = $347.50 indemnity/acre

  8. Perils Insured Against • Adverse weather conditions • Fire, unless from uncontrolled weeds or debris • Insects, unless from insufficient pest control • Plant disease, unless from insufficient disease control • Wildlife, unless control measures were not taken • Failure of irrigation supply if caused by an above named peril

  9. Perils Excluded (All Fruits) • Inability to market the fruit for any reason other than actual physical damage from an insurable cause. Example: quarantine, boycott, or refusal of any person to accept production • Mechanical damage (including limb rub, scars, and puncture for apples)

  10. Uninsured Perils (By Crop) • Apples: Failure to size, color, or shape properly and russeting • Blueberries: Failure to install and maintain a proper draining system and failure to harvest timely • Grapes: Phylloxera, regardless of cause • Peaches: Split pits, regardless of cause

  11. What Is Counted as Production? • Appraised Production: Direct marketing acreage must be appraised prior to harvest to determine production to count • Marketable harvested and non-harvested production. • If all counted production is below the guarantee, an indemnity payment is made.

  12. Need More Information? Contact an Agent at Spartan Insurance 800 888-2767 OrYour Local GreenStone Farm Credit Services branch office

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