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RMA Crop Production and Revenue Insurance Products

Learn about nursery crop insurance, including its history, coverage attributes, and basics such as plant inventory value report, coverage levels, and amount of insurance.

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RMA Crop Production and Revenue Insurance Products

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  1. 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)

  2. RMA Crop Production and Revenue Insurance Products Nursery Crop Insurance-Overview • Nursery Crop Insurance is another offering under RMA Crop Protection and Revenue Insurance: • History • Geographic Coverage • Nursery Crop Insurance Attributes • Container Grown • Field Grown • Precluded from Coverage • Crop Year

  3. RMA Crop Production and Revenue Insurance Products Basics of Nursery Crop Insurance • Some of the basics of nursery crop insurance are quite unique: • Plant Inventory Value Report (PIRV) • Insured Nursery Plant Inventory • Price Election • Basic Unit Value • Coverage Level • Amount of Insurance

  4. RMA Crop Production and Revenue Insurance Products Basics of Nursery Crop Insurance (cont.) • Field Market Value A • Field Market Value B • Under-report Factor • Basic Unit • CAT Coverage • Written Agreements • Endorsements

  5. RMA Crop Production and Revenue Insurance Products Nursery Crop Insurance Example

  6. RMA Crop Production and Revenue Insurance Products Nursery Crop Insurance Exercise • During the crop year, Valerie’s nursery suffered an insurable loss do to an adverse weather event. Field market value A was determined by a RMA-approved appraisal to be $250,000 and likewise field market value B was determined to be $160,000. Just prior to the insurable loss Valerie’s inventory value was $50,000 more than the inventory value reported when she initiated, so she under-reported her initial inventory value of $200,000. Will she receive an indemnity? (Likely/Unlikely) • Let’s look at the calculations

  7. RMA Crop Production and Revenue Insurance Products

  8. RMA Crop Production and Revenue Insurance Products Nursery Crop Insurance: Summary • In this topic, you have learned: • The nursery crop insurance policy is available in all Wyoming counties to wholesale nurseries and has recently undergone substantial revision to make it more useful to growers • Nursery crop insurance is asset-based with coverage based on plant inventory values determined by a FCIC plant list or the grower’s price list or catalog • Substantial reductions in the indemnity for an insurable loss in inventory value occurs if the initial inventory value is under-reported • Unlike most other multiple peril crop insurance policies, nursery crop insurance will cover multiple insurable losses in the crop year up to the amount of insurance purchased

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