ADM CROP RISK SERVICES
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Transcript of ADM CROP RISK SERVICES
ADM CROP RISK SERVICES
2013 PREVENT PLANT
Definition of Prevent Plant• Failure to plant the insured crop by the final plant date
designated in the special provision for the insured crop in the county, or within any applicable late plant period, due to an insured cause of loss that is general to the surrounding area and that prevents other producers from planting acreage with similar land characteristics.
• Note: Failure to plant because of uninsured causes such as lack of proper equipment, or labor to plant acreage, or use of a particular production method is not considered prevent planting.
• Note: Failure to plant when other producers in area were planting MAY result in the denial of the prevent plant claim (Case by case situation).
Eligible Prevent Plant CropsPP coverage is applicable to the following
crops:Barley, canola/rapeseed, corn, cotton, ELS cotton, dry
beans, flax, grain sorghum, green peas, hybrid seed corn, hybrid grain sorghum, millet, mustard, oats, onions, peanuts, processing sweet corn, processing beans, popcorn, central and southern potatoes, northern potatoes, rice, rye, safflowers, silage sorghum, soybeans, sugar beets, sunflowers, and wheat.
Eligible AcresAcreage Eligible for Prevent Plant payment
must be:1. Insurable2. Be Available for Planting
* means land is free of trees, rocks, or other factors that would prevent proper and timely preparation of the seedbed for planting.
* Not available includes• -CRP acreage• -Perennial crop acreage (trees, vines)• -Acreage with pasture or forage in place (12 month prior rule)• -Acreage with pond vegetation (cattails etc.)• -Any other conditions that the AIP determines to prevent proper and
timely planting.FCIC states that it is improper to interpret the term “acreage unavailable for planting”solely based on the acreage qualifying for PP payments for a set number of years.*AIP must independently determine eligible acreage and PP eligibility based on each policyholder’s individual circumstance. (PP handbook pg. 128-129)
Eligible Acres3. Not be Uninsurable:
A. Acreage that has not been planted, harvested, or insured in any one of the three previous years.
B. On which the only crop planted, harvested in the three previous years is a cover, pasture, or forage crop.(unless the forage crop is part of an established crop rotation).
**Remember-Each Case need independent determination
4. The Maximum number of acres for PP coverage for all crops CANNOT exceed the number of CROPLAND acres in the insured’s farming operation for the crop year. *Unless the insured provides proof of double cropping history.
5. PP acres subsequently planted to a second crop are not used to determine eligible acres unless double cropping requirements are met.
Eligible AcresPrevent Plant Coverage will be provided for: Drought or failure of the irrigated water supply only if on
the Final Plant Date (or within the LP if the insured intended to plant the crop within the LP period.
- For non-irrigated acreage, the area that is prevented from being planted has insufficient soil moisture for germination of seed due to prolonged periods of dry weather (using information who’s business it is to record / collect weather data-example National Weather Service)
- For non- irrigated acreage, the area would be considered prevent from planting due to prolonged drought when the insured can provide verifiable documents that is acceptable to the AIP. 1. Documents that other producers with acreage with similar
characteristics are also prevented from planting. 2. Data showing prolonged precipitation drought for the area. 3. Written opinion from agricultural experts 4. Information showing insufficient moisture conditions existed on the
Final Plant Date or within the Late Plant Period .
Eligible AcresPrevent Plant Coverage will be provided for: Irrigated acreage if due to an insurable cause.
-The insured is unable to prepare the land for irrigation using the insured’s established irrigated method.
-Or the irrigation equipment or facilities fail or break down, provided the insured made all reasonable efforts to restore the equipment. (cost will not be a consideration)
-Or if there is failure of the irrigated water supply (i.e.. there is not reasonable expectation of having adequate water supply to carry out an irrigated practice).
The Inability to plant due to a large amount of silt, sand, or other debris left on land due to flooding that occurred during the PP insurance period and cannot be removed to the extent needed to plant the crop by the final plant date for the crop year.
Eligible Acres-ClarificationAcreage NOT considered available for planting
includes (but not limited to the following): 1. Acres enrolled in CRP. 2. Perennial crop acres (i.e. cover crop, pasture, trees, etc.
still on the acreage or not removed in time for planting). *Cover Crop –Pasture / Forage that are seeded, transplanted, or
volunteer more than 12 months prior to PP crop Final Plant Date. *Insured can demonstrate his intent to destroy the established
stand by: chemical kill, plow down. 3. Acreage that in a normal weather patterns is normally wet
throughout the final and late plant period, and would be only available for planting in abnormally dry conditions. Because of the normally wet conditions from year to year on such acreage, this acreage is likely to contain cattails, and perennial grasses and weeds. *Such acreage would not be available to plant a spring crop even though such acreage may have been tilled, planted, and or insured the previous fall.REMEMBER-case needs INDEPENDENT determination
Notice RequirementsInsured must notify the Insurance Provider
is they are prevented form planting an insured crop with PP coverage:Within 72 hours after the Final Plant Date.Or -when the insured determines he or she will
be unable to plant within any Late Plant Period. Note: Insured is not required to plant the insured crop during the late
plant period even if they could plant a crop during this time. Note: Failure to provide timely Notice of PP (above) will be considered
solely due to uninsured Cause of loss. Unless: 1. AIP determines they can still accurately adjust the loss. 2. Notice was submitted prior to 60 days after CD for EIOP. 3. PP acres were timely submitted on the Acreage Report If either 1 or 3 are not met--No PP coverage is provided. No premium will be
owed , and No PP payment will be paid.
Notice RequirementsNotice of Loss Requirements for PP acreage
-Allows the Insurance Provider the opportunity:To inspect the PP acreage much earlierTo verify the Cause of Loss existed Improve program integrity
Acreage Reporting RequirementsThe Insured must report all acres on the
acreage report correctly.*PLANTED*PREVENT PLANTED
Revised acreage reports CAN NOT be accepted to add prevent plant after Acreage Reporting Date.
Determining The Eligibility For Reported Prevent Plant Acres1. Determined whole field acres per FSA measurement2. Partial fields- Always NEED TO BE DETERMINED:
GPS / WHEELED--verify on Insurance Schedule / FSA maps.3. Any PP acreage within a field that contains planted
acreage will be considered to be acreage of the same crop, type, and practice that is planted in the field.
4. If multiple crops are planted in a field, the insured may select which crop will be used for the PP acreage. -The PP acreage may be considered to be acreage of a crop /
type / and practice OTHER than which is in the field only if insured divided the field in that way in one of the past FOUR YEARS.
1 Field Example1st Field the PP can be listed as Corn or
Beans PP
ccco 1
Corn 55.2 A
Beans 34.0 A
6.2 A PP13.5 A PP
Corn 18.3 A
Beans12.5 AForage
20.0 A
18.0 PP Acres
Field 1
2nd Field does the insured qualify for a PP payment? 108.9 A in Field Bean field 34.0 + 6.2 A = 40.2 15.4 % of field PP –no 20 / 20 ruleCorn field 55.2 + 13.5 A= 68.2 19.8 % of field PP –no 20 / 20 ruleCombine 55.2 + 19.7 A= 74.9 26.3 %of field PP – Meets RULE
2 Field Prevent Plant ExampleIs there a PP payment?
ff
Fence line
50 A corn 42 A SB
13 A-PP
8.0 A-PP
Beans (N0) 50.0 A x .20 =10.0 NeededCorn (Yes) 63.0 A x .20 = 13.0 A Needed
2 Field Prevent Plant ExamplesI
15 A PP
30 A CORN
35 A SB 65 A CORN Is there a PP payment?
All in the Same Section / Unit 145.0 Acres
Corn PP? *No- 15 A doesn’t meet 20/20 15/110 A= 13.6 % of unitBeans PP? *Yes-15 A does meet 20/20 15/50 A= 30.0 % of unit
Eligibility Prevent PlantThe maximum eligible number of acres certified for
APH purposes, or insured acres reported for insurance for the crop in any one of the four most recent crop years.
Any eligible acreage will be reduced by subtracting the number of acres of the crop planted.
Eligibility- Changes Due to ADDED LAND / LOST LANDIncreases / Decreased of the maximum
eligibility PP acres for a crop due to the insured changing his or her cropland acres for the current crop year.
It is determined separately for each crop and practice (IRR / NI) by determining the Ratio of change and multiplying this ratio by the highest number of acres reported or insured in one of the last 4 years.
Intended Acreage ReportWhen in the 4 most recent years- an insured did
not plant any crops in the county for which PP insurance was available or has not received a PP insurance guarantee.
*The intended Acreage Report must be submitted by sales closing date.
-Acres can not exceed Cropland Acres -Intended Acreage Report cannot be altered -For example: If the intended acreage report indicates 1000
acres of corn. The insured cannot later 500 acres of corn PP and 500 acres of soybean PP. The PP must remain with the corn.
Acreage which in NOT eligible for Prevent Plant Coverage 1. That does not constitute at least 20 acres or 20% of the unit (which ever is
less). 2. If actuarial documents do not provide information needed to determine a
premium rate, unless a written agreement designates premium rates. 3. Acreage is used for conservation purposes, or intended to be left
unplanted under any program administered by the USDA / other government agency.
4. On which the insured crop is prevented from being planted, if the insured or any other person receives a PP payment for any crop on the same acreage in the same crop year (excluding share agreements)- unless
all the criteria for double cropping is met. 5. On which in insured crop is prevented from planting, if:
A. Any crop is planted within or prior to the LPP. -exclusion- If double cropping requirements are met -exclusion- crop planted is a double crop -exclusion- no benefits from other USDA program was derivedB. Any volunteer or cover crop is hayed, grazed, or harvested within or prior to the
LPP
Acreage which in NOT Eligible for Prevent Plant Coverage 6. For which planting history or conservation plans indicate that the
acreage would have remained fallow for crop purposes or on which any pasture or forage crop is in place. (12 month in place rule)
7. That exceeds the number of acres eligible for PP payments. 8. That exceeds the number of acres physically available for planting 9. For which the insured cannot provide proof that he/she had
inputs available to plant the crop. 10. Based on irrigated practice production guarantee or amount of
insurance unless adequate irrigation facilities were in place to carry out an irrigated practice on the acreage prior to the insured cause of loss that prevented the insured from planting.
11. Of a crop type or variety that the insured did not plant or has not received a PP insurance guarantee in at least ONE of the LAST FOUR YEARS.
Acreage which is NOT eligible for Prevent Plant Coverage 12. Wheat that is short-rated (less than a full crop year coverage), is not
eligible for a PP payment, nor is it eligible for a PP payment from another crop unless it qualifies under the Double Cropping provisions of the PP section of the policy.
13. If a cause of loss has occurred that may prevent planting at the time: A. The Insured leased the acreage (except acreage leased the
previous year / carried over). B. The insured bought the acreage. C. The acreage is released from a USDA program which prohibits
harvesting a crop. D. The insured requested a written agreement to insure the acreage. E. The insured acquired the acreage through means other than lease
or purchase (i.e. Inherited).*NOTE- Acreage CAN NOT have a pre-existing
condition to qualify for a prevent plant payment.
Prevent Plant Levels of InsuranceDefault Prevent Plant Guarantees for PP 60% Coarse Grain, Dry Beans, Dry Peas, Small Grains, Sunflowers,
Canola, and Safflower 50% Cotton 45% Sugar Beets 40% Green Peas, Process Beans, Process Sweet Corn 25% Potatoes
*Additional Levels of PP coverage No additional coverage for CAT policy
5% from the Base Guarantee listed above 10% from the Base Guarantee listed above
*Must be purchased additional levels by the Sales Closing Date *Insured CANNOT increase his / her PP coverage levels if- A cause of loss which
could prevent planting a crop occurred during the Insurance period and prior to the insured’s request.
PREVENT PLANT AVAILABLE FOR CAT POLICIES?
Prevent Plant IS available for Cat coverage!!!No written agreementNo additional level coverage available
Prevent Plant as It relates to Double-Cropping HistoryA full PP payment for a first crop is limited to the number of
acres that the insured can demonstrate he/ she has double-cropped and that has historically been double-cropped.
If-First insured crop was PP and the second crop is planted on the same acreage in the same year- regardless of whether or not the second crop is insured or sustains an insurable loss.
If-First insured crop was PP and the subsequent insured crop is prevented from being planted on the same acreage in the same crop year (can’t call the subsequent PP crop a second crop because it was not a planted crop).
If-First insured crop is planted and the subsequent insured crop is prevented from being planted on the same acreage in the same crop year (can’t call the subsequent PP crop a second crop since it is not a planted crop
If –First planted crop for the crop year is uninsured , but insurance is available for the uninsured crop, and a subsequent insured crop is prevented from being planted on the same acreage in the same crop year (the PP crop would be the first insured crop).
And All Double Cropping Criteria is met (next Page)
Double-Cropping Criteria1. It is a practice that is generally recognized by an agricultural experts in the area to
plant the insured crop for harvest following the harvest of the first crop.2. Additional coverage insurance offered under the authority of the Act is available in
the county for two or more crops that are double cropped3. The insured provides records proving double-crop history on the acreage.
*His / her own acreage and production records, that show the insured has double cropped acreage in at least 2 of the last 4 crop years.
Example- If the insured has double cropped history of 100 acres of wheat + beans, and he acquires an additional 100 acres. The insured can apply the 100 acres of double cropping history to any of the 200 acres as long as he doesn’t exceed the 100 acre history.
*Another person’s acreage and production records -That show the exact same acreage in the county on which the PP claim is being made, and for the current crop year-was double cropped in at least 2 of the last 4 crop years. Example- If a neighbor has double cropped 100 acres of wheat and soybeans in the county, and the insured acquired the neighbor’s 100 acres of double crop acres, and an additional 100 acres in the county. The insured can only apply the neighbor’s history of DC to the same 100 acres that the neighbor double cropped.
Prevent Plant as It relates to Double-Cropping History
Prevent Plant as It relates to Double-Cropping HistoryAcceptable Double-Cropping Records
-Crop Insurance records that show both production and acres (APH / Claim / Appraisals / Bin Measurements / Etc.).
-Elevator Ledger (i.e.. Settlement sheets showing amount of production from the double-cropped acreage).
-FSA documents, FSA maps
Double-Cropping history is specified by county in which the Prevent Plant claim is being made.
Delete acres
Report to a different crop
No
yes
Delete from acreage report
Reported to a different crop/practice/type/than
planted in the field
Meets 20/20 rule for total insurable acres in the field
yes2 crop/practice/type history in
the past 4 years
yes
Does the reported pp acres meet rotational requirements
yesMeets 20/20 rule for total
planted/pp acres in the unit
yes
Are these acres available for the PP crop
yespayable
Are the PP acres insurable
yes
How was PP reported
Reported to the same crop/practice/type as planted in the field or nothing planted in the
field
yes
Does reported PP acres meet rotation requirements
yes
Meets 20/20 rule for total insurable planted/PP acres in the unit
yes
Are there eligible acres for the PP crop
yes
payable
1. Not plant a second crop –or plant a cover crop and do not hay - graze it until after Nov. 1: Eligible for
100% PP payment. 2.Plant a second crop for Harvest (after the Late Plant
period for the 1st crop) : Eligible for 35% of the PP payment.
3.Plant a second crop for Harvest (prior to the end of the Late Plant Period for the 1st crop): Not Eligible
for a PP payment- the PP acres will need to be removed from the Acreage Report.
Insured’s Options Payable
using crop with the nearest liability
No
No
No
No
Delete from the Acreage Report-No
paymentException may apply
exceptio
n
Delete from the Acreage Report
Payable using the nearest crops liability
Delete from the Acreage Report – No
paymentException may
apply
Delete from the Acreage Report No
No
No
No
exceptions
Revise the PP
acres to the
crop/practice/type
planted in the field