2017 crop insurance handbook (cih)crop insurance handbook underwriting and actual production history...
TRANSCRIPT
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United States
Department of
Agriculture
Federal Crop
Insurance
Corporation
Risk
Management
Agency
Product
Administration
and Standards
Division
FCIC 18010
(06-2016)
2017
CROP INSURANCE
HANDBOOK
Underwriting and Actual Production History Standards for
FCIC Programs Administered under the APH
Administrative Regulations and the Basic Provisions for
the Common Crop Insurance and Area Risk Protection
Policies for 2017 and Succeeding Crop Years.
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June 2016 FCIC 18010 TP-1
UNDITED STATES DEPARTMENT OF AGRICULITURE
RISK MANAGEMENT AGENCY
KANSAS CITY, MO 64133
TITLE: 2017 Crop Insurance Handbook NUMBER: FCIC 18010
EFFECTIVE DATE: 2017 and
Succeeding Crop Years
ISSUE DATE: June 30, 2016
SUBJECT:
2017 Crop Insurance Handbook
OPI: Product Administration and Standards Division
APPROVED:
/s/ Thomas W. Worth
Acting Deputy Administrator for Product Management
REASON FOR ISSUANCE
This handbook provides the official FCIC approved underwriting standards for policies administered
by AIPs for the General Administrative Regulations, 7 CFR Part 400, Subpart G; Common Crop
Insurance Policy Basic Provisions, 7 CFR Part 457, and Area Risk Protection Regulations, 7 CFR Part
407 for the 2017 and succeeding crop years for crops with a contract change date on or after the issue
date.
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June 2016 FCIC 18010 TP-2
2017 CROP INSURANCE HANDBOOK
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Index 1-2 1-20 1-512 513-777 June 2016 18010
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-1
PART 1 GENERAL INFORMATION
1 General Information ......................................................................................................................... 1
2 Responsibilities ................................................................................................................................ 3
3 Title VI of the Civil Rights Act of 1964 .......................................................................................... 4
4-200 (Reserved) ...................................................................................................................................... 4
PARTS 2-8
201-300 (Reserved) .................................................................................................................................. 5
301-400 (Reserved) .................................................................................................................................. 7
401-500 (Reserved) .................................................................................................................................. 9
501-600 (Reserved) ................................................................................................................................ 11
601-700 (Reserved) ................................................................................................................................ 13
701-800 (Reserved) ................................................................................................................................ 15
801-900 (Reserved) ................................................................................................................................ 17
PART 9 ENDORSEMENTS AND OPTIONS
901 General Information ....................................................................................................................... 19
902 Catastrophic Risk Protection Endorsement ................................................................................... 19
903 High-Risk Land Exclusion Option ................................................................................................ 20
904 Hail and Fire Exclusion Option ..................................................................................................... 22
905 Apple Fresh Fruit Quality Adjustment Option .............................................................................. 24
906 Wheat or Barley Winter Coverage Endorsement .......................................................................... 25
907 Dry Pea WCO ................................................................................................................................ 26
908 Fresh Market Sweet Corn Minimum Value Option ...................................................................... 28
909 Fresh Market Pepper Minimum Value Option .............................................................................. 29
910 Fresh Market Tomato (Dollar Plan) Minimum Value Option ....................................................... 30
911 Mint Winter Coverage Option ....................................................................................................... 31
912 Northern Potato Policy Endorsements ........................................................................................... 32
913 Fresh Pear Quality Adjustment Endorsement ................................................................................ 37
914 Table Grape Protective Cover Option ........................................................................................... 37
915 Contract Price Addendum (CPA) .................................................................................................. 38
916 SCO Endorsement General Information and Requirements .......................................................... 43
917 SCO Endorsement Acreage Reporting .......................................................................................... 47
918 SCO Endorsement Determining Supplemental Protection and Indemnity .................................... 48
919-1000 (Reserved) .............................................................................................................................. 50
PART 10 UNITS
Section 1 Basic Units
1001 Availability .................................................................................................................................... 51
1002 Premium Discount ......................................................................................................................... 51
1003 CAT Endorsement ......................................................................................................................... 52
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-2
PART 10 UNITS (Continued)
Section 1 Basic Units (Continued)
1004 APH Database Establishment ........................................................................................................ 52
1005 APH Databases Below BU Level .................................................................................................. 52
1006 Commingled Acres and Production ............................................................................................... 52
1007-1020 (Reserved) ............................................................................................................................ 53
Section 2 Optional Units
1021 Availability .................................................................................................................................... 54
1022 APH Database Below OU Level ................................................................................................... 58
1023 Combination of OUs ...................................................................................................................... 58
1024 OU Qualifications .......................................................................................................................... 58
1025 Production Evidence ...................................................................................................................... 60
1026 Assigned Yields ............................................................................................................................. 61
1027 Determining OUs ........................................................................................................................... 62
1028-1030 (Reserved) ............................................................................................................................ 62
Section 3 Enterprise Units
1031 Availability .................................................................................................................................... 63
1032 EU Election .................................................................................................................................... 63
1033 EU Qualifications .......................................................................................................................... 63
1034 Reporting Requirements ................................................................................................................ 67
1035 Discounts ....................................................................................................................................... 68
1036 Added Land and New Crop P/T .................................................................................................... 68
1037 Assigned Unit Structure ................................................................................................................. 68
1038 Assigned Yields ............................................................................................................................. 69
1039 Cups ............................................................................................................................................... 69
1040-1044 (Reserved) ............................................................................................................................ 69
Section 4 Whole Farm Units
1045 Availability .................................................................................................................................... 70
1046 WU Election .................................................................................................................................. 70
1047 WU Qualifications ......................................................................................................................... 70
1048 Separate Administrative Fees ........................................................................................................ 71
1049 Reporting Requirements ................................................................................................................ 72
1050 Unit Structure Assignment ............................................................................................................ 73
1051-1060 (Reserved) ............................................................................................................................ 73
Section 5 Unit Numbering
1061 General Information ....................................................................................................................... 74
1062 The Structure Code ........................................................................................................................ 74
1063 Unit Number .................................................................................................................................. 74
1064 Unit Numbering Constancy ........................................................................................................... 77
1065 Unit Number Consistency .............................................................................................................. 78
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June 2016 FCIC 18010 TC-3
PART 10 UNITS (Continued)
Section 5 Unit Numbering (Continued)
1066 Master Yield Summary APH Database ......................................................................................... 78
1067-1072 (Reserved) ............................................................................................................................ 78
Section 6 Sections, Section Equivalents, and FSA FNs
1073 Provisions ...................................................................................................................................... 79
1074 Unit Division Option – Illinois, Indiana, Ohio, and Texas ............................................................ 81
1075-1080 (Reserved) ............................................................................................................................ 83
Section 7 Combining and Dividing BUs, OUs, EUs, and WUs
1081 General Information ....................................................................................................................... 84
1082 Establishing Separate APH Databases........................................................................................... 84
1083 Maintaining Separate APH Databases Within BUs, EUs, or WUs ............................................... 85
1084 Situations that Require Combining and Dividing APH Databases ............................................... 86
1085 Agreements to Combine OUs for Category B Crops .................................................................... 87
1086 Combining APH Databases ........................................................................................................... 90
1087 Dividing APH Yield History for Category B Crops ...................................................................... 91
1088 Dividing a BU into Additional BUs or OUs, or OUs into Further OUs for Category C Crops .... 95
1089 Adding Land to an Existing Unit for Category B Crops ............................................................... 96
1090 Retaining Yield History for the Same Land .................................................................................. 97
1091-1100 (Reserved) ............................................................................................................................ 97
PART 11 UNDERWRITING RULES FOR SPECIFIC PRACTICES
Section 1 Irrigated Practice
1101 IRR Practice Guidelines ................................................................................................................ 99
1102 Insurable Acreage .......................................................................................................................... 99
1103 Applicable Terms ........................................................................................................................... 99
1104 Factors to Consider for IRR Practice Reporting and Coverage ................................................... 101
1105 Failure to Carry Out Good IRR Practice ..................................................................................... 102
1106 IRR Practice Guidelines for PP ................................................................................................... 102
1107 Determined IRR Yields ............................................................................................................... 103
1108 Reporting Production and Establishing APH Databases for IRR and NI Acreage ..................... 107
1109 Special Requirements for Center Pivot Irrigation Systems ......................................................... 107
1110-1120 (Reserved) .......................................................................................................................... 109
Section 2 Summer Fallow Practice
1121 General Information and Insurability .......................................................................................... 110
1122 SF APH Database Instructions .................................................................................................... 113
1123-1144 (Reserved) .......................................................................................................................... 114
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-4
PART 11 UNDERWRITING RULES FOR SPECIFIC PRACTICES (Continued)
Section 3 Skip-Row Planted
1145 Insurability ................................................................................................................................... 115
1146 Skip-Row Planted Corn ............................................................................................................... 115
1147 Skip-Row Planted Grain Sorghum .............................................................................................. 118
1148 Skip-Row Planted Cotton and ELS Cotton ................................................................................. 119
1149 Percent Planted Factors ................................................................................................................ 124
1150-1200 (Reserved) .......................................................................................................................... 124
PART 12 ACREAGE REPORT
Section 1 General Requirements
1201 General Information ..................................................................................................................... 125
1202 Filing Requirements ..................................................................................................................... 125
1203 Failure to Submit Acceptable Acreage Report ............................................................................ 127
1204 Inaccurate Acreage Reports ......................................................................................................... 127
1205-1210 (Reserved) .......................................................................................................................... 128
Section 2 Acreage Report Elements
1211 Required Elements ....................................................................................................................... 129
1212 Date Planting Completed ............................................................................................................. 132
1213 Acreage Type ............................................................................................................................... 132
1214 Prevented Planting Acreage ......................................................................................................... 134
1215 Late Planted Acreage ................................................................................................................... 135
1216 Insurable Acreage ........................................................................................................................ 138
1217 Uninsurable Acreage ................................................................................................................... 144
1218 Uninsured Acreage of an Insured Crop ....................................................................................... 148
1219 Unreported Acreage or Units ....................................................................................................... 148
1220 Zero Acreage Report .................................................................................................................... 149
1221 Preliminary Acreage Reports for CCIP ....................................................................................... 150
1222 Reporting IRR Practices for CCIP ............................................................................................... 150
1223 First (1st) Insured Crop Planted and Second (2nd) Crop ............................................................ 150
1224-1230 (Reserved) .......................................................................................................................... 159
Section 3 Acreage Report Revisions
1231 Overview ...................................................................................................................................... 160
1232 Acceptable Revisions for CCIP ................................................................................................... 160
1233 Acceptable Acreage Report Revisions for ARPI ......................................................................... 170
1234 Measurement Services Requested for Acreage Reports .............................................................. 170
1235 Examples for Acreage Report Revisions ..................................................................................... 172
1236-1300 (Reserved) .......................................................................................................................... 174
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June 2016 FCIC 18010 TC-5
PART 13 PRODUCTION REPORT
1301 General Information ..................................................................................................................... 175
1302 Acceptable Production Report ..................................................................................................... 176
1303 Production Reporting Requirements ............................................................................................ 179
1304 Production Included on Production Report and in the APH Database, When APH Databases are
Applicable .................................................................................................................................... 182
1305 Production Included on Production Report but not in the APH Database .................................. 185
1306 Continuity .................................................................................................................................... 187
1307 Break in Continuity ...................................................................................................................... 187
1308 Required Elements of Production Report .................................................................................... 188
1309 Verification, Review and Correction ........................................................................................... 191
1310 Production .................................................................................................................................... 192
1311 Multi-Year Production Report ..................................................................................................... 195
1312 Production Reporting Differences for ARPI and CCIP ............................................................... 195
1313-1400 (Reserved) .......................................................................................................................... 195
PART 14 PRODUCTION EVIDENCE
Section 1 General Information
1401 Acceptable Production Evidence ................................................................................................. 197
1402 Certifying Production .................................................................................................................. 197
1403 Unit of Measure and Production Adjustments............................................................................. 198
1404 Record Retention Period .............................................................................................................. 199
1405-1414 (Reserved) .......................................................................................................................... 199
Section 2 Acceptable Verifiable Records
1415 Crops Requiring Verifiable Records ........................................................................................... 200
1416 Records of Production Commercially Sold To or Stored By a Disinterested Third-Party .......... 200
1417 Claim for Indemnity .................................................................................................................... 201
1418 FSA or CCC Verified Documents ............................................................................................... 201
1419 Authorized AIP or FSA Personnel Appraisals of Unharvested Acreage .................................... 201
1420 Authorized AIP or FSA Personnel Measurement of Farm Stored Production ............................ 203
1421 Pre-harvest Appraisal and Other Record Types .......................................................................... 203
1422-1430 (Reserved) .......................................................................................................................... 206
Section 3 Acceptable Farm Management Records
1431 Crops that Qualify for Farm Management Records .................................................................... 207
1432 Measurement of Farm Stored Production by Insured .................................................................. 207
1433 Automated Yield Monitoring Systems ........................................................................................ 207
1434 Livestock Feeding Records .......................................................................................................... 209
1435 Field Harvest Records .................................................................................................................. 210
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-6
PART 14 PRODUCTION EVIDENCE (Continued)
Section 4 Vertically Integrated
1436 Vertically Integrated Producer Defined ....................................................................................... 211
1437 Acceptable Records for Vertically Integrated Producers ............................................................ 211
1438 Required Documentation ............................................................................................................. 211
1439-1450 (Reserved) .......................................................................................................................... 211
Section 5 Direct Marketing
1451 Direct Marketing Defined ............................................................................................................ 212
1452 Direct Marketing Requirements .................................................................................................. 212
1453 Acceptable Records for Direct Marketing Producers .................................................................. 212
1454-1500 (Reserved) .......................................................................................................................... 212
PART 15 APH DATABASE
Section 1 General Information
1501 APH Database Requirements ...................................................................................................... 213
1502 The Base Period ........................................................................................................................... 213
1503 Types of Yields ............................................................................................................................ 213
1504 Yield Descriptors ......................................................................................................................... 215
1505 Required Separate APH Database ............................................................................................... 216
1506 Production or Acreage Not to be Included .................................................................................. 218
1507 Transfer of APH Data .................................................................................................................. 218
1508 Use of Another Person’s Production History - BFR ................................................................... 221
1509 Use of Another Person’s Acreage and Production History ......................................................... 223
1510 Use of APH When Insureds Change or Land is Transferred to Another Person ........................ 225
1511 APH Database Instructions .......................................................................................................... 228
1512 Impact of Combining and Dividing ............................................................................................. 230
1513-1520 (Reserved) .......................................................................................................................... 230
Section 2 APH Databases and Yield Determinations Combined and Divided
1521 General Rules for Combining and Dividing APH Databases ...................................................... 231
1522 Combining APH Databases ......................................................................................................... 232
1523 Dividing APH Databases ............................................................................................................. 233
1524 No Actual or Assigned Yields ..................................................................................................... 238
1525-1540 (Reserved) .......................................................................................................................... 238
Section 3 APH Yield Adjustment
1541 Yield Adjustment General Information ....................................................................................... 239
1542 Election of APH Yield Adjustment ............................................................................................. 239
1543 Cancelling APH Yield Adjustments ............................................................................................ 239
1544 T-Yields Used for YA ................................................................................................................. 240
1545 Calculating Approved APH Yields When YA is Elected ........................................................... 242
1546 Determining Premium Rates ........................................................................................................ 245
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-7
PART 15 APH DATABASE (Continued)
Section 3 APH Yield Adjustment (Continued)
1547-1550 (Reserved) .......................................................................................................................... 245
Section 4 APH Yield Exclusion
1551 YE General Information .............................................................................................................. 246
1552 Eligibility for YE ......................................................................................................................... 246
1553 Cancellation ................................................................................................................................. 247
1554 Transfers ...................................................................................................................................... 247
1555 Applicability of WAs ................................................................................................................... 247
1556 Applicability of Yield Limitations and Yield Reductions ........................................................... 247
1557 Actual Yields Eligible for YE...................................................................................................... 248
1558 Exclusion of an Actual Yield for an Eligible Crop Year Within an APH Database ................... 248
1559 YE Interaction with YA ............................................................................................................... 250
1560 Impact of YE Specific to Category B Crops ............................................................................... 251
1561 Impact of YE for Perennial Crops (Category C/Pecan Revenue) ................................................ 252
1562 Impact of YE for RO Determined Yields .................................................................................... 253
1563 Adjusted Yield ............................................................................................................................. 253
1564 Rate Yield Calculation ................................................................................................................. 253
1565 Calculating the Yields for APH Databases When YE is Elected ................................................ 254
1566 Determining Premium Rates When YE Applies to an APH Database ........................................ 255
1567-1570 (Reserved) .......................................................................................................................... 255
Section 5 Yield Reductions
1571 General Information ..................................................................................................................... 256
1572 General Rules ............................................................................................................................... 257
1573 Excessive Actual Yields .............................................................................................................. 259
1574 Inconsistent Approved APH Yields and Insured Acreage Limitations ....................................... 262
1575 Different Production Methods ..................................................................................................... 267
1576-1580 (Reserved) .......................................................................................................................... 269
Section 6 Reviewing and Correcting APH Yields
1581 Review Requirements .................................................................................................................. 270
1582 Correcting APH Yields ................................................................................................................ 270
1583 Tolerances .................................................................................................................................... 271
1584-1600 (Reserved) .......................................................................................................................... 273
PART 16
1601-1700 (Reserved) .......................................................................................................................... 275
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-8
PART 17 CATEGORY B CROP PROCEDURES
Section 1 APH Database
1701 General Information ..................................................................................................................... 277
1702 Methods to Establish an APH Database ...................................................................................... 277
1703-1706 (Reserved) .......................................................................................................................... 284
Section 2 T-Yields
1707 General Information ..................................................................................................................... 285
1708 T-Yield Methods .......................................................................................................................... 285
1709-1712 (Reserved) .......................................................................................................................... 286
Section 3 Reporting Production for P/T/TMAs
1713 Applicability ................................................................................................................................ 287
1714 Separate Production ..................................................................................................................... 287
1715 Separating Commingled Production ............................................................................................ 287
1716-1720 (Reserved) .......................................................................................................................... 289
Section 4 Yield Limitations
1721 General Information ..................................................................................................................... 290
1722 Cups ............................................................................................................................................. 290
1723 Yield Floors ................................................................................................................................. 291
1724 Yield Limitation Calculations ...................................................................................................... 292
1725 Determining Premium Rates ........................................................................................................ 292
1726-1730 (Reserved) .......................................................................................................................... 292
Section 5 New Producer
1731 New Producer Qualifications ....................................................................................................... 293
1732 Deadline ....................................................................................................................................... 298
1733 Verification .................................................................................................................................. 298
1734 Documentation ............................................................................................................................. 298
1735 Approved APH Yield Determination .......................................................................................... 298
1736 Added Land and New Crop P/T APH Database .......................................................................... 300
1737 For Subsequent Crop Years ......................................................................................................... 300
Section 6 RO Determined Yields
1738 General Information ..................................................................................................................... 301
1739 Verifier Responsibilities .............................................................................................................. 301
1740-1746(Reserved) ........................................................................................................................... 301
Section 7 Master Yields
1747 General Information ..................................................................................................................... 302
1748 Initial MY Approval Authorities ................................................................................................. 302
1749 Deadlines ..................................................................................................................................... 303
1750 General Information ..................................................................................................................... 304
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June 2016 FCIC 18010 TC-9
PART 17 CATEGORY B CROP PROCEDURES (Continued)
Section 7 Master Yields (Continued)
1751 Cancelling MYs ........................................................................................................................... 304
1752 Requirements for Establishing Initial MY(s) .............................................................................. 304
1753 Production Reporting Requirements ............................................................................................ 306
1754 Establishing a MY ....................................................................................................................... 307
1755 MY Summary APH Database Unit Number ............................................................................... 311
1756 Updating Established MY(s) ....................................................................................................... 311
1757 Yield Limitation Provisions (Cup Only) ..................................................................................... 312
1758 Yield Adjustment ......................................................................................................................... 312
1759 Yield Exclusion ........................................................................................................................... 312
1760 Certified Organic and Transitional Practices ............................................................................... 312
1761-1762 (Reserved) .......................................................................................................................... 312
Section 8 Acreage Emerging From a USDA Program, New Breaking and Native Sod
1763 Acreage Emerging From a USDA Program ................................................................................ 313
1764 New Breaking Acreage ................................................................................................................ 315
1765 Native Sod Acreage ..................................................................................................................... 317
1766-1770 (Reserved) .......................................................................................................................... 320
Section 9 Added Land
1771 General Information ..................................................................................................................... 321
1772 AIP Responsibilities .................................................................................................................... 321
1773 APH Databases for Added Land .................................................................................................. 321
1774 Methods for Determining Approved APH Yields for Added Land ............................................ 322
1775 Cropland Acreage Limitations ..................................................................................................... 329
1776 AIP Review and Verification Prior to Payment of Indemnity ..................................................... 334
1777 Added Land Yield Descriptors and Indicators ............................................................................ 334
1778-1786 (Reserved) .......................................................................................................................... 334
Section 10 Yield Determination That Do Not Qualify as Added Land
1787 Added Crop/P/T APH Databases ................................................................................................. 335
1788 New Crop/P/T APH Databases .................................................................................................... 335
1789-1790 (Reserved) ......................................................................................................................... 336
Section 11 Switching from an ARPI policy to a CCIP Policy
1791 APH Database Impacts ................................................................................................................ 337
1792 Applicability of Yield Limitations ............................................................................................... 338
1793 Applicability of Added Land and New Crop/P/T Procedures ..................................................... 339
1794-1800 (Reserved) .......................................................................................................................... 339
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-10
PART 18 CATEGORY C CROPS
Section 1 General Information
1801 Background .................................................................................................................................. 341
1802 Insured Crop ................................................................................................................................ 341
1803 Crops with Minimum Age and/or Production Requirements ...................................................... 342
1804-1806 (Reserved) .......................................................................................................................... 345
Section 2 Acreage
1807 General Information ..................................................................................................................... 346
1808 Acceptable Forms of Acreage Measurement ............................................................................... 346
1809 Acreage Measurement Methods .................................................................................................. 347
1810 Acreage Adjustments ................................................................................................................... 347
1811 Prior Acreage Removed ............................................................................................................... 350
1812-1816 (Reserved) .......................................................................................................................... 350
Section 3 Age/Leaf Year Determinations
1817 All Crops, except Citrus and Macadamia .................................................................................... 351
1818 Arizona-California Citrus and Texas Citrus Fruit ....................................................................... 352
1819 Macadamia Nuts .......................................................................................................................... 353
Section 4 Producer's Pre-Acceptance Worksheet (PAW)
1820 General Information ..................................................................................................................... 354
1821 PAW Elements ............................................................................................................................. 354
1822 AIP PAW Review ........................................................................................................................ 359
1823 PAW Triggers a PAIR ................................................................................................................. 359
1824-1836 (Reserved) .......................................................................................................................... 359
Section 5 Perennial Crop Pre-Acceptance Inspection Report (PAIR)
1837 General Information ..................................................................................................................... 360
1838 PAIR Requirement ....................................................................................................................... 360
1839 PAIR Waivers .............................................................................................................................. 361
1840 PAIR Deadline ............................................................................................................................. 361
1841 PAIR Completion Requirements ................................................................................................. 361
1842 PAIR Elements ............................................................................................................................ 362
Section 6 Crop Addendum Worksheet(s) (CAW)
1843 General Information ..................................................................................................................... 368
1844-1849 (Reserved) .......................................................................................................................... 368
Section 7 APH Database
1850 APH Database Establishment ...................................................................................................... 369
1851 Block Reporting ........................................................................................................................... 369
1852 Separate P/T/TMA/Other Characteristics .................................................................................... 369
1853 Commingled Production .............................................................................................................. 370
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June 2016 FCIC 18010 TC-11
PART 18 CATEGORY C CROPS (Continued)
Section 7 APH Database (Continued)
1854 Organic Perennials ....................................................................................................................... 371
1855 Acreage Less than a Tenth of an Acre ......................................................................................... 373
1856 APH Database Establishment Methods ....................................................................................... 373
1857 Multi-Purpose Production and Yield Worksheet ......................................................................... 375
1858 T-Yield Instructions ..................................................................................................................... 375
1859 Weighted Average Age/Density .................................................................................................. 376
1860 Added Insurable Acreage ............................................................................................................ 377
1861 Added Land/New Producers ........................................................................................................ 380
1862 APH Database Tests for High Variability of Actual Yields ........................................................ 381
1863 Approved APH Yield .................................................................................................................. 388
1864-1870 (Reserved) .......................................................................................................................... 388
Section 8 Yield Information
1871 Yield Indicators ........................................................................................................................... 389
1872 Yield Adjustments ....................................................................................................................... 389
1873 Yield Limitations ......................................................................................................................... 389
1874-1880 (Reserved) .......................................................................................................................... 391
Section 9 RO Determined Yields
1881 Situations for a RO Determined Yield Request ........................................................................... 392
1882 Verifier Responsibilities .............................................................................................................. 393
1883-1900 (Reserved) .......................................................................................................................... 393
PART 19 ADDITIONAL PROVISIONS BY CROP
Section 1 Category B Crops
1901 General Information ..................................................................................................................... 395
1902 Cabbage (Fresh Market and Processing) ..................................................................................... 395
1903 Coarse Grains: Corn, Soybeans, and Grain Sorghum................................................................. 397
1904 Cotton and ELS Cotton ................................................................................................................ 402
1905 Cultivated Wild Rice ................................................................................................................... 403
1906 Dry Beans .................................................................................................................................... 404
1907 Dry Peas ....................................................................................................................................... 406
1908 Forage Production ........................................................................................................................ 409
1909 Green Peas ................................................................................................................................... 411
1910 Mint .............................................................................................................................................. 412
1911 Mustard ........................................................................................................................................ 412
1912 Onions .......................................................................................................................................... 413
1913 Peanuts ......................................................................................................................................... 414
1914 Popcorn ........................................................................................................................................ 415
1915 Potatoes ........................................................................................................................................ 416
1916 Processing Beans ......................................................................................................................... 417
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-12
PART 19 ADDITIONAL PROVISIONS BY CROP (Continued)
Section 1 Category B Crops (Continued)
1917 Processing Sweet Corn ................................................................................................................ 418
1918 Rice .............................................................................................................................................. 418
1919 Small Grains: Wheat, Barley, Oats, Rye, Buckwheat, and Flax ................................................ 419
1920 Sugar Beets .................................................................................................................................. 421
1921 Sugarcane ..................................................................................................................................... 423
1922 Tobacco ........................................................................................................................................ 425
1923 Tomatoes, Fresh Market Guaranteed Production ........................................................................ 427
1924 Tomatoes Processing ................................................................................................................... 427
1925-1940 (Reserved) .......................................................................................................................... 427
Section 2 Category C Crops
1941 General Information ..................................................................................................................... 428
1942 Almonds ....................................................................................................................................... 428
1943 Apples .......................................................................................................................................... 428
1944 Avocados, Florida ........................................................................................................................ 430
1945 Blueberries ................................................................................................................................... 430
1946 Citrus............................................................................................................................................ 431
1947 Cranberries ................................................................................................................................... 433
1948 Figs .............................................................................................................................................. 433
1949 Grapes .......................................................................................................................................... 433
1950 Table Grapes ................................................................................................................................ 434
1951 Macadamia Nuts .......................................................................................................................... 434
1952 Peaches ........................................................................................................................................ 434
1953 Pears ............................................................................................................................................. 435
1954 Prunes .......................................................................................................................................... 436
1955 Stonefruit ..................................................................................................................................... 436
1956 Walnuts ........................................................................................................................................ 437
1957-2000 (Reserved) .......................................................................................................................... 437
PART 20 CATEGORY D CROPS
Section 1 Insurability
2001 General Information ..................................................................................................................... 439
2002 Production Reports ...................................................................................................................... 439
2003 OU for Raisins ............................................................................................................................. 439
2004-2006 (Reserved) .......................................................................................................................... 439
Section 2 Dollar Plans of Insurance
2007 PAW ............................................................................................................................................ 440
2008 Block Map ................................................................................................................................... 444
2009 PAIR Information ........................................................................................................................ 444
2010 Macadamia Orchard PAIR and Plat Map .................................................................................... 455
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June 2016 FCIC 18010 TC-13
PART 20 CATEGORY D CROPS (Continued)
Section 2 Dollar Plans of Insurance (Continued)
2011-2020 (Reserved) .......................................................................................................................... 457
Section 3 RO Determined Yield Request
2021 Florida Citrus RO Determined Yield Request ............................................................................. 458
2022-2024 (Reserved) .......................................................................................................................... 458
Section 4 Dollar Plans of Insurance Age or Leaf Year Determinations
2025 General Information ..................................................................................................................... 459
2026-2030 (Reserved) .......................................................................................................................... 460
Section 5 Dollar Plans of Insurance Acreage Information
2031 General Information ..................................................................................................................... 461
2032 Excluded Acreage ........................................................................................................................ 463
2033 Florida Citrus Fruit Liability Adjustment Determination ............................................................ 464
2034 Macadamia Trees Liability Adjustment Determination .............................................................. 465
2035-2040 (Reserved) .......................................................................................................................... 465
Section 6 Dollar Plans of Insurance Additional Records and Provisions
2041 General Information ..................................................................................................................... 466
2042 (Reserved) .................................................................................................................................... 466
Section 7 Yield Based Dollar Amount of Insurance Plans
2043 General Information ..................................................................................................................... 467
2044 Different Coverage Levels ........................................................................................................... 467
2045 Units ............................................................................................................................................. 467
2046 County Yields for Hybrid Seeds .................................................................................................. 467
2047 Amount of Insurance ................................................................................................................... 467
2048 Minimum Contract Payment ........................................................................................................ 468
2049 Yield Based Factor for Seed Companies ..................................................................................... 468
2050 Approved Yields .......................................................................................................................... 468
2051 Value per Bushel .......................................................................................................................... 469
2052 Hybrid Seed Corn or Hybrid Sorghum Seed Approved Yield Requests ..................................... 469
2053-2100 (Reserved) .......................................................................................................................... 470
PART 21 PECAN REVENUE
Section 1 General Requirements
2101 Background .................................................................................................................................. 471
2102 Insurability Requirements ............................................................................................................ 471
2103 Two-Year Coverage Module ....................................................................................................... 472
2104 Unit Division ............................................................................................................................... 472
2105 Premium ....................................................................................................................................... 473
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-14
PART 21 PECAN REVENUE (Continued)
Section 1 General Requirements (Continued)
2106 Transfers ...................................................................................................................................... 473
2107 CAT Coverage ............................................................................................................................. 473
2108-2116(Reserved) ........................................................................................................................... 473
Section 2 Acreage Reporting
2117 Acreage Reports ........................................................................................................................... 474
2118 Acreage ........................................................................................................................................ 476
2119 Changes to the Amount of Insurance ........................................................................................... 476
2120-2130 (Reserved) .......................................................................................................................... 478
Section 3 Revenue Reporting
2131 Revenue Reports .......................................................................................................................... 479
2132 Revenue Report Required Elements ............................................................................................ 481
2133 Production Evidence .................................................................................................................... 482
2134 Excessive Actual Yield ................................................................................................................ 483
2135-2140 (Reserved) .......................................................................................................................... 483
Section 4 Summary of Revenue History
2141 Summary of Revenue History (SRH) Database .......................................................................... 484
2142 Summary of Revenue History Required Elements ...................................................................... 487
2143-2144 (Reserved) .......................................................................................................................... 487
Section 5 PAW/PAIR/CAW
2145 PAW ............................................................................................................................................ 488
2146 PAW Required Elements ............................................................................................................. 488
2147 AIP PAW Review ........................................................................................................................ 490
2148 PAW Triggers a PAIR ................................................................................................................. 491
2149 PAIR ............................................................................................................................................ 491
2150 PAIR Requirements ..................................................................................................................... 491
2151 PAIR Waivers .............................................................................................................................. 492
2152 PAIR Deadline ............................................................................................................................. 492
2153 PAIR Completion Requirements ................................................................................................. 493
2154 PAIR Required Elements ............................................................................................................. 493
2155 CAW Information ........................................................................................................................ 499
2156-2166 (Reserved) .......................................................................................................................... 500
Section 6 RO Underwriting
2167 RO Determined Yield Request .................................................................................................... 501
2168-2200 (Reserved) .......................................................................................................................... 501
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-15
PART 22 RO UNDERWRITING
Section 1 Transmitting RO Determined Yield, and MY Requests
2201 ROE Requirement ........................................................................................................................ 503
2202 AIP Alert Mechanisms ................................................................................................................ 504
2203 Separate Submission for WA....................................................................................................... 504
2204-2210 (Reserved) .......................................................................................................................... 504
Section 2 Determined Yields, MY and UG
2211 Category B Crops ........................................................................................................................ 505
2212 Category C Crops ........................................................................................................................ 507
2213 Category D Crops ........................................................................................................................ 508
2214 Pecan Revenue ............................................................................................................................. 509
2215-3000 (Reserved) .......................................................................................................................... 511
EXHIBIT 1-8
Reserved ............................................................................................................................................... 513
Reserved ............................................................................................................................................... 515
Reserved ............................................................................................................................................... 517
Reserved ............................................................................................................................................... 519
Reserved ............................................................................................................................................... 521
Reserved ............................................................................................................................................... 523
Reserved ............................................................................................................................................... 525
Reserved ............................................................................................................................................... 527
EXHIBIT 9 ENDORSEMENTS AND OPTIONS
A. Endorsements and Options Chart ................................................................................................ 529
B. Wheat or Barley and Dry Pea Winter Coverage Endorsement Flow Chart ................................ 537
C. SCO Endorsement Calculation Examples ................................................................................... 538
EXHIBIT 10 UNITS
A. Examples of Unit Numbering when Units Change ..................................................................... 543
B. Combining Units and APH Databases ......................................................................................... 544
C. Dividing Units Examples ............................................................................................................. 550
D. Additional Bean Procedure for Units and Yields by Types ........................................................ 553
E. Flowchart for Determining Unit Structure when Insured Does Not Qualify for Enterprise Units
by Irrigated and Non-Irrigated Practices ..................................................................................... 555
EXHIBIT 11 UNDERWRITING RULES FOR SPECIFIC PRACTICES
A. Summerfallow Database .............................................................................................................. 557
B. Skip-Row Planted Cotton and ELS Cotton Overview ................................................................. 558
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-16
EXHIBIT 11 UNDERWRITING RULES FOR SPECIFIC PRACTICES (Continued)
C. FSA Determination for 30/50 Planting Pattern ........................................................................... 558
D. Percent Planted Factor, Yield Conversion Factor, and PASS Skip-Row Code Applicable to
Arkansas, Louisiana, Missouri, and All States East of those States ............................................ 559
E. Percent Planted Factor, Yield Conversion Factor, and PASS Skip-Row Code Applicable to New
Mexico and the Following Counties in Texas: Baylor, Concho, Runnels, Schleicher, Shackleford,
Sutton, Taylor, Throckmorton, Valverde, Wilbarger and All Counties West of Those Counties
..................................................................................................................................................... 561
F. Percent Planted Factor, Yield Conversion Factor, and PASS Skip-Row Code Applicable to
Kansas, Oklahoma, and All Counties in Texas for Which Table 2 Does Not Apply .................. 562
G. Determining Planted Acres Using FSA Percent Planted Factor and Calculating Per Acre Yield
Using Skip-Row Yield Conversion Factor .................................................................................. 564
H. Commingled Production from IRR Solid-Planted and NI Skip-Row Planted Cotton................. 565
EXHIBIT 12
Reserved ............................................................................................................................................... 569
EXHIBIT 13 PRODUCTION REPORT
A. Soybeans Example of Completed Production Report for Production Reporting Requirements . 571
B. Corn Example of Completed Production Report for Production Reporting Requirements ........ 572
EXHIBIT 14
Reserved ............................................................................................................................................... 573
EXHIBIT 15 APH DATABASE
A. Examples of Completed APH Databases-New Insured............................................................... 575
B. Examples of Completed APH Databases-New Producer ............................................................ 576
C. Examples of Completed APH Databases –Carryover Insured .................................................... 577
D. Examples of Completed APH Databases-Zero-Acreage Reported ............................................. 578
E. Examples of Completed APH Databases-Assigned Yield .......................................................... 579
F. Examples of Completed APH Databases-Certified Organic ....................................................... 580
G. Examples of Completed APH Databases-Category C Crops ...................................................... 581
H. Yield Determinations-Converting an Existing Practice to a New Practice ................................. 582
I. Yield Determinations—Combining Two Practices into a New Practice ..................................... 583
J Yield Determinations-Dividing a Practice into Two Practices Using Apportionment ................ 584
K. Yield Determinations-Dividing a Practice into Two Practices Using Attribution ...................... 586
L. Yield Determinations-Dividing a Practice into Two Practices Using Recertification ................ 587
M. Yield Determinations-Dividing APH Databases by Recertification ........................................... 588
N. Yield Determinations-Dividing APH Databases by Apportioning Commingled Production ..... 592
O. Yield Determinations-Dividing APH Databases by Attributing Acres and Production .............. 597
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-17
EXHIBIT 15 APH DATABASE (Continued)
P. Yield Determinations-Dividing APH Databases Using All 3 Methods ...................................... 598
Q. Yield Determinations-Dividing an Added Land APH Database ................................................. 600
R. Dividing an APH Database when a Type is Divided into More than Two Types ....................... 603
S. Dividing an APH Database When Only One Type has been Produced ...................................... 609
T. Retaining 10 Crop Years of APH History ................................................................................... 610
U. Dividing Previously Established APH Databases for P/Ts with the Same T-Yield .................... 611
V. Yield Indicators ........................................................................................................................... 613
W. Yield Descriptors ......................................................................................................................... 615
X. APH Yield Limitations/Adjustments- Carryover Insured with Actual Yields ............................ 621
Y. APH Yield Limitations/Adjustments- No Production Records Initially ..................................... 624
Z. APH Yield Limitations/Adjustments- Assigned Yield ................................................................ 625
AA. Carryover Insured Provided a Production Report Applicable for the 2017 Crop Year ............... 625
BB. Yield Adjustment Examples ........................................................................................................ 626
CC. Yield Exclusion Examples ........................................................................................................... 627
DD. Yield Reductions- Excessive Actual Yield (Without Verifiable Records) ................................. 635
EE. Inconsistent Approved APH Yield and Insured Acreage Limitation .......................................... 636
FF. Establishing APH Databases Transitioning Without an Organic Plan for Crop Year 2017 and
Subsequent Years ......................................................................................................................... 638
GG. Determining Tolerance and Corrective Action ............................................................................ 641
EXHIBIT 16
Reserved ............................................................................................................................................... 645
EXHIBIT 17 CATEGORY B CROP PROCEDURES
A. Category B Crops- APH Databases Certified Organic or Transitional Acreage Affected by
Prohibited Substances, Converted Back to Conventional Farming Practices and Suspended Or
Revoked Certification .................................................................................................................. 647
B. Category B Crops- Multi-Purpose Production and Yield Worksheet ......................................... 651
C. Category B Crops-Master Yields ................................................................................................. 653
D. Category B Crops-Acreage Emerging from USDA Program, New Breaking, and Native Sod
Examples ...................................................................................................................................... 657
E. Cup Applicability Chart ............................................................................................................... 672
F. Recording and Maintaining SA T-Yields .................................................................................... 673
G. Special APH Instructions for Contract Seed Beans and Contract Seed Peas .............................. 675
H. Green Pea Example ...................................................................................................................... 682
I. Potato Example ............................................................................................................................ 684
J. Forage Production Underwriting Report ..................................................................................... 685
K. Elements and Information Required for Forage Production Underwriting Report ..................... 685
L. Forage Production Underwriting Report Example ...................................................................... 687
M. Applicable Native Sod Annual Crops .......................................................................................... 688
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-18
EXHIBIT 18 CATEGORY C CROP PROCEDURES
A. Category C Crop- Apple Crop Addendum Worksheet Procedures ............................................. 689
B. Category C Crop- Peach Crop Addendum Worksheet Procedures ............................................. 692
C. Category C Crop- Pear Crop Addendum Worksheet Procedures ................................................ 696
D. Category C Crops-Grape/Table Grape Crop Addendum Worksheet Procedures ....................... 699
E. Category C Crop Procedures- Cranberry Crop Addendum Worksheet ....................................... 702
F. Blueberry (High Bush and Rabbit Eye) Crop Addendum Worksheet Procedures ...................... 705
G. Blueberry (Low Bush) Crop Addendum Worksheet Procedures ................................................ 708
H. Almonds, Citrus, Figs, Fresh Plums, Macadamia Nuts, Pecans, Prunes, Stonefruit, Walnuts Crop
Addendum Worksheet Procedures .............................................................................................. 711
I. Florida Avocado Crop Addendum Worksheet Procedures ......................................................... 715
J. Apple Examples ........................................................................................................................... 718
K. Peaches PAW Examples .............................................................................................................. 725
L. Shelling Percentage Chart for Clean Unshelled Almonds ........................................................... 734
M. Weighted Average Age/Density Worksheet ................................................................................ 735
N. Tree/Vine/Bush Measurement ..................................................................................................... 737
O. Planting Patterns .......................................................................................................................... 737
P. Hedgerow/Border Planting Pattern .............................................................................................. 738
Q. Hexagonal/Quincunx Planting Pattern ........................................................................................ 739
R. Double Row Planting Pattern ...................................................................................................... 741
S. Interplanted Crop Planting Pattern .............................................................................................. 742
T. Missing and Partial Tree Formulas .............................................................................................. 744
U. Additional Information ................................................................................................................ 746
V. Database Administration for Fresh and Processing ..................................................................... 747
W. APH Databases for Transitional and Certified Organic-Prohibited Substances ......................... 753
EXHIBIT 19
Reserved ............................................................................................................................................... 755
EXHIBIT 20 CATEGORY D CROP PROCEDURES
A. Hybrid Seed Corn or Sorghum Seed Notice of Loss ................................................................... 757
B. Florida Citrus Fruit Producer’s Pre-Acceptance Worksheet ....................................................... 758
C. Macadamia Orchard Inspection Report ....................................................................................... 759
D. Florida Citrus, Dollar Plan of Insurance, Percent Stand Example .............................................. 760
E. Summary of Revenue History (SRH) .......................................................................................... 762
F. Hybrid Seed Corn Yield Request Required Information ............................................................. 764
G. Hybrid Sorghum Seed Yield Request Required Information ...................................................... 766
EXHIBIT 21
Reserved ............................................................................................................................................... 769
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TABLE OF CONTENTS
June 2016 FCIC 18010 TC-19
EXHIBIT 22 RO UNDERWRING
RO Determined Yield Type, Yield Limitation Flag and Rate Yield Chart .......................................... 771
EXHIBIT 23 MISCELLANEOUS
Production Report and APH Database Flowchart ................................................................................ 777
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June 2016 FCIC 18010 TC-20
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PART 1 GENERAL INFORMATION
June 2016 FCIC 18010 1
1 General Information
A. Purp