Proposed Changes To Crop Insurance Program

The Federal Crop Insurance Commission (FCIC) has proposed several changes to the crop insurance program. These changes, if implemented, will begin for the 2011 crop insurance year and continue for the succeeding years. The 2010 crop year (which begins November 20, 2009) will be under the current program requirements. The changes to the existing program were posted on the Federal Register on Tuesday September 8, 2009 and are open to comment until the close of business on November 9, 2009. Please review all changes and make comments as you see fit. I will highlight some of the major changes within this article.

The most dramatic change is that fresh apples and processing apple production may be designated as separate optional units. However, you must follow recommended cultural practices generally used for fresh apple acreage. Processing apple production will be defined as “apples from insurable acreage failing to meet the fresh apple production requirements.”

You may need to certify to your insurance provider that you sold at least 50 percent (of your fresh apple production from acreage insured as fresh) as fresh apples in one or more of the three most recent crop years. As you are harvesting this season, keep the most accurate records possible to comply with this requirement. As with all of agriculture, record keeping is becoming a requirement for many programs within the fruit industry. Keeping accurate and detailed records will only benefit your operation for years to come.

All insurable damage to either fresh or processing apples will be counted on a unit basis. If you fail to notify your insurance provider of any insurable damage to the crop prior to harvest, or if apple production is not graded prior to sale or storage, then such production will be considered production to count and will be counted against your guaranteed production and will be included in your Actual Production History (APH). You must leave representative samples of the insurable damage if required by your insurance provider. Also, language has been added clarifying that any damage after the crop is harvested and placed in storage, or is sold, is not insurable.

If you have used Optional Coverage for Quality Adjustment in the past, this option will only apply to apples insured as fresh production. It will not be available for processing production. Also, under this option, the FCIC proposes to make any fresh production sold as U.S. Fancy or better will count towards your production.
There are also many small wording changes included within the Federal Register that you should review. These are the major changes the FCIC is proposing. As previously stated, the comment period ends November 9, 2009 so take some time to look this over carefully. The following bullet points cover the most dramatic changes.

• Allow optional units by type (varietal group definition would be removed) as specified in the Special Provisions of Insurance. For example, an optional unit for fresh apple production, and an optional unit for processing apple production.

• Allow the apple grower (insured) to select different coverage levels for the fresh apple acreage (unit) and the processing apple acreage (unit).

• Insureds will be required to provide verifiable records to prove that 50% of their fresh apple acreage was sold as fresh apples in one or more of the three recent crop years. Note: apple growers must follow recommended cultural practices generally in use for fresh apple acreage in the county as determined by agricultural experts.

• A new section has been added to the policy to state that any apple production not graded prior to sale or storage will be considered as production to count.

I know many producers and insurance providers have been requesting changes to the apple program and these are a result of these requests. You may have additional changes you see necessary and some of these changes you may disagree with but, the FCIC is trying to accommodate the requests. They also need to try to eliminate any potential for fraud within the program. Make your feelings known by commenting on these proposed changes, however you feel.

To read the entire posting and for how and where to send comments, visit: http://www.regulations.gov. Once there, type apple into the box labeled “Keyword” and it will be listed farther down on the screen.

Source: Penn State University Fruit Research and Extension Center

Leave a Reply

Featured Stories

All Vegetables Stories >All Fruits Stories >All Nuts Stories >All Citrus Stories >

The Latest

Apples & PearsBig Apple Crop Expected
September 2, 2014
Generally high quality predicted at U.S. Apple Association Crop Outlook and Marketing Conference. Read More
Apples & PearsBeware Of Fruit Rots During Apple Harvest
September 2, 2014
Conditions lately have been ripe for fungi fiasco. Read More
Apples & PearsThey’re Back! 2014 Brown Marmorated Stink Bug Populat…
September 2, 2014
Pressure building as traps filling up with pest by the hundreds. Read More
Farm ManagementStudy Shows ‘Megadrought’ On The Radar For …
September 2, 2014
Global warming trends fuel parched prediction from scientists. Read More
Farm ManagementTrimble’s Connected Farm Now Includes Field Data Mana…
September 2, 2014
Trimble adds two apps that work with their Connected Farm Web-based solution, providing growers and their advisors with more detailed field information. Read More
FruitsTips To Help You Manage Postharvest Ripening
September 2, 2014
Humidity, ethylene, and temperature can all impact fruit quality. Read More
CitrusHarness The Marketing Power Of Video
September 1, 2014
Multimedia platform is an effective and inexpensive marketing tool for you to attract new customers and keep existing ones loyal to your brand. Read More
Citrus Achievement AwardDespite Industry Challenges, Florida Citrus Leader Has …
September 1, 2014
2014 Florida Grower Citrus Achievement Award winner Mike Sparks feels confident in crop sector's ability to regain strength. Read More
Florida Ag ExpoFood Safety Modernization Act Is On The Plate
September 1, 2014
Florida Ag Expo agenda to serve up important features of looming regulations. Read More
CEU SeriesCEU Series: Put Weeds Out To Pasture
September 1, 2014
No matter where they are, plants out of place can be problematic. Read More
TomatoesProduction Reaches An All-Time High For Processing Toma…
August 29, 2014
A record high is predicted for the 2014 processing tomato crop. Read More
CitrusFlorida Department Of Citrus Knocks NPR Piece Over Juic…
August 28, 2014
Agency goes to bat for the industry regarding statement slighting OJ's health benefits. Read More
Disease ControlLate Blight Update Reveals Heightened Activity
August 28, 2014
While several states in the Northeast have confirmed the presence of late blight, the disease has not been reported in North Dakota or Minnesota. Read More
CitrusFlorida Energy Firm Charged Up About Citrus Biomass Pot…
August 28, 2014
Machine called a game-changer when it comes to a cost-effective, efficient way for tree removal and re-purposing. Read More
EquipmentNew Tractors Improve Maneuverability And Operator Contr…
August 28, 2014
The Magnum Rowtrac tractors from Case IH meet growers’ cropping needs through a wide variety of row spacing and belt options.   Read More
NutsCalifornia County Passes Ordinance To Protect Walnut Gr…
August 27, 2014
Verification of ownership needed to complete sales of valuable nuts. Read More
NutsAlmond Growers Hit By Russian Import Limits
August 27, 2014
Growers reflect on changes to export market in light of produce ban. Read More
Farm ManagementLeadership And Management Expert To Speak At California…
August 27, 2014
Daniel Goleman will make presentation at California State University-Fresno. Read More