2015 Filing Update BILLINGS REGIONAL OFFICE BILLINGS, MONTANA PHONE: (406) 657-6447 EMAIL:...
-
Upload
damian-cooper -
Category
Documents
-
view
219 -
download
1
Transcript of 2015 Filing Update BILLINGS REGIONAL OFFICE BILLINGS, MONTANA PHONE: (406) 657-6447 EMAIL:...
1
2015 Filing UpdateBILLINGS REGIONAL OFFICE
BILLINGS, MONTANA
PHONE: (406) 657-6447
EMAIL: [email protected] presentation highlights features of Risk Management Agency Programs and is not intended to be comprehensive. The information presented neither modifies or replaces terms and conditions of the basic policy, the crop provisions, or the county actuarial documents. Consult a crop insurance agent for further details.
2
3
5Farm Bill – Coverage by Irrigation Practice
You may have separate Enterprise Units for irrigated and non-irrigated crops
New option: You may elect separate coverage levels for irrigated and non-irrigated crops (including within a Whole Farm Unit when available)
Effective for 2015 spring seeded crops (contract change date of November 30, 2014)
See PM-14-045 and PM-14-046 for guidance
6Farm Bill – Conservation Compliance
Highly-Erodible Land (HELC) and Wetland Conservation (WC) compliance is required to be eligible for a premium subsidy AD-1026 form (HELC and WC Certification) on file with FSA by June 1,
2015 to be eligible for 2016 crop insurance premium subsidy
7Farm Bill – SCO (w/PLC coverage)
Supplemental Coverage Option (SCO) is area-based coverage for a portion of your insurance deductible Purchased in combination with a regular policy
Available 2015 for “combo” plans (Yield Protection, Revenue Protection, Revenue Protection w/Harvest Price Exclusion)
Corn, Soybeans, Wheat, Grain Sorghum, Cotton, Spring Barley and rice
65% premium subsidy
Indemnity payments based on whether the final average yield or revenue for an area falls below 86% of the expected level
8
Example:
Grower purchases an individual revenue policy, 80% coverage
9SCO Data Source and Availability (excluding cotton)
General guidelines to establish coverage for a county or district : At least 20 of the most recent 30 years reported
At least 8 of 10 most recent years with an average of 10,000 or more planted acres
At least 50 farms for the crop/county according to the most recent Census of Agriculture
Considering use of crop insurance yield data beginning with 2016 Additional counties for current SCO crops (aggregation)
Additional practice-specific insurance offers
Additional crops (primary areas)
10
11
12
13
14
15
16
17http://www.dvlpapps.rma.usda.gov/tools/RMAMobile.html
18Farm Bill – Native Sod
“Acreage that has no record of being tilled … for the production of an annual crop on or before February 7, 2014…” Applies to: Iowa, Minnesota, Montana, Nebraska, North Dakota,
and South Dakota – all counties
Effective for annual crops with a contract change date on or after June 30, 2014 When more than five acres of native sod (by policy) is tilled
Tilled and planted on or after February 7, 2014
19Farm Bill – Native Sod
Benefits reduced for first four crop years: Reduction of premium subsidy (50 percentage points)
Reduced insurance guarantee (65% of transitional yield)
No substitute yields in APH database (for low years)
Reference: 15-CCIP-Farm Bill Basic Provisions Amendment – Section 1 definition
and Section 9(e) and 9(f)
Informational Memorandum PM-14-027
20Farm Bill – Beginning Farmer and Rancher
“An individual who has not actively operated and managed a farm or ranch…with an insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than five crop years…”
(exclude years: under the age of 18, in full-time military service, in post-secondary education)
Guidance: 15-CCIP-Farm Bill Basic Provisions Amendment – Section 1 definition,
Sections 3(l), 7(e)(4), 7(g) and (h), and 36(c)
PM-14-028
21Farm Bill – Beginning Farmer and Rancher
BFR benefits (beginning with crops having a June 30, 2014 contract change date and later): Increased premium subsidy (10 percentage points)
Exempt from administrative fees
Allows use of yield history from previous farm or ranch operations
Yield substitution is 80% of the applicable transitional yield (instead of 60%)
Benefits are continuous until 5 year rule is met
22Farm Bill – Whole Farm Revenue Protection
Provides protection for diversified farms (all eligible commodities under one insurance policy)
Replaces AGR and AGR-Lite / expanded availability
Coverage based on 5 consecutive tax years of historic average revenue and expenses
50-85 percent coverage levels (80 and 85 levels require 3 or more commodities)
Premium rate discounts for multiple crop diversification
Reference: MGR-14-021
23Farm Bill – Whole Farm Revenue Protection
Comparison Feature AGR-Lite WFRP
Liability Limit $1 Million $8.5 Million
Animal Limit None 35% of expected revenue up to $1 million (maximum)
Replant Payment None Up to 20% of expected revenue for annual crop with 20 acres or 20% of crop needing replant
Other Federal Crop Insurance
Optional Optional – at any buy-up level; no CAT level MPCI allowed
Market readiness amounts in insured revenue
No Yes
Expanding operations No Average historic revenue increased by10% if operation is expanding and approved by AIP
Premium Subsidy Basic Level
Whole-Farm Level w/ 2 or more commodities
24Whole Farm Revenue Protection Availability
25APH Yield Exclusion
Allows a higher approved yield for producers on eligible crops in eligible counties (and contiguous) that have been hit with severe weather Available for 2015 spring crops (not dual wheat counties)
Eligible 2015 crops are: corn, soybeans, wheat, cotton, grain sorghum, rice, barley, canola, sunflowers, peanuts and popcorn
Yield Exclusion option available when the county yield is at least 50 percent below the average of the previous 10 consecutive crop years
Must be elected by the Sales Closing Date
Reference: Section 5 in the 15-CCIP-Farm Bill Basic Provisions Amendment
26APH Yield Exclusion
You may choose any of the following options within a database: Yield Exclusion (YE)
Yield Adjustment (YA)
Trend Adjustment (TA)
You may only apply either yield exclusion or yield adjustment to an actual yield within a database
When an actual yield is excluded, the excluded actual yield cannot be considered for trend adjustment.
27APH Yield Exclusion
If APH YE lowers your actual production history to less than 4 crop years of production history in your APH database, the applicable T-Yield will be substituted for the excluded years
Written Agreements are not allowed (YE must be provided in the actuarial documents)
Personal T-Yields (ND only): When an actual yield is excluded in an APH database, that actual
yield is not excluded for the purposes of calculating the Personal T-Yield (PTY)
28APH Yield Exclusion
29
30Non-Irrigated Soybean YE Availability 2015
31Additional Information – www.rma.usda.gov
32
Summary of Filing Changes
33Rate, Reference Yield and T-Yield Reviews
Fall Crops: Alfalfa Seed
Spring Crops: Canola
Millet
Mustard
Potatoes
Safflower
Sugar Beets
34Organic
T-Yields reviewed and updated for 2015 based on additional history Canola (MT & ND) factor changed from 95% to 90%
Millet (ND) factor changed from 70% to 65%
Millet (WY) factor changed from 65% to 70%
Potatoes (MT, ND, SD, WY) factor changed from 80% to 85% (based on national data only)
New distinct organic price elections (no contract required) Grain sorghum, popcorn, flax, millet, corn silage
35New Breaking Statement
Revised Special Provisions statement in Prairie Pothole States (all counties): Iowa, Minnesota, North Dakota, South Dakota, Montana, Nebraska
Requires approved yield to be held at 65% of the T-Yield for the first four crop years of planting when breaking native sod
New yield indicator required (SP)
36Cover Crop Statements (in counties with cc and sf practices)
New statements in the Special Provisions clarify that if cover crops are grown on land during a fallow year, that the subsequent crop must be insured under the continuous cropping practice
If a crop or cover crop is planted on summerfallow acreage in a fallow year, the following planted crop will not meet the summerfallow practice definition until the acres lie fallow for a full crop year. If the acreage did not lie fallow the preceding full crop year, the acreage may be insured under the continuous cropping practice provided all other provisions of that practice are satisfied.
Guidance in CIH Para. 821B(3)(b) and Para. 911
372015 Trend Adjustment Availability
Montana Wheat: 48 of 54 program counties
Canola: 6 of 18 program counties
Corn: 10 of 24 program counties
North Dakota Wheat: 53 of 53 program counties
Canola: 38 of 53 program counties
Corn: 46 of 53 program counties
Sunflowers: 51 of 53 program counties
Soybeans: 35 of 48 program counties
382015 Trend Adjustment Availability
South Dakota Wheat: 55 of 66 program counties
Corn: 62 of 66 program counties
Grain Sorghum: 19 of 59 program counties
Sunflowers: 23 of 52 program counties
Soybeans: 46 of 48 program counties
Wyoming Corn: 7 of 11 program counties
39Trend Adjustment Participation
State Crop 2013 Policies w/TA
2014 Policies w/TA
Montana Wheat 612 602
North Dakota WheatCanolaCornSunflowersSoybeans
4,0291,0775,310
-5,632
5,8591,5495,528354
7,276
South Dakota WheatCornGrain SorghumSunflowersSoybeans
3,04118,552
113-
13,926
3,40918,492
163486
16,172
Wyoming Corn 44 96
40Whole Farm Units – Coverage Level by Practice
New SP statement – CCIP Revenue plans for Barley, Canola, Corn, Grain Sorghum, Sunflowers, Soybeans, Wheat In addition to section 34(a)(5)(i)(A)(3) of the Basic Provisions which
requires all crops within a whole-farm unit to be insured at one coverage level, you may elect separate coverage levels for all irrigated crops and all non-irrigated crops within your whole-farm unit in accordance with section 3(b)(2) of the Basic Provisions. For example, all irrigated crops may be insured at the 65 percent coverage level and all non-irrigated crops may be insured at the 70 percent coverage level.
41Annual Forage – PM-14-030
New program (North Dakota and South Dakota) in 2014 Covers annually planted crops for livestock feed and fodder which
are either mechanically harvested, grazed or a combination
Farm Bill 12305(b)(1)(B) prohibits CAT coverage for crops and grasses used for grazing New 2015 Special Provisions statement clarifies this
NAP will be offered for any annual forage crop planted with an intended purpose that includes grazing Producers cannot obtain both NAP and AF at a buy up level for the
intended use of grazing
42Alfalfa Seed
Crop Provisions revised to incorporate changes made converting the program to permanent status Crop Provisions 15-0107 replaced pilot provisions 12-0107
Updated definition to include forage seed produced as hybrid seed
43Specialty Canola, Corn, Soybeans
MGR-13-002.1 (2014 and succeeding crop years) – Separate APH databases to use contract price OR do not separate databases and do not use contract price
Specialty types affected: High Oleic Canola
High Amylase Corn
Blue Corn
Low Linolenic Acid Soybeans
44Canola – North Dakota
“No Irrigation Practice Specified” changed to “Irrigated” and “Non-irrigated” T-yields and rates were duplicated for both offers
Irrigated offers were not attached to maps
Montana offers were already split into irrigated and non-irrigated
Producers can now take advantage of separate units by irrigation practice provisions
45Corn
Non-Irrigated Grain Corn added to: Adams, ND
Perkins, Shannon, SD
Non-Irrigated Silage Corn added to: Carter, MT
Quality – low test weight Farm Bill, Section 11013 mandates additional time to settle claims for
corn with low test weight (below 44 lbs.)
Quality statement in Special Provisions revised to allow 120 days to settle claims (instead of 60 days allowed for other issues)
46Dry Beans
NOTE: As in 2014… Montana, South Dakota, and Wyoming have only the APH plan
North Dakota has YP, RP, and RP w/HPE plans
Cranberry type added to Pembina and Walsh, ND
Tebo type added to Barnes, Steele and Walsh, ND
Enterprise units now available (all plans)
Contract Price option for certified organic practice now available for YP, RP and RP w/HPE plans (only APH had this option in 2014)
47Dry Beans – New Variety Statements
Tebo (new type in the region) Approved Tebo Varieties include: Fuji and Hime. Varieties not
approved above will be insurable only by written agreement.
Cranberry (Etna added) Approved Cranberry Varieties include: Capri, Cran 09, Cran 34, Cran
74, Etna, Hooter, Messina, and Taylor Hort. Varieties not approved above will be insurable only by written agreement
48Dry Peas
NOTE: As in 2014… North Dakota and Montana have YP, RP, and RP w/HPE Plans
South Dakota and Wyoming have APH Plan only
Program Expansion to Laramie County WY Smooth Green or Yellow type only (both irrigated and non-irrigated)
Dates: 3/15 Earliest Planting and Sales Closing, 4/30 Final Planting, 7/15 Acreage Reporting
Enterprise units now available for all plans
Contract Price option now available for YP, RP and RP w/HPE plans for certified organic practice (only APH had this option in 2014)
49Dry Peas
“No Irrigation Practice Specified” changed to “Irrigated” and “Non-irrigated” T-yields and rates were duplicated for both offers
Irrigated offers were not attached to maps
Producers can now take advantage of separate units by irrigation practice provisions
50Dry Peas – New Chickpea Variety Statements
Approved Large Kabuli Chickpea Varieties:
Dwelley
Dylan
Sierra
Troy
Xena
Yuma
Varieties not listed above will be insured as the Small Kabuli Chickpea type unless designated otherwise by written agreement.
Approved Small Kabuli Chickpea Varieties:
Alma,
Amit (B-90)
Chi Chi
Chico
Frontier
Luna and other Kabuli Chickpea varieties not otherwise designated.
51Dry Peas – New Rotation Statement
Spring Austrian Peas, Spring Forage/Feed Peas grown for seed, Spring Smooth Green or Yellow types: Insurance will not attach to any acreage on which field peas (Austrian
Peas, Forage/Feed Peas Grown for Seed and/or Smooth Green or Yellow Peas) were planted in either of the previous two (2) crop years or on which chickpeas or lentils were planted in the previous crop year. Chickpeas that were planted and then all plant growth is terminated by chemical or mechanical means prior to June 15, will not be considered planted for rotational purposes only. The insured is responsible to provide proof of insurability. This statement applies to field peas, lentils, and chickpeas grown either as a grain, cover crop or in a cover crop mixture.
52Dry Peas – New Rotation Statement
Spring Lentil type: Insurance will not attach to any acreage on which lentils were
planted in either of the previous two (2) crop years or on which chickpeas or field peas were planted in the previous crop year. Chickpeas that were planted and then all plant growth is terminated by chemical or mechanical means prior to June 15, will not be considered planted for rotational purposes only. The insured is responsible to provide proof of insurability. This statement applies to lentils, field peas, and chickpeas grown either as a grain, cover crop or in a cover crop mixture.
53Dry Peas – New Rotation Statement
Chickpea types: Insurance will not attach to any acreage on which chickpeas
(garbanzo beans) have been planted in any of the three previous crop years. Chickpeas that were planted and then all plant growth is terminated by chemical or mechanical means prior to June 15, will not be considered planted for rotational purposes only. The insured is responsible to provide proof of insurability. This statement applies to chickpeas grown either as a grain, cover crop or in a cover crop mixture.
54Livestock
New “Margin Protection Program for Dairy” (MPP-Dairy) Administered by FSA
Available September 1, 2014
CAT and buy-up coverage offered
Producers may not participate in both MPP-Dairy and LGM-Dairy
More information in MGR-14-005
55Potatoes – North Dakota
Added Processing Quality (PR) option to 17 counties:
Barnes, Benson, Cass, Cavalier, Dickey, Eddy, Emmons, LaMoure, McLean, Mercer, Morton, Pembina, Ramsey, Ransom, Richland, Steele, Stutsman
Fresh varieties (Russet Norking and Russet Norkotah) are not eligible
Contract price now available for certified organic practice
Two potato maps were changed: Grand Forks and Pembina Rate areas no longer apply; unrated areas do apply
Two rate area potato maps were deleted: Traill and Walsh counties
56Soybean Program Expansion
3 North Dakota counties: Divide, Grant, Stark All types and practices
6/10 Final Planting Date
South Dakota “Non-Conventional”
Now NC-Irrigated and
NC-Non-irrigated
57Wheat, Oats, Barley
New Special Provisions statement to conform to Section 1206 of the Farm Bill (all plans)
In addition to Section 29 of the Basic Provisions, if you elect to obtain a Farm Service Agency Graze-Out Payment for acres of this crop grazed by livestock and not otherwise harvested, you are not eligible for an indemnity.
58Map Updates (all in North Dakota)
Incorporated high rate areas into adjacent standard rate areas: Burke, Ransom, Richland, and Sargent Counties
Incorporated unrated areas into adjacent rated areas: Pembina
Cleaned split fields: Dickey, Nelson, Sioux
Deleted potato rate area maps: Grand Forks, Pembina, Traill, Walsh
59Farm Bill – CAT Premium Change
Finding: CAT experience is generally better than it is rated
Action: 2015 CAT rating differential has been reduced (by 50% in most cases)
Producer payment remains $300 administrative fee
602014 Harvest Prices AnnouncedCommodity Harvest Price Change Projected
Price
Barley $3.16/bushel ▼21.6% $4.03/bushel
Canola $0.168/pound ▼8.6% $0.184/pound
Canola, Rapeseed $0.223/pound ► $0.223/pound
Corn $3.49/bushel ▼24.5% $4.62/bushel
Corn, Organic $6.77/bushel ▼24.5% $8.97/bushel
Grain Sorghum $3.37/bushel ▼24.4% $4.46/bushel
Popcorn $0.1487/pound ▼24.4% $0.1968/pound
Soybeans $9.65/bushel ▼15% $11.36/bushel
Soybeans, Organic $16.24/bushel ▼15% $19.12/bushel
Sunflowers, Oil $0.174/pound ▼16.7% $0.209/pound
Sunflowers, Confectionery $0.239/pound ▼12.8% $0.274/pound
Wheat, Spring $6.17/bushel ▼5.2% $6.51/bushel
Wheat, Durum $6.87/bushel ▼5.2% $7.25/bushel
61ARPI Popcorn (South Dakota)
ARPI Plans 04, 05, and 06 CCIP Plans 01, 02, and 03
62ARPI Popcorn (South Dakota)
ARPI Popcorn FPD – 6/14 Different than corn (5/25 or 5/31) or popcorn (5/20)
Same as ARPI corn
Consistent with the practices of the industry, insured acreage must be covered under a contract with a popcorn buyer
Expected and final county yields/revenues are determined by NASS data (corn multiplied by a factor)
63ARPI – Wheat, Corn, Soybeans (+ Popcorn)
New Special Provisions statement clarifying the protection factor for CAT coverage: In lieu of section 6(b) of the Basic Provisions, you may only choose a
protection factor of 120 percent for catastrophic risk protection. However, in accordance with section 8(m) of the Basic Provisions, if you do not submit a production report to us by the production reporting date specified in the actuarial documents, your protection factor for your catastrophic risk protection policy in the following crop year will be limited to the lowest protection factor available. The provisions of section 5(d)(1) of the Basic Provisions are also applicable for catastrophic risk protection on native sod acreage.
64Written Agreements Complete the request form completely – including:
Farm, Tract and Field #s
Crops, types and practices (specific to those offered in county actuarial documents)
Any narrative sections – use attachments if needed
Better to provide too much information rather than not enough
Write clearly – unreadable information causes delays
Review Written Agreement Handbook for specific WA type and submit all required information – missing information causes delays Exhibit 5 of the WAH is an excellent reference
Maps need to be readable – very large % are inadequate
2015 signed APH (or signed 2014 production report & unsigned 2015 APH) is always required.
65Top 10 South Dakota Insured Crops in 2013(by planted acres)
66CY 2013Loss Ratios - Corn
67CY 2013Loss Ratios - Soybeans
68CY 2013Loss Ratios - Wheat
69CY 2013Loss Ratios - Sunflowers
70CY 2013 Loss Ratios - PRF