Crop Insurance Handbook 2014
Transcript of Crop Insurance Handbook 2014
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United States
Department of
Agriculture
Federal Crop
Insurance
Corporation
Risk
Management
Agency
Product
Administration
& Standards
Division
FCIC 18010
(06-2013)
2014
CROP INSURANCE
HANDBOOK
Underwriting and Actual Production History Standards for
FCIC Programs Administered under the Common Crop
Insurance Policy Basic Provisions and APH Administrative
Regulations for 2014 and Succeeding Crop Years.
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United States Department of Agriculture
Risk Management Agency
Washington, D.C. 20250
June 2013 FCIC 18010 TP-1
TITLE: 2014 Crop Insurance Handbook NUMBER: FCIC 18010
EFFECTIVE DATE: 2014 and
Succeeding Crop Years ISSUE DATE: 6/21/13
SUBJECT:
Underwriting and Actual Production
History standards for FCIC programs
administered under the Common Crop
Insurance Policy Basic Provisions and
APH administrative regulations.
OPI: Product Administration and Standards Division
APPROVED:
/s/ Tim B. Witt
Deputy Administrator for Product Management
REASON FOR ISSUANCE
This handbook is being issued to provide the official FCIC approved underwriting standards for policies
administered by AIPs under the Common Crop Insurance Policy Basic Provisions, 7 CFR Part 457 including
the Catastrophic Risk Protection Endorsement, 7 CFR Part 402, and the Actual Production History
Regulation 7 CFR Part 400 Subpart G for the 2014 and succeeding crop years.
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June 2013 FCIC 18010 TP-2
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June 2013 FCIC 18010 TC-1
TABLE OF CONTENTS
PART 1 GENERAL INFORMATION AND RESPONSIBILITIES
1 General Information ............................................................................................................................ 1
2 Responsibilities ................................................................................................................................... 3
3 Title VI of the Civil Rights Act of 1964 ............................................................................................. 3
4-200 (Reserved) ............................................................................................................................................ 4
PART 2 ADMINISTRATIVE AND SERVICING REQUIREMENTS
Section 1 General Program Requirements
201 Insurance Availability ......................................................................................................................... 5
202 Eligible Crops .................................................................................................................................... 5
203 Duplicate Policies ............................................................................................................................... 8
204 Other Insurance ................................................................................................................................... 9
205 Insured Cause(s) of Loss ..................................................................................................................... 10
206 USDA Program Linkage ..................................................................................................................... 10
207 USDA Program Benefit Limitations ................................................................................................... 10
208 Administrative Fees ............................................................................................................................ 10
209 Third-Party Prohibition Regarding Administrative Fees .................................................................... 11
210 Waiver of Administrative Fees ........................................................................................................... 12
211 Deadlines............................................................................................................................................. 13
212 Document Origination ........................................................................................................................ 13
213-230 (Reserved) ........................................................................................................................................ 13
Section 2 Application for Insurance
231 General Information ............................................................................................................................ 14
232 Sales Closing Date (SCD) ................................................................................................................... 14
233 The Policy Term ................................................................................................................................. 14
234 Insurance Choices ............................................................................................................................... 17
235 Plans of Insurance ............................................................................................................................... 18
236 Levels of Coverage ............................................................................................................................. 18
237 Price .................................................................................................................................................... 19
238 Premium Rates .................................................................................................................................... 21
239 Added County Election ....................................................................................................................... 21
240 Application Acceptance ...................................................................................................................... 23
241 Rejected Applications ......................................................................................................................... 23
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June 2013 FCIC 18010 TC-2
242 Transfer of Policies to Another AIP ................................................................................................... 24
243 Good Experience Discount ................................................................................................................. 25
244-250 (Reserved) ........................................................................................................................................ 27
Section 3 Policy Servicing Requirements
251 Policy Change ..................................................................................................................................... 28
252 Assignment of Indemnity .................................................................................................................... 28
253 Transfer of Coverage and Right to an Indemnity ............................................................................... 30
254 Power of Attorney ............................................................................................................................... 31
255 Signatures ............................................................................................................................................ 32
256-300 (Reserved) ........................................................................................................................................ 32
PART 3 ADVERSE DECISIONS
301 General Information ............................................................................................................................ 33
302 Mediation ............................................................................................................................................ 36
303 Arbitration ........................................................................................................................................... 37
304 Judicial Review ................................................................................................................................... 39
305 GFP Disputes ...................................................................................................................................... 40
306-400 (Reserved) ........................................................................................................................................ 42
PART 4 PERSONS
Section 1 Eligibility
401 Eligible Persons .................................................................................................................................. 43
402 Ineligible Persons ................................................................................................................................ 44
403-410 (Reserved) ........................................................................................................................................ 45
Section 2 Reporting and Verification Requirements
411 Identification Number(s) ..................................................................................................................... 46
412 Substantial Beneficial Interest (SBI) .................................................................................................. 52
413 Unreported or Incorrect Identification Numbers ................................................................................ 53
414 Reported, Unreported or Incorrect SBI Identification Numbers ........................................................ 54
415 Correction After Discovery ................................................................................................................. 55
416-430 (Reserved) ........................................................................................................................................ 55
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June 2013 FCIC 18010 TC-3
Section 3 Person Types
431 Death, Disappearance or Judicial Declaration of Incompetence ........................................................ 56
432 Other Causes ....................................................................................................................................... 58
433-450 (Reserved) ....................................................................................................................................... 59
451 Individuals........................................................................................................................................... 60
452 Landlord-Tenant ................................................................................................................................. 63
453 Partnerships ......................................................................................................................................... 64
454 Joint Ventures ..................................................................................................................................... 64
455 Corporations ........................................................................................................................................ 66
456 Limited Liability Companies (LLC) ................................................................................................... 66
457 Estates ................................................................................................................................................. 67
458 Trusts................................................................................................................................................... 67
459 Other Persons ...................................................................................................................................... 69
460-500 (Reserved) ........................................................................................................................................ 70
PART 5 ENDORSEMENTS AND OPTIONS
501 General Information ............................................................................................................................ 71
502 Catastrophic Risk Protection Endorsement ........................................................................................ 71
503 High-Risk Land Exclusion Option...................................................................................................... 72
504 Hail and Fire Exclusion Option .......................................................................................................... 74
505 Apple Fresh Fruit Quality Adjustment Option ................................................................................... 76
506 Wheat or Barley Winter Coverage Endorsement................................................................................ 76
507 Dry Pea WCO ..................................................................................................................................... 78
508 Fresh Market Sweet Corn Minimum Value Option ........................................................................... 79
509 Fresh Market Pepper Minimum Value Option ................................................................................... 80
510 Fresh Market Tomato (Dollar Plan) Minimum Value Option ............................................................ 82
511 Mint Winter Coverage Option ............................................................................................................ 82
512 Northern Potato Policy Endorsements ................................................................................................ 84
513 Pear Quality Adjustment Endorsement ............................................................................................... 89
514 Table Grape Protective Cover Option ................................................................................................ 90
515 MBPQE ............................................................................................................................................... 91
516 Option A of the MBPQE..................................................................................................................... 93
517 Option B of the MBPQE ..................................................................................................................... 97
518 Contract Price Addendum (CPA) ....................................................................................................... 102
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June 2013 FCIC 18010 TC-4
519-600 (Reserved) ........................................................................................................................................ 106
PART 6 PLANTING PROVISIONS
Section 1 Replanting
601 General Information ............................................................................................................................ 107
602 Replanting Payments .......................................................................................................................... 107
603 Limitations .......................................................................................................................................... 107
604 Eligible Crops ..................................................................................................................................... 108
Section 2 Late Planting
605 General LP Provisions ........................................................................................................................ 109
606 Crop LP Guidelines............................................................................................................................. 110
Section 3 Prevented Planting
607 General PP Information ...................................................................................................................... 112
608 PP Coverage Levels ............................................................................................................................ 113
609 PP Payment Limitations ...................................................................................................................... 113
610 Double Cropped .................................................................................................................................. 115
611 Double Cropped Qualifications .......................................................................................................... 116
612 Second Crop ........................................................................................................................................ 117
613 Reporting PP Acreage ......................................................................................................................... 117
614 Eligible PP Acreage ............................................................................................................................ 117
615 Crops Without an Adequate PP Base.................................................................................................. 120
616 PP Payments........................................................................................................................................ 121
617 Acreage for which PP Coverage is Not Provided ............................................................................... 123
618-700 (Reserved) ........................................................................................................................................ 126
PART 7 UNITS
Section 1 Basic Unit
701 Availability ......................................................................................................................................... 127
702 Premium Discount .............................................................................................................................. 127
703 Tobacco ............................................................................................................................................... 127
704 CAT Endorsement .............................................................................................................................. 128
705 APH Database Establishment ............................................................................................................. 128
706 APH Databases Below BU Level ....................................................................................................... 128
707 Commingled Acres and Production .................................................................................................... 128
708-720 (Reserved) ........................................................................................................................................ 129
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June 2013 FCIC 18010 TC-5
Section 2 Optional Unit
721 Availability ......................................................................................................................................... 130
722 APH Database Below OU Level......................................................................................................... 134
723 Combination of OUs ........................................................................................................................... 134
724 OU Qualifications ............................................................................................................................... 135
725 Production Evidence ........................................................................................................................... 136
726 Assigned Yields .................................................................................................................................. 138
727 Determining OUs ................................................................................................................................ 138
728-730 (Reserved) ........................................................................................................................................ 138
Section 3 Enterprise Unit
731 Availability ......................................................................................................................................... 139
732 EU Election ......................................................................................................................................... 139
733 EU Qualifications................................................................................................................................ 139
734 Reporting Requirements ..................................................................................................................... 140
735 Discounts............................................................................................................................................. 141
736 Added Land and New Crop P/T.......................................................................................................... 142
737 Assigned Unit Structure ...................................................................................................................... 142
738 Assigned Yields .................................................................................................................................. 142
739 Cups .................................................................................................................................................... 142
740-744 (Reserved) ........................................................................................................................................ 142
Section 4 Whole Farm Unit
745 Availability ......................................................................................................................................... 143
746 WU Election........................................................................................................................................ 143
747 WU Qualifications .............................................................................................................................. 143
748 Separate Administrative Fees ............................................................................................................. 144
749 Reporting Requirements ..................................................................................................................... 144
750 Unit Structure Assignment .................................................................................................................. 146
751-760 (Reserved) ........................................................................................................................................ 146
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June 2013 FCIC 18010 TC-6
Section 5 Unit Numbering
761 General Information ............................................................................................................................ 147
762 The Structure Code ............................................................................................................................. 147
763 Unit Number ....................................................................................................................................... 147
764 Unit Numbering Constancy ................................................................................................................ 149
765 Unit Number Consistency ................................................................................................................... 149
766 Master Yield Summary APH Database .............................................................................................. 149
767-772 (Reserved) ........................................................................................................................................ 150
Section 6 Sections, Section Equivalents, and FSA FNs
773 Provisions ............................................................................................................................................ 151
774 Unit Division Option Illinois, Indiana, Ohio, and Texas ................................................................. 153
775-780 (Reserved) ........................................................................................................................................ 155
Section 7 Combining and Dividing BUs, OUs, EUs, and WUs
781 General Information ............................................................................................................................ 156
782 Establishing Separate APH Databases ................................................................................................ 156
783 Maintaining Separate APH Databases Within BUs, EUs, or WUs .................................................... 157
784 Situations that Require Combining and Dividing APH Databases ..................................................... 158
785 Agreements to Combine OUs for Category B Crops.......................................................................... 159
786 Combining APH Databases ................................................................................................................ 162
787 Dividing APH Yield History for Category B Crops ........................................................................... 164
788 Dividing a BU into Additional BUs or OUs, or OUs into Further OUs for Category C Crops ......... 168
789 Adding Land to an Existing Unit for Category B Crops .................................................................... 169
790 Retaining Yield History for the Same Land ....................................................................................... 169
791-800 (Reserved) ........................................................................................................................................ 170
PART 8 UNDERWRITING RULES FOR SPECIFIC PRACTICES
Section 1: IRR Practice
801 IRR Practice Guidelines ...................................................................................................................... 171
802 Insurable Acreage ............................................................................................................................... 171
803 Applicable Terms ................................................................................................................................ 171
804 Factors to Consider for IRR Practice Reporting and Coverage .......................................................... 172
805 Failure to Carry Out Good IRR Practice............................................................................................. 173
806 IRR Practice Guidelines for PP........................................................................................................... 173
807 Determined IRR Yields....................................................................................................................... 174
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June 2013 FCIC 18010 TC-7
808 Reporting Production and Establishing APH Databases for IRR and NI Acreage ............................. 178
809 Special Requirements for Center Pivot Irrigation Systems ................................................................ 178
810-820 (Reserved) ........................................................................................................................................ 180
Section 2 SF Practice
821 General Information and Insurability.................................................................................................. 181
822 SF APH Database Instructions............................................................................................................ 184
823-844 (Reserved) ........................................................................................................................................ 185
Section 3 Skip-Row Planted Crops
845 Insurability .......................................................................................................................................... 186
846 Skip-Row Planted Corn ...................................................................................................................... 186
847 Skip-Row Planted Grain Sorghum...................................................................................................... 189
848 Skip-Row Planted Cotton and ELS Cotton ......................................................................................... 190
849 Percent Planted Factors ....................................................................................................................... 194
850-860 (Reserved) ........................................................................................................................................ 194
Section 4 Organic Practice
861 Conditions of Insurance ...................................................................................................................... 195
862 Organic Practice Requirements........................................................................................................... 197
863 Maintaining Organic Records ............................................................................................................. 199
864 Organic Certification and Accreditation Issues .................................................................................. 200
865 Additional Policy Elements for Organic Acreage .............................................................................. 202
866 MY Instructions .................................................................................................................................. 204
867 APH Database Reporting Instructions for Acreage with an Organic Plan ......................................... 204
868 APH Database Reporting Instructions for Acreage without an Organic Plan .................................... 208
869-900 (Reserved) ........................................................................................................................................ 210
PART 9 ACREAGE REPORT
Section 1 General Requirements
901 General Information ............................................................................................................................ 211
902 Filing Requirements ............................................................................................................................ 211
903 Verifying the Acreage Reported ......................................................................................................... 212
904 Inaccurate Acreage Reports ................................................................................................................ 212
905-910 (Reserved) ........................................................................................................................................ 212
Section 2 Acreage Report Elements
911 Required Elements .............................................................................................................................. 213
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June 2013 FCIC 18010 TC-8
912 Date the Insured Crop was Planted on the Unit .................................................................................. 214
913 Prevented Planting Acreage ................................................................................................................ 215
914 Insurable Acreage ............................................................................................................................... 215
915 Uninsurable Acreage ........................................................................................................................... 216
916 Uninsured Acreage of an Insured Crop .............................................................................................. 217
917 Unreported Acreage or Units .............................................................................................................. 218
918 Zero Acreage Report for Unit, or Zero Acreage Report for County .................................................. 218
919 Preliminary Acreage Reports .............................................................................................................. 218
920 Reporting Irrigated Practices .............................................................................................................. 218
921-930 (Reserved) ........................................................................................................................................ 218
Section 3 Acreage Report Revisions
931 Acceptable Revisions .......................................................................................................................... 219
932 Revisions to Reduce Premium for Acreage Destroyed Prior to Harvest (Short Rate) ....................... 220
933 Measurement Services Requested for Acreage Reports ..................................................................... 220
934-1000 (Reserved) ..................................................................................................................................... 222
PART 10 PRODUCTION REPORT
1001 General Information ............................................................................................................................ 223
1002 Acceptable Production Report ............................................................................................................ 224
1003 Production Reporting Requirements ................................................................................................... 225
1004 Production Included on Production Report and in the APH Database ............................................... 227
1005 Production Included on Production Report but not in the APH Database .......................................... 229
1006 Continuity ........................................................................................................................................... 231
1007 Break in Continuity ............................................................................................................................. 232
1008 Required Elements of Production Report ........................................................................................... 233
1009 Acceptable Production Evidence and Record Maintenance ............................................................... 235
1010 Verification, Review and Correction .................................................................................................. 235
1011 Production ........................................................................................................................................... 236
1012 Multi-Year Production Report ............................................................................................................ 238
1013-1100 (Reserved) .................................................................................................................................... 238
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June 2013 FCIC 18010 TC-9
PART 11 PRODUCTION EVIDENCE
Section 1 General Information
1101 Acceptable Production Evidence ........................................................................................................ 239
1102 Certifying Production.......................................................................................................................... 239
1103 Unit of Measure and Production Adjustments .................................................................................... 240
1104 Record Retention Period ..................................................................................................................... 241
1105-1114 (Reserved) ................................................................................................................................... 241
Section 2 Acceptable Verifable Records
1115 Crops Requiring Verifiable Records ................................................................................................... 242
1116 Records of Production Commercially Sold To or Stored By a Disinterested Third-Party ................. 242
1117 Claim for Indemnity ............................................................................................................................ 243
1118 FSA or CCC Verified Documents ...................................................................................................... 243
1119 Authorized AIP or FSA Personnel Appraisals of Unharvested Acreage ............................................ 243
1120 Authorized AIP or FSA Personnel Measurement of Farm Stored Production ................................... 245
1121 Pre-harvest Appraisal and Other Record Types.................................................................................. 245
1122-1130 (Reserved) ................................................................................................................................... 247
Section 3 Acceptable Farm Management Records
1131 Crops that Qualify for Farm Management Records ............................................................................ 248
1132 Measurement of Farm Stored Production by Insured ......................................................................... 248
1133 Automated Yield Monitoring Systems ............................................................................................... 249
1134 Livestock Feeding Records ................................................................................................................. 250
1135 Field Harvest Records ......................................................................................................................... 251
Section 4 Records from Vertically Integrated Producers
1136 Vertically Integrated Producer Defined .............................................................................................. 252
1137 Acceptable Records for Vertically Integrated Producers .................................................................... 252
1138 Required Documentation .................................................................................................................... 252
1139-1200 (Reserved) ................................................................................................................................... 252
PART 12 APH DATABASES
Section 1 General Information
1201 APH Database Requirements .............................................................................................................. 253
1202 The Base Period ................................................................................................................................... 254
1203 Types of Yields ................................................................................................................................... 254
1204 Yield Descriptors ................................................................................................................................ 255
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June 2013 FCIC 18010 TC-10
1205 Required Separate APH Database ...................................................................................................... 256
1206 Production or Acreage Not to be Included ......................................................................................... 258
1207 Transfer of APH Data ......................................................................................................................... 258
1208 Use of Another Persons Acreage and Production History ................................................................ 260
1209 Use of APH When Insureds Change or Land is Transferred to Another Person ................................ 262
1210 APH Database Instructions ................................................................................................................. 265
1211 Impact of Combining and Dividing .................................................................................................... 266
1212-1220 (Reserved) ................................................................................................................................... 266
Section 2 APH Databases and Yield Determinations Combined and Divided
1221 General Rules for Combining and Dividing APH Databases ............................................................. 267
1222 Combining APH Databases ................................................................................................................ 268
1223 Dividing APH Databases .................................................................................................................... 269
1224 No Actual or Assigned Yields ............................................................................................................ 274
1225-1240 (Reserved) ................................................................................................................................... 274
Section 3 APH Yield Adjustment
1241 Yield Adjustment General Information .............................................................................................. 275
1242 Election of APH Yield Adjustment .................................................................................................... 275
1243 Cancelling APH Yield Adjustments ................................................................................................... 275
1244 T-Yields Used for YA ......................................................................................................................... 276
1245 Calculating Approved APH Yields When YA is Elected ................................................................... 277
1246 Determining Premium Rates ............................................................................................................... 280
1247-1250 (Reserved) ................................................................................................................................... 280
Section 4 Yield Reductions
1251 General Information ............................................................................................................................ 281
1252 General Rules ...................................................................................................................................... 282
1253 Excessive Actual Yields ..................................................................................................................... 284
1254 Inconsistent Approved APH Yields and Insured Acreage Limitations .............................................. 287
1255 Different Production Methods ............................................................................................................ 292
1256-1260 (Reserved) ................................................................................................................................... 294
Section 5 Reviewing and Correcting APH Yields
1261 Review Requirements ......................................................................................................................... 295
1262 Correcting APH Yields ....................................................................................................................... 295
1263 Tolerances ........................................................................................................................................... 296
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June 2013 FCIC 18010 TC-11
1264-1300 (Reserved) .................................................................................................................................... 298
PART 13 RESERVED
1301-1400 (Reserved) .................................................................................................................................... 299
PART 14 CATEGORY B CROP PROCEDURES
Section 1 APH Database
1401 General Information ............................................................................................................................ 301
1402 Methods to Establish an APH Database ............................................................................................. 301
1403-1406 (Reserved) .................................................................................................................................... 305
Section 2 T-Yields
1407 General Information ............................................................................................................................ 306
1408 T-Yield Methods ................................................................................................................................. 306
1409-1412 (Reserved) .................................................................................................................................... 307
Section 3 Reporting Production for P/T/TMAs
1413 Applicability ....................................................................................................................................... 308
1414 Separate Production ............................................................................................................................ 308
1415 Separating Commingled Production ................................................................................................... 308
1416-1420 (Reserved) ................................................................................................................................... 309
Section 4 Yield Limitations
1421 General Information ............................................................................................................................ 310
1422 Cups .................................................................................................................................................... 310
1423 Yield Floors ........................................................................................................................................ 311
1424 Yield Limitation Calculations ............................................................................................................. 311
1425 Determining Premium Rates ............................................................................................................... 312
1426-1430 (Reserved) .................................................................................................................................... 312
Section 5 New Producer
1431 New Producer Qualifications .............................................................................................................. 313
1432 Deadline .............................................................................................................................................. 317
1433 Verification ......................................................................................................................................... 317
1434 Documentation .................................................................................................................................... 317
1435 Approved APH Yield Determination.................................................................................................. 318
1436 Added Land and New Crop P/T APH Database ................................................................................. 319
1437 For Subsequent Crop Years ................................................................................................................ 319
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June 2013 FCIC 18010 TC-12
Section 6 RO Determined Yields
1438 General Information ............................................................................................................................ 320
1439 Verifier Responsibilities ..................................................................................................................... 320
1440-1446 (Reserved) ................................................................................................................................... 320
Section 7 MYs
1447 General Information ............................................................................................................................ 321
1448 Initial MY Approval Authorities ........................................................................................................ 321
1449 Deadlines............................................................................................................................................. 322
1450 General Information ............................................................................................................................ 323
1451 Cancelling MYs .................................................................................................................................. 323
1452 Requirements for Establishing Initial MY(s) ...................................................................................... 323
1453 Production Reporting Requirements ................................................................................................... 325
1454 Establishing a MY............................................................................................................................... 326
1455 MY Summary APH Database Unit Number ....................................................................................... 329
1456 Updating Established MY(s)............................................................................................................... 329
1457 Yield Limitation Provisions (Cup Only)............................................................................................. 330
1458 Yield Adjustment ................................................................................................................................ 330
1459-1462 (Reserved) ................................................................................................................................... 330
Section 8 Acreage Emerging from a USDA Program and New Breaking
1463 Acreage Emerging From a USDA Program ....................................................................................... 331
1464 New Breaking Acreage ....................................................................................................................... 333
1465-1470 (Reserved) ................................................................................................................................... 335
Section 9 Added Land
1471 General Information ............................................................................................................................ 336
1472 AIP Responsibilities............................................................................................................................ 336
1473 APH Databases for Added Land ......................................................................................................... 336
1474 Methods for Determining Approved APH Yields for Added Land .................................................... 337
1475 Crop Land Acreage Limitations.......................................................................................................... 343
1476 Submission of Added land/New Crop/P/T Request for RO Underwriting Review ............................ 350
1477 Added Land/New Crop/P/T Request and Supporting Documentation ............................................... 350
1478 AIP Review and Submission of Added Land/New Crop/P/T Request ............................................... 351
1479 AIP Review and Verification Prior to Payment of Indemnity ............................................................ 352
1480 Added Land Yield Descriptors and Indicators.................................................................................... 352
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June 2013 FCIC 18010 TC-13
1481-1486 (Reserved) ................................................................................................................................... 352
Section 10 Yield Determination that do not Qualify as Added Land
1487 Added Crop/P/T/ APH Databases ....................................................................................................... 353
1488 New Crop/P/T APH Databases ........................................................................................................... 353
1489-1500 (Reserved) ................................................................................................................................... 354
PART 15 CATEGORY C CROP PROCEDURES
Section 1 General Information
1501 Background ......................................................................................................................................... 355
1502 Insured Crop........................................................................................................................................ 355
1503 Crops with Minimum Age and/or Production Requirements ............................................................. 356
1504-1506 (Reserved) ................................................................................................................................... 359
Section 2 Acreage
1507 General Information ............................................................................................................................ 360
1508 Acceptable Forms of Acreage Measurement ...................................................................................... 360
1509 Acreage Measurement Methods ......................................................................................................... 361
1510 Acreage Adjustments .......................................................................................................................... 361
1511 Prior Acreage Removed ...................................................................................................................... 363
1512-1516 (Reserved) .................................................................................................................................... 364
Section 3 Age/Leaf Year Determinations
1517 All Crops, except Citrus and Macadamia ........................................................................................... 365
1518 Arizona-California Citrus and Texas Citrus Fruit .............................................................................. 365
1519 Macadamia Nuts ................................................................................................................................. 366
Section 4 Producer's Pre-Acceptance Worksheet (PAW)
1520 General Information ............................................................................................................................ 367
1521 PAW Elements .................................................................................................................................... 367
1522 AIP PAW Review ............................................................................................................................... 371
1523 PAW Triggers a PAIR ........................................................................................................................ 372
1524-1536 (Reserved) ................................................................................................................................... 372
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June 2013 FCIC 18010 TC-14
Section 5 Perennial Crop Pre-Acceptance Inspection Report (PAIR)
1537 General Information ............................................................................................................................ 373
1538 PAIR Requirement .............................................................................................................................. 373
1539 PAIR Waivers ..................................................................................................................................... 374
1540 PAIR Deadline .................................................................................................................................... 374
1541 PAIR Completion Requirements ........................................................................................................ 374
1542 PAIR Elements.................................................................................................................................... 375
Section 6 Crop Addendum Worksheet(s) (CAW)
1543 General Information ............................................................................................................................ 381
1544-1549 (Reserved) ................................................................................................................................... 381
Section 7 APH Database
1550 APH Database Establishment ............................................................................................................. 382
1551 Block Reporting .................................................................................................................................. 382
1552 Separate P/T/TMA/Other Characteristics ........................................................................................... 382
1553 Commingled Production ..................................................................................................................... 383
1554 Organic Perennials .............................................................................................................................. 384
1555 Acreage Less than a Tenth of an Acre ................................................................................................ 384
1556 APH Database Establishment Methods .............................................................................................. 384
1557 Multi-Purpose Production and Yield Worksheet ................................................................................ 386
1558 T-Yield Instructions ............................................................................................................................ 387
1559 Weighted Average Age/Density ......................................................................................................... 387
1560 Added Insurable Acreage .................................................................................................................... 388
1561 Added Land/New Producers ............................................................................................................... 391
1562 APH Database Tests for High Variability of Actual Yields ............................................................... 392
1563 Approved APH Yield .......................................................................................................................... 398
1564-1570 (Reserved) ................................................................................................................................... 398
Section 8 Yield Information
1571 Yield Indicators ................................................................................................................................... 399
1572 Yield Adjustments .............................................................................................................................. 399
1573 Yield Limitations ................................................................................................................................ 399
1574-1580 (Reserved) ................................................................................................................................... 401
Section 9 RO Determined Yields
1581 Situations for a RO Determined Yield Request .................................................................................. 402
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June 2013 FCIC 18010 TC-15
1582 Verifier Responsibilities ..................................................................................................................... 403
1583-1600 (Reserved) ................................................................................................................................... 404
PART 16 ADDITIONAL PROVISIONS BY CROP
Section 1 Category B Crops
1601 General Information ............................................................................................................................ 405
1602 Cabbage (Fresh Market and Processing) ............................................................................................ 405
1603 Course Grains: Corn, Soybeans, and Grain Sorghum........................................................................ 407
1604 Cotton and ELS Cotton ....................................................................................................................... 413
1605 Cultivated Wild Rice........................................................................................................................... 414
1606 Dry Beans............................................................................................................................................ 415
1607 Dry Peas .............................................................................................................................................. 418
1608 Forage Production ............................................................................................................................... 420
1609 Green Peas .......................................................................................................................................... 422
1610 Mint ..................................................................................................................................................... 423
1611 Millet ................................................................................................................................................... 423
1612 Mustard ............................................................................................................................................... 424
1613 Onions ................................................................................................................................................. 424
1614 Peanuts ................................................................................................................................................ 425
1615 Popcorn ............................................................................................................................................... 426
1616 Potatoes ............................................................................................................................................... 427
1617 Processing Beans ................................................................................................................................ 428
1618 Processing Sweet Corn ....................................................................................................................... 429
1619 Rice ..................................................................................................................................................... 429
1620 Safflower, Sunflower Seed, and Canola/Rapeseed ............................................................................. 430
1621 Small Grains: Wheat, Barley, Oats, Rye, Buckwheat, and Flax ........................................................ 432
1622 Sugar Beets ......................................................................................................................................... 436
1623 Sugarcane ............................................................................................................................................ 437
1624 Tobacco ............................................................................................................................................... 439
1625 Tomatoes, Fresh Market Guaranteed Production ............................................................................... 441
1626 Tomatoes Processing .......................................................................................................................... 441
1627-1640 (Reserved) ................................................................................................................................... 441
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June 2013 FCIC 18010 TC-16
Section 2 Category C Crops
1641 General Information ............................................................................................................................ 442
1642 Almonds .............................................................................................................................................. 442
1643 Apples ................................................................................................................................................. 442
1644 Avocados, Florida ............................................................................................................................... 443
1645 Blueberries .......................................................................................................................................... 444
1646 Citrus ................................................................................................................................................... 444
1647 Cranberries .......................................................................................................................................... 446
1648 Figs ...................................................................................................................................................... 446
1649 Grapes ................................................................................................................................................. 447
1650 Table Grapes ....................................................................................................................................... 447
1651 Macadamia Nuts ................................................................................................................................. 448
1652 Peaches ................................................................................................................................................ 448
1653 Pears .................................................................................................................................................... 449
1654 Prunes .................................................................................................................................................. 449
1655 Stonefruit............................................................................................................................................. 450
1656 Walnuts ............................................................................................................................................... 451
1657-1700 (Reserved) ................................................................................................................................... 452
PART 17 CATEGORY D CROPS
Section 1 Insurability
1701 General Information ............................................................................................................................ 453
1702 Production Reports.............................................................................................................................. 453
1703 OU for Raisins .................................................................................................................................... 453
1704-1706 (Reserved) ................................................................................................................................... 453
Section 2 Dollar Plans of Insurance
1707 PAW .................................................................................................................................................... 454
1708 Block Map ........................................................................................................................................... 458
1709 PAIR Information ............................................................................................................................... 458
1710 Macadamia Orchard PAIR and Plat Map ........................................................................................... 469
1711-1720 (Reserved) .................................................................................................................................... 472
Section 3 RO Determined Yield Request
1721 Florida Citrus RO Determined Yield Request .................................................................................... 473
1722-1724 (Reserved) .................................................................................................................................... 473
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June 2013 FCIC 18010 TC-17
Section 4 Dollar Plans of Insurance Age or Leaf Determinations
1725 General Information ............................................................................................................................ 474
1726-1730 (Reserved) .................................................................................................................................... 475
Section 5 Dollar Plans of Insurance Acreage Information
1731 General Information ............................................................................................................................ 476
1732 Excluded Acreage ............................................................................................................................... 478
1733 Florida Citrus Fruit Liability Adjustment Determination ................................................................... 479
1734 Macadamia Trees Liability Adjustment Determination ..................................................................... 480
1735-1740 (Reserved) .................................................................................................................................... 480
Section 6 Dollar Plans of Insurance Additional Records and Provisions
1741 General Information ............................................................................................................................ 481
1742 Florida Citrus Fruit Commodities 2014 Conversion .......................................................................... 481
Section 7 Yield Based Dollar Amount of Insurance Plans
1743 General Information ............................................................................................................................ 483
1744 Different Coverage Levels .................................................................................................................. 483
1745 Units .................................................................................................................................................... 483
1746 County Yields for Hybrid Seeds ......................................................................................................... 483
1747 Amount of Insurance........................................................................................................................... 483
1748 Minimum Contract Payment ............................................................................................................... 484
1749 Yield Based Factor for Seed Companies ............................................................................................ 484
1750 Approved Yields ................................................................................................................................. 484
1751 Value per Bushel ................................................................................................................................. 485
1752 Hybrid Seed Corn or Hybrid Sorghum Seed Approved Yield Requests ............................................ 485
1753-1800 (Reserved) .................................................................................................................................... 486
PART 18 RESERVED
1801-1900 (Reserved) .................................................................................................................................... 487
PART 19 RESERVED
1901-2000 (Reserved) .................................................................................................................................... 489
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June 2013 FCIC 18010 TC-18
PART 20 RO UNDERWRITING
Section 1 Determined Yields, MY and UG
2001 Category B Crops ................................................................................................................................ 491
2002 Category C Crops ................................................................................................................................ 493
2003 Category D Crops ............................................................................................................................... 495
2004-2010 (Reserved) .................................................................................................................................... 496
Section 2 Added Land/New Crop/P/T
2011 When RMA RO Will Perform an Underwriting Review.................................................................... 497
2012 RO Responsibilities ............................................................................................................................ 497
2013 RMA RO Review ................................................................................................................................ 497
2014-3000 (Reserved) .................................................................................................................................... 498
EXHIBITS
EXHIBIT 1 ACRONYMS AND ABBREVIATIONS
A. Acronyms and Abbreviations ............................................................................................................. 499
EXHIBIT 2 DEFINITIONS AND ADMINISTRATIVE SERVICING REQUIREMENTS
A. Definitions........................................................................................................................................... 503
B. Crop Policy Information ..................................................................................................................... 521
C. Rounding Rules Pertaining to Program Administration ..................................................................... 533
D. Written Agreement Deadlines and Required Documentation ............................................................ 534
E. Premium Adjustment Table ................................................................................................................ 539
EXHIBIT 3 ADVERSE DECISIONS
(Reserved) ...................................................................................................................................................... 541
EXHIBIT 4 PERSONS
A. Person Types and Documentation ...................................................................................................... 543
B. Qualified Alien Status Documentation ............................................................................................... 545
EXHIBIT 5 ENDORSEMENTS AND OPTIONS
A. Endorsements and Options Chart........................................................................................................ 551
B. Malting Barley Option A and Option B Worksheet Purpose ............................................................. 558
C. Malting Barley Option A and Option B Worksheet Data Elements and Required Entries ................ 558
D. Additional Value Malt Barley Price Election ..................................................................................... 559
E. Malting Barley Option A and B APH/Bushel Factor and Weighted Average Price Example ........... 559
F. Wheat or Barley and Dry Pea Winter Coverage Endorsement Flow Chart ........................................ 559
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June 2013 FCIC 18010 TC-19
EXHIBIT 6 PLANTING PROVISIONS
(Reserved) ...................................................................................................................................................... 562
EXHIBIT 7 UNITS
A. Examples of Unit Numbering when Units Change ............................................................................. 563
B. Combining Units and APH Databases ................................................................................................ 564
C. Dividing Units Examples .................................................................................................................... 570
D. Additional Bean Procedure for Units and Yields by Types ................................................................ 573
EXHIBIT 8 UNDERWRITING RULES FOR SPECIFIC PRACTICES
A. Summerfallow Database ..................................................................................................................... 575
B. Skip-Row Planted Cotton and ELS Cotton Overview ........................................................................ 577
C. FSA Determination for 30/50 Planting Pattern ................................................................................... 577
D. Percent Planted Factor, Yield Conversion Factor, and PASS Skip-Row Code Applicable to Arkansas,
Louisiana, Missouri, and All States East of those States .................................................................... 577
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 Counties579
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 ...................................... 580
G. Determining Planted Acres Using FSA Percent Planted Factor and Calculating Per Acre Yield Using
Skip-Row Yield Conversion Factor .................................................................................................... 583
H. Commingled Production from Irrigated Solid-Planted and Non-Irrigated Skip-Row Planted Cotton
............................................................................................................................................................. 584
I. Category B Crop APH Database Examples for Transitioning under an Organic Plan ....................... 587
J. Example for Initial Year of Certified Organic APH Database ........................................................... 601
K. APH Databases for Transitional and Certified Organic-Drift ............................................................ 603
L. Examples of Transitioning without an Organic Plan and Other Exceptions ...................................... 605
M. 2014 Carryover APH Databases Organic Determined Yield Examples ............................................. 614
EXHIBIT 9 ACREAGE REPORT
(Reserved) ...................................................................................................................................................... 617
EXHIBIT 10 PRODUCTION REPORT
A. Soybeans Example of Completed Production Report for Production Reporting Requirements ........ 619
B. Corn Example of Completed Production Report for Production Reporting Requirements ................ 620
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June 2013 FCIC 18010 TC-20
EXHIBIT 11 PRODUCTION EVIDENCE
(Reserved) ...................................................................................................................................................... 621
EXHIBIT 12 APH DATABASE
A. Examples of Completed APH Databases-New Insured ...................................................................... 623
B. Examples of Completed APH Databases-New Producer ................................................................... 624
C. Examples of Completed APH Databases Carryover Insured ........................................................... 625
D. Examples of Completed APH Databases-Zero-Acreage Reported .................................................... 626
E. Examples of Completed APH Databases-Assigned Yield.................................................................. 627
F. Examples of Completed APH Databases-Category C Crops ............................................................. 628
G. Yield Determinations--Converting an Existing Practice to a New Practice ....................................... 629
H. Yield DeterminationsCombining Two Practices into a New Practice ............................................ 630
I. Yield Determinations-Dividing a Practice into Two Practices Using Apportionment ....................... 631
J. Yield Determinations-Dividing a Practice into Two Practices Using Attribution ............................. 633
K. Yield Determinations-Dividing a Practice into Two Practice Using Recertification ......................... 634
L. Yield Determinations-Dividing APH Databases by Recertification .................................................. 635
M. Yield Determinations-Dividing APH Databases by Apportioning Commingled Production ............ 639
N. Yield Determinations-Dividing APH Databases by Attributing Acres and Production ..................... 644
O. Yield Determinations-Dividing APH Databases Using All 3 Methods ............................................. 645
P. Yield Determinations-Dividing an Added Land APH Database ........................................................ 647
Q. Dividing an APH Database when a Type is Divided into More than Two Types .............................. 650
R. Dividing an APH Database When Only One Type has been Produced ............................................. 656
S. Retaining 10 Crop Years of APH History .......................................................................................... 657
T. Dividing Previously Established APH Databases for P/Ts with the Same T-Yield ........................... 658
U. Yield Indicators ................................................................................................................................... 660
V. Yield Descriptors ................................................................................................................................ 662
W. APH Yield Limitations/Adjustments- Carryover Insured with Actual Yields ................................... 668
X. APH Yield Limitations/Adjustments- No Production Records Initially ............................................ 672
Y. APH Yield Limitations/Adjustments- Assigned Yield ....................................................................... 672
Z. Carryover Insured Provided a Production Report Applicable for the 2013 Crop Year ...................... 672
AA. Yield Adjustment Examples ............................................................................................................... 673
BB. Yield Reductions- Excessive Actual Yield (Without Verifiable Records) ......................................... 674
CC. Inconsistent Approved APH Yield and Insured Acreage Limitation ................................................. 675
DD. Determining Tolerance and Corrective Action ................................................................................... 677
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June 2013 FCIC 18010 TC-21
EXHIBIT 13 RESERVED
(Reserved) ...................................................................................................................................................... 682
EXHIBIT 14 CATEGORY B CROP PROCEDURES
A. Category B Crops- Multi-Purpose Production and Yield Worksheet ................................................. 684
B. Category B Crops-Master Yields ........................................................................................................ 686
C. Category B Crops-Acreage Emerging from USDA Programs and New Breaking Examples ........... 686
D. CUP Applicability Chart ..................................................................................................................... 698
E. Recording and Maintaining SA T-Yields ........................................................................................... 699
F. Special APH Instructions for Contract Seed Beans and Contract Seed Peas ..................................... 701
G. Green Pea Example ............................................................................................................................. 708
H. Potato Example ................................................................................................................................... 710
I. Forage Production Underwriting Report ............................................................................................ 711
J. Elements and Information Required for Forage Production Underwriting Repor