Pecan Tree Insurance Policy

Transcription

1 Pecan Tree Insurance Policy Alabama Pecan Growers Association 57 th Annual Meeting Fairhope, AL September 21, 2017 Jeanne Lindsey, PhD RMA, Valdosta RO 1

2 Pecan Tree Program Counties 2018 CY 2

3 Policy Basics Item Values Sales closing May 15, 2017 Coverage attachment July 1, 2017 Contract change January 31, 2018 Cancellation/termination June 30, 2018 Available units Coverage levels Minimum acreage Insurable practices BU, OU, EU CAT, 50 75% CL 5 ac, with min tree/ac Irr /NI by conventional or organic 3

4 What is Covered? Base Policy: Replacement or rehabilitation costs plus maintenance expenses Paid as a lump sum Comprehensive Tree Value Endorsement: Lost revenue for a destroyed tree that requires removal and replacement Fifty percent paid up front; balance paid after replanting completed Not available with CAT policies 4

5 Insurability Requirements Grown in the county; have a share Adapted to the area Potential to produce yield of a healthy tree Grown in a commercial orchard Orchard is minimum of 5 acres minimum number of trees per acre Exclusions: Less than 2 year set out Unsound, diseased, or unhealthy Damaged and not reset or rehabilitated Inspected and considered unacceptable 5

6 Causes of Loss Wind Flood Freezing rain (ice damage) Freeze damage: 3 rd 5 th crop year after set-out Fire 6

7 Damage Definitions Destroyed Toppled or leaning and reset not possible Fully Damaged Damage that requires rehabilitation or resetting (not destroyed) Partially Damaged Pruning greater than 10% of canopy required 7

8 Tree Prices for Guarantees Stage Trunk Diameter ABH RM1 RM2 I < 6 $93 $82 II $181 $163 III $215 $206 IV $247 $228 V > 20 $286 $262 RM1 Remove and Replant RM2 Cut and Replant RM3 Rehabilitation RM4 Reset (stages I III) 8

9 Insurable Variety Groups Group 1 Group 2 Group 3 Amling Baby B Headquarters Cape Fear Apalachee Byrd Mandan Desirable Elliott Caddo McMillan Farley Forkert Carter Morrill Giftpack Frotscher Creek Nacono Pawnee Kanza Cunard Oconee Schley Kiowa Curtis Stuart Success Mahan Eclipse Sumner Money Maker Ellis Van Deman Moreland Excel Zinner Shoshoni Gafford Surprize Gloria Grande Based on wind and ice damage tolerance. 9

10 Occurrence Loss Option (OLO) Replace deductible with 2% minimum threshold May elect with Comprehensive Tree Value Endorsement (CTVE) Not available with catastrophic coverage (CAT) 10

11 How much does it cost? Common Questions Do I have to remove/replace, reset or rehabilitate the tree to get paid? Do I have to insure trees I plan to sequentially thin? What are the lease requirements? Can the landlord have a Pecan Tree policy and the tenant have a Pecan Revenue policy? 11

12 Pecan Tree Program AIB Reinsurance Year 2018 Crop Year 12

13 2018 Pecan Revenue Change Hedging No penalty if done in accordance with recommended practices. Rate Review 13

14 2018 Pecan Revenue Change 14

15 Sales Closing May 15 Application Acreage Report Pre-Acceptance Worksheet Grove Map Summary of Revenue (for higher CTVE prices) Contract Change Date: January 31 Contact your crop insurance agent for more information! 15

16 Pecan Tree Insurance Policy Questions The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the bases of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual's income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities.) 16