Irrigation and Limited Irrigation. Shawn Beach, Risk Management Specialist Topeka Regional Office

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1 Irrigation and Limited Irrigation Shawn Beach, Risk Management Specialist Topeka Regional Office

2 What Is the Risk Management Agency? USDA agency that manages the Federal Crop Insurance Corporation (FCIC). RMA, via the FCIC, provides crop insurance to producers. 18 companies have Standard Reinsurance Agreements with RMA. The companies provide agents that sell the crop insurance to producers. The companies manage loss adjusters and pay all claims.

3 10 RMA Regional Offices

4 Definition of Irrigated Practice Federal Crop Insurance Act (As Amended Through P.L , Enacted February 7, 2014) Crop Insurance Policy, Basic Provisions (11-br) Crop Insurance Handbook (FCIC-18010) Irrigated PracQce Guidelines Document and Supplemental Standards Handbook (FCIC 24040) Prevented PlanQng Loss Adjustment Standards (FCIC H) Loss Adjustment Manual (FCIC H)

5 Policy Definition of an Irrigated Practice A method of producing a crop by which water is arqficially applied during the growing season by appropriate systems and at the proper Qmes, with the intenqon of providing the quanqty of water needed to produce at least the yield used to establish the irrigated produc2on guarantee or amount of insurance on the irrigated acreage planted to the insured crop.

6 Section 9(b) 0f the Common Crop Insurance Policy You must report as irrigated only that acreage for which you have adequate faciliqes and adequate water, or the reasonable expecta2on of receiving adequate water at the Qme coverage begins, to carry out a good irrigaqon pracqce. If you knew or had reason to know that your water may be reduced before coverage begins, no reasonable expecta2on exists.

7 What Can Insured s Do Without Adequate Water? OpQon 1: Plant fewer irrigated acres Report other acreage as prevented planqng (if eligible) Report other acreage as dryland

8 What Can Insured s Do Without Adequate Water? OpQon 2: Plant all acres with limited water Insure acreage under a nonirrigated pracqce

9 Limited IrrigaQon If Limited IrrigaQon is adopted, producers will have three opqons to address applying less water that will reduce the expected yield: Irrigate and insure as managed under an Irrigated PracQce a smaller number of acres than have been irrigated historically; Insure the acreage that is irrigated with less water than was used historically as non-irrigated; or Choose a Limited Irriga2on Approved Yield to address the reduc2on in irriga2on water an2cipated to be available or applied to the irrigated acreage.

10 Limited IrrigaQon - Availability RMA authorized limited irrigaqon wri_en agreements in the Sheridan County 6 High Priority area in This area was the first Local Enhanced Management Area (LEMA) plan received by the Kansas Division of Water Resources. Coverage for limited irrigaqon will be available by wri_en agreements. Approximately 100 farmers (approximately 23,500 irrigated acres) in Sheridan and Thomas counqes will be able to insure their corn or soybean crops by wri_en agreement. For 2017, RMA is authorizing wri_en agreements for an expanded set of counqes.

11 Kansas Limited Irrigation Counties Corn Expansion

12 Kansas Limited Irrigation Counties Soybean Expansion

13 Limited IrrigaQon- Example for Wri_en Agreement Historical water use of 15.5 acre-inches Producer applying 11 acre-inches irrigaqon for crop year 2017 Results in a reducqon of 4.5 acre-inches giving a 33 bushel reducqon in Approved APH Yield All procedures for the irrigated pracqce are the same as fully irrigated and good farming pracqces must be followed

14 Example of Yield ReducQon Table - Corn

15 Limited IrrigaQon Database Example

16 How to get Coverage by Written Agreement Complete a request for wri_en agreement (Agents should be familiar with process) Include: Minimum documentaqon according to RMA s Wri_en Agreement Handbook must be included Completed APH, The legal descripqon of the land and FSA Farm, Tract, Field and aerial photographs of legible maps delineaqng field boundaries where the applicant intends to plant the crop for which insurance is requested InformaQon from Water Use Reports Your intended maximum level of irrigaqon for the current year Your type of irrigaqon system Any other perqnent informaqon to establish the distribuqon of irrigaqon water from a point of diversion to mulqple fields or mulqple crops We are currently working on process for doing this. DocumentaQon tool can be completed to facilitate request

17 DocumentaQon Tool to be updated and posted at: h_p:// aboutrma/fields/ks_rso/

18 What happens if you report more acres than you can fully irrigate and do not request a Limited Irrigation Yield? Step 1 Reduce the number of acres under the Irr. PracQce to those that can be adequately irrigated Step 2 Determine the highest yielding acres to be the Ir. acres Step 3 Step 4 Step 5 Appraise any reducqon in producqon on the Ir. Acres caused by applying the available water across the enqre acreage as uninsured cause of loss Revise the rest of the acreage that had originally been reported as irrigated to non-irrigated with a corresponding non-irrigated premium rate and guarantee If other acres are already reported as non-irrigated for the unit, the non-irrigated liability is essenqally frozen at the original level and all count the producqon from the new acreage against the nonirrigated guarantee

19 Comments? Questions? Recommendations? Thank You!