USDA Risk Management Blueberry MPCI & Expansion Approval Canby, OR. January 17, 2013
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1 USDA Risk Management 2013 Blueberry MPCI & Expansion Approval Canby, OR January 17, 2013
2 USDA Risk Management Agency Formerly known as Federal Crop Insurance Corporation (FCIC) Spokane Regional Office (serving Alaska, Idaho, Oregon and Washington) Provide: Agricultural producers with the opportunity to achieve financial stability through effective risk management tools; Educational opportunities to help producers choose appropriate risk management tools.
3 DISCLAIMER } The purpose of the following material is to promote awareness of risk management concepts and to highlight USDA s risk management products, features, benefits and availability. } This presentation does not provide full details of policy provisions or approved procedures. } Producers should consult with a local agent for specific details and program requirements.
4 2013 Insurable Crops in PNW Apples, Barley, Blueberry, Cabbage, Canola, ARH Cherry Pilot, Corn, Cranberries, Dry Beans, Dry Peas, Flax, Forage Production, Forage (Alfalfa) Seed Pilot, Grapes, Table Grapes, Green Peas, Mint, Mustard, Nursery, Oats, Onions, Pears, Potatoes, Processing Beans, Processing Sweet Corn, Safflower, Soybeans, Stonefruit, Sugar Beets, and Wheat Adjusted Gross Revenue Pilot (AGR) Adjusted Gross Revenue-Lite (AGR-Lite) Pasture, Rangeland & Forage Vegetative Index Apiculture Rainfall/Vegetative Index (Honey) Livestock Risk Protection (Fed Cattle, Feeder Cattle, Swine & Lamb) Pilot Program Livestock Gross Margin Dairy-Cattle ****Program availability varies by county and subject to change
5 Insurable Crop: Irrigated and Non-irrigated Types Early To Late Highbush Very Late Highbush & Rabbiteye Acreage must have produced an average of 4,000 lbs / acre in either of the two most recent crop years. May make request to the RMA RO for a determined yield to insure acreage not meeting this requirement. Important Dates: Sales Closing Date November 20 Production Reporting Date January 15 Acreage Reporting Date January 15
6 Availability 2013: Oregon: Benton, Clackamas, Columbia, Linn, Marion, Washington and Yamhill counces; Washington: Benton, Clark, Cowlitz, Franklin, Grant, Lewis, Pierce, Skagit, Snohomish, Thurston, Walla Walla, Whatcom and Yakima counces ParCcipaCon 2012: State Number of Policies Insured Acres $$ Coverage Liability Losses (to- date) Oregon 30 2,074 $5,787,860 $0 Washington 48 2,932 $15,021,993 $83,819 Counties not listed above, may be insured by written agreement (e.g., Bonner County, ID)
7 Insurable causes of loss } Examples include: } Adverse weather conditions } Insufficient number of chilling hours to effectively break dormancy } Fire } Insects } Disease } Wildlife } Earthquake } Volcanic eruption } Failure of irrigation water supply, if caused by an insurable cause of loss
8 Non-Insurable causes of loss } Examples include: } Failure to install and maintain proper drainage } Failure to harvest timely } Inability to market the fruit for any reason other than physical damage from a cover cause of loss } Mechanical damage (breakdown)
9 } Assume } Benton County, Oregon Example } Very Late Highbush Variety } Irrigated Practice } Actual Production History (APH) = 9,300 lbs/acre (based off 4 years actual yields) } 25 Acres } 100% Share } Price Election of $0.98 } Coverage Level of 75% } Production to count = 5,425 lbs/acre
10 Loss Example } 9,300 APH per acre average yield (lbs) } X.75 Coverage level percentage } 6,975 Pounds per acre guarantee - 5,425 Pounds per acre actual production to count } 1,550 Pounds per acre loss } X.98 Price election } $1,519 Indemnity per ace (less insurance premium due) } Producer premium cost per acre for this example = $343.96
11 Coverage for Organically Grown Insurable Crops Organic growers can insure their organically grown (insurable) crops Coverage for organic acreage will be available for buffer zone, transitional and certified organic acreage. Insurable damage caused by insects, disease, or weeds may be covered if recognized organic farming practices fail to provide an effective control when due to an insurable peril.
12 Adjusted Gross Revenue Loss of revenue from the sale of AG commodities produced during the insurance year due to: v Unavoidable natural disasters v Market fluctuations during insurance year
13 RMA Program Delivery Local Crop & Livestock Insurance Agents For more information on: Locating a Crop Insurance Agent Programs Policies Premium Calculations Log on to: 13
14 Thank you!! USDA Risk Management Agency Jo Lynne Seufer Risk Management Specialist E. Sprague Ave, Suite 201 Spokane Valley, WA Toll Free 14
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