Options to A Basic Apple Insurance Policy

Options to A Basic Apple Insurance Policy

OPTIONS TO A BASIC APPLE INSURANCE POLICY Adding additional quality based coverage to your apple policy Perils Excluded From the Basic Policy Size Color

Shape Russeting These perils are insured causes of loss when a producer adds the quality endorsement. Breakdown by Varietal Group Varietal Group A: Fuji, Braeburn, Gala, Jonagold, Crispin, Pink Lady, Cameo, Honeycrisp, Sommerfeld, Royal Gala, and Macoun Varietal Group B: All varieties not listed in Group A Processing Group: Varieties grown for processing only can be excluded from the quality option and insured as processing apples at the same level of coverage.

Separate Database Records Separate APH must be available for each varietal group. A maximum of 5 years is included to determine average production Separate annual packout percentages by varietal group are averaged for 4 years. Most recent year is not included in the average to determine historical packout percentage. Insuring For More Than Bushels Producers insure for a combination of bushels and Fancy or better grade apples. Coverage is calculated using the producers APH

and historical packout percentage. Each varietal group will be insured independently, but both must be insured at the same level of coverage. Available for any buyup level from 50% to 75%. Price Elections for 2003 Varietal Group A: Fancy or Better $12.25/bushel Varietal Group A: All Other Apples

$1.85/bushel Varietal Group B: Fancy or Better $7.15/bushel Varietal Group B: All Other Apples $1.85/bushel Calculating $s of Coverage The Producers APH x Level of Coverage x Historical Packout % for Fancy is

multiplied by the Price Election for the Varietal Group PLUS The Producers APH x Level of Coverage x Historical Packout % for All Other is multiplied by the All Other Price Election $s of Coverage Example For Varietal Group A, the producer has a 500 bu APH, a 60% Historical Packout and chooses 65% coverage level 500 x 65% x 60% x $12.20 = $2379 PLUS 500 x 65% x 40% x $1.85 = $241 TOTAL of $2620 per acre

Separate Units Each variety is not insured separately, BUT Each Varietal Group is a separate unit when calculating $s of coverage Same calculations as shown previously would be done to determine $s of coverage for Varietal Group B Optional: Processing apples can be insured without the quality option as a separate unit. Grade Appraisal at Harvest VERY IMPORTANT: A grade appraisal must be performed by an insurance adjuster before any harvested apples are placed in

storage. Failure to meet this requirement will result in all apples not graded being counted as U.S. Fancy. Loss Calculations A combination of loss in production and/or reduced packout percentage can trigger a loss. Cull apples are not considered in the value of production to count unless sold. Cull apples sold are included in the value at the net value received. Quality Factors

0-10 % below historical packout factor 100% of apples grading Fancy will count as Fancy 11-30 percentage points below historical packout factor Percent of apples to count as Fancy will be reduced 2% for each % below historical 30-40 percentage points below historical packout factor

Percent of apples to count as Fancy will be reduced 3% for each % below historical 50 or more percentage points below All apples will be counted as Allhistorical packout factor other apples Loss Calculation Example Poor Yield, Good Quality Using 500 bu APH, 60% historical packout, and 65% level of coverage = $2620/acre Harvested 250 bushel with 75% packout 250 x 75% x $12.20 = $2288 PLUS 250 x 25% x $1.85 = $116 = Total of $2404

Indemnity Payment of $216/acre Loss Calculation Avg Yield, Poor Quality Using 500 bu APH, 60% historical packout, and 65% level of coverage = $2620/acre Harvested 450 bu with 30% packout 450 x 30% = 135 less 54 bushel (Quality Factor of .60) = 81 bushel x $12.20 = $988 PLUS 450 X 70% = 315 plus 54 bushel (from Quality Factor reduction) = 369 x $1.85 = $683 $2620 - $1671 = $949 Indemnity Payment Premium Costs Premium is calculated based on the APH,

Packout Percent, Level of Coverage, and Varietal Group The higher the Historical Packout The higher the premium per acre The higher the $s of coverage Premium Example Kent County, 500 bu APH, 60% Packout, 35 acres Group A, 65 acres Group B Level of Coverage $s of Coverage Total Premium

50% $152,263 $4,287 55% $167,490 $5,991 60%

$182,715 $7,885 65% $197,942 $11,744 70% $213,168 $15,197

75% $228,395 $21,311 Premium Comparison QUALITY POLICY Level 50% 55% 60% 65%

70% 75% Coverage $152,263 $167,490 $182,715 $197,942 $213,168 $228,395 Premium $4,287 $5,991 $7,885

$11,744 $15,197 $21,311 BASIC POLICY Coverage $173,750 $191,125 $208,500 $225,875 $243,250 $260,625 Premium

$4,107 $5,727 $7,528 $11,198 $14,481 $20,295 Interested? Contact a Crop Insurance Agent At Spartan Insurance 800 888-2767 Or Call Your Local GreenStone Farm Credit Services branch office

Recently Viewed Presentations

  • Aboriginal Graduate Student Funding

    Aboriginal Graduate Student Funding

    Top CIHR CGSM apps forwarded to CIHR. Preliminary Results to Grad Programs early February. Competition Overview. Vanier, NSERC, SSHRC, and CIHR release . results in late March to late April. Master List. Jones - Affiliated. Singh - Affiliated. Cushan -...
  • The Intersection of Trauma Informed Care and PBIS

    The Intersection of Trauma Informed Care and PBIS

    Thank you for joining our 2019-2020 webinar series made possible through a collaborative grant with the SC Department of Education-Office of Special Education Services and the University of South Carolina Southeastern School Behavioral Health Community
  • Diapositiva 1 - un.org

    Diapositiva 1 - un.org

    Consultor OREALC/UNESCO [email protected] * En efecto, se trata de jóvenes que no han conocido el mundo sin Internet, y para los cuales las tecnologías digitales son mediadoras de gran ...
  • Support and alignment of PXL box with MSC,

    Support and alignment of PXL box with MSC,

    Fine positioning of the box to align the 20 mm round PXL rails. Adjust the x and z position screw assemblies on the west channel beam so that the coupling pin can be inserted. Use the two y adjustment screws...
  • Alberta  Electricity & Natural Gas MAY 2019 MARKET

    Alberta Electricity & Natural Gas MAY 2019 MARKET

    MAY 2019 MARKET INFORMATION. Visit https://acn.xoomenergy.ca/en/residential/alberta for more information. Alberta - Electricity. New Customers in Alberta can enroll ...
  • Customer Experience Excellence 3rd April 2014 What is

    Customer Experience Excellence 3rd April 2014 What is

    Gartner 2014 * UCLH Context Unclear vision, disjointed, multiple definitions 3rd year of Making A Difference Together Campaign Learning from 'Best in Class' organisations characterised by excellence in customer experience Transformation Programme ICT vision - Customer Relationship Management (CRM) *...
  • Terms to know…

    Terms to know…

    Media Studies Terms to know throughout the course… Media An intervening means or agency used when we want to communicate with people indirectly Media does not offer a transparent window on the world but representations and images Selective versions of...
  • Chapter Title - California State University, Sacramento

    Chapter Title - California State University, Sacramento

    The act of preparing a budget is called budgeting. The use of budgets to control an organization's activities is known as budgetary control. Difference Between Planning and Control Planning - involves developing objectives and preparing various budgets to achieve those...