*This page is a set of “informal” terms for the lay person. It is intended for an informal and generalized listing of terms. “Your” actual term and definitions shall be different depending on the “actual insurance carrier and State.
ARPI – Area Risk Protection Insurance
SCO – Supplemental Coverage Option
The Supplemental Coverage Option (SCO) is a county-level crop insurance option that provides additional coverage for a portion of a producer’s underlying crop insurance policy deductible. Producers must buy it as an endorsement to either the Yield Protection, Revenue Protection, or Revenue Protection with the Harvest Price Exclusion policies.
RMA is using yield data reported by insured producers, which allows SCO to be offered in more areas, and allows for more practice-specific insurance coverage to be offered. The federal government pays 65 percent of the premium cost for SCO.
For the 2016 crop year, SCO will now be available for alfalfa seed, canola, cultivated wild rice, dry peas, forage production, grass seed, mint, oats, onions, potatoes and rye in select counties for the 2016 crop year. It will also be expanded to additional counties for barely and winter wheat. SCO was first made available, starting with the 2015 crop year, in select counties for spring barley, corn, soybeans, wheat, sorghum, cotton, and rice. It has since been expanded to include many crops, including fresh fruit and vegetables.
LRP – Livestock Risk Protection
RI – Rain Fall Index (link to USDA click here)
Rainfall Index (RI) is based on weather data collected and maintained by the National Oceanic and Atmospheric Administration’s Climate Prediction Center. The index reflects how much precipitation is received relative to the long-term average for a specified area and timeframe. The program divides the country into six regions due to different weather patterns, with pilots available in select counties.
- Annual Forage
- Pasture, Rangeland, Forage (PRF)
Livestock Gross Margin
CAT – Catastrophic Risk Protection
CIH – Crop Insurance Handbook
RMA RO – Risk Management Agency RegionaI Office
T-Yield – Trend Adjustment Yield
SA T-Yield – Simpla Average Trend Adjustment Yield
TA – Trend-Adjusted Actual Production
FSA – Farm Service Agency
CCC – Commodity Credit Corporation
APH – Actual Production History
RMA – Risk Management Agency
SCD – Sales Closing Date
WA – Written Agreement
RP – Revenue Protection
HPE – Revenue Protection with Harvest Price Exclusion
YP – Yield Protection
CEPP – Commodity Exchange Price Provisions
EU – Enterprise Units
BU – Basic Units
OU – Optional Units
WU -Whole Farm
YA -Yield Adjustment
Unit – Unit Structure is the insurable acreage of the insured crop in the County that is taken into consideration when determining the approved “Actual Production History” yield, the guarantee, the premium and the amount of any indemnity for that acreage. The unit is one of the principle foundation blocks of Federal Crop Insurance.
- 100% interest in crop including all acreage that is owned and rented for a cash lease
- Or, which is owned by one person and operated by another person on a share basis. A crop shared with each deifferent landlord, tenant or sharecropper is a separate basic unit. A basic unit is determined by “who own the crop“
- Crop, county, share
- Discount based on number of acres & coveage level
- Most often used for people farming in only on section
Each insured crop is a separate fron another insured crop. Each County is separate on its own.
- Share – All acreage farmed at 100% interest including acreage owned, and acreage rened for cash. A lease containing provisions for EITHER a minimum paymen tOR a crop share whiever is the greater will be considered a cash lease.
- Acreage rented for a percentage of the crop, or a lease containing provisons for BOTH a minimum payment ANHD a crop share will be considered a crop shar lease.
- Separate Section – Must be a discernable break in the planting pattern (in contrast to Enterprise units – see below)
- Separate Records – reported by the Production Reporting Date
- Planted acreage records by section
- Production records by section
- Separate Practice -within the same section
- Irrigated – Non-irrigated
- Organic – Conventional
Enterprise Units – Insured must make enterprise unit election on or berfore the earliest sales closing date
The insured crops in the unit and report the enterprise unit structure on the acreage report
- If EU is abailable – check special provison for Available ( available on all crops with RP and YP)
- Must have two or mor section
- There ar no minimum acreage limitation
- All crop in the county in the same unit
- Recommended to keep optional unit records
- Grower takes on more risk; county county protection
- Least expensive, premium is based on t number of “planced acres”
Whole Farm Units – includes all insurable acreage of all the insured crops in the county
- Elected by sales closing date
- At least 2 crops in the county
- Crops insured under Revenue Protection at the same coverage level
- 2 Crops must contain planted acreage representing at least 1-% of the liability of the entire whole farm unit.
APH – Actual Production History
- The APH yield is the simple average of all the yields in the APH database
- The base period for the APH database consists of the 10 most recent APH crop years (max 10 yrs)
- A minimum of 4 years of yields are required
- Transitional yields (T-Yields) are published in the couinty actuuarial information Browser (AIB)
- If less than four years of actual and/or assigned yields are available for the database, variable T-Yields are used
- The variable T-Yield percentage is determinded by the number of actual or assigned yields available for the crop in the county
- The T-Yield will be replaced with actual yields when production is reporeted for each subsequest AH crop year.
- If less than 640 APH database uses higher of applicable T-Yield or the SA T-Yield
- If 640 – 1999 APH database uses “Variable T-Yields. SA T-Yields may be used “if” requested and aproved by TMA RO
- If 2000 acres or greather, APH database will use applicable varialbe T-Yields
- FLOORS – A percentage of the applicable T-Yield based on the number of years of records the insured has provided for the crop and county
- YIELD ADJUSTMENT (YA)
PRIVATE AND STAND ALONE PROGRAMS
Insurance programs are offered on a Private or Stand Alone basis. For more information schedule and appointment to speak with our Crop Certified Agent. Use this contact for here.
- BARN FIRE
- BUSINESS INTERRUPTON
- CANNING AND PROCESSING
- CITRUS FREEZE
- CITRUS PACKER
- EXTRA LONG STAPLE COTTON
- FIELD GRAIN FIRE
- GERMINATION COVERAGE FOR HYBRID SEED CORN
- GRAPE CLUSTER FREEZE
- HAY FIRE
- HYBRID SEED CORN COMPANY
- HYBRID SEED CORN COVERAGE
- INLAND MARINE
- PASTURAGE FIRE
- RAIN INSURANCE
- TREE FARM FIRE
* Information is subject to change without notice. Information if meant for “general” purposes only. Your actual policy information will be different depending on the insurance carrier, state and local. Consult with on of our Certified Brokers for a quote and consultation.
All insureds are encouraged to purchase rain and hail coverage.
Athena Insurance and Financial Services
205 Court St
Jackson CA 95642
Phone (209) 223-1870 } Fax (209) 223-3227