- Sales closing date - last day to apply for coverage.
- Final planting date - last day to plant unless insured for late planting.
- Acreage reporting date - last day to report the acreage planted. If not reported, insurance will not be in effect.
- Date to file notice of crop damage - after damage; the date the producer decides to discontinue caring for the crop; prior to the beginning of harvest; immediately, if farmer determines that the crop is damaged after harvest begins; or the end of the insurance period, whichever is earlier.
- End of insurance period - latest date of insurance coverage.
- Payment due date - last day to pay the premium without being charged interest.
- Cancellation date - last day to request cancellation of policy for the next year.
- Production reporting date - last day to report production for Actual Production History (APH).
- Debt termination date - date insurance company will terminate policy for nonpayment.
Actual county yield
The per acre yield from a county. County yields are reported by the National Agricultural Statistical Service.
Actual yield
The per acre yield produced by a unit. Actual yield usually is determined at harvest. Warehouse receipts and bin measurements can be used to document actual yield.
Actual Production History (APH) yield
The APH yield is used to determine insurance guarantees. The APH yield is based on a history of yields from a unit. It is determined by averaging at least four consecutive yields from a unit. If four consecutive yields are not available, transition yields are used in the calculation of APH yield. Up to ten years of yields are used in determining APH yield.
Base Price
The base price is used to calculate revenue guarantees for revenue insurance products. Base prices are averages of settlement prices of Chicago Board of Trade (CBOT) futures contracts during the month of February. For corn, the December contract is used. For soybeans, the November contract is used.
Basic unit
A basic unit consists of all farmland owned or cash rented in a county that is planted to the same crop. A basic unit also exits for all farmland rented under a share-rental arrangement from the same landlord that is planted in the same crop.
CAT's indemnity price
Under CAT, the indemnity price equals 55 percent of the FCIC price.
Coverage level
Coverage levels are elections made by farmers when purchasing revenue insurance products. Coverage levels are used to calculate revenue guarantees.
Enterprise unit
An enterprise unit consists of all a crop grown in a county. An enterprise unit is made up of one or more basic or optional units.
Expected county yield
A yield set for each crop that can be insured using Group Risk Plan (GRP) insurance. The expected county yield is used in calculating yield guarantees.
Expected price
The expected price is used to calculate revenue guarantees for Group Risk Income Plan (GRIP) insurance. Expected prices are averages of settlement prices of Chicago Board of Trade (CBOT) futures contracts during the five business days prior to March 15th. For corn, the December contract is used. For soybeans, the November contract is used.
Federal Crop Insurance Corporation (FCIC) price
The FCIC price is set each year. It is the maximum price that yield losses can be insured at using an Actual Production History (APH) policy.
Gross revenue
Gross revenue is used to determine indemnity payments for revenue insurance. For Income Protection, Revenue Assurance, and Crop Revenue Coverage, gross revenue equals actual yield times harvest price.
Harvest price
The harvest price is used to calculate gross revenue for revenue insurance products. Under Crop Revenue Coverage, the harvest price is used to calculate the revenue guarantee.
The harvest price is determined by averaging CBOT futures contracts during the fall. For corn, the settlement prices for the December contract are averaged during November. For soybeans, the settlement prices for the November contract are averaged during October.
Indemnity or indemnity payment
Payment made by an insurance product. For yield insurance, indemnity payments occur when yield is below a yield guarantee. For revenue insurance, indemnity payments occur when revenue is below a revenue guarantee. Multiple peril crop insurance will also pay indemnities in other cases such as prevented plantings.
Maximum protection level
A value set for each crop in each county where Group Risk Plan (GRP) insurance is available. This value is the maximum protection level available under GRP and Group Risk Income Plan (GRIP) insurance.
Optional unit
Optional units are divisions of a basic unit. When farmland is a basic unit is in different sections, the basic unit can be divided into optional units, with all farmland in each section constituting a separate optional unit. Optional units also may be designated for crops grown under different farming practices (e.g., irrigated and non-irrigated).
Premium
The per acre cost of the insurance policy.
Protection level
The protection level is used for Group Risk Plan and Group Income Risk Plan insurance products. The protection level is used in determining indemnity payments. A higher protection level results in a higher indemnity payment.
Revenue guarantee
A revenue guarantee is determined for revenue products. Indemnity payments occur when gross revenue is below the revenue guarantee.
Whole farm unit
A whole farm unit consists of all insured farmland in one county.
Yield election
The yield election applies to APH and GRP insurance. Under APH insurance, the yield election is a percentage ranging from 50 to 75 of APH yield.
Yield guarantee
The yield guarantee is a per bushel figure that is a percentage of APH yield. Indemnity payments occur when actual yield is below the yield guarantee.
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