SEE ATTACHED INFORMATION AT BOTTOM OF THIS MESSAGE, TOO.
Contacts for this program:
Sharon_Hestvik@wdc.usda.gov
RMA Small Farm Coordinator
Eric Edgington (202) 690-2539
Eric_Edgington@wdc.usda.gov
Subject: Ensuring Small Farmers Know About Crop Insurance Discount
The Agriculture, Rural Development, Food and Drug Administration, and
Related
Agencies Appropriations Act includes $400 million in assistance to provide
premium discounts to producers who purchase crop insurance for the 2000 crop
year. It's important that producers have adequate coverage in 2000. To
ensure that all producers can take advantage of this incentive, I'm asking
for
your help in distributing information about the premium discount. Please
help
Risk Management Agency get the word out by including it in your e-mail
messages, newsletters, publications, and your website as appropriate.
Producers growing crop year 2000 crops with insurance sales closing dates
between June 30, 1999, and December 1, 1999, have until December 1, 1999, to
obtain coverage. Since this sales closing date is fast approaching, this
information should be shared with producers as soon as possible.
If you have any questions, please e-mail me at
Sharon_Hestvik@wdc.usda.gov
RMA Small Farm Coordinator
RISK MANAGEMENT AGENCY PROGRAM ANNOUNCEMENT
Eric Edgington (202) 690-2539
Eric_Edgington@wdc.usda.gov
INSURANCE DEADLINES NEAR FOR DOZENS OF CROPS
Washington, Nov. 1, 1999 - Risk Management Agency (RMA)
Administrator Ken Ackerman announced that farmers growing a wide range of
crops - from oats to carambola - need to sign up for insurance by December
1, 1999, to take advantage of an estimated 25 percent premium discount on
2000 crop production.
"We have identified dozens of insurance plans with sales closing
dates between June 30, 1999, and December 1, 1999, that are eligible for the
discount," said Ackerman. "December 1 is right around the corner so
producers need to act quickly to benefit from this opportunity. Because
sales closing dates vary by growing area and crop, producers should contact
a crop insurance agent immediately to discuss sign up dates and their
coverage options."
Funding for the discount was provided by the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act. Currently insured producers may increase their coverage
before December 1. Like last year's premium discount, the amount of the
discount will depend on crop prices and how many farmers choose to insure or
increase their protection.
Current law limits the premium discount to crops grown for harvest
during the 2000 crop year. Certain tree crops that have an insurance sales
closing date of December 1, 1999, are not eligible for the discount because
they are crop year 2001 crops. USDA has recommended that Congress make
these crops eligible for the discount.
Producers should contact a crop insurance agent to discuss their
options. A listing of agents is available at local Farm Service Agency
offices or at the RMA website at www.rma.usda.gov/tools/agents.
INSURANCE PLANS REQUIRING A RAPID RESPONSE
Sales Closing Crop Name
07/01/1999 CABBAGE
07/31/1999 FORAGE SEEDING
07/31/1999 FRESH MARKET SWEET
CORN
07/31/1999 FRESH MARKET
TOMATOES
07/31/1999 PEPPERS
07/31/1999 RAISINS
08/15/1999 CABBAGE
08/31/1999 CANOLA
08/31/1999 FRESH MARKET BEANS
08/31/1999 ONIONS
08/31/1999 SUGAR BEETS
09/30/1999 ADJUSTED GROSS
REVENUE
09/30/1999 BARLEY
09/30/1999 CANOLA
09/30/1999 CULTIVATED WILD RICE
09/30/1999 FORAGE PRODUCTION
09/30/1999 MINT
09/30/1999 OATS
09/30/1999 POTATOES
09/30/1999 RYE
09/30/1999 STRAWBERRIES
09/30/1999 SUGARCANE
09/30/1999 WHEAT
10/31/1999 BARLEY
10/31/1999 OATS
10/31/1999 WHEAT
11/15/1999 AVOCADO TREES
11/15/1999 MANGO TREES
11/20/1999 ADJUSTED GROSS
REVENUE
11/20/1999 APPLES
11/20/1999 BLUEBERRIES
11/20/1999 CHERRIES
11/20/1999 CRANBERRIES
11/20/1999 GRAPES
11/20/1999 PEACHES
11/20/1999 PEARS
11/20/1999 PECANS
11/20/1999 GRAPEFRUIT **
11/20/1999 GRAPEFRUIT TREES
11/20/1999 RUBY RED GRAPEFRUIT
**
INSURANCE PLANS REQUIRING A RAPID RESPONSE
Sales Closing Crop Name
11/20/1999 ALL OTHER GRAPEFRUIT
**
11/20/1999 LEMONS **
11/20/1999 LEMON TREES
11/20/1999 LIME TREES
11/20/1999 ALL OTHER CITRUS
TREES
11/20/1999 MANDARINS **
11/20/1999 MINNEOLA TANGELOS **
11/20/1999 ORANGE TREES
11/20/1999 CARAMBOLA TREES
11/20/1999 NAVEL ORANGES **
11/20/1999 SWEET ORANGES **
11/20/1999 VALENCIA ORANGES **
11/20/1999 EARLY & MIDSEASON
ORANGES **
11/20/1999 LATE ORANGES **
11/20/1999 ORLANDO TANGELOS **
11/20/1999 RIO RED & STAR RUBY
**
11/20/1999 CITRUS TREES I
11/20/1999 CITRUS TREES II
11/20/1999 CITRUS TREES III
11/20/1999 CITRUS TREES IV
11/20/1999 CITRUS TREES V
11/30/1999 AVOCADOS **
11/30/1999 CLAMS
11/30/1999 FORAGE PRODUCTION
11/30/1999 POTATOES
12/31/1999 ALMONDS
12/31/1999 MACADAMIA NUTS **
12/31/1999 MACADAMIA TREES
12/31/1999 POTATOES
12/31/1999 SAFFLOWER
12/31/1999 SUGAR BEETS
** NOTE: All citrus fruit (not trees) in Arizona, California,
Florida, and Texas; Avocado in California (not Florida); and Hawaii
macadamia nuts are crop year 2001 crops and are not eligible for the
estimated 25 percent premium discount, which currently applies only to crop
year 2000 crops. However, a legislative remedy to include additional crops
is now pending before Congress.
PREMIUM DISCOUNT MEANS MORE PROTECTION FOR MINIMAL COST
EXAMPLE: A wheat producer with 400 acres, a 40 bu./acre average yield, and
a $3.15 price election.
65% Coverage 70% Coverage
Protection $32,760.00 ($81.90/A) $35,280.00
($88.20/A)
Expected producer cost $1,050.00 ($2.63/acre) $1,586.00
($3.97/acre)
Estimated 25% premium discount -$263.00 -$397.00
Actual producer cost $787.00 ($1.97/acre) $1,189.00
($2.97/acre)
In this example, the actual producer cost for 70-percent coverage
($1,189.00) is only $139.00 more than the expected producer cost of 65
percent ($1,050.00). This means that the producer can obtain a $6.30 per
acre increase in protection for only $0.35 more per acre, or $2,520.00
increased wheat protection for only $139.00 in additional premium.
NOTE: This example is for illustration only. Actual costs and protection
will vary. See a crop insurance agent for information specific to your
operation.
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