RISK MANAGEMENT

Fruit Policy Provisions2003

2003 Price Elections

Apples – Fresh $6.95/bushel

Apples – Processing $1.85/bushel

Blueberries $0.47/pound

Grapes – Concord $220/ton

Grapes – Niagara $350/ton

Peaches – Fresh $12.25/bushel

Peaches – Processing $6.25/bushel

Insurability Requirements

Apples Must have produced a minimum of 150 bushels per acre

Peaches Minimum of 4th growing season after being set or by special written agreement if producing 100 bu per acre

Grapes Minimum of 4th growing season after being set out.

Blueberries Must have produced a minimum of 1000 lbs per acre

Deadlines & Responsibilities

• Sales Closing Date is November 20th

• Production and Acreage Reporting Date is January 5th

• Premium Due Date is September 15th

• Production Report• Update the Pre-Acceptance Worksheet

Coverage Available

• CAT – Minimum level available at 50% of Average Production and 55% of Price Election (Cost is $100/county/crop)

• BuyUp – 50%, 55%, 60%, 65%, 70% & 75% of Average Production and 100% of Price Election

Actual Production History (APH)

• Basis from which coverage and premium is calculated

• Uses up to 10 years of production history (depending upon crop)

• Can be broken down by unit (section) for buyup policies (except blueberries)

How Coverage is Calculated

• Producer’s APH x Level of Coverage = Guaranteed Production

• Example: 500 bu APH (Apples) x 65% level = 325 bu guarantee overall

• Indemnity payment is bushels below guarantee x price election

• Example: 275 bu overall harvested = 50 bu x $6.95 = $347.50 indemnity/acre

Perils Insured Against

• Adverse weather conditions• Fire, unless from uncontrolled weeds or debris• Insects, unless from insufficient pest control• Plant disease, unless from insufficient disease

control• Wildlife, unless control measures were not taken• Failure of irrigation supply if caused by an above

named peril

Perils Excluded (All Fruits)

• Inability to market the fruit for any reason other than actual physical damage from an insurable cause. Example: quarantine, boycott, or refusal of any person to accept production

• Mechanical damage (including limb rub, scars, and puncture for apples)

Uninsured Perils (By Crop)

• Apples: Failure to size, color, or shape properly and russeting

• Blueberries: Failure to install and maintain a proper draining system and failure to harvest timely

• Grapes: Phylloxera, regardless of cause• Peaches: Split pits, regardless of cause

What Is Counted as Production?

• Appraised Production: Direct marketing acreage must be appraised prior to harvest to determine production to count

• Marketable harvested and non-harvested production.

• If all counted production is below the guarantee, an indemnity payment is made.

Need More Information?

Contact an Agent atSpartan Insurance

800 888-2767Or

Your Local GreenStone Farm Credit Services branch office