2019 Crop Insurance Handbook (CIH)

United States Department of Agriculture

USDA

Federal Crop Insurance Corporation

- - --- -?,,-- - ---

Risk Management Agency

Product Administration and Standards Division

FCIC 18010 (06-2018)

2019 CROP INSURANCE HANDBOOK

Underwriting and Actual Production History Standards for FCIC Programs Administered under the APH Administrative Regulations and the Basic Provisions for the Common Crop Insurance and Area Risk Protection Policies for 2019 and Succeeding Crop Years.

UNDITED STATES DEPARTMENT OF AGRICULITURE RISK MANAGEMENT AGENCY KANSAS CITY, MO 64133

TITLE: 2019 Crop Insurance Handbook EFFECTIVE DATE: 2019 and Succeeding Crop Years SUBJECT:

2019 Crop Insurance Handbook

NUMBER: FCIC 18010 ISSUE DATE: June 29, 2018

OPI: Product Administration and Standards Division APPROVED:

/s/ Richard Flournoy

Deputy Administrator for Product Management

REASON FOR ISSUANCE

This handbook provides the official FCIC approved underwriting standards for policies administered by AIPs for the General Administrative Regulations, 7 CFR Part 400, Subpart G; Common Crop Insurance Policy Basic Provisions, 7 CFR Part 457, and Area Risk Protection Regulations, 7 CFR Part 407.

This issuance obsoletes Bulletin PM-18-013.

SUMMARY OF CHANGES

Listed below are the changes with significant content change. Minor changes and corrections are not included in this listing.

Reference Throughout Handbook Para. 916D Para. 918A(3) Para. 1021H Para. 1026(3)

Para. 1037(2)

Para. 1087 B & C

Para. 1219A Para. 1221 Para. 1302A

Updated Years.

Description of Change:

Added SCO Coverage Percentage. Added Coverage Percentage to SCO Supplemental Protection calculation. Changed example to note Dry Beans CP allow OUs by type. Added clarifying language the production evidence must match the production certified by the insured and reference to Para. 1597. Clarified that if insured does not qualify for separate EUs by irrigated and nonpractices when elected, unit structure is assigned for both irrigation practices. Clarified that assigned yields with `P" yield descriptor are duplicated to the appropriate APH databases. Corrected reference to LAM. Added clarifying language. Added unharvested with harvest incomplete as a kind of acreage that must be reported to the acreage that must be reported. For ARPI policies, if the acreage is unharvested, the insured must certify either unharvested and destroyed, unharvested and put to another use, unharvested appraised, or unharvested with harvest incomplete.

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SUMMARY OF CHANGES (Continued)

Reference Para. 1302D

Para. 1308 Para. 1310H Para. 1402A Para. 1403B Para. 1404 Para. 1416 Para. 1433A(3) Para. 1435 (1) Para. 1503A(e) Para. 1503B(2)

Para. 1505E Para 1592

Para. 1592C Para. 1595

Para. 1596

Description of Change: Added exception of assigned yields not applying if the difference between the yield certified and the verifier determined yield is within tolerance, that the verifier determined yield would be the assigned yield when assigned yield apply and is the verifier determined yield less than the assigned yield reference to Para. 1597. Added unharvested with harvest incomplete as a production record type for ARPI. Clarified there must be a loss in production due to UUF or a third party. Clarified that insureds must have acceptable production evidence to support the information on their production report. Clarified that non-loss unit(s) use the production evidence's adjustments to production. Added reference to the LAM for adjustments to production evidence on claims for indemnities. Added reference to Para. 1302 and added exception to production evidence no longer available due to catastrophic event. Moved (4) to (6) renumbered and (6) Must be provided by the insured if not on production evidence. Modified language to indicate verifiable weight records must be provided if insured is using post-harvest calibration. Added grain carts to list of field harvest records. Added exception with temporary yield descriptor "JJ" for delayed claims. Clarified the assigned yield is 65% of the applicable T-Yield when there is no prior year's approved yield is available and added exception that the actual yield must be used if the actual yield determined by review is less than the assigned yield. Added reference to Para. 1597 for exceptions to assigned yields. Added organic exception code "T" for acreage transitioning to certified organic practice without an organic plan and insured under the conventional practice. Added exception for Category C crops requiring changes in production methods be identified on the PAW to identify whether a PAIR and RO DY is required due to the change in production method and a reference to Para. 1854 for organic Category C crops. Added exception to establish separate APH databases for acreage transitioning to certified organic without a plan insured under the conventional practice. Added clarifying language on acceptable production evidence and reference to Para. 1597. Added exception to the application of assigned yields if the difference between the yield certified and the verifier determined yield is within tolerance as provided in Para. 1597. Also, the actual yield is used when an assigned yield applies and the verifier determined yield is less than the assigned yield. Added that yields certified for plans of insurance that require production reporting but are not APH-based must be corrected if different than the verifier determined yield. Added clarifying language on AIP/USDA error and misreported production and reference to Para. 1597.

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SUMMARY OF CHANGES (Continued)

Reference Para. 1597 Para. 1702Q Para. 1738(1) Para. 1738(1)(b) Para. 1748 Para. 1749 Para. 1756

Para. 1803D

Para. 1821

Description of Change: Added clarifying language to exceptions to assigned yields and removed references to average yield, and approved APH yield in (3). Added instructions for establishment of separate APH databases for acreage transitioning to organic without an organic plan. Removed the phrase "does not provide acceptable production reports due to lack of acceptable supporting production evidence". Removed the phrase "for more than 2 crop years". Added Alfalfa Seed to list of crops for which the AIP may approve the MYs. Changed MY request deadline from no later than 20 calendar days after PRD to no later than 30 calendar days after PRD. Changed deadline from no later than 20 to 30 calendar days after the PRD for insureds to request another initial MY for a new P/T or added land for which an approved MY has not been previously established. Clarified when production from uninsurable acreage is commingled with production from insurable acreage: total acreage includes blocks that have met minimum production requirements and those that have not met production minimums; the commingled production and all acreage are entered in the APH database for all years, not just the most recent production year for the acreage just reaching insurability; and the commingled acres and production must meet production minimums. Change that the required information block for Rootstock on the PAW is applicable when required by the crop policy: Arizona-California Citrus Crop, Macadamia Nuts, Peaches, Pistachio, Plum, Prune, Stonefruit, and Walnuts; and for grapes, to indicate whether rootstock is Phylloxera resistant rootstock.

Clarified in the required information of percent stand that if the decrease in percent stand is less than 20% (or the percentage specified in the applicable SP) based on the original planting pattern, a RO DY request is not required

Para. 1823

Para. 1851

Para. 1854

Para. 1858

Para 1860 Para. 1862A Para. 1862F

Clarified in the required information that the question related to if insured is sales as direct market or is vertically integrated is for production record requirements only and will not trigger a PAIR. Added exception to PAW triggering a PAIR and RO DY request if percent stand was decreased less than 20 percent. Clarified block reporting is only consider an optional unit if the policy provisions are met. Clarified requirements to establish an APH once acreage becomes certified organic. Clarified insurability requirements when following T-Yield instructions after grafting/dehorning is completed. Clarified the adding acres to both an existing and separate APH database. Change requirement for Downward Trending test even if YE is applicable. Added comment for AIP to provide notification timely to insured.

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SUMMARY OF CHANGES (Continued)

Reference Para. 1864

Para. 1943B

Para. 2050

Part 21

Para. 2101

Para. 2131

Para. 2141A(2)(a) Para. 2141E

Para. 2146

Exh. 9C Exh. 15W(10) Exh. 17C Exh. 17M

Exh. 18M&O Exh. 20

Description of Change: Modified instructions on what varietal apple to use to calculate the "F" yield descriptor for grafted apples. Clarified that apples used for fresh apple slices are considered fresh if the price received is commensurate with a fresh apple price. Updated paragraph to reflect the current process for calculating approved yields for Hybrid Seed Corn and Hybrid Sorghum Seed. Clarified when T-Revenue was used as an equivalent of a T-Yield versus assigned yield throughout Part 21. Clarified T-Revenues are used as an equivalent of a T-Yield for annual crops and assigned yields are also referred to as T-Revenue. Added comment when assigned T-Revenue are considered zero production when determining insurability. Corrected the example. Clarified when added insurable acreage is added during the second year of the two-year coverage module. Clarified PAW requirements if damage is caused by diseased, the type of disease should be included. Added SCO Coverage Percentage to SCO calculation examples. Added yield descriptor "JJ". Added Alfalfa Seed to table. Updated to include ARPI protection factor and Annual Forage productivity factor reductions. Updated Examples. Moved the hybrid seed exhibits together and added a Hybrid Seed Corn or Sorghum Seed Approved Yield Process exhibit (Exh. 20C).

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Page(s)

I I Current Index

1-6

2019 CROP INSURANCE HANDBOOK

CONTROL CHART

TC Page(s)

Text Page(s)

Exhibit Page(s)

I I 1-20

1-532

533-769

Date June 2018

Directive Number

18010

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June 2018

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