Jay Waechter Senior Risk Management Specialist Topeka Regional Office This presentation does not replace or supersede any procedures or modify any provisions contained in the complete insurance policies ID: 611682
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Slide1
Regional Update
Jay Waechter, Senior Risk Management Specialist
Topeka Regional OfficeSlide2
This presentation does not replace or supersede any procedures or modify any provisions contained in the complete insurance policies.
Note: Much of the content provided in this presentation has not been filed as of this date and is subject to change.Slide3
2013 ChangesSlide4
Region-wide changes
Wheat T-Yields were updated
Grain Sorghum T-Yields updated and Rates were reviewed
Corn
and
Soybeans Rates
were
reviewedSlide5
2013 Proposed
Double Crop Statements and FAC/NFAC
Key Criteria in Development of 2013 Statements/Definitions:
Local conditions, notably length of season and soil moisture, primary drivers in setting restrictions.
Continue to rely on university/other research and experience
Increase flexibility in 2013 for haying and grazing of ‘another crop’ and/or cover crop, based on guidance in recent Manager’s Bulletins
Key Proposed Changes in Kansas, Nebraska & Colorado:
Allow harvesting of “another crop” and “cover crop”
Except for West, allow more springtime growth of cover crops.
Define “termination”Slide6
2013 Proposed
Double
Crop Statements
Key changes
from 2012
are
bolded
(additions) or red strikeout (deletions)
South Central/Eastern Kansas
Insurance
shall not attach or be considered to have attached without a written agreement to a planted non-irrigated crop on acreage from which, in the same calendar year:
1) A perennial hay crop was harvested; or2) A crop (other than a cover crop) reached the headed or budded stage prior to termination, regardless of the percentage of plants that reach the headed or budded stage, or has been harvested; 3) A cover crop is terminated after 50% of the cover crop has headed or budded. For purposes of insurability under this Special Provision, a cover crop is one that meets the definition of a cover crop in the Basic Provisions and was planted within the last 12 months. Termination means growth has ended. To qualify for a written agreement, you must provide a minimum of three years of your double cropping actual production history for the crop in the county.Slide7
Eastern Kansas, Eastern Nebraska
Insurance
shall not attach or be considered to have attached to a planted non-irrigated crop on acreage from which, in the same calendar year:
1) A perennial hay crop was harvested; or
A
crop (
other than a cover crop
) reached the headed or budded stage prior to termination, regardless of the percentage of plants that reach the headed or budded
stage,
or has been harvested;
A cover crop is terminated after 50% of the cover crop has headed or budded. (Definition of cover crop, termination)Western Kansas. Western Nebraska, Colorado: Insurance shall not attach or be considered to have attached to a planted non-irrigated crop on acreage from which, in the same calendar year: 1) A perennial hay crop was harvested; orA crop, including a cover crop, reached the headed or budded stage prior to termination, regardless of the percentage of plants that reach the headed or budded stage, or has been harvested;
.
(Definition of cover crop, termination)
2013 Proposed
Double
Crop Statements
Key changes
from 2012
are
bolded
(additions) or
red
strikeout
(deletions
)Slide8
Double Crop Statements
Corn
West – No Written Agreements
East – No Written AgreementsSlide9
Double Crop Statements
Soybeans
West – No Written Agreements
East – No Written Agreements
FAC / NFAC
Written Agreements allowedSlide10
Double Crop Statements
Grain Sorghum
West – No Written Agreements
East – No Written Agreements
Written Agreements allowedSlide11
Cover Crops and Summer Fallow
To qualify for the SF practice, the acreage must not have been planted to a crop the preceding crop year and
remain fallow for a full crop year.
Planting a cover crop during the fallow period affects the insurability of your next wheat crop.
If a
crop was planted on acreage qualifying as summer fallow
the preceding crop year but was
terminated by JUNE 1, and any later growth is controlled by mechanical or chemical means, the acreage will qualify as summer fallow the next crop year.
Please see our FAQ at:
http://www.rma.usda.gov/help/faq/summerfallow.htmlSlide12
New Breaking
For the second year in a row a new
statement
will be added to the actuarial for Corn, Grain Sorghum and Soybeans
The biggest change will be that in most cases the AIP will approve coverage without a Written Agreement
The only cases that will now come to the RO will be when the acreage limitation, date of breaking or, soil criteria are not met
Slide13
New Breaking – Corn, Soybeans, Grain Sorghum
Through a new statement in the
Special
Provisions
the AIP can approve without Written
Agreement
if:
75% of the acreage by field is composed of soil types defined as Capability Class I, II, III, or IV.
NRCS Web Soil Survey
http://websoilsurvey.nrcs.usda.gov/app/HomePage.htm
; andThe land must have been broken/ chemically sprayed…Either Prior to Planting
or
On
or before November 30 prior to planting (Depending on the county);
andSlide14
Corn, Soybeans, and Grain Sorghum onlySlide15
November 30Slide16
New Breaking is insurable without a Written Agreement if: (Continued)
The producer provides a NRCS Conservation Plan, if required by NRCS; and
The
newly broken acreage is
<
320 acres;
and
If any of the above requirements are not met, this land will be insurable only by Written Agreement. Any new breaking acreage (on a whole field basis) that exceeds the 320 acres requires a written agreement. Only the acreage that exceeds 320 acres requires a written agreement. Up to 320 acres may be approved under the Special Provisions statement. Slide17
New Breaking – Corn, Soybeans, Grain Sorghum
MGR-12-017 sets in place new rules for acreage converted to cropland:
Provide insurance for new breaking acreage at 80 percent of the applicable published county T-Yield in the actuarial documents without a written agreement if the producer and acreage meets all requirements of the Special Provisions statement, including providing documentation that the new breaking acreage has previously been broken and planted to a crop in the past Slide18
New Breaking – Corn, Soybeans, Grain Sorghum
MGR-12-017 sets in place new rules for acreage converted to cropland:
Provide insurance for new breaking acreage at 65 percent of the applicable published county T-Yield in the actuarial documents without a written agreement if the producer cannot provide documentation that the new breaking acreage has been previously broken and planted to a crop in the past, however, the producer does meet all other requirements of the Special Provisions statement Slide19
New Breaking - Documenting land was previously cropped
What cannot be used:
The
producer
certification on
the request it was cropped.
Just
because the requested ground is terraced is not considered documentation.What can be used:The previous crop year’s FSA 578 showing the land as cropland,
or
A FSA 578 showing the prior crop the new breaking acreage was planted to.Slide20
New Breaking
MGR-12-017 sets in place new rules for acreage converted to cropland:
New breaking T-Yields established by RMA Regional Office written agreements will be limited to a maximum of 80 percent of the applicable published county T-Yield. Variable T-Yield percentages do not apply to new breaking T-Yields assigned by RMA Regional Office written agreement. This action item will begin with crops that are eligible for new breaking written agreements and have sales closing dates after September 30, 2012
Remove the requirement to apply variable T-Yield percentages to the resulting new breaking T-Yield Slide21
New Breaking
Remember these rules that were in place for 2012 and remain in place for 2013:
Disallow
simple average T-Yields and new producer T-Yields
Require establishment of a separate APH database in the initial crop year the new breaking acreage is insured; and
Disallow prevented planting coverage in the initial year the new breaking acreage is broken out for planting Slide22
Yield Trend
For 2013 Available
on Corn,
Soybeans (KS & NE only)
and Wheat
(KS & NE only)
Could possibly see expansion to other cropsSlide23
Trend Adjustment Option
Wheat
*Trend Adjustment Option May not be available on all PracticesSlide24
Trend Adjustment Option
Wheat
*Trend Adjustment Option May not be available on all PracticesSlide25
Pasture Rangeland and Forage
Cancellation and Sales Closing date is now November 15
th
Nebraska will be covered under the Rainfall Index
Removed requirement to divide total insured acres by index interval and replaced with allocating a percentage of value to each index interval.
Changed
the
Contract Change Date to 8/31Removed ability to adjust acreageSlide26
Pasture, Rangeland & Forage
Vegetative & Rain Index
June/Aug & July/Aug Intervals
FINAL INDEX VALUES
Veg
Index
Rain
IndexSlide27
Pasture, Rangeland & Forage
Vegetative Index
June/Aug Interval
FINAL INDEX VALUESSlide28
Pasture, Rangeland & Forage
Rain Index
July/Aug Interval
FINAL INDEX VALUESSlide29
Program Deletions
Wheat GRP, GRIP, GRIP-HRO programs have been removedSlide30
Onions
Policy Change required an update to references of the New Policy
The percent Damage has been updated from 40% to 50%.
The percent of damage referenced in section 14(d) of the Onion Crop Provisions will be 50 percent.Slide31
High-Risk Alternative Coverage Endorsement (HR-ACE)
Provides insureds an opportunity to insure high-risk land on a separate additional coverage policy with coverage greater then CAT but less than the coverage on the base policy
508(h) submission, AIPs are not required to offer
Must elect the endorsement by the sales closing date
Eligible crops are corn, soybeans, grain sorghum and wheat in the
following countiesSlide32
High Risk Alt Coverage Option
Available in Counties with Insurance offers applicable to High Risk MapsSlide33
Breached Levees
Land
flooded due to a breach in a levee resulting from prior year(s) flooding is insurable. The applicable rate will be assigned based on conditions of the levee and soils on the latter of the sales closing date or earliest planting date. If, by that date, the levee has not been repaired to prior specifications, or if damaged soil (if any) has not been restored to at least the same crop yield potential as prior to the flood event, the land will be classified as high risk and will have the highest rate classification in the county. However, if the levee has been repaired to prior specifications and the soil has at least the same crop yield potential as before the flood, the land will be classified as shown on the current crop year Actuarial
Map
This
statement will be
removed from the
following
counties:
Nebraska: Nemaha
Kansas: Leavenworth, WyandotteSlide34
Breached Levee Statements
From 2011 Flood
RemovedSlide35
ColoradoSlide36
Colorado 6/30 Map Changes
Updated MapSlide37
Colorado 11/30 Map Changes
Updated MapSlide38
Colorado Summary of Changes
Reviewed and updated T-Yields for Wheat and Grain Sorghum Slide39
Transitional Yields Changes
Wheat – Irrigated
PERCENT CHANGE IN T-YIELDSSlide40
Transitional Yields Changes
Wheat – Continuous Crop
PERCENT CHANGE IN T-YIELDSSlide41
Transitional Yields Changes
Wheat – Summer Fallow
PERCENT CHANGE IN T-YIELDSSlide42
Transitional Yields Changes
Spring Wheat – Cont. Crop
PERCENT CHANGE IN T-YIELDSSlide43
Transitional Yields Changes
Winter Wheat – Summer Fallow
PERCENT CHANGE IN T-YIELDSSlide44
Transitional Yields Changes
Winter Wheat – Irrigated
PERCENT CHANGE IN T-YIELDSSlide45
Transitional Yields Changes
Spring Wheat – Irrigated
PERCENT CHANGE IN T-YIELDSSlide46
Transitional Yields Changes
Spring Wheat – Summer Fallow
PERCENT CHANGE IN T-YIELDSSlide47
Transitional Yields Changes
Grain Sorghum – Irrigated
PERCENT CHANGE IN T-YIELDSSlide48
Transitional Yields Changes
Grain Sorghum – Non-Irrigated
PERCENT CHANGE IN T-YIELDSSlide49
NebraskaSlide50
Nebraska Summary of Changes
Program Expansion:
Potato program
Lincoln CountySlide51
New T-Locater Maps
T-yields Reduced to 85% for High Risk Areas on Irrigated Corn
Counties in NE
Brown
Rock
Holt
Current Tyield
175
168
181
Factor
0.85
0.85
0.85
New Tyield
149
143
154Slide52
Nebraska Summary of Changes
Reviewed
and updated T-Yields for
Wheat and Grain Sorghum Slide53
Transitional Yields Changes
Winter Wheat – Cont. Crop
PERCENT CHANGE IN T-YIELDSSlide54
Transitional Yields Changes
Winter Wheat – Summer Fallow
PERCENT CHANGE IN T-YIELDSSlide55
Transitional Yields Changes
Winter Wheat – Irrigated
PERCENT CHANGE IN T-YIELDSSlide56
Transitional Yields Changes
Spring Wheat – Cont. Crop
PERCENT CHANGE IN T-YIELDSSlide57
Transitional Yields Changes
Spring Wheat – Summer Fallow
PERCENT CHANGE IN T-YIELDSSlide58
Transitional Yields Changes
Spring Wheat – Irrigated
PERCENT CHANGE IN T-YIELDSSlide59
Transitional Yields Changes
Wheat – Irrigated
PERCENT CHANGE IN T-YIELDSSlide60
Transitional Yields Changes
Wheat – Non-Irrigated
PERCENT CHANGE IN T-YIELDSSlide61
Transitional Yields Changes
Wheat – Cont. Crop
PERCENT CHANGE IN T-YIELDSSlide62
Transitional Yields Changes
Wheat – Summer Fallow
PERCENT CHANGE IN T-YIELDSSlide63
Transitional Yields Changes
Grain Sorghum – Irrigated
PERCENT CHANGE IN T-YIELDSSlide64
Transitional Yields Changes
Grain Sorghum – Non-Irrigated
PERCENT CHANGE IN T-YIELDSSlide65
KansasSlide66
Kansas Summary of Change
Dates
Acreage Reporting Date changed to 12/15 for fall wheat and barleySlide67
Kansas Summary of Change
The
FAC and NFAC statements have been updated
again for 2012 to modify the cover crop language for soybeans
.Slide68
2013 Proposed
FAC/NFAC Definitions
Key changes from 2012
are
bolded
(additions) or
red strikeout (deletions)Southeastern corner of Kansas:FAC (Following Another Crop): A planted crop following:1) A perennial hay crop that was harvested in the same calendar year; or
2) A crop
(other than a cover crop)
that has reached the headed or budded stage prior to termination, regardless of the percentage of plants that reached the headed or budded stage, and/or has been harvested in same cal. year; and3) A cover crop that was terminated after 50% of the cover crop has headed or budded.
NFAC (Not Following Another Crop): A planted crop not following:1) A perennial hay crop that was harvested in the same calendar year; andA crop (other than a cover crop) that has reached the headed or budded stage prior to termination, regardless of the percentage of plants that reached the headed or budded stage; and/or has been harvested in same cal. year
;
and
3
) A cover crop that was terminated after 50% of the cover crop has headed or budded.Slide69
Double Crop Statements
Soybeans
West – No Written Agreements
East – No Written Agreements
FAC / NFAC
Written Agreements allowedSlide70
Kansas 6/30 Map Changes
Updated MapSlide71
Kansas 11/30 Map Changes
Updated MapSlide72
Limited Irrigation ProposalSlide73
Section 9(b) 0f the Common Crop Insurance Policy
you must report as irrigated only that acreage for which you have adequate facilities and adequate water, or the
reasonable expectation
of receiving adequate water at the time coverage begins, to carry out a good irrigation practice.
If you knew or had reason to know that your water may be reduced before coverage begins, no reasonable expectation exists.Slide74
Currently this gives the producer the following options:
Reduce planting to only those acres that have adequate water and facilities to produce the APH Approved Yield.
For the remaining acres:
Plant and report as non-irrigated; or
If an
insurable event
during the
prevented planting insurance period causes a reduction in available irrigation water supply, the producer may report and receive a prevented planting guarantee on the qualifying acres. Slide75
Potential for Insuring Limited Irrigation
Can plant all acreage with less than full supply of water
Would require an adjustment of the APH yield
Basis of adjustment must be able to be consistently applied regardless of insurance company
Use collaborative work of irrigation experts at KSU, UNL, and CSUSlide76
Where We Are Now
RMA is in the process of contracting a study to look at the feasibility of offering a limited irrigation program
For 2013 the Topeka RO is offering a limited irrigation practice in parts of Sheridan and Thomas counties in KS
Special Provisions of Insurance Statements will be placed in these two counties. The result will be that the Topeka RO will entertain requests for limited irrigation coverage under a Type Practice type of written agreement
The written agreement will assign a Yield for limited irrigationSlide77
Limited Irrigation Practice
Kansas – Irrigated Corn & Soybeans
THOMAS
SHERIDAN
LEMA HPA Area SD-6
(As of Oct. 11
th
, 2012)Slide78
Special Provisions Statement
If you intend to apply less irrigation water than was used to establish your irrigated approved APH yield and you are in a Local Enhanced Management Area (LEMA), you may qualify for a written agreement to establish coverage for a limited irrigation practice. In addition to providing the minimum supporting documentation for a type/practice written agreement, you must also provide:
Your LEMA order from the Chief Engineer or delegate to apply less irrigation water within a five year period than historically used to support your irrigation practice;
Your historical water use for each unit or APH data base for which a limited irrigation practice yield is requested. Water use records must be provided for at least the most recent 4 years of APH yields to be considered. Acceptable water use records include your annual water use reports, as recorded on the State’s Water Right Information System (WRIS) or the water right file in the Division of Water Resource’s Stockton office
and must be expressed in gross acre inches;
Your intended maximum level of irrigation
for the current year, in gross acre-inches;
Your type of irrigation system (Center Pivot, Improved Gravity, or Gravity); andAny other pertinent information to establish the distribution of irrigation water from a point of diversion to multiple fields, if applicable. The request for written agreement and all supporting documentation must be submitted to the Regional Office through your crop insurance agent on or before the acreage reporting date. The following site provides additional information that may be useful in making the request to the Regional Office:
http://www.rma.usda.gov/aboutrma/fields/ks_rso/ Slide79Slide80
Kansas Summary of Change
Reviewed
and updated T-Yields for Wheat
Cotton and
Grain Sorghum Slide81
Transitional Yields Changes
Wheat – Irrigated
PERCENT CHANGE IN T-YIELDSSlide82
Transitional Yields Changes
Wheat – Non-Irrigated
PERCENT CHANGE IN T-YIELDSSlide83
Transitional Yields Changes
Wheat – Cont. Crop
PERCENT CHANGE IN T-YIELDSSlide84
Transitional Yields Changes
Wheat – Summer Fallow
PERCENT CHANGE IN T-YIELDSSlide85
Transitional Yields Changes
Cotton – Non-Irrigated
PERCENT CHANGE IN T-YIELDSSlide86
Transitional Yields Changes
Cotton – Irrigated
PERCENT CHANGE IN T-YIELDSSlide87
Transitional Yields Changes
Grain Sorghum – Non-Irrigated
PERCENT CHANGE IN T-YIELDSSlide88
Transitional Yields Changes
Grain Sorghum – Irrigated
PERCENT CHANGE IN T-YIELDSSlide89
Thank You
Rebecca Davis, Director
Topeka Regional Office
2641 SW Wanamaker Rd Suite 201
Topeka, KS 66614
Phone: (785) 228-5512
Fax: (785) 228-1456
Email: rsoks@rma.usda.gov