2017 Crop Insurance Handbook (CIH) - USDA's Risk ... INSURANCE HANDBOOK Underwriting and Actual...

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United States Department of Agriculture Federal Crop Insurance Corporation Risk Management Agency Product Administration and Standards Division FCIC 18010 (06-2016) 2017 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 2017 and Succeeding Crop Years.

Transcript of 2017 Crop Insurance Handbook (CIH) - USDA's Risk ... INSURANCE HANDBOOK Underwriting and Actual...

  • United States

    Department of

    Agriculture

    Federal Crop

    Insurance

    Corporation

    Risk

    Management

    Agency

    Product

    Administration

    and Standards

    Division

    FCIC 18010

    (06-2016)

    2017

    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 2017 and Succeeding Crop Years.

  • June 2016 FCIC 18010 TP-1

    UNDITED STATES DEPARTMENT OF AGRICULITURE

    RISK MANAGEMENT AGENCY

    KANSAS CITY, MO 64133

    TITLE: 2017 Crop Insurance Handbook NUMBER: FCIC 18010

    EFFECTIVE DATE: 2017 and

    Succeeding Crop Years

    ISSUE DATE: June 30, 2016

    SUBJECT:

    2017 Crop Insurance Handbook

    OPI: Product Administration and Standards Division

    APPROVED:

    /s/ Thomas W. Worth

    Acting 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 for the 2017 and succeeding crop years for crops with a contract change date on or after the issue

    date.

  • June 2016 FCIC 18010 TP-2

    2017 CROP INSURANCE HANDBOOK

    CONTROL CHART

    TP

    Page(s)

    TC

    Page(s)

    Text

    Page(s)

    Exhibit

    Page(s) Date

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    Current

    Index 1-2 1-20 1-512 513-777 June 2016 18010

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-1

    PART 1 GENERAL INFORMATION

    1 General Information ......................................................................................................................... 1

    2 Responsibilities ................................................................................................................................ 3

    3 Title VI of the Civil Rights Act of 1964 .......................................................................................... 4

    4-200 (Reserved) ...................................................................................................................................... 4

    PARTS 2-8

    201-300 (Reserved) .................................................................................................................................. 5

    301-400 (Reserved) .................................................................................................................................. 7

    401-500 (Reserved) .................................................................................................................................. 9

    501-600 (Reserved) ................................................................................................................................ 11

    601-700 (Reserved) ................................................................................................................................ 13

    701-800 (Reserved) ................................................................................................................................ 15

    801-900 (Reserved) ................................................................................................................................ 17

    PART 9 ENDORSEMENTS AND OPTIONS

    901 General Information ....................................................................................................................... 19

    902 Catastrophic Risk Protection Endorsement ................................................................................... 19

    903 High-Risk Land Exclusion Option ................................................................................................ 20

    904 Hail and Fire Exclusion Option ..................................................................................................... 22

    905 Apple Fresh Fruit Quality Adjustment Option .............................................................................. 24

    906 Wheat or Barley Winter Coverage Endorsement .......................................................................... 25

    907 Dry Pea WCO ................................................................................................................................ 26

    908 Fresh Market Sweet Corn Minimum Value Option ...................................................................... 28

    909 Fresh Market Pepper Minimum Value Option .............................................................................. 29

    910 Fresh Market Tomato (Dollar Plan) Minimum Value Option ....................................................... 30

    911 Mint Winter Coverage Option ....................................................................................................... 31

    912 Northern Potato Policy Endorsements ........................................................................................... 32

    913 Fresh Pear Quality Adjustment Endorsement ................................................................................ 37

    914 Table Grape Protective Cover Option ........................................................................................... 37

    915 Contract Price Addendum (CPA) .................................................................................................. 38

    916 SCO Endorsement General Information and Requirements .......................................................... 43

    917 SCO Endorsement Acreage Reporting .......................................................................................... 47

    918 SCO Endorsement Determining Supplemental Protection and Indemnity .................................... 48

    919-1000 (Reserved) .............................................................................................................................. 50

    PART 10 UNITS

    Section 1 Basic Units

    1001 Availability .................................................................................................................................... 51

    1002 Premium Discount ......................................................................................................................... 51

    1003 CAT Endorsement ......................................................................................................................... 52

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-2

    PART 10 UNITS (Continued)

    Section 1 Basic Units (Continued)

    1004 APH Database Establishment ........................................................................................................ 52

    1005 APH Databases Below BU Level .................................................................................................. 52

    1006 Commingled Acres and Production ............................................................................................... 52

    1007-1020 (Reserved) ............................................................................................................................ 53

    Section 2 Optional Units

    1021 Availability .................................................................................................................................... 54

    1022 APH Database Below OU Level ................................................................................................... 58

    1023 Combination of OUs ...................................................................................................................... 58

    1024 OU Qualifications .......................................................................................................................... 58

    1025 Production Evidence ...................................................................................................................... 60

    1026 Assigned Yields ............................................................................................................................. 61

    1027 Determining OUs ........................................................................................................................... 62

    1028-1030 (Reserved) ............................................................................................................................ 62

    Section 3 Enterprise Units

    1031 Availability .................................................................................................................................... 63

    1032 EU Election .................................................................................................................................... 63

    1033 EU Qualifications .......................................................................................................................... 63

    1034 Reporting Requirements ................................................................................................................ 67

    1035 Discounts ....................................................................................................................................... 68

    1036 Added Land and New Crop P/T .................................................................................................... 68

    1037 Assigned Unit Structure ................................................................................................................. 68

    1038 Assigned Yields ............................................................................................................................. 69

    1039 Cups ............................................................................................................................................... 69

    1040-1044 (Reserved) ............................................................................................................................ 69

    Section 4 Whole Farm Units

    1045 Availability .................................................................................................................................... 70

    1046 WU Election .................................................................................................................................. 70

    1047 WU Qualifications ......................................................................................................................... 70

    1048 Separate Administrative Fees ........................................................................................................ 71

    1049 Reporting Requirements ................................................................................................................ 72

    1050 Unit Structure Assignment ............................................................................................................ 73

    1051-1060 (Reserved) ............................................................................................................................ 73

    Section 5 Unit Numbering

    1061 General Information ....................................................................................................................... 74

    1062 The Structure Code ........................................................................................................................ 74

    1063 Unit Number .................................................................................................................................. 74

    1064 Unit Numbering Constancy ........................................................................................................... 77

    1065 Unit Number Consistency .............................................................................................................. 78

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-3

    PART 10 UNITS (Continued)

    Section 5 Unit Numbering (Continued)

    1066 Master Yield Summary APH Database ......................................................................................... 78

    1067-1072 (Reserved) ............................................................................................................................ 78

    Section 6 Sections, Section Equivalents, and FSA FNs

    1073 Provisions ...................................................................................................................................... 79

    1074 Unit Division Option Illinois, Indiana, Ohio, and Texas ............................................................ 81

    1075-1080 (Reserved) ............................................................................................................................ 83

    Section 7 Combining and Dividing BUs, OUs, EUs, and WUs

    1081 General Information ....................................................................................................................... 84

    1082 Establishing Separate APH Databases........................................................................................... 84

    1083 Maintaining Separate APH Databases Within BUs, EUs, or WUs ............................................... 85

    1084 Situations that Require Combining and Dividing APH Databases ............................................... 86

    1085 Agreements to Combine OUs for Category B Crops .................................................................... 87

    1086 Combining APH Databases ........................................................................................................... 90

    1087 Dividing APH Yield History for Category B Crops ...................................................................... 91

    1088 Dividing a BU into Additional BUs or OUs, or OUs into Further OUs for Category C Crops .... 95

    1089 Adding Land to an Existing Unit for Category B Crops ............................................................... 96

    1090 Retaining Yield History for the Same Land .................................................................................. 97

    1091-1100 (Reserved) ............................................................................................................................ 97

    PART 11 UNDERWRITING RULES FOR SPECIFIC PRACTICES

    Section 1 Irrigated Practice

    1101 IRR Practice Guidelines ................................................................................................................ 99

    1102 Insurable Acreage .......................................................................................................................... 99

    1103 Applicable Terms ........................................................................................................................... 99

    1104 Factors to Consider for IRR Practice Reporting and Coverage ................................................... 101

    1105 Failure to Carry Out Good IRR Practice ..................................................................................... 102

    1106 IRR Practice Guidelines for PP ................................................................................................... 102

    1107 Determined IRR Yields ............................................................................................................... 103

    1108 Reporting Production and Establishing APH Databases for IRR and NI Acreage ..................... 107

    1109 Special Requirements for Center Pivot Irrigation Systems ......................................................... 107

    1110-1120 (Reserved) .......................................................................................................................... 109

    Section 2 Summer Fallow Practice

    1121 General Information and Insurability .......................................................................................... 110

    1122 SF APH Database Instructions .................................................................................................... 113

    1123-1144 (Reserved) .......................................................................................................................... 114

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-4

    PART 11 UNDERWRITING RULES FOR SPECIFIC PRACTICES (Continued)

    Section 3 Skip-Row Planted

    1145 Insurability ................................................................................................................................... 115

    1146 Skip-Row Planted Corn ............................................................................................................... 115

    1147 Skip-Row Planted Grain Sorghum .............................................................................................. 118

    1148 Skip-Row Planted Cotton and ELS Cotton ................................................................................. 119

    1149 Percent Planted Factors ................................................................................................................ 124

    1150-1200 (Reserved) .......................................................................................................................... 124

    PART 12 ACREAGE REPORT

    Section 1 General Requirements

    1201 General Information ..................................................................................................................... 125

    1202 Filing Requirements ..................................................................................................................... 125

    1203 Failure to Submit Acceptable Acreage Report ............................................................................ 127

    1204 Inaccurate Acreage Reports ......................................................................................................... 127

    1205-1210 (Reserved) .......................................................................................................................... 128

    Section 2 Acreage Report Elements

    1211 Required Elements ....................................................................................................................... 129

    1212 Date Planting Completed ............................................................................................................. 132

    1213 Acreage Type ............................................................................................................................... 132

    1214 Prevented Planting Acreage ......................................................................................................... 134

    1215 Late Planted Acreage ................................................................................................................... 135

    1216 Insurable Acreage ........................................................................................................................ 138

    1217 Uninsurable Acreage ................................................................................................................... 144

    1218 Uninsured Acreage of an Insured Crop ....................................................................................... 148

    1219 Unreported Acreage or Units ....................................................................................................... 148

    1220 Zero Acreage Report .................................................................................................................... 149

    1221 Preliminary Acreage Reports for CCIP ....................................................................................... 150

    1222 Reporting IRR Practices for CCIP ............................................................................................... 150

    1223 First (1st) Insured Crop Planted and Second (2nd) Crop ............................................................ 150

    1224-1230 (Reserved) .......................................................................................................................... 159

    Section 3 Acreage Report Revisions

    1231 Overview ...................................................................................................................................... 160

    1232 Acceptable Revisions for CCIP ................................................................................................... 160

    1233 Acceptable Acreage Report Revisions for ARPI ......................................................................... 170

    1234 Measurement Services Requested for Acreage Reports .............................................................. 170

    1235 Examples for Acreage Report Revisions ..................................................................................... 172

    1236-1300 (Reserved) .......................................................................................................................... 174

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-5

    PART 13 PRODUCTION REPORT

    1301 General Information ..................................................................................................................... 175

    1302 Acceptable Production Report ..................................................................................................... 176

    1303 Production Reporting Requirements ............................................................................................ 179

    1304 Production Included on Production Report and in the APH Database, When APH Databases are

    Applicable .................................................................................................................................... 182

    1305 Production Included on Production Report but not in the APH Database .................................. 185

    1306 Continuity .................................................................................................................................... 187

    1307 Break in Continuity ...................................................................................................................... 187

    1308 Required Elements of Production Report .................................................................................... 188

    1309 Verification, Review and Correction ........................................................................................... 191

    1310 Production .................................................................................................................................... 192

    1311 Multi-Year Production Report ..................................................................................................... 195

    1312 Production Reporting Differences for ARPI and CCIP ............................................................... 195

    1313-1400 (Reserved) .......................................................................................................................... 195

    PART 14 PRODUCTION EVIDENCE

    Section 1 General Information

    1401 Acceptable Production Evidence ................................................................................................. 197

    1402 Certifying Production .................................................................................................................. 197

    1403 Unit of Measure and Production Adjustments............................................................................. 198

    1404 Record Retention Period .............................................................................................................. 199

    1405-1414 (Reserved) .......................................................................................................................... 199

    Section 2 Acceptable Verifiable Records

    1415 Crops Requiring Verifiable Records ........................................................................................... 200

    1416 Records of Production Commercially Sold To or Stored By a Disinterested Third-Party .......... 200

    1417 Claim for Indemnity .................................................................................................................... 201

    1418 FSA or CCC Verified Documents ............................................................................................... 201

    1419 Authorized AIP or FSA Personnel Appraisals of Unharvested Acreage .................................... 201

    1420 Authorized AIP or FSA Personnel Measurement of Farm Stored Production ............................ 203

    1421 Pre-harvest Appraisal and Other Record Types .......................................................................... 203

    1422-1430 (Reserved) .......................................................................................................................... 206

    Section 3 Acceptable Farm Management Records

    1431 Crops that Qualify for Farm Management Records .................................................................... 207

    1432 Measurement of Farm Stored Production by Insured .................................................................. 207

    1433 Automated Yield Monitoring Systems ........................................................................................ 207

    1434 Livestock Feeding Records .......................................................................................................... 209

    1435 Field Harvest Records .................................................................................................................. 210

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-6

    PART 14 PRODUCTION EVIDENCE (Continued)

    Section 4 Vertically Integrated

    1436 Vertically Integrated Producer Defined ....................................................................................... 211

    1437 Acceptable Records for Vertically Integrated Producers ............................................................ 211

    1438 Required Documentation ............................................................................................................. 211

    1439-1450 (Reserved) .......................................................................................................................... 211

    Section 5 Direct Marketing

    1451 Direct Marketing Defined ............................................................................................................ 212

    1452 Direct Marketing Requirements .................................................................................................. 212

    1453 Acceptable Records for Direct Marketing Producers .................................................................. 212

    1454-1500 (Reserved) .......................................................................................................................... 212

    PART 15 APH DATABASE

    Section 1 General Information

    1501 APH Database Requirements ...................................................................................................... 213

    1502 The Base Period ........................................................................................................................... 213

    1503 Types of Yields ............................................................................................................................ 213

    1504 Yield Descriptors ......................................................................................................................... 215

    1505 Required Separate APH Database ............................................................................................... 216

    1506 Production or Acreage Not to be Included .................................................................................. 218

    1507 Transfer of APH Data .................................................................................................................. 218

    1508 Use of Another Persons Production History - BFR ................................................................... 221

    1509 Use of Another Persons Acreage and Production History ......................................................... 223

    1510 Use of APH When Insureds Change or Land is Transferred to Another Person ........................ 225

    1511 APH Database Instructions .......................................................................................................... 228

    1512 Impact of Combining and Dividing ............................................................................................. 230

    1513-1520 (Reserved) .......................................................................................................................... 230

    Section 2 APH Databases and Yield Determinations Combined and Divided

    1521 General Rules for Combining and Dividing APH Databases ...................................................... 231

    1522 Combining APH Databases ......................................................................................................... 232

    1523 Dividing APH Databases ............................................................................................................. 233

    1524 No Actual or Assigned Yields ..................................................................................................... 238

    1525-1540 (Reserved) .......................................................................................................................... 238

    Section 3 APH Yield Adjustment

    1541 Yield Adjustment General Information ....................................................................................... 239

    1542 Election of APH Yield Adjustment ............................................................................................. 239

    1543 Cancelling APH Yield Adjustments ............................................................................................ 239

    1544 T-Yields Used for YA ................................................................................................................. 240

    1545 Calculating Approved APH Yields When YA is Elected ........................................................... 242

    1546 Determining Premium Rates ........................................................................................................ 245

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-7

    PART 15 APH DATABASE (Continued)

    Section 3 APH Yield Adjustment (Continued)

    1547-1550 (Reserved) .......................................................................................................................... 245

    Section 4 APH Yield Exclusion

    1551 YE General Information .............................................................................................................. 246

    1552 Eligibility for YE ......................................................................................................................... 246

    1553 Cancellation ................................................................................................................................. 247

    1554 Transfers ...................................................................................................................................... 247

    1555 Applicability of WAs ................................................................................................................... 247

    1556 Applicability of Yield Limitations and Yield Reductions ........................................................... 247

    1557 Actual Yields Eligible for YE...................................................................................................... 248

    1558 Exclusion of an Actual Yield for an Eligible Crop Year Within an APH Database ................... 248

    1559 YE Interaction with YA ............................................................................................................... 250

    1560 Impact of YE Specific to Category B Crops ............................................................................... 251

    1561 Impact of YE for Perennial Crops (Category C/Pecan Revenue) ................................................ 252

    1562 Impact of YE for RO Determined Yields .................................................................................... 253

    1563 Adjusted Yield ............................................................................................................................. 253

    1564 Rate Yield Calculation ................................................................................................................. 253

    1565 Calculating the Yields for APH Databases When YE is Elected ................................................ 254

    1566 Determining Premium Rates When YE Applies to an APH Database ........................................ 255

    1567-1570 (Reserved) .......................................................................................................................... 255

    Section 5 Yield Reductions

    1571 General Information ..................................................................................................................... 256

    1572 General Rules ............................................................................................................................... 257

    1573 Excessive Actual Yields .............................................................................................................. 259

    1574 Inconsistent Approved APH Yields and Insured Acreage Limitations ....................................... 262

    1575 Different Production Methods ..................................................................................................... 267

    1576-1580 (Reserved) .......................................................................................................................... 269

    Section 6 Reviewing and Correcting APH Yields

    1581 Review Requirements .................................................................................................................. 270

    1582 Correcting APH Yields ................................................................................................................ 270

    1583 Tolerances .................................................................................................................................... 271

    1584-1600 (Reserved) .......................................................................................................................... 273

    PART 16

    1601-1700 (Reserved) .......................................................................................................................... 275

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-8

    PART 17 CATEGORY B CROP PROCEDURES

    Section 1 APH Database

    1701 General Information ..................................................................................................................... 277

    1702 Methods to Establish an APH Database ...................................................................................... 277

    1703-1706 (Reserved) .......................................................................................................................... 284

    Section 2 T-Yields

    1707 General Information ..................................................................................................................... 285

    1708 T-Yield Methods .......................................................................................................................... 285

    1709-1712 (Reserved) .......................................................................................................................... 286

    Section 3 Reporting Production for P/T/TMAs

    1713 Applicability ................................................................................................................................ 287

    1714 Separate Production ..................................................................................................................... 287

    1715 Separating Commingled Production ............................................................................................ 287

    1716-1720 (Reserved) .......................................................................................................................... 289

    Section 4 Yield Limitations

    1721 General Information ..................................................................................................................... 290

    1722 Cups ............................................................................................................................................. 290

    1723 Yield Floors ................................................................................................................................. 291

    1724 Yield Limitation Calculations ...................................................................................................... 292

    1725 Determining Premium Rates ........................................................................................................ 292

    1726-1730 (Reserved) .......................................................................................................................... 292

    Section 5 New Producer

    1731 New Producer Qualifications ....................................................................................................... 293

    1732 Deadline ....................................................................................................................................... 298

    1733 Verification .................................................................................................................................. 298

    1734 Documentation ............................................................................................................................. 298

    1735 Approved APH Yield Determination .......................................................................................... 298

    1736 Added Land and New Crop P/T APH Database .......................................................................... 300

    1737 For Subsequent Crop Years ......................................................................................................... 300

    Section 6 RO Determined Yields

    1738 General Information ..................................................................................................................... 301

    1739 Verifier Responsibilities .............................................................................................................. 301

    1740-1746(Reserved) ........................................................................................................................... 301

    Section 7 Master Yields

    1747 General Information ..................................................................................................................... 302

    1748 Initial MY Approval Authorities ................................................................................................. 302

    1749 Deadlines ..................................................................................................................................... 303

    1750 General Information ..................................................................................................................... 304

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-9

    PART 17 CATEGORY B CROP PROCEDURES (Continued)

    Section 7 Master Yields (Continued)

    1751 Cancelling MYs ........................................................................................................................... 304

    1752 Requirements for Establishing Initial MY(s) .............................................................................. 304

    1753 Production Reporting Requirements ............................................................................................ 306

    1754 Establishing a MY ....................................................................................................................... 307

    1755 MY Summary APH Database Unit Number ............................................................................... 311

    1756 Updating Established MY(s) ....................................................................................................... 311

    1757 Yield Limitation Provisions (Cup Only) ..................................................................................... 312

    1758 Yield Adjustment ......................................................................................................................... 312

    1759 Yield Exclusion ........................................................................................................................... 312

    1760 Certified Organic and Transitional Practices ............................................................................... 312

    1761-1762 (Reserved) .......................................................................................................................... 312

    Section 8 Acreage Emerging From a USDA Program, New Breaking and Native Sod

    1763 Acreage Emerging From a USDA Program ................................................................................ 313

    1764 New Breaking Acreage ................................................................................................................ 315

    1765 Native Sod Acreage ..................................................................................................................... 317

    1766-1770 (Reserved) .......................................................................................................................... 320

    Section 9 Added Land

    1771 General Information ..................................................................................................................... 321

    1772 AIP Responsibilities .................................................................................................................... 321

    1773 APH Databases for Added Land .................................................................................................. 321

    1774 Methods for Determining Approved APH Yields for Added Land ............................................ 322

    1775 Cropland Acreage Limitations ..................................................................................................... 329

    1776 AIP Review and Verification Prior to Payment of Indemnity ..................................................... 334

    1777 Added Land Yield Descriptors and Indicators ............................................................................ 334

    1778-1786 (Reserved) .......................................................................................................................... 334

    Section 10 Yield Determination That Do Not Qualify as Added Land

    1787 Added Crop/P/T APH Databases ................................................................................................. 335

    1788 New Crop/P/T APH Databases .................................................................................................... 335

    1789-1790 (Reserved) ......................................................................................................................... 336

    Section 11 Switching from an ARPI policy to a CCIP Policy

    1791 APH Database Impacts ................................................................................................................ 337

    1792 Applicability of Yield Limitations ............................................................................................... 338

    1793 Applicability of Added Land and New Crop/P/T Procedures ..................................................... 339

    1794-1800 (Reserved) .......................................................................................................................... 339

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-10

    PART 18 CATEGORY C CROPS

    Section 1 General Information

    1801 Background .................................................................................................................................. 341

    1802 Insured Crop ................................................................................................................................ 341

    1803 Crops with Minimum Age and/or Production Requirements ...................................................... 342

    1804-1806 (Reserved) .......................................................................................................................... 345

    Section 2 Acreage

    1807 General Information ..................................................................................................................... 346

    1808 Acceptable Forms of Acreage Measurement ............................................................................... 346

    1809 Acreage Measurement Methods .................................................................................................. 347

    1810 Acreage Adjustments ................................................................................................................... 347

    1811 Prior Acreage Removed ............................................................................................................... 350

    1812-1816 (Reserved) .......................................................................................................................... 350

    Section 3 Age/Leaf Year Determinations

    1817 All Crops, except Citrus and Macadamia .................................................................................... 351

    1818 Arizona-California Citrus and Texas Citrus Fruit ....................................................................... 352

    1819 Macadamia Nuts .......................................................................................................................... 353

    Section 4 Producer's Pre-Acceptance Worksheet (PAW)

    1820 General Information ..................................................................................................................... 354

    1821 PAW Elements ............................................................................................................................. 354

    1822 AIP PAW Review ........................................................................................................................ 359

    1823 PAW Triggers a PAIR ................................................................................................................. 359

    1824-1836 (Reserved) .......................................................................................................................... 359

    Section 5 Perennial Crop Pre-Acceptance Inspection Report (PAIR)

    1837 General Information ..................................................................................................................... 360

    1838 PAIR Requirement ....................................................................................................................... 360

    1839 PAIR Waivers .............................................................................................................................. 361

    1840 PAIR Deadline ............................................................................................................................. 361

    1841 PAIR Completion Requirements ................................................................................................. 361

    1842 PAIR Elements ............................................................................................................................ 362

    Section 6 Crop Addendum Worksheet(s) (CAW)

    1843 General Information ..................................................................................................................... 368

    1844-1849 (Reserved) .......................................................................................................................... 368

    Section 7 APH Database

    1850 APH Database Establishment ...................................................................................................... 369

    1851 Block Reporting ........................................................................................................................... 369

    1852 Separate P/T/TMA/Other Characteristics .................................................................................... 369

    1853 Commingled Production .............................................................................................................. 370

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-11

    PART 18 CATEGORY C CROPS (Continued)

    Section 7 APH Database (Continued)

    1854 Organic Perennials ....................................................................................................................... 371

    1855 Acreage Less than a Tenth of an Acre ......................................................................................... 373

    1856 APH Database Establishment Methods ....................................................................................... 373

    1857 Multi-Purpose Production and Yield Worksheet ......................................................................... 375

    1858 T-Yield Instructions ..................................................................................................................... 375

    1859 Weighted Average Age/Density .................................................................................................. 376

    1860 Added Insurable Acreage ............................................................................................................ 377

    1861 Added Land/New Producers ........................................................................................................ 380

    1862 APH Database Tests for High Variability of Actual Yields ........................................................ 381

    1863 Approved APH Yield .................................................................................................................. 388

    1864-1870 (Reserved) .......................................................................................................................... 388

    Section 8 Yield Information

    1871 Yield Indicators ........................................................................................................................... 389

    1872 Yield Adjustments ....................................................................................................................... 389

    1873 Yield Limitations ......................................................................................................................... 389

    1874-1880 (Reserved) .......................................................................................................................... 391

    Section 9 RO Determined Yields

    1881 Situations for a RO Determined Yield Request ........................................................................... 392

    1882 Verifier Responsibilities .............................................................................................................. 393

    1883-1900 (Reserved) .......................................................................................................................... 393

    PART 19 ADDITIONAL PROVISIONS BY CROP

    Section 1 Category B Crops

    1901 General Information ..................................................................................................................... 395

    1902 Cabbage (Fresh Market and Processing) ..................................................................................... 395

    1903 Coarse Grains: Corn, Soybeans, and Grain Sorghum................................................................. 397

    1904 Cotton and ELS Cotton ................................................................................................................ 402

    1905 Cultivated Wild Rice ................................................................................................................... 403

    1906 Dry Beans .................................................................................................................................... 404

    1907 Dry Peas ....................................................................................................................................... 406

    1908 Forage Production ........................................................................................................................ 409

    1909 Green Peas ................................................................................................................................... 411

    1910 Mint .............................................................................................................................................. 412

    1911 Mustard ........................................................................................................................................ 412

    1912 Onions .......................................................................................................................................... 413

    1913 Peanuts ......................................................................................................................................... 414

    1914 Popcorn ........................................................................................................................................ 415

    1915 Potatoes ........................................................................................................................................ 416

    1916 Processing Beans ......................................................................................................................... 417

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-12

    PART 19 ADDITIONAL PROVISIONS BY CROP (Continued)

    Section 1 Category B Crops (Continued)

    1917 Processing Sweet Corn ................................................................................................................ 418

    1918 Rice .............................................................................................................................................. 418

    1919 Small Grains: Wheat, Barley, Oats, Rye, Buckwheat, and Flax ................................................ 419

    1920 Sugar Beets .................................................................................................................................. 421

    1921 Sugarcane ..................................................................................................................................... 423

    1922 Tobacco ........................................................................................................................................ 425

    1923 Tomatoes, Fresh Market Guaranteed Production ........................................................................ 427

    1924 Tomatoes Processing ................................................................................................................... 427

    1925-1940 (Reserved) .......................................................................................................................... 427

    Section 2 Category C Crops

    1941 General Information ..................................................................................................................... 428

    1942 Almonds ....................................................................................................................................... 428

    1943 Apples .......................................................................................................................................... 428

    1944 Avocados, Florida ........................................................................................................................ 430

    1945 Blueberries ................................................................................................................................... 430

    1946 Citrus............................................................................................................................................ 431

    1947 Cranberries ................................................................................................................................... 433

    1948 Figs .............................................................................................................................................. 433

    1949 Grapes .......................................................................................................................................... 433

    1950 Table Grapes ................................................................................................................................ 434

    1951 Macadamia Nuts .......................................................................................................................... 434

    1952 Peaches ........................................................................................................................................ 434

    1953 Pears ............................................................................................................................................. 435

    1954 Prunes .......................................................................................................................................... 436

    1955 Stonefruit ..................................................................................................................................... 436

    1956 Walnuts ........................................................................................................................................ 437

    1957-2000 (Reserved) .......................................................................................................................... 437

    PART 20 CATEGORY D CROPS

    Section 1 Insurability

    2001 General Information ..................................................................................................................... 439

    2002 Production Reports ...................................................................................................................... 439

    2003 OU for Raisins ............................................................................................................................. 439

    2004-2006 (Reserved) .......................................................................................................................... 439

    Section 2 Dollar Plans of Insurance

    2007 PAW ............................................................................................................................................ 440

    2008 Block Map ................................................................................................................................... 444

    2009 PAIR Information ........................................................................................................................ 444

    2010 Macadamia Orchard PAIR and Plat Map .................................................................................... 455

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-13

    PART 20 CATEGORY D CROPS (Continued)

    Section 2 Dollar Plans of Insurance (Continued)

    2011-2020 (Reserved) .......................................................................................................................... 457

    Section 3 RO Determined Yield Request

    2021 Florida Citrus RO Determined Yield Request ............................................................................. 458

    2022-2024 (Reserved) .......................................................................................................................... 458

    Section 4 Dollar Plans of Insurance Age or Leaf Year Determinations

    2025 General Information ..................................................................................................................... 459

    2026-2030 (Reserved) .......................................................................................................................... 460

    Section 5 Dollar Plans of Insurance Acreage Information

    2031 General Information ..................................................................................................................... 461

    2032 Excluded Acreage ........................................................................................................................ 463

    2033 Florida Citrus Fruit Liability Adjustment Determination ............................................................ 464

    2034 Macadamia Trees Liability Adjustment Determination .............................................................. 465

    2035-2040 (Reserved) .......................................................................................................................... 465

    Section 6 Dollar Plans of Insurance Additional Records and Provisions

    2041 General Information ..................................................................................................................... 466

    2042 (Reserved) .................................................................................................................................... 466

    Section 7 Yield Based Dollar Amount of Insurance Plans

    2043 General Information ..................................................................................................................... 467

    2044 Different Coverage Levels ........................................................................................................... 467

    2045 Units ............................................................................................................................................. 467

    2046 County Yields for Hybrid Seeds .................................................................................................. 467

    2047 Amount of Insurance ................................................................................................................... 467

    2048 Minimum Contract Payment ........................................................................................................ 468

    2049 Yield Based Factor for Seed Companies ..................................................................................... 468

    2050 Approved Yields .......................................................................................................................... 468

    2051 Value per Bushel .......................................................................................................................... 469

    2052 Hybrid Seed Corn or Hybrid Sorghum Seed Approved Yield Requests ..................................... 469

    2053-2100 (Reserved) .......................................................................................................................... 470

    PART 21 PECAN REVENUE

    Section 1 General Requirements

    2101 Background .................................................................................................................................. 471

    2102 Insurability Requirements ............................................................................................................ 471

    2103 Two-Year Coverage Module ....................................................................................................... 472

    2104 Unit Division ............................................................................................................................... 472

    2105 Premium ....................................................................................................................................... 473

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-14

    PART 21 PECAN REVENUE (Continued)

    Section 1 General Requirements (Continued)

    2106 Transfers ...................................................................................................................................... 473

    2107 CAT Coverage ............................................................................................................................. 473

    2108-2116(Reserved) ........................................................................................................................... 473

    Section 2 Acreage Reporting

    2117 Acreage Reports ........................................................................................................................... 474

    2118 Acreage ........................................................................................................................................ 476

    2119 Changes to the Amount of Insurance ........................................................................................... 476

    2120-2130 (Reserved) .......................................................................................................................... 478

    Section 3 Revenue Reporting

    2131 Revenue Reports .......................................................................................................................... 479

    2132 Revenue Report Required Elements ............................................................................................ 481

    2133 Production Evidence .................................................................................................................... 482

    2134 Excessive Actual Yield ................................................................................................................ 483

    2135-2140 (Reserved) .......................................................................................................................... 483

    Section 4 Summary of Revenue History

    2141 Summary of Revenue History (SRH) Database .......................................................................... 484

    2142 Summary of Revenue History Required Elements ...................................................................... 487

    2143-2144 (Reserved) .......................................................................................................................... 487

    Section 5 PAW/PAIR/CAW

    2145 PAW ............................................................................................................................................ 488

    2146 PAW Required Elements ............................................................................................................. 488

    2147 AIP PAW Review ........................................................................................................................ 490

    2148 PAW Triggers a PAIR ................................................................................................................. 491

    2149 PAIR ............................................................................................................................................ 491

    2150 PAIR Requirements ..................................................................................................................... 491

    2151 PAIR Waivers .............................................................................................................................. 492

    2152 PAIR Deadline ............................................................................................................................. 492

    2153 PAIR Completion Requirements ................................................................................................. 493

    2154 PAIR Required Elements ............................................................................................................. 493

    2155 CAW Information ........................................................................................................................ 499

    2156-2166 (Reserved) .......................................................................................................................... 500

    Section 6 RO Underwriting

    2167 RO Determined Yield Request .................................................................................................... 501

    2168-2200 (Reserved) .......................................................................................................................... 501

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-15

    PART 22 RO UNDERWRITING

    Section 1 Transmitting RO Determined Yield, and MY Requests

    2201 ROE Requirement ........................................................................................................................ 503

    2202 AIP Alert Mechanisms ................................................................................................................ 504

    2203 Separate Submission for WA....................................................................................................... 504

    2204-2210 (Reserved) .......................................................................................................................... 504

    Section 2 Determined Yields, MY and UG

    2211 Category B Crops ........................................................................................................................ 505

    2212 Category C Crops ........................................................................................................................ 507

    2213 Category D Crops ........................................................................................................................ 508

    2214 Pecan Revenue ............................................................................................................................. 509

    2215-3000 (Reserved) .......................................................................................................................... 511

    EXHIBIT 1-8

    Reserved ............................................................................................................................................... 513

    Reserved ............................................................................................................................................... 515

    Reserved ............................................................................................................................................... 517

    Reserved ............................................................................................................................................... 519

    Reserved ............................................................................................................................................... 521

    Reserved ............................................................................................................................................... 523

    Reserved ............................................................................................................................................... 525

    Reserved ............................................................................................................................................... 527

    EXHIBIT 9 ENDORSEMENTS AND OPTIONS

    A. Endorsements and Options Chart ................................................................................................ 529

    B. Wheat or Barley and Dry Pea Winter Coverage Endorsement Flow Chart ................................ 537

    C. SCO Endorsement Calculation Examples ................................................................................... 538

    EXHIBIT 10 UNITS

    A. Examples of Unit Numbering when Units Change ..................................................................... 543

    B. Combining Units and APH Databases ......................................................................................... 544

    C. Dividing Units Examples ............................................................................................................. 550

    D. Additional Bean Procedure for Units and Yields by Types ........................................................ 553

    E. Flowchart for Determining Unit Structure when Insured Does Not Qualify for Enterprise Units

    by Irrigated and Non-Irrigated Practices ..................................................................................... 555

    EXHIBIT 11 UNDERWRITING RULES FOR SPECIFIC PRACTICES

    A. Summerfallow Database .............................................................................................................. 557

    B. Skip-Row Planted Cotton and ELS Cotton Overview ................................................................. 558

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-16

    EXHIBIT 11 UNDERWRITING RULES FOR SPECIFIC PRACTICES (Continued)

    C. FSA Determination for 30/50 Planting Pattern ........................................................................... 558

    D. Percent Planted Factor, Yield Conversion Factor, and PASS Skip-Row Code Applicable to

    Arkansas, Louisiana, Missouri, and All States East of those States ............................................ 559

    E. Percent Planted Factor, Yield Conversion Factor, and PASS Skip-Row Code Applicable to New

    Mexico and the Following Counties in Texas: Baylor, Concho, Runnels, Schleicher, Shackleford,

    Sutton, Taylor, Throckmorton, Valverde, Wilbarger and All Counties West of Those Counties

    ..................................................................................................................................................... 561

    F. Percent Planted Factor, Yield Conversion Factor, and PASS Skip-Row Code Applicable to

    Kansas, Oklahoma, and All Counties in Texas for Which Table 2 Does Not Apply .................. 562

    G. Determining Planted Acres Using FSA Percent Planted Factor and Calculating Per Acre Yield

    Using Skip-Row Yield Conversion Factor .................................................................................. 564

    H. Commingled Production from IRR Solid-Planted and NI Skip-Row Planted Cotton................. 565

    EXHIBIT 12

    Reserved ............................................................................................................................................... 569

    EXHIBIT 13 PRODUCTION REPORT

    A. Soybeans Example of Completed Production Report for Production Reporting Requirements . 571

    B. Corn Example of Completed Production Report for Production Reporting Requirements ........ 572

    EXHIBIT 14

    Reserved ............................................................................................................................................... 573

    EXHIBIT 15 APH DATABASE

    A. Examples of Completed APH Databases-New Insured............................................................... 575

    B. Examples of Completed APH Databases-New Producer ............................................................ 576

    C. Examples of Completed APH Databases Carryover Insured .................................................... 577

    D. Examples of Completed APH Databases-Zero-Acreage Reported ............................................. 578

    E. Examples of Completed APH Databases-Assigned Yield .......................................................... 579

    F. Examples of Completed APH Databases-Certified Organic ....................................................... 580

    G. Examples of Completed APH Databases-Category C Crops ...................................................... 581

    H. Yield Determinations-Converting an Existing Practice to a New Practice ................................. 582

    I. Yield DeterminationsCombining Two Practices into a New Practice ..................................... 583

    J Yield Determinations-Dividing a Practice into Two Practices Using Apportionment ................ 584

    K. Yield Determinations-Dividing a Practice into Two Practices Using Attribution ...................... 586

    L. Yield Determinations-Dividing a Practice into Two Practices Using Recertification ................ 587

    M. Yield Determinations-Dividing APH Databases by Recertification ........................................... 588

    N. Yield Determinations-Dividing APH Databases by Apportioning Commingled Production ..... 592

    O. Yield Determinations-Dividing APH Databases by Attributing Acres and Production .............. 597

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-17

    EXHIBIT 15 APH DATABASE (Continued)

    P. Yield Determinations-Dividing APH Databases Using All 3 Methods ...................................... 598

    Q. Yield Determinations-Dividing an Added Land APH Database ................................................. 600

    R. Dividing an APH Database when a Type is Divided into More than Two Types ....................... 603

    S. Dividing an APH Database When Only One Type has been Produced ...................................... 609

    T. Retaining 10 Crop Years of APH History ................................................................................... 610

    U. Dividing Previously Established APH Databases for P/Ts with the Same T-Yield .................... 611

    V. Yield Indicators ........................................................................................................................... 613

    W. Yield Descriptors ......................................................................................................................... 615

    X. APH Yield Limitations/Adjustments- Carryover Insured with Actual Yields ............................ 621

    Y. APH Yield Limitations/Adjustments- No Production Records Initially ..................................... 624

    Z. APH Yield Limitations/Adjustments- Assigned Yield ................................................................ 625

    AA. Carryover Insured Provided a Production Report Applicable for the 2017 Crop Year ............... 625

    BB. Yield Adjustment Examples ........................................................................................................ 626

    CC. Yield Exclusion Examples ........................................................................................................... 627

    DD. Yield Reductions- Excessive Actual Yield (Without Verifiable Records) ................................. 635

    EE. Inconsistent Approved APH Yield and Insured Acreage Limitation .......................................... 636

    FF. Establishing APH Databases Transitioning Without an Organic Plan for Crop Year 2017 and

    Subsequent Years ......................................................................................................................... 638

    GG. Determining Tolerance and Corrective Action ............................................................................ 641

    EXHIBIT 16

    Reserved ............................................................................................................................................... 645

    EXHIBIT 17 CATEGORY B CROP PROCEDURES

    A. Category B Crops- APH Databases Certified Organic or Transitional Acreage Affected by

    Prohibited Substances, Converted Back to Conventional Farming Practices and Suspended Or

    Revoked Certification .................................................................................................................. 647

    B. Category B Crops- Multi-Purpose Production and Yield Worksheet ......................................... 651

    C. Category B Crops-Master Yields ................................................................................................. 653

    D. Category B Crops-Acreage Emerging from USDA Program, New Breaking, and Native Sod

    Examples ...................................................................................................................................... 657

    E. Cup Applicability Chart ............................................................................................................... 672

    F. Recording and Maintaining SA T-Yields .................................................................................... 673

    G. Special APH Instructions for Contract Seed Beans and Contract Seed Peas .............................. 675

    H. Green Pea Example ...................................................................................................................... 682

    I. Potato Example ............................................................................................................................ 684

    J. Forage Production Underwriting Report ..................................................................................... 685

    K. Elements and Information Required for Forage Production Underwriting Report ..................... 685

    L. Forage Production Underwriting Report Example ...................................................................... 687

    M. Applicable Native Sod Annual Crops .......................................................................................... 688

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-18

    EXHIBIT 18 CATEGORY C CROP PROCEDURES

    A. Category C Crop- Apple Crop Addendum Worksheet Procedures ............................................. 689

    B. Category C Crop- Peach Crop Addendum Worksheet Procedures ............................................. 692

    C. Category C Crop- Pear Crop Addendum Worksheet Procedures ................................................ 696

    D. Category C Crops-Grape/Table Grape Crop Addendum Worksheet Procedures ....................... 699

    E. Category C Crop Procedures- Cranberry Crop Addendum Worksheet ....................................... 702

    F. Blueberry (High Bush and Rabbit Eye) Crop Addendum Worksheet Procedures ...................... 705

    G. Blueberry (Low Bush) Crop Addendum Worksheet Procedures ................................................ 708

    H. Almonds, Citrus, Figs, Fresh Plums, Macadamia Nuts, Pecans, Prunes, Stonefruit, Walnuts Crop

    Addendum Worksheet Procedures .............................................................................................. 711

    I. Florida Avocado Crop Addendum Worksheet Procedures ......................................................... 715

    J. Apple Examples ........................................................................................................................... 718

    K. Peaches PAW Examples .............................................................................................................. 725

    L. Shelling Percentage Chart for Clean Unshelled Almonds ........................................................... 734

    M. Weighted Average Age/Density Worksheet ................................................................................ 735

    N. Tree/Vine/Bush Measurement ..................................................................................................... 737

    O. Planting Patterns .......................................................................................................................... 737

    P. Hedgerow/Border Planting Pattern .............................................................................................. 738

    Q. Hexagonal/Quincunx Planting Pattern ........................................................................................ 739

    R. Double Row Planting Pattern ...................................................................................................... 741

    S. Interplanted Crop Planting Pattern .............................................................................................. 742

    T. Missing and Partial Tree Formulas .............................................................................................. 744

    U. Additional Information ................................................................................................................ 746

    V. Database Administration for Fresh and Processing ..................................................................... 747

    W. APH Databases for Transitional and Certified Organic-Prohibited Substances ......................... 753

    EXHIBIT 19

    Reserved ............................................................................................................................................... 755

    EXHIBIT 20 CATEGORY D CROP PROCEDURES

    A. Hybrid Seed Corn or Sorghum Seed Notice of Loss ................................................................... 757

    B. Florida Citrus Fruit Producers Pre-Acceptance Worksheet ....................................................... 758

    C. Macadamia Orchard Inspection Report ....................................................................................... 759

    D. Florida Citrus, Dollar Plan of Insurance, Percent Stand Example .............................................. 760

    E. Summary of Revenue History (SRH) .......................................................................................... 762

    F. Hybrid Seed Corn Yield Request Required Information ............................................................. 764

    G. Hybrid Sorghum Seed Yield Request Required Information ...................................................... 766

    EXHIBIT 21

    Reserved ............................................................................................................................................... 769

  • TABLE OF CONTENTS

    June 2016 FCIC 18010 TC-19

    EXHIBIT 22 RO UNDERWRING

    RO Determined Yield Type, Yield Limitation Flag and Rate Yield Chart .......................................... 771

    EXHIBIT 23 MISCELLANEOUS

    Production Report and APH Database Flowchart ................................................................................ 777

  • June 2016 FCIC 18010 TC-20

  • PART 1 GENERAL INFORMATION

    June 2016 FCIC 18010 1

    1 General Information

    A. Purpose

    FCIC is established by the Federal Crop Insurance Act, 7 U.S.C. 1501, to promote the