United States

Department of
Agriculture

Federal Crop
Insurance
Corporation 2016
CROP INSURANCE
HANDBOOK
Risk
Management
Agency
Underwriting and Actual Production History Standards for
Product FCIC Programs Administered under the APH
Administration Administrative Regulations and the Basic Provisions for
and Standards the Common Crop Insurance and Area Risk Protection
Division Policies for 2016 and Succeeding Crop Years.
FCIC 18010
(06-2015)
 UNDITED STATES DEPARTMENT OF AGRICULITURE
RISK MANAGEMENT AGENCY
WASHINGTON, DC 20250

TITLE: 2016 Crop Insurance Handbook NUMBER: FCIC 18010

EFFECTIVE DATE: 2016 and Succeeding ISSUE DATE: June 30, 2015
Crop Years
SUBJECT: Underwriting and Actual OPI: Product Administration and Standards
Production History Standards for FCIC Division
Programs Administered under the APH APPROVED:
Administrative Regulations and the Basic
Provisions for the Common Crop Insurance /s/ Tim B. Witt
and Area Risk Protection Policies

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 2016 and succeeding crop years for crops with a contract change date on or after the issue
date.

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 2016 CROP INSURANCE HANDBOOK

CONTROL CHART

TP TC Text Exhibit Directive

Date
Page(s) Page(s) Page(s) Page(s) Number
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1-2 1-20 1-520 521-804 June 2015 18010
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 TABLE OF CONTENTS

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
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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 ................................................................................................................ 71
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
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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 ................................................... 100
1105 Failure to Carry Out Good IRR Practice ..................................................................................... 101
1106 IRR Practice Guidelines for PP ................................................................................................... 101
1107 Determined IRR Yields ............................................................................................................... 102
1108 Reporting Production and Establishing APH Databases for IRR and NI Acreage ..................... 106
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

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PART 11 UNDERWRITING RULES FOR SPECIFIC PRACTICES (Continued)

Section 3 Skip-Row Planted Crops

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
1150-1160 (Reserved) .......................................................................................................................... 124

Section 4 Organic Practice

1161 Conditions of Insurance ............................................................................................................... 125
1162 Organic Practice Requirements ................................................................................................... 127
1163 Maintaining Organic Records ...................................................................................................... 129
1164 Organic Certification and Accreditation Issues ........................................................................... 130
1165 Additional Policy Elements for Organic Acreage ....................................................................... 133
1166 MY Instructions ........................................................................................................................... 134
1167 APH Database Reporting Instructions for Acreage with an Organic Plan .................................. 135
1168 APH Database Reporting Instructions: Acreage in Transition without an Organic Plan ........... 138
1169 Frequent Questions and Answers ................................................................................................ 140
1170-1200 (Reserved) .......................................................................................................................... 141

PART 12 ACREAGE REPORT

Section 1 General Requirements

1201 General Information..................................................................................................................... 143
1202 Filing Requirements..................................................................................................................... 143
1203 Failure to Submit Acceptable Acreage Report ............................................................................ 145
1204 Inaccurate Acreage Reports ......................................................................................................... 145
1205-1210 (Reserved) .......................................................................................................................... 146

Section 2 Acreage Report Elements

1211 Required Elements ....................................................................................................................... 147
1212 Date Planting Completed ............................................................................................................. 149
1213 Acreage Type ............................................................................................................................... 149
1214 Prevented Planting Acreage ......................................................................................................... 151
1215 Late Planted Acreage ................................................................................................................... 152
1216 Insurable Acreage ........................................................................................................................ 155
1217 Uninsurable Acreage ................................................................................................................... 161
1218 Uninsured Acreage of an Insured Crop ....................................................................................... 164
1219 Unreported Acreage or Units ....................................................................................................... 164
1220 Zero Acreage Report.................................................................................................................... 166
1221 Preliminary Acreage Reports for CCIP ....................................................................................... 166
1222 Reporting IRR Practices for CCIP ............................................................................................... 167
1223 First (1st) Insured Crop Planted and Second (2nd) Crop ............................................................ 167
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PART 12 ACREAGE REPORT (Continued)

Section 2 Acreage Report Elements (Continued)

1224-1230 (Reserved) .......................................................................................................................... 175

Section 3 Acreage Report Revisions

1231 Overview...................................................................................................................................... 176
1232 Acceptable Revisions for CCIP ................................................................................................... 176
1233 Acceptable Acreage Report Revisions for ARPI......................................................................... 186
1234 Measurement Services Requested for Acreage Reports .............................................................. 186
1235 Examples for Acreage Report Revisions ..................................................................................... 188
1236-1300 (Reserved) .......................................................................................................................... 190

PART 13 PRODUCTION REPORT

1301 General Information..................................................................................................................... 191

1302 Acceptable Production Report ..................................................................................................... 192
1303 Production Reporting Requirements............................................................................................ 194
1304 Production Included on Production Report and in the APH Database, When APH Databases are
Applicable .................................................................................................................................... 197
1305 Production Included on Production Report but not in the APH Database .................................. 199
1306 Continuity .................................................................................................................................... 201
1307 Break in Continuity...................................................................................................................... 202
1308 Required Elements of Production Report .................................................................................... 203
1309 Verification, Review and Correction ........................................................................................... 206
1310 Production .................................................................................................................................... 207
1311 Multi-Year Production Report ..................................................................................................... 210
1312 Production Reporting Differences for ARPI and CCIP ............................................................... 210
1313-1400 (Reserved) .......................................................................................................................... 210

PART 14 PRODUCTION EVIDENCE

Section 1 General Information

1401 Acceptable Production Evidence ................................................................................................. 211
1402 Certifying Production .................................................................................................................. 211
1403 Unit of Measure and Production Adjustments............................................................................. 212
1404 Record Retention Period .............................................................................................................. 213
1405-1414 (Reserved) .......................................................................................................................... 213

Section 2 Acceptable Verifiable Records

1415 Crops Requiring Verifiable Records ........................................................................................... 214
1416 Records of Production Commercially Sold To or Stored By a Disinterested Third-Party.......... 214
1417 Claim for Indemnity .................................................................................................................... 215
1418 FSA or CCC Verified Documents ............................................................................................... 215
1419 Authorized AIP or FSA Personnel Appraisals of Unharvested Acreage .................................... 215
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PART 14 PRODUCTION EVIDENCE (Continued)

Section 2 Acceptable Verifiable Records (Continued)

1420 Authorized AIP or FSA Personnel Measurement of Farm Stored Production ............................ 217
1421 Pre-harvest Appraisal and Other Record Types .......................................................................... 217
1422-1430 (Reserved) .......................................................................................................................... 220

Section 3 Acceptable Farm Management Records

1431 Crops that Qualify for Farm Management Records .................................................................... 221
1432 Measurement of Farm Stored Production by Insured .................................................................. 221
1433 Automated Yield Monitoring Systems ........................................................................................ 221
1434 Livestock Feeding Records.......................................................................................................... 223
1435 Field Harvest Records.................................................................................................................. 224

Section 4 Vertically Intergrated

1436 Vertically Integrated Producer Defined ....................................................................................... 225
1437 Acceptable Records for Vertically Integrated Producers ............................................................ 225
1438 Required Documentation ............................................................................................................. 225
1439-1450 (Reserved) .......................................................................................................................... 225

Section 5 Direct Marketing

1451 Direct Marketing Defined ............................................................................................................ 226
1452 Direct Marketing Requirements .................................................................................................. 226
1453 Acceptable Records for Direct Marketing Producers .................................................................. 226
1454-1500 (Reserved) .......................................................................................................................... 226

PART 15 APH DATABASE

Section 1 General Information

1501 APH Database Requirements ...................................................................................................... 227
1502 The Base Period ........................................................................................................................... 227
1503 Types of Yields ............................................................................................................................ 227
1504 Yield Descriptors ......................................................................................................................... 229
1505 Required Separate APH Database ............................................................................................... 230
1506 Production or Acreage Not to be Included .................................................................................. 232
1507 Transfer of APH Data .................................................................................................................. 232
1508 Use of Another Person’s Production History - BFR ................................................................... 234
1509 Use of Another Person’s Acreage and Production History ......................................................... 236
1510 Use of APH When Insureds Change or Land is Transferred to Another Person ........................ 238
1511 APH Database Instructions .......................................................................................................... 241
1512 Impact of Combining and Dividing ............................................................................................. 242
1513-1520 (Reserved) .......................................................................................................................... 243

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PART 15 APH DATABASE (Continued)

Section 2 APH Databases and Yield Determinations Combined and Divided

1521 General Rules for Combining and Dividing APH Databases ...................................................... 244
1522 Combining APH Databases ......................................................................................................... 245
1523 Dividing APH Databases ............................................................................................................. 246
1524 No Actual or Assigned Yields ..................................................................................................... 251
1525-1540 (Reserved) .......................................................................................................................... 251

Section 3 APH Yield Adjustment

1541 Yield Adjustment General Information ....................................................................................... 252
1542 Election of APH Yield Adjustment ............................................................................................. 252
1543 Cancelling APH Yield Adjustments ............................................................................................ 252
1544 T-Yields Used for YA ................................................................................................................. 253
1545 Calculating Approved APH Yields When YA is Elected ........................................................... 255
1546 Determining Premium Rates........................................................................................................ 258
1547-1550 (Reserved) .......................................................................................................................... 258

Section 4 APH Yield Exclusion

1551 YE General Information .............................................................................................................. 259
1552 Eligibility for YE ......................................................................................................................... 259
1553 Cancellation ................................................................................................................................. 260
1554 Transfers ...................................................................................................................................... 260
1555 Applicability of WAs ................................................................................................................... 260
1556 Applicability of Yield Limitations and Yield Reductions ........................................................... 260
1557 Actual Yields Eligible for YE...................................................................................................... 261
1558 Exclusion of an Actual Yield for an Eligible Crop Year Within an APH Database ................... 261
1559 YE Interaction with YA ............................................................................................................... 263
1560 Impact of YE Specific to Category B Crops ............................................................................... 264
1561 Impact of YE for Perennial Crops (Category C/Pecan Revenue) ................................................ 265
1562 Impact of YE for RO Determined Yields .................................................................................... 266
1563 Adjusted Yield ............................................................................................................................. 266
1564 Rate Yield Calculation ................................................................................................................. 266
1565 Calculating the Yields for APH Databases When YE is Elected ................................................ 267
1566 Determining Premium Rates When YE Applies to an APH Database ........................................ 268
1567-1570 (Reserved) .......................................................................................................................... 268

Section 5 Yield Reductions

1571 General Information..................................................................................................................... 269
1572 General Rules............................................................................................................................... 270
1573 Excessive Actual Yields .............................................................................................................. 272
1574 Inconsistent Approved APH Yields and Insured Acreage Limitations ....................................... 275
1575 Different Production Methods ..................................................................................................... 280
1576-1580 (Reserved) .......................................................................................................................... 282

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PART 15 APH DATABASE (Continued)

Section 6 Reviewing and Correcting APH Yields

1581 Review Requirements .................................................................................................................. 283
1582 Correcting APH Yields ................................................................................................................ 283
1583 Tolerances .................................................................................................................................... 284
1584-1600 (Reserved) .......................................................................................................................... 286

PART 16

1601-1700 (Reserved) .......................................................................................................................... 287

PART 17 CATEGORY B CROP PROCEDURES

Section 1 APH Database

1701 General Information..................................................................................................................... 289
1702 Methods to Establish an APH Database ...................................................................................... 289
1703-1706 (Reserved) .......................................................................................................................... 293

Section 2 T-Yields
1707 General Information..................................................................................................................... 294
1708 T-Yield Methods .......................................................................................................................... 294
1709-1712 (Reserved) .......................................................................................................................... 295

Section 3 Reporting Production for P/T/TMAs

1713 Applicability ................................................................................................................................ 296
1714 Separate Production ..................................................................................................................... 296
1715 Separating Commingled Production ............................................................................................ 296
1716-1720 (Reserved) .......................................................................................................................... 297

Section 4 Yield Limitations

1721 General Information..................................................................................................................... 298
1722 Cups ............................................................................................................................................. 298
1723 Yield Floors ................................................................................................................................. 299
1724 Yield Limitation Calculations...................................................................................................... 300
1725 Determining Premium Rates........................................................................................................ 300
1726-1730 (Reserved) .......................................................................................................................... 300

Section 5 New Producer

1731 New Producer Qualifications ....................................................................................................... 301
1732 Deadline ....................................................................................................................................... 306
1733 Verification .................................................................................................................................. 306
1734 Documentation ............................................................................................................................. 306
1735 Approved APH Yield Determination .......................................................................................... 306
1736 Added Land and New Crop P/T APH Database .......................................................................... 308
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PART 17 CATEGORY B CROP PROCEDURES (Continued)

Section 5 New Producer (Continued)

1737 For Subsequent Crop Years ......................................................................................................... 308

Section 6 RO Determined Yields

1738 General Information..................................................................................................................... 309
1739 Verifier Responsibilities .............................................................................................................. 309
1740-1746(Reserved) ........................................................................................................................... 309

Section 7 Master Yields

1747 General Information..................................................................................................................... 310
1748 Initial MY Approval Authorities ................................................................................................. 310
1749 Deadlines ..................................................................................................................................... 311
1750 General Information..................................................................................................................... 312
1751 Cancelling MYs ........................................................................................................................... 312
1752 Requirements for Establishing Initial MY(s) .............................................................................. 312
1753 Production Reporting Requirements............................................................................................ 314
1754 Establishing a MY ....................................................................................................................... 315
1755 MY Summary APH Database Unit Number ............................................................................... 319
1756 Updating Established MY(s) ....................................................................................................... 319
1757 Yield Limitation Provisions (Cup Only) ..................................................................................... 320
1758 Yield Adjustment ......................................................................................................................... 320
1759 Yield Exclusion ........................................................................................................................... 320
1760-1762 (Reserved) .......................................................................................................................... 320

Section 8 Acreage Emerging From a USDA Program, New Breaking and Native Sod
1763 Acreage Emerging From a USDA Program ................................................................................ 321
1764 New Breaking Acreage ................................................................................................................ 323
1765 Native Sod Acreage ..................................................................................................................... 325
1766-1770 (Reserved) .......................................................................................................................... 328

Section 9 Added Land

1771 General Information..................................................................................................................... 329
1772 AIP Responsibilities .................................................................................................................... 329
1773 APH Databases for Added Land.................................................................................................. 329
1774 Methods for Determining Approved APH Yields for Added Land ............................................ 330
1775 Cropland Acreage Limitations ..................................................................................................... 337
1776 Submission of Added Land/New Crop/P/T Request for RO Underwriting Review ................... 343
1777 Added Land/New Crop/P/T Request and Supporting Documentation ........................................ 344
1778 AIP Review and Submission of Added Land/New Crop/P/T Request........................................ 344
1779 AIP Review and Verification Prior to Payment of Indemnity ..................................................... 345
1780 Added Land Yield Descriptors and Indicators ............................................................................ 346
1781-1786 (Reserved) .......................................................................................................................... 346

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PART 17 CATEGORY B CROP PROCEDURES (Continued)

Section 10 Yield Determinations That Do Not Qualify as Added Land

1787 Added Crop/P/T/ APH Databases ............................................................................................... 347
1788 New Crop/P/T APH Databases .................................................................................................... 347
1789-1790 (Reserved) ......................................................................................................................... 348

Section 11 Switching from an ARPI policy to a CCIP Policy

1791 APH Database Impacts ................................................................................................................ 349
1792 Applicability of Yield Limitations............................................................................................... 350
1793 Applicability of Added Land and New Crop/P/T Procedures ..................................................... 351
1794-1800 (Reserved) .......................................................................................................................... 351

PART 18 CATEGORY C CROPS

Section 1 General Information

1801 Background .................................................................................................................................. 353
1802 Insured Crop ................................................................................................................................ 353
1803 Crops with Minimum Age and/or Production Requirements ...................................................... 354
1804-1806 (Reserved) .......................................................................................................................... 357

Section 2 Acreage
1807 General Information..................................................................................................................... 358
1808 Acceptable Forms of Acreage Measurement ............................................................................... 358
1809 Acreage Measurement Methods .................................................................................................. 359
1810 Acreage Adjustments ................................................................................................................... 359
1811 Prior Acreage Removed ............................................................................................................... 362
1812-1816 (Reserved) .......................................................................................................................... 362

Section 3 Age/Leaf Year Determinations

1817 All Crops, except Citrus and Macadamia .................................................................................... 363
1818 Arizona-California Citrus and Texas Citrus Fruit ....................................................................... 363
1819 Macadamia Nuts .......................................................................................................................... 364

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

1820 General Information..................................................................................................................... 365
1821 PAW Elements............................................................................................................................. 365
1822 AIP PAW Review ........................................................................................................................ 369
1823 PAW Triggers a PAIR ................................................................................................................. 370
1824-1836 (Reserved) .......................................................................................................................... 370

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PART 18 CATEGORY C CROPS (Continued)

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

1837 General Information..................................................................................................................... 371
1838 PAIR Requirement....................................................................................................................... 371
1839 PAIR Waivers .............................................................................................................................. 372
1840 PAIR Deadline ............................................................................................................................. 372
1841 PAIR Completion Requirements ................................................................................................. 372
1842 PAIR Elements ............................................................................................................................ 373

Section 6 Crop Addendum Worksheet(s) (CAW)

1843 General Information..................................................................................................................... 379
1844-1849 (Reserved) .......................................................................................................................... 379

Section 7 APH Database

1850 APH Database Establishment ...................................................................................................... 380
1851 Block Reporting ........................................................................................................................... 380
1852 Separate P/T/TMA/Other Characteristics .................................................................................... 380
1853 Commingled Production .............................................................................................................. 381
1854 Organic Perennials ....................................................................................................................... 382
1855 Acreage Less than a Tenth of an Acre ......................................................................................... 382
1856 APH Database Establishment Methods ....................................................................................... 382
1857 Multi-Purpose Production and Yield Worksheet ......................................................................... 384
1858 T-Yield Instructions ..................................................................................................................... 385
1859 Weighted Average Age/Density .................................................................................................. 385
1860 Added Insurable Acreage ............................................................................................................ 386
1861 Added Land/New Producers ........................................................................................................ 389
1862 APH Database Tests for High Variability of Actual Yields ........................................................ 390
1863 Approved APH Yield .................................................................................................................. 397
1864-1870 (Reserved) .......................................................................................................................... 397

Section 8 Yield Information

1871 Yield Indicators ........................................................................................................................... 398
1872 Yield Adjustments ....................................................................................................................... 398
1873 Yield Limitations ......................................................................................................................... 398
1874-1880 (Reserved) .......................................................................................................................... 400

Section 9 RO Determined Yields

1881 Situations for a RO Determined Yield Request ........................................................................... 401
1882 Verifier Responsibilities .............................................................................................................. 402
1883-1900 (Reserved) .......................................................................................................................... 402

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PART 19 ADDITIONAL PROVISIONS BY CROP

Section 1 Category B Crops

1901 General Information..................................................................................................................... 403
1902 Cabbage (Fresh Market and Processing) ..................................................................................... 403
1903 Coarse Grains: Corn, Soybeans, and Grain Sorghum................................................................. 405
1904 Cotton and ELS Cotton ................................................................................................................ 410
1905 Cultivated Wild Rice ................................................................................................................... 411
1906 Dry Beans .................................................................................................................................... 412
1907 Dry Peas ....................................................................................................................................... 414
1908 Forage Production ........................................................................................................................ 417
1909 Green Peas ................................................................................................................................... 419
1910 Mint.............................................................................................................................................. 420
1911 Mustard ........................................................................................................................................ 420
1912 Onions .......................................................................................................................................... 421
1913 Peanuts ......................................................................................................................................... 422
1914 Popcorn ........................................................................................................................................ 423
1915 Potatoes ........................................................................................................................................ 424
1916 Processing Beans ......................................................................................................................... 425
1917 Processing Sweet Corn ................................................................................................................ 426
1918 Rice .............................................................................................................................................. 426
1919 Small Grains: Wheat, Barley, Oats, Rye, Buckwheat, and Flax ................................................ 427
1920 Sugar Beets .................................................................................................................................. 429
1921 Sugarcane ..................................................................................................................................... 430
1922 Tobacco........................................................................................................................................ 432
1923 Tomatoes, Fresh Market Guaranteed Production ........................................................................ 434
1924 Tomatoes Processing ................................................................................................................... 434
1925-1940 (Reserved) .......................................................................................................................... 434

Section 2 Category C Crops

1941 General Information..................................................................................................................... 435
1942 Almonds ....................................................................................................................................... 435
1943 Apples .......................................................................................................................................... 435
1944 Avocados, Florida ........................................................................................................................ 437
1945 Blueberries ................................................................................................................................... 437
1946 Citrus............................................................................................................................................ 438
1947 Cranberries ................................................................................................................................... 440
1948 Figs .............................................................................................................................................. 440
1949 Grapes .......................................................................................................................................... 440
1950 Table Grapes ................................................................................................................................ 441
1951 Macadamia Nuts .......................................................................................................................... 441
1952 Peaches ........................................................................................................................................ 441
1953 Pears ............................................................................................................................................. 442
1954 Prunes .......................................................................................................................................... 443
1955 Stonefruit ..................................................................................................................................... 443
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PART 19 ADDITIONAL PROVISIONS BY CROP (Continued)

Section 2 Category C Crops (Continued)

1956 Walnuts ........................................................................................................................................ 444
1957-2000 (Reserved) .......................................................................................................................... 444

PART 20 CATEGORY D CROPS

Section 1 Insurability
2001 General Information..................................................................................................................... 445
2002 Production Reports ...................................................................................................................... 445
2003 OU for Raisins ............................................................................................................................. 445
2004-2006 (Reserved) .......................................................................................................................... 445

Section 2 Dollar Plans of Insurance

2007 PAW ............................................................................................................................................ 446
2008 Block Map ................................................................................................................................... 450
2009 PAIR Information ........................................................................................................................ 450
2010 Macadamia Orchard PAIR and Plat Map .................................................................................... 461
2011-2020 (Reserved) .......................................................................................................................... 463

Section 3 RO Determined Yield Request

2021 Florida Citrus RO Determined Yield Request ............................................................................. 464
2022-2024 (Reserved) .......................................................................................................................... 464

Section 4 Dollar Plans of Insurance Age or Leaf Year Determinations

2025 General Information..................................................................................................................... 465
2026-2030 (Reserved) .......................................................................................................................... 466

Section 5 Dollar Plans of Insurance Acreage Information

2031 General Information..................................................................................................................... 467
2032 Excluded Acreage ........................................................................................................................ 469
2033 Florida Citrus Fruit Liability Adjustment Determination ............................................................ 470
2034 Macadamia Trees Liability Adjustment Determination .............................................................. 471
2035-2040 (Reserved) .......................................................................................................................... 471

Section 6 Dollar Plans of Insurance Additional Records and Provisions

2041 General Information..................................................................................................................... 472
2042 (Reserved) .................................................................................................................................... 472

Section 7 Yield Based Dollar Amount of Insurance Plans

2043 General Information..................................................................................................................... 473
2044 Different Coverage Levels ........................................................................................................... 473
2045 Units ............................................................................................................................................. 473
2046 County Yields for Hybrid Seeds .................................................................................................. 473
June 2015 FCIC 18010 TC-13
 TABLE OF CONTENTS

PART 20 CATEGORY D CROPS (Continued)

Section 7 Yield Based Dollar Amount of Insurance Plans (Continued)

2047 Amount of Insurance ................................................................................................................... 473
2048 Minimum Contract Payment........................................................................................................ 474
2049 Yield Based Factor for Seed Companies ..................................................................................... 474
2050 Approved Yields .......................................................................................................................... 474
2051 Value per Bushel.......................................................................................................................... 475
2052 Hybrid Seed Corn or Hybrid Sorghum Seed Approved Yield Requests ..................................... 475
2053-2100 (Reserved) .......................................................................................................................... 476

PART 21 PECAN REVENUE

Section 1 General Requirements

2101 Background .................................................................................................................................. 477
2102 Insurability Requirements ............................................................................................................ 477
2103 Two-Year Coverage Module ....................................................................................................... 478
2104 Unit Division ............................................................................................................................... 478
2105 Premium ....................................................................................................................................... 479
2106 Transfers ...................................................................................................................................... 479
2107 CAT Coverage ............................................................................................................................. 479
2108-2116 (Reserved) .......................................................................................................................... 479

Section 2 Acreage Reporting

2117 Acreage Reports........................................................................................................................... 480
2118 Acreage ........................................................................................................................................ 482
2119 Changes to the Amount of Insurance........................................................................................... 482
2120-2130 (Reserved) .......................................................................................................................... 484

Section 3 Revenue Reporting

2131 Revenue Reports .......................................................................................................................... 485
2132 Revenue Report Required Elements ............................................................................................ 487
2133 Production Evidence .................................................................................................................... 488
2134 Excessive Actual Yield ................................................................................................................ 489
2135-2140 (Reserved) .......................................................................................................................... 489

Section 4 Summary of Revenue History

2141 Summary of Revenue History (SRH) Database .......................................................................... 490
2142 Summary of Revenue History Required Elements ...................................................................... 493
2143-2144 (Reserved) .......................................................................................................................... 493

June 2015 FCIC 18010 TC-14

 TABLE OF CONTENTS

PART 21 PECAN REVENUE (Continued)

Section 5 PAW/PAIR/CAW
2145 PAW ............................................................................................................................................ 494
2146 PAW Required Elements ............................................................................................................. 494
2147 AIP PAW Review ........................................................................................................................ 496
2148 PAW Triggers a PAIR ................................................................................................................. 496
2149 PAIR ............................................................................................................................................ 497
2150 PAIR Requirements ..................................................................................................................... 497
2151 PAIR Waivers .............................................................................................................................. 498
2152 PAIR Deadline ............................................................................................................................. 498
2153 PAIR Completion Requirements ................................................................................................. 499
2154 PAIR Required Elements ............................................................................................................. 499
2155 CAW Information ........................................................................................................................ 505
2156-2166 (Reserved) .......................................................................................................................... 506

Section 6 RO Underwriting
2167 RO Determined Yield Request .................................................................................................... 507
2168-2200 (Reserved) .......................................................................................................................... 507

PART 22 RO UNDERWRITING

Section 1 Transmitting RO Determined Yield, MY, and Added Land/New Crop/P/T Request
2201 ROE Requirement ........................................................................................................................ 509
2202 AIP Alert Mechanisms ................................................................................................................ 510
2203 Separate Submission for WA....................................................................................................... 510
2204 Transmitting an Added Land/New Crop/P/T Request as a RO Determined Yield Request ....... 510
2205-2210 (Reserved) .......................................................................................................................... 510

Section 2 Determined Yields, MY, and UG

2211 Category B Crops ........................................................................................................................ 511
2212 Category C Crops ........................................................................................................................ 512
2213 Category D Crops ........................................................................................................................ 515
2214 Pecan Revenue ............................................................................................................................. 516
2215-2220 (Reserved) .......................................................................................................................... 517

Section 3 Added Land/New Crop/P/T

2221 When RMA RO Will Perform an Underwriting Review ............................................................ 518
2222 RO Responsibilities ..................................................................................................................... 518
2223 RMA RO Review ........................................................................................................................ 518
2224-3000 (Reserved) .......................................................................................................................... 519

June 2015 FCIC 18010 TC-15

 TABLE OF CONTENTS

EXHIBITS 1-8

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

Reserved ............................................................................................................................................... 523
Reserved ............................................................................................................................................... 525
Reserved ............................................................................................................................................... 527
Reserved ............................................................................................................................................... 529
Reserved ............................................................................................................................................... 531
Reserved ............................................................................................................................................... 533
Reserved ............................................................................................................................................... 535

EXHIBIT 9 ENDORSEMENTS AND OPTIONS

A. Endorsements and Options Chart ................................................................................................ 537

B. Wheat or Barley and Dry Pea Winter Coverage Endorsement Flow Chart ................................ 545
C. SCO Endorsement Calculation Examples ................................................................................... 546

EXHIBIT 10 UNITS

A. Examples of Unit Numbering when Units Change ..................................................................... 550

B. Combining Units and APH Databases ......................................................................................... 551
C. Dividing Units Examples ............................................................................................................. 557
D. Additional Bean Procedure for Units and Yields by Types ........................................................ 560
E. Flowchart for Determining Unit Structure when Insured Does Not Qualify for Enterprise Units
by Irrigated and Non-Irrigated Practices ..................................................................................... 562

EXHIBIT 11 UNDERWRITING RULES FOR SPECIFIC PRACTICES

A. Summerfallow Database .............................................................................................................. 563

B. Skip-Row Planted Cotton and ELS Cotton Overview ................................................................. 564
C. FSA Determination for 30/50 Planting Pattern ........................................................................... 564
D. Percent Planted Factor, Yield Conversion Factor, and PASS Skip-Row Code Applicable to
Arkansas, Louisiana, Missouri, and All States East of those States ............................................ 565
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
..................................................................................................................................................... 567
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 .................. 568
G. Determining Planted Acres Using FSA Percent Planted Factor and Calculating Per Acre Yield
Using Skip-Row Yield Conversion Factor .................................................................................. 570
H. Commingled Production from IRR Solid-Planted and NI Skip-Row Planted Cotton................. 571
I. Category B Crop APH Database Examples for Transitioning under an Organic Plan ............... 573
J. Example for Initial Year of Certified Organic APH Database .................................................... 586

June 2015 FCIC 18010 TC-16

 TABLE OF CONTENTS

EXHIBIT 11 UNDERWRITING RULES FOR SPECIFIC PRACTICES (Continued)

K. APH Databases for Transitional and Certified Organic-Drift ..................................................... 587

L. Examples of Transitioning without an Organic Plan and Other Exceptions ............................... 589

EXHIBIT 12

Reserved ............................................................................................................................................... 598

EXHIBIT 13 PRODUCTION REPORT

A. Soybeans Example of Completed Production Report for Production Reporting Requirements . 600
B. Corn Example of Completed Production Report for Production Reporting Requirements ........ 601

EXHIBIT 14

Reserved ............................................................................................................................................... 602

EXHIBIT 15 APH DATABASE

A. Examples of Completed APH Databases-New Insured............................................................... 604

B. Examples of Completed APH Databases-New Producer ............................................................ 605
C. Examples of Completed APH Databases –Carryover Insured .................................................... 606
D. Examples of Completed APH Databases-Zero-Acreage Reported ............................................. 607
E. Examples of Completed APH Databases-Assigned Yield .......................................................... 608
F. Examples of Completed APH Databases-Category C Crops ...................................................... 609
G. Yield Determinations-Converting an Existing Practice to a New Practice ................................. 610
H. Yield Determinations—Combining Two Practices into a New Practice..................................... 611
I. Yield Determinations-Dividing a Practice into Two Practices Using Apportionment ................ 612
J. Yield Determinations-Dividing a Practice into Two Practices Using Attribution ...................... 614
K. Yield Determinations-Dividing a Practice into Two Practices Using Recertification ................ 615
L. Yield Determinations-Dividing APH Databases by Recertification ........................................... 616
M. Yield Determinations-Dividing APH Databases by Apportioning Commingled Production ..... 620
N. Yield Determinations-Dividing APH Databases by Attributing Acres and Production.............. 625
O. Yield Determinations-Dividing APH Databases Using All 3 Methods ...................................... 626
P. Yield Determinations-Dividing an Added Land APH Database ................................................. 628
Q. Dividing an APH Database when a Type is Divided into More than Two Types....................... 631
R. Dividing an APH Database When Only One Type has been Produced ...................................... 637
S. Retaining 10 Crop Years of APH History ................................................................................... 638
T. Dividing Previously Established APH Databases for P/Ts with the Same T-Yield .................... 639
U. Yield Indicators ........................................................................................................................... 641
V. Yield Descriptors ......................................................................................................................... 643
W. APH Yield Limitations/Adjustments- Carryover Insured with Actual Yields ............................ 649
X. APH Yield Limitations/Adjustments- No Production Records Initially ..................................... 652
Y. APH Yield Limitations/Adjustments- Assigned Yield................................................................ 653
June 2015 FCIC 18010 TC-17
 TABLE OF CONTENTS

EXHIBIT 15 APH DATABASE Continued)

Z. Carryover Insured Provided a Production Report Applicable for the 2016 Crop Year ............... 653
AA. Yield Adjustment Examples ........................................................................................................ 654
BB. Yield Exclusion Examples ........................................................................................................... 655
CC. Yield Reductions- Excessive Actual Yield (Without Verifiable Records) ................................. 663
DD. Inconsistent Approved APH Yield and Insured Acreage Limitation .......................................... 664
EE. Determining Tolerance and Corrective Action............................................................................ 666

EXHIBIT 16

Reserved ............................................................................................................................................... 669

EXHIBIT 17 CATEGORY B CROP PROCEDURES

A. Category B Crops- Multi-Purpose Production and Yield Worksheet ......................................... 671

B. Category B Crops-Master Yields................................................................................................. 673
C. Category B Crops-Acreage Emerging from USDA Program, New Breaking, and Native Sod
Examples...................................................................................................................................... 677
D. Cup Applicability Chart ............................................................................................................... 692
E. Recording and Maintaining SA T-Yields .................................................................................... 693
F. Special APH Instructions for Contract Seed Beans and Contract Seed Peas .............................. 695
G. Green Pea Example...................................................................................................................... 702
H. Potato Example ............................................................................................................................ 704
I. Forage Production Underwriting Report ..................................................................................... 705
J. Elements and Information Required for Forage Production Underwriting Report ..................... 705
K. Forage Production Underwriting Report Example ...................................................................... 707
L. Applicable Native Sod Annual Crops.......................................................................................... 708

EXHIBIT 18 CATEGORY C CROP PROCEDURES

A. Category C Crop- Apple Crop Addendum Worksheet Procedures ............................................. 709

B. Category C Crop- Peach Crop Addendum Worksheet Procedures ............................................. 712
C. Category C Crop- Pear Crop Addendum Worksheet Procedures ................................................ 716
D. Category C Crops-Grape/Table Grape Crop Addendum Worksheet Procedures ....................... 719
E. Category C Crop Procedures- Cranberry Crop Addendum Worksheet....................................... 722
F. Blueberry (High Bush and Rabbit Eye) Crop Addendum Worksheet Procedures ...................... 725
G. Blueberry (Low Bush) Crop Addendum Worksheet Procedures ................................................ 728
H. Almonds, Citrus, Figs, Fresh Plums, Macadamia Nuts, Pecans, Prunes, Stonefruit, Walnuts Crop
Addendum Worksheet Procedures .............................................................................................. 731
I. Florida Avocado Crop Addendum Worksheet Procedures ......................................................... 735
J. Apple PAW Examples ................................................................................................................. 738
K. Peaches PAW Examples .............................................................................................................. 757
L. Shelling Percentage Chart for Clean Unshelled Almonds ........................................................... 766
M. APH Block Production Worksheet .............................................................................................. 767
June 2015 FCIC 18010 TC-18
 TABLE OF CONTENTS

EXHIBIT 18 CATEGORY C CROP PROCEDURES Continued)

N. Weighted Average Density Worksheet ....................................................................................... 769

O. Tree/Vine/Bush Measurement ..................................................................................................... 771
P. Planting Patterns .......................................................................................................................... 771
Q. Hedgerow/Border Planting Pattern .............................................................................................. 772
R. Hexagonal/Quincunx Planting Pattern ........................................................................................ 773
S. Double Row Planting Pattern ...................................................................................................... 775
T. Interplanted Crop Planting Pattern .............................................................................................. 776
U. Missing and Partial Tree Formulas .............................................................................................. 778
V. Additional Information ................................................................................................................ 780
W. Database Administration for Fresh and Processing Apples ........................................................ 781

EXHIBIT 19

Reserved ............................................................................................................................................... 787

EXHIBIT 20 CATEGORY D CROP PROCEDURES

A. Hybrid Seed Corn or Sorghum Seed Notice of Loss ................................................................... 789

B. Florida Citrus Fruit Producer’s Pre-Acceptance Worksheet ....................................................... 790
C. Macadamia Orchard Inspection Report ....................................................................................... 791
D. Florida Citrus, Dollar Plan of Insurance, Percent Stand Example .............................................. 792
E. Summary of Revenue History (SRH) .......................................................................................... 794
F. Hybrid Seed Corn Yield Request Required Information ............................................................. 796
G. Hybrid Sorghum Seed Yield Request Required Information ...................................................... 798

EXHIBIT 21-22

Reserved ............................................................................................................................................... 800

Reserved ............................................................................................................................................... 802

EXHIBIT 23 MISCELLANEOUS

Production Report and APH Database Flowchart ................................................................................ 804

June 2015 FCIC 18010 TC-19

 TABLE OF CONTENTS

June 2015 FCIC 18010 TC-20

 PART 1 GENERAL INFORMATION
1 General Information

A. Purpose

FCIC is established by the Federal Crop Insurance Act, 7 U.S.C. 1501, to promote the
national welfare by improving the economic stability of agriculture through a sound system
of crop insurance and providing the means for the research and experience helpful in
devising and establishing insurance. The RMA is the administering USDA agency on
behalf of FCIC.

This handbook provides the official FCIC-issued underwriting standards for policies
insured under the Common Crop Insurance Policy Basic Provisions, 7 CFR Part 457
including the Catastrophic Risk Protection Endorsement, 7 CFR Part 402, the Actual
Production History Regulation 7 CFR Part 400 Subpart G, and the Area Risk Protection
Insurance Regulations, 7 CFR Part 407.

This handbook does not cover pilot programs or private insurance products submitted under
the authority of the Federal Crop Insurance Act, e.g., Section 508(h) or 523(d), unless the
underwriting guide refers to the CIH for applicability.

B. Source of Authority

Federal programs enacted by Congress and the regulations and policies developed by RMA,
USDA, and other Federal agencies provide the authority for program and administrative
operations; and basis for RMA directives. Administration of the Federal crop insurance
program is authorized by the following.

(1) The Federal Crop Insurance Act, 7 U.S.C. 1501

(2) The Food Security Act of 1985, 16 U.S.C. 3801 et seq.
(3) Controlled Substance Act of 1970, 21 U.S.C. 801 et seq.
(4) Personal Responsibility and Work Opportunity Reconciliation Act of 1996, 42 U.S.C.
653a
(5) Privacy Act of 1974, 7 U.S.C. 552a
(6) 7 CFR part 400
(7) Standard Reinsurance Agreement
(8) 7 CFR part 12

C. Related Handbooks

The following table provides handbooks closely related to this handbook. However, other
RMA approved handbooks may refer to this handbook and be applicable.

HANDBOOK RELATION/PURPOSE
Regional office standards and instructions for determining and assigning
CSH
coverage and rate classifications.

June 2015 FCIC 18180 1

1 General Information (continued)

C. Related Handbooks (continued)

HANDBOOK RELATION/PURPOSE
Provides standards and instructions for handling of actuarial change
WAH
requests and written agreements.
Provides form standards and procedures for use in the sales and service of
crop insurance contracts. Provides submission and review procedures for
non-reinsured supplemental policies.
DSSH
AIP forms must meet the form standards as provided in the DSSH. The
DSSH provides the substantive elements for AIP form development;
including conflict of interest, nondisclosure, and Privacy Act statements
whereas, the CIH provides the instructions for form completion.
ITS Provides instructions for administration of the ineligible tracking system.
NUG Provides instructions for administration of the nursery crop provisions.
Identifies loss adjustment standards and requirements for determining
LAM
production or revenue and adjusting crop insurance claims.
Provides the general administrative procedures that apply across all plans
GSH
of insurance.
Standards, instructions, and information for electronic data reporting of
Appendix III policyholder, commodity, and other information submitted by AIPs as
required by the SRA, LPRA, or other policy and procedure.
STAX Procedures for administering STAX (cotton only).

D. Regulatory or Procedural Conflict

If there is a conflict between this handbook and the following, the following take
precedence.

(1) Federal Crop Insurance Act and any FAD interpreting the Act
(2) The CAT Endorsement, as applicable, and any FAD interpreting the CAT
Endorsement
(3) Written Agreement, as applicable
(4) The Special Provisions and actuarial documents
(5) Crop endorsements/options and any FAD interpreting the crop endorsement/option if
published at 7 CFR part 457
(6) Crop Provisions and any FAD interpreting the Crop Provisions
(7) Basic Provisions and any FAD interpreting the Basic Provisions
(8) Administrative regulations (7 CFR part 400) and any FAD interpreting the
administrative regulations
(9) Manager’s Bulletins and PM Informational Memorandums
(10) Plan specific directives such as the Crop Insurance Handbook/WFRP Pilot
Handbook/STAX Underwriting Standards Handbook/Rainfall and Vegetative Index
Insurance Standards Handbook, as applicable to the policy’s plan of insurance
(11) General Standards Handbook
(12) Loss Adjustment Manual

June 2015 FCIC 18180 2

1 General Information (continued)

E. Procedural Issuance Authority

This handbook is written and maintained by:

Office of Deputy Administrator for Product Management

Product Administration and Standards Division
USDA—Risk Management Agency
Beacon Facility—Mail Stop 0812
P.O. Box 419205
Kansas City, MO 64141-6205

For applicable RMA Regional or Compliance office contacts referenced throughout this
handbook, refer to [Link]/aboutrma/[Link] .

F. Procedural Questions

(1) Questions regarding underwriting procedures in this handbook are to be directed:

(a) to the AIP, if not resolved, then

(b) through appropriate channels within the AIP to RMA.

RMA will not attempt to instruct agents or insureds of the AIP.

(2) If a perceived error is identified, notify RMA in writing at the address contained in the
preceding paragraph or by e-mail at [Link]@[Link]. The writing must
clearly identify the error and provide the proposed correction.

If RMA determines the error identified is significant, RMA will issue a correction
either in the existing crop year through a slip-sheet to the CIH or a
memorandum/bulletin. Conversely, if RMA determines the error identified as not to
be significant, correction will be included in the subsequent issuance of the CIH.

2 Responsibilities

AIPs must use standards, procedures, methods and instructions as authorized by FCIC in the sale
and service of crop insurance contracts. Each AIP is responsible for using RMA approved
procedures. Procedures herein must be administered on a policy basis.

June 2015 FCIC 18180 3

3 Title VI of the Civil Rights Act of 1964

The USDA prohibits discrimination against its customers. Title VI of the Civil Rights Act of
1964 provides that “No person in the United States shall, on the ground of race, color, or national
origin, be excluded from participation in, be denied the benefits of, or be subjected to
discrimination under any program or activity receiving Federal financial assistance”. Therefore,
programs and activities that receive Federal financial assistance must operate in a non-
discriminatory manner. Also, a recipient of RMA funding may not retaliate against any person
because he or she opposed an unlawful practice or policy, or made charges, testified or
participated in a complaint under Title VI.

It is the AIP’s responsibility to ensure that standards, procedures, methods and instructions, as
authorized by FCIC in the sale and service of crop insurance contracts, are implemented in a
manner compliant with Title VI. Information regarding Title VI of the Civil Rights Act of 1964
and the program discrimination complaint process is available on the RMA public website at
[Link]

4-200 (Reserved)

June 2015 FCIC 18180 4

 PART 2
201-300 (Reserved)

June 2015 FCIC 18180 5

201-300 (Reserved)

June 2015 FCIC 18180 6

 PART 3
301-400 (Reserved)

June 2015 FCIC 18180 7

301-400 (Reserved)

June 2015 FCIC 18180 8

 PART 4
401-500 (Reserved)

June 2015 FCIC 18180 9

401-500 (Reserved)

June 2015 FCIC 18180 10

 PART 5

501-600 (Reserved)

June 2015 FCIC 18180 11

501-600 (Reserved)

June 2015 FCIC 18180 12

 PART 6

601-700 (Reserved)

June 2015 FCIC 18180 13

601-700 (Reserved)

June 2015 FCIC 18180 14

 PART 7

701-800 (Reserved)

June 2015 FCIC 18180 15

701-800 (Reserved)

June 2015 FCIC 18180 16

 PART 8

801-900 (Reserved)

June 2015 FCIC 18180 17

801-900 (Reserved)

June 2015 FCIC 18180 18

 PART 9 ENDORSEMENTS AND OPTIONS
901 General Information

Endorsements and options that add supplemental coverage, exclude coverage, or otherwise
modify coverage are available for some CP. Endorsements and options:

(1) generally must be applied for on or before the SCD;

(2) generally are continuous and do not automatically transfer when a cancellation or transfer
to another AIP is executed by the insured;

(3) generally only apply to additional coverage policies; and

(4) must be specified on the applicable form to be in effect for the current crop year.

This part provides information about certain endorsements and options. Other endorsements and
options may be available. See Exh. 9 for a listing of endorsements and options, continuous or
yearly elections, applicability to CAT or additional coverage, etc. The actuarial documents
provide endorsements and options that may be selected by the insured.

902 Catastrophic Risk Protection Endorsement

The Catastrophic Risk Protection Endorsement attaches to each CP and modifies its terms and
conditions when Catastrophic Risk Protection coverage is elected. The endorsement:

(1) limits the coverage level and price election;

(2) restricts or changes the unit structure to BUs, by share;
(3) removes replant payment provisions;
(4) does not allow the exclusion of hail and fire coverage;
(5) removes the availability of WA; and
(6) excludes:

(a) MY
(b) Yield Floors
(c) options or endorsements, except those expressly authorized by the Federal Crop
Insurance Act, including:

(i) YA;
(ii) YE;
(iii) Frost Protection Option;
(iv) Table Grape Protective Cover Option;
(v) Sorghum Silage Endorsement;
(vi) Contract Price Addendum, where applicable; and
(vii) SCO Endorsement.

June 2015 FCIC 18180 19

903 High-Risk Land Exclusion Option

A. Excluding High-Risk Land from Additional Coverage

A high-risk classification is provided in the actuarial document for high-risk land. Under
an additional coverage policy, producers are required to insure the high-risk land at an
increased cost reflective of the associated increase in risk when coverage and rates are
provided in the actuarial documents for high-risk land.

Insureds who do not wish to insure high-risk land under an additional coverage policy may
exclude all the high-risk land from the additional coverage by signing and submitting a
High-Risk Land Exclusion Option to the AIP.

The High-Risk Land Exclusion Option is:

(1) by crop and county; and

(2) available for land located in high-risk areas identified in the actuarial documents.

Excluding acreage from coverage may impact eligibility for FSA programs that require
crop insurance coverage. Prior to excluding acreage under this option, insureds are
responsible for contacting the FSA office for guidance relating to any FSA program that
may require crop insurance coverage.

B. CAT Coverage for Excluded High-Risk Land

Insureds that elect the High-Risk Land Exclusion Option may insure high-risk land under a
CAT policy. The CAT policy must be obtained from the same AIP as the additional
coverage policy. The CAT coverage for the excluded high-risk land will be for yield
protection only, even if revenue coverage is elected for the non-high-risk land under the
additional coverage policy.

The CAT policy is considered a separate crop for administrative fee, unit division, added
land, and all other insurance purposes.

Exception: The number of years of actual/assigned yields for yield floor and percent
of variable T-Yields will be determined by crop/county for both the CAT
and additional policy.

C. Application, Cancellation, and Transfers

The High-Risk Land Exclusion Option must be elected on or before the applicable SCD, by
crop and county and is continuous.

Cancellation of the High-Risk Land Exclusion Option must occur on or before the
cancellation date of the applicable CP.

If the policy is transferred to a different AIP, a new High-Risk Land Exclusion Option must
be signed by the insured and submitted to the AIP on or before the applicable SCD.

June 2015 FCIC 18180 20

903 High-Risk Land Exclusion Option (continued)

D. Reporting Acreage and Production

When excluded high-risk land is insured under a CAT policy, the production from such
land must be reported for APH purposes under the CAT policy.

Excluded high-risk land not insured under a CAT policy must be reported as uninsured
acreage on the acreage report. Separate production records showing planted acreage and
harvested production from the excluded high-risk land must also be maintained and
reported by the insured on the production report.

E. Requests for Reclassification

An insured must have an additional coverage policy in force before requesting a

reclassification of high-risk land. Requests for reclassification must be made through a
WA.

The following table provides procedures for when an insured signs the High-Risk Land
Exclusion Option and requests reclassification of the high-risk land through a WA.

IF the excluded high- AND the RO issues a

THEN the …
risk land is … WA that …
High-Risk Land Exclusion Option prevails
does not provide
and the insured must report the acreage as
standard rating
uninsurable.
(1) WA is effective on issuance and
not insured under a
deemed to be accepted by the insured
CAT policy
reclassifies the high-risk and AIP; and
land to standard rating (2) Insured must report the acreage as
insurable under the additional
coverage policy.
High-Risk Land Exclusion Option
does not provide
prevails and the insured must report the
standard rating
acreage on the CAT policy.

insured under a CAT (1) WA is effective on issuance and

policy deemed to be accepted by the insured
reclassifies such
and AIP; and
acreage to standard
(2) Insured must report the acreage as
rating
insurable under the additional
coverage policy.

June 2015 FCIC 18180 21

904 Hail and Fire Exclusion Option

A. Eligibility

Hail and fire may be excluded only from policies with coverage of at least 65 percent
coverage indemnified at 100 percent price election, or equivalent coverage. The exclusion
may be elected on an annual or continuous basis. The Hail and Fire Exclusion Option
applies to all acreage of the crop insured at an equivalent to a minimum 65 percent
coverage indemnified at 100 percent price election. The Hail and Fire Exclusion Option
does not apply to WUs unless allowed by the SP.

Due to an insured’s ability to select different price election or different coverage level
percentages for different types of the same crop, such as dry beans, dry peas or grapes, a
single crop policy may have some types with sufficient coverage to exclude hail and fire
and some types with less than the minimum coverage required. When this occurs, hail and
fire is excluded only from acreage that meets the minimum coverage requirement.

Insured’s executing a Hail and Fire Exclusion Option must provide a copy of the annual
hail and fire declaration page showing the required amount of hail and fire coverage each
year.

B. Deadlines

The request to exclude hail and fire coverage must be submitted to the AIP within 72 hours:

(1) after the effective date of an annual hail and fire policy or the first year a multi-season
hail and fire policy is in force. This request must be made on or before the date
coverage attaches for the crop year when a multi-season hail and fire policy (except
the first year) is in effect.

(2) after the date a private hail policy is first in effect for the insured that has signed the
Continuous Hail and Fire Exclusion Option, or before the date coverage attaches for a
crop year after the first crop year a multi-season hail and fire policy is in effect.

C. Non-acceptance of Hail and Fire Exclusion Option

A request for hail and fire exclusion will not be accepted if the crop has been damaged to
the extent that a loss has occurred and an indemnity is to be, or may be, claimed on any unit
of the crop. For a continuous hail and fire exclusion, the exclusion will not be effective
until the following year. Issuance of a PP or replant payment for any insured unit will not
affect an insured's ability to exclude hail and fire coverage.

June 2015 FCIC 18180 22

904 Hail and Fire Exclusion Option (Continued)

D. Hail and Fire Liability Requirements

The total liability for the hail and fire coverage on the crop must be equal to or greater than
the FCIC reinsured total liability for the crop for each crop year the Hail and Fire Exclusion
Option is in effect. Liability for acreage which is eligible for PP but was not planted is not
considered and the premium is not reduced on such acreage.

(1) The AIP must ascertain/verify that for the crop year of the claim, the amount of
liability under the hail and fire policy equals or exceeds the liability amount that
would have been provided by the CCIP policy for that crop year. Liability for acreage
that is eligible for prevented planting but was not planted is NOT considered and the
premium is not reduced on such acreage.

(2) To determine if the minimum required hail and fire liability is in place for a revenue
protection plan of insurance policy, or revenue protection with the harvest price
exclusion plan of insurance policy, the amount of liability (for this purpose only) will
be computed based upon the projected price.

(3) When ascertaining whether there is adequate liability, uninsurable acreage must be
considered. If uninsurable acreage is involved, the total liability under the hail and
fire policy may exceed the CCIP crop insurance liability due to the extra acreage
(uninsured acreage), yet the insured still MAY NOT have adequate hail and fire
liability to allow exclusion of hail and fire coverage from the CCIP policy.

Example: Based on the above, the insured's hail and fire liability of $50 per acre does
not equal or exceed the $100 per acre liability that would have been
provided by the CCIP policy; therefore, the insured does not have adequate
liability to exclude hail and fire from CCIP coverage.

E. Hail and Fire Providers

Hail and fire policies must be obtained from a company licensed in the state where the
coverage is provided in order to exclude hail and fire from the additional coverage policy.
If hail and fire coverage is provided by unlicensed entities/companies, the exclusion of hail
and fire from the additional coverage policy must be approved by the RMA Reinsurance
Services Division.

The insured may be eligible for the premium credit under the Hail and Fire Exclusion
Option only if coverage for both hail and fire is provided under the other policy obtained by
the insured.

F. Premium Reduction

The premium reduction for the Hail and Fire Exclusion Option is provided in the actuarial
documents. The base premium rate for acreage with additional coverage shall be reduced
for the hail/fire exclusion provided in the actuarial documents. See Appendix III for
calculation of premium.

June 2015 FCIC 18180 23

904 Hail and Fire Exclusion Option (Continued)

G. Liability Revisions

An insured may revise the liability on the Hail and Fire Exclusion Option to reflect the
liability for the reported acreage on the insured crop, provided the:

(1) Hail and Fire Exclusion Option showing the revised liability is submitted no later than
15 days after the liability, based on the reported acreage, is established; and

(2) difference between the total acreage report liability and the total liability shown on the
original Hail and Fire Exclusion Option is more than one percent.

An insured will be considered to have a like amount of private hail and fire liability if the
difference in liability described above is less than one percent.

H. Hail or Fire Damage

If hail and fire coverage is deleted from the additional coverage policy and the crop is
subsequently damaged by hail or fire, an appraisal for uninsured causes of loss will be made
only if the damage due to hail or fire exceeds the deductible established in the policy.

905 Apple Fresh Fruit Quality Adjustment Option

A. Applicability

The Apple Fresh Fruit Quality Adjustment Option:

(1) applies only to additional coverage policies; and

(2) applies to all apple acreage designated on the acreage report as grown for fresh apple
production, unless the acreage is specifically excluded by the actuarial documents.

B. Application, Cancellation, and Transfers

The Apple Fresh Fruit Quality Adjustment Option must be elected on or before the SCD
and is continuous.

Cancellation of the Apple Quality Adjustment Option must occur on or before the
cancellation date of the applicable CP.

If the policy is transferred to a different AIP, a new option must be signed by the insured
and submitted to the AIP on or before the applicable SCD.

June 2015 FCIC 18180 24

906 Wheat or Barley Winter Coverage Endorsement

A. Availability and Applicability

The Wheat or Barley WCE is available only in counties where the actuarial documents
designate both a fall final planting date and a spring final planting date and the actuarial
documents provide a premium rate for this coverage. The endorsement applies only to
additional coverage policies. When elected, the WCE attaches to the Small Grains CP and
provides coverage for fall seeded barley or wheat between the fall final planting date and
the spring final planting date.

B. Indemnity Payments

Any indemnity paid under the Wheat or Barley WCE will be subject to any reduction in the
BP for multiple crop benefits in the same crop year.

C. Application, Cancellation, and Transfers

The Wheat or Barley WCE must be elected on or before the fall SCD and is continuous.

Cancellation of the Wheat or Barley WCE must occur on or before the cancellation date of
the applicable CP. Once the cancellation date has passed, the endorsement cannot be
canceled or otherwise rendered ineffective by either the AIP or the insured for that crop
year. If the policy is transferred to a different AIP, a new Wheat or Barley WCE must be
signed by the insured and submitted to the AIP on or before the applicable SCD.

D. Coverage

Coverage begins the later of the date the application is accepted or the fall final planting
date. Coverage ends on the spring final planting date in the SP.

E. Notice of Damage

Insureds must provide all notices of damages according to the policy but not later than the
spring FPD final planting date provided in the SP.

F. Options when Winter Wheat or Winter Barley is Damaged

When any winter wheat or winter barley is damaged during the insurance period and at
least 20 acres or 20 percent of the insured planted acreage in the unit, whichever is less,
does not have an adequate stand to produce at least 90 percent of the production guarantee
for the acreage, the insured may:

(1) continue to care for the damaged crop, and coverage will continue under the terms of
the BP, CP, and the Wheat or Barley WCE;

(2) replant the acreage to an appropriate variety of the insured crop, provided it is
practical to replant the acreage, and:

June 2015 FCIC 18180 25

906 Wheat or Barley Winter Coverage Endorsement (continued)

F. Options when Winter Wheat or Winter Barley is Damaged (Continued)

(a) receive a replanting payment according to the terms of the CP; and
(b) coverage will continue under the terms of the BP, CP and the endorsement; or

(3) destroy the remaining crop on such acreage, and an appraisal must be made to
determine the amount of production to count for indemnity purposes under the CP.

When an insured elects to destroy the remaining crop, an appraisal of the crop's potential
production is required prior to the destruction. Only the lower of the actual appraisal or the
approved APH yield will be used for APH purposes. The insured may utilize the acreage
for any purpose including planting and separately insuring of spring barley, spring wheat,
or any other crop.

G. Replanting Winter Wheat or Winter Barley Acreage

Winter wheat or winter barley for which a replant payment was made for planting to spring
wheat or spring barley shall retain the winter wheat or winter barley approved APH yield
and premium rate, provided it was not practical to replant a winter type of the insured crop.
The acres and production are used for the winter wheat or winter barley APH.

Any winter wheat or winter barley acreage that is replanted to a spring type of the same
crop when it was practical to replant the winter type will be insured as the spring type and
the production guarantee, premium and price election applicable to the spring type will be
used. The production and this acreage will be reported only on the spring type APH.

907 Dry Pea WCO

A. Availability and Applicability

The Dry Pea WCO provides coverage for fall seeded dry peas, lentils and Austrian peas,
(hereafter referred to as winter pea types,) between the fall final planting date and the spring
final planting date. This option is available only in counties where the SP designate both a
fall final planting date and a spring final planting date and the actuarial documents provide
a premium rate for the option. The Dry Pea WCO applies only to additional coverage
policies.

When elected, the Dry Pea WCO attaches to the Dry Pea CP.

See Para. 1907C for APH instructions relating to WCOs.

B. Application, Cancellation, and Transfers

The Dry Pea WCO must be elected on or before the SCD and is continuous.

Cancellation of the Dry Pea WCO must occur on or before the cancellation date of the CP.
Once the cancellation date has passed, the endorsement cannot be canceled or otherwise
rendered ineffective by either AIP or insured for that crop year.
June 2015 FCIC 18180 26
907 Dry Pea WCO (Continued)

B. Application, Cancellation, and Transfers (Continued)

If the policy is transferred to a different AIP, a new Dry Pea WCO must be signed by the
insured and submitted to the AIP on or before the applicable SCD.

C. Indemnity Payments

Any indemnity paid under the Dry Pea WCO will be subject to any reduction contained in
the BP for multiple crop benefits in the same crop year.

D. Coverage

Coverage begins the later of the date the application is accepted or the fall final planting
date. Coverage ends on the spring final planting date shown in the SP.

E. Notice of Damage

Insureds must provide all notices of damages according the policy but not later than 15 days
after the spring final planting date shown in the SP.

F. Options When Winter Dry Peas are Damaged

When any acreage of dry peas planted in the fall is damaged during the insurance period
and at least 20 acres or 20 percent of the insured planted acreage in the unit, whichever is
less, does not have an adequate stand to produce at least 90 percent of the production
guarantee for the acreage, the insured may:

(1) continue to care for the damaged crop, and coverage will continue under the terms of
the BP, CP, and the Dry Pea WCO;

(2) replant the acreage to an appropriate type of the insured dry peas, provided it is
practical to replant the acreage, and:

(a) receive a replanting payment according to the terms of the CP;

(b) coverage will continue under the terms of the BP, CP and the option; and
(c) the production guarantee for the fall planted dry pea will remain in effect; or

(3) destroy the remaining crop on such acreage, and an appraisal must be made to
determine the amount of production to count for indemnity purposes under the CP.

When an insured elects to destroy the remaining crop, an appraisal of potential production
is required prior to the destruction. Only the lower of the actual appraisal or the approved
APH yield will be used for APH purposes. The insured may utilize the acreage for any
purpose including planting and separately insuring any other crop, if insurance is available.

June 2015 FCIC 18180 27

907 Dry Pea WCO (Continued)

G. Replanting Winter Dry Pea Acreage

Winter Dry Pea acreage for which a replant payment was made for planting to a spring pea
type shall retain the winter pea type approved APH yield and premium rate provided it was
not practical to replant a winter pea type of the insured crop. The acres and production are
used for the winter pea type APH.

Any winter pea acreage that is replanted to a spring pea type when it was practical to
replant the winter pea type will be insured as the spring pea type and the production
guarantee, premium and price election applicable to the spring pea type will be used. The
production and this acreage will be reported only on the spring pea type APH.

908 Fresh Market Sweet Corn Minimum Value Option

A. Applicability

The Fresh Market Sweet Corn Minimum Value Option provides, for claim purposes, a
minimum value per container, as provided in the SP, which will be applied to any harvested
production that is valued at less than the minimum value after subtracting the allowable
cost. The Fresh Market Sweet Corn Minimum Value Option applies only to additional
coverage policies.

Appraised production is valued at the minimum value price, while the harvested production
will be valued at no less than the minimum value amount under the option, as applicable.

B. Application, Cancellation, and Transfers

The Fresh Market Sweet Corn Minimum Value Option must be elected on or before the
SCD and is continuous.

Cancellation of the Fresh Market Sweet Corn Minimum Value Option must occur on or
before the cancellation date of the CP.

If the policy is transferred to a different AIP, a new Fresh Market Sweet Corn Minimum
Value Option must be signed by the insured and submitted to the AIP on or before the
applicable SCD.

C. Value of Harvested Production Not Sold by Direct Marketing

The total value of harvested production that is not sold by direct marketing is determined by
summing the result of:

(1) multiplying the total number of all containers of sweet corn sold times the greater of:

(a) the average net value per container from all sweet corn sold; or
(b) minimum value option amount if such amount is provided in the SP; and

June 2015 FCIC 18180 28

908 Fresh Market Sweet Corn Minimum Value Option (Continued)

C. Value of Harvested Production Not Sold by Direct Marketing (Continued)

(2) multiplying the total number of containers of marketable sweet corn not sold by the
minimum value in the SP for the planting period.

Harvested production that is damaged or defective due to insurable causes and is not
marketable will not be included as production.

D. Value of Harvested Production Sold by Direct Marketing

If all the requirements of insurability are met, the value of insurable production that is sold
by direct marketing will be the greater of the:

(1) actual value received by the insured for direct marketed production; or

(2) dollar amount obtained by multiplying the total number of containers of sweet corn
sold by direct marketing by the minimum value.

909 Fresh Market Pepper Minimum Value Option

A. Applicability

The Fresh Market Pepper Minimum Value Option provides insureds two options, Option I
or Option II, for determining the total value of harvested production for fresh market
peppers. The Fresh Market Pepper Minimum Value Option applies only to additional
coverage policies.

B. Application, Cancellation, and Transfers

The Fresh Market Pepper Minimum Value Option must be elected on or before the SCD
and is continuous.

Cancellation of the Fresh Market Pepper Minimum Value Option must occur on or before
the cancellation date of the CP.

If the policy is transferred to a different AIP, a new Fresh Market Pepper Minimum Value
Option must be signed by the insured and submitted to AIP on or before the SCD.

C. Value of Harvested Production Under Option I

The total value of harvested production will be the sum of value of harvested production
sold plus the value of the marketable production that is not sold.

June 2015 FCIC 18180 29

909 Fresh Market Pepper Minimum Value Option (Continued)

C. Value of Harvested Production Under Option I (Continued)

The value for harvested production sold will be the dollar amount obtained from
multiplying the number of boxes of peppers sold times the result of subtracting the
allowable cost contained in the SP from the price received for each box of peppers.
However, the result of subtracting the allowable cost contained in the SP from the price
received for each box of peppers may not be less than the minimum value option price
contained in SP for any box of peppers.

The value for marketable production not sold will be the dollar amount obtained by
multiplying the number of boxes of such peppers on the unit by the minimum value shown
on the SP for the planting period. Harvested production that is damaged or defective due to
insurable causes and is not marketable will not be counted as production.

D. Value of Harvested Production Under Option II

The total value of harvested production will be determined the same as under Option I,
except that the dollar amount obtained for sold production per box may not be less than
zero.

910 Fresh Market Tomato (Dollar Plan) Minimum Value Option

A. Applicability

The Fresh Market Tomato (Dollar Plan) Value Minimum Option permits insureds to select
the Minimum Value Option for fresh market tomatoes. The Fresh Market Tomato (Dollar
Plan) Minimum Value Option applies only to additional coverage policies.

B. Application, Cancellation, and Transfers

The Fresh Market Tomato (Dollar Plan) Minimum Value Option must be elected on or
before the SCD and is continuous.

Cancellation of the Fresh Market Tomato (Dollar Plan) Minimum Value Option must occur
on or before the cancellation date of the CP.

If the policy is transferred to a different AIP, a new Fresh Market Tomato (Dollar Plan)
Minimum Value Option must be signed and submitted to AIP on or before the SCD.

C. Value of Harvested Production

The total value of harvested production will be the sum of value of harvested production
sold plus the value of the unsold harvested production.

June 2015 FCIC 18180 30

910 Fresh Market Tomato (Dollar Plan) Minimum Value Option (Continued)

C. Value of Harvested Production (Continued)

The value for harvested production sold will be the dollar amount obtained from
multiplying the number of cartons of fresh market tomatoes sold times the result of
subtracting the allowable cost contained in the SP from the price received for each carton of
fresh market tomatoes in the load. However, the result of subtracting the allowable cost
contained in the SP from the price received for each carton of fresh market tomatoes sold
may not be less than the minimum value option price contained in SP for any carton of
tomatoes sold.

The value for unsold harvested production will be the dollar amount obtained by
multiplying the number of cartons of such fresh market tomatoes on the unit by the
minimum value shown on the SP for the planting period. Harvested production that is
damaged or defective due to insurable causes and is not marketable will not be counted as
production.

911 Mint Winter Coverage Option

A. Applicability

Mint WCO provides protection when any insured mint is damaged and does not meet the
requirement of an adequate stand before the beginning of basic coverage. The Mint WCO
applies only to additional coverage policies. When elected, all insurable acreage in the
county will be insured under the Mint WCO.

B. Production Guarantee

The Mint WCO provides a guarantee equal to 60 percent of the production guarantee
determined under the CP.

C. Application, Cancellation, and Transfers

The Mint WCO must be elected on or before the fall SCD and is continuous.

Cancellation of the Mint WCO must occur on or before the cancellation date of the CP.

If the policy is transferred to a different AIP, a new Mint WCO must be signed by the
insured and submitted to AIP on or before the SCD.

D. Insured Crop

The crop insured under the Mint WCO will be all mint types in the county for which a
premium rate is provided by the actuarial documents:

(1) in which the insured has a share;

(2) that are planted for harvest and distillation as mint oil;
(3) that have an adequate stand on the date coverage begins; and
(4) that has been:
June 2015 FCIC 18180 31
911 Mint WCO (Continued)

D. Insured Crop (Continued)

(a) for the first crop year insured, inspected and accepted by the AIP not later than
November 15;

(b) inspected and accepted by the AIP no later than November 15 for the crop year
following the payment of an indemnity or a reported loss unless the AIP
determined there was an adequate stand no later than November 15, in which
case no inspection is required; or

(c) certified by the insured as having an adequate stand on the date coverage begins,
unless an inspection is required according to the Mint WCO.

E. Mint WCO Payment

A Mint WCO payment may be made only on acreage that had an adequate stand on the date
that insurance attached if the:

(1) adequate stand was lost due to an insured cause of loss occurring within the Mint
WCO insurance period; and

(2) acreage consists of at least 20 acres or 20 percent of the insurable planted acres in the
unit.

Acreage for which a Mint WCO payment has been made:

(1) is no longer insurable under the CP for the current crop year; and

(2) will receive an amount of production of zero when computing the subsequent year’s
approved APH yield.

912 Northern Potato Policy Endorsements

A. Availability

The following endorsements are applicable to the Northern Potato CP.

(1) Northern Potato Quality Endorsement.

(2) Northern Potato Processing Quality Endorsement.
(3) Certified Seed Endorsement.
(4) Northern Potato Storage Coverage Endorsement.

All of the Northern Potato endorsements apply only to additional coverage policies.

Where premium rates for the endorsements are established in the actuarial documents, an
insured may select any or all of the endorsements available in the county.

June 2015 FCIC 18180 32

912 Northern Potato Policy Endorsements (Continued)

A. Availability (Continued)

Exceptions: The Certified Seed Endorsement is for acreage intended for seed and may
not to be used in combination with any of the other endorsements.

The Northern Potato Quality Endorsement must be in place before the

Northern Potato Processing Quality Endorsement can be elected.

B. Application, Cancellation, and Transfers

The endorsement must be elected on or before the SCD and is continuous.

Cancellation of the endorsement must occur on or before the cancellation date of the CP.
Cancelation of the Northern Potato Quality Endorsement will automatically result in
cancellation of the Northern Potato Processing Quality Endorsement.

If the policy is transferred to a different AIP, a new endorsement must be signed by the
insured and submitted to AIP on or before the SCD.

C. Northern Potato Quality Endorsement

The Northern Potato Quality Endorsement provides an adjustment to production to count

for potatoes not meeting applicable grade requirements due to:

(1) internal defects, provided the number of potatoes with such defects are in excess of
the tolerances allowed for U.S. No 2 grade potatoes on a lot basis and are not
separable from undamaged production; or

(2) other factors according to the Northern Potato Quality Endorsement.

The actuarial documents may provide U.S. No. 1 grade in place of U.S. No. 2 grade, as
used in the Northern Potato Quality Endorsement. If both U.S. No. 1 and U.S. No. 2 grades
are available in the actuarial documents, the insured may elect U.S. No. 1 or 2 by potato
type or group, if separate types or groups are specified on the SP.

If both fresh and processing types are specified in the actuarial documents, the insured
cannot elect the fresh type for any potatoes grown for processing or chipping.

D. Northern Potato Processing Quality Endorsement

The Northern Potato Processing Quality Endorsement attaches to and is made part of the
Northern Potato CP and the Northern Potato Quality Endorsement. Insureds must have a
Northern Potato Quality Endorsement in place before the Northern Potato Processing
Quality Endorsement can be elected. To qualify for a quality reduction under the Northern
Potato Processing Quality Endorsement, potatoes must:

June 2015 FCIC 18180 33

912 Northern Potato Policy Endorsements (Continued)

D. Northern Potato Processing Quality Endorsement (Continued)

(1) fail to meet the applicable U.S. No. 2 grade requirements due to internal defects as
long as the number of potatoes with such defects are in excess of the tolerance
allowed for U.S. No. 2 grade potatoes;

(2) have a specific gravity lower than 1.074;

(3) have a fry color of No. 3 or darker due to either sugar exceeding 10 percent or sugar
ends exceeding 19 percent; or

(4) have an Agtron rating lower than 58.

The actuarial documents may provide U.S. No. 1 grade in place of U.S. No. 2 grade, as
used under the Northern Potato Processing Quality Endorsement. If both U.S. No. 1 and
U.S. No. 2 grades are available in the actuarial documents, the insured may elect U.S. No. 1
or 2 by potato type or group, if separate types or groups are specified on the SP.

When both fresh and processing types are specified in the actuarial documents, the fresh
type cannot be elected for any potatoes grown for processing or chipping, unless as
indicated in the processing endorsement for production not covered by contract such as a
stated amount of production.

E. Percentage Factors (PF)

Marketing records or records determined at the time of harvest prior to potatoes being
placed in storage must indicate the percentage of potatoes grading U.S. No. 2 or better, or
as otherwise specified in the actuarial documents.

The PF, as provided on the Northern Potato Quality Endorsement, will be based on the
actual average percentage (AAP) of potatoes grading U.S. No. 2 or better, or as otherwise
specified on the actuarial documents, as determined from the insured's records if four or
more years, not to exceed 10 years, of acceptable records are available. If less than four
years of acceptable records are available, the percentage factor will be calculated as
follows:

YEAR’S ACTUAL DP

AAP PF
PERCENTAGE RECORDS
0 (0 AAP) (4 DP) ÷ 4 = PF
1 (1 AAP) (3 DP) ÷ 4 = PF
2 (2 AAP) (2 DP) ÷ 4 = PF
3 (3 AAP) (1 DP) ÷ 4 = PF


The DP is the grade percentages by group, fresh market or processing, type, and grade number(s), as
applicable, from the actuarial documents.
June 2015 FCIC 18180 34
912 Northern Potato Policy Endorsements (Continued)

E. Percentage Factors (PF) (Continued)

AAPs must be submitted and certified according to APH procedures. Failure to provide
AAPs will result in the use of the default percentage (DP) for the endorsement. Use of loss
records showing the percentage of potatoes meeting the grade designations stated above
must be used as an actual year of records for any year in which the AIP determines the
percentage of potatoes meeting the stated grades.

The following is an example of when AAPs are not provided for the most recent year.

CROP YEAR: 2014 PRACTICE: IRR (002) UNIT NO.: 0001-0000

CROP: POTATOES (0084) TYPE: GROUP A (161) OTHER QA
CROP TOTAL AVERAGE FRESH FRESH PROCESS PROCESS
ACRES
YEAR PRODUCTION CWT #1’S # 2’S> #1’S #2’S>
2004 42,800 128.6 A333 AAP-60 AAP-76
2005 49,900 130.3 A383 AAP-73 AAP-82
2006 30,800 128.6 A240 AAP-56 AAP-68
2007 33,800 102.3 A330 AAP-63 AAP-72
2008 51,200 130.3 A393 AAP-58 AAP-67
2009 44,300 136.4 A325 AAP-62 AAP-78
2010 42,400 128.6 A338 AAP-64 AAP-72
2011 26,800 132.4 A202 AAP-53 AAP-78
2012 42,100 130.4 A323 AAP-62 AAP73
2013 55,500 135.8 A409 DP-60 DP-75
TOTAL 3,276 611 741
T-YIELD
AVERAGE YIELD 325.0
APPROVED APH YIELD 328.0
328.0 PF-61 PF-74
PRIOR YIELD 319.0 PF-60 PF-73

F. Certified Seed Endorsement

Availability of the Certified Seed Endorsement is limited to counties with certified seed
potato rates published in the actuarial documents. To qualify for the Certified Seed
Endorsement an insured must provide acceptable records of their certified seed potato
acreage and production for the previous three years.

The certified seed production guarantee per-acre will be the per-acre production guarantee
used to cover the same acreage under the Northern Potato CP. All potatoes insured for
certified seed production must be produced and managed according to the regulations,
standards, practices, and procedures required for certification under the potato certified seed
program. The determination of certified seed must be made by a certified seed inspector.

June 2015 FCIC 18180 35

912 Northern Potato Policy Endorsements (Continued)

F. Certified Seed Endorsement (Continued)

Unless a WA provides otherwise, if the total amount of insurable certified seed acreage the
insured has for the current crop year is greater than 125 percent of the insured’s average
number of acres entered into and passing certification in the potato certified seed program
in the three previous calendar years, the certified seed production guarantee for each unit
will be reduced. Determine the reduction according to the following table.

Step Action
Multiply the average number of the insured’s acres entered into and passing
1 certification in the potato certified seed program the 3 previous calendar years
times 1.25.
Divide the result of step 1 by the number of acres grown by the insured for
2 certified seed in the current crop year. If the result is greater than 1.0, enter 1.0
as the result.
Multiply the result of step 2 by the production guarantee for certified seed for the
3
current crop year.

G. Northern Potato Storage Coverage Endorsement

All potato production insured under the Northern Potato Crop Provisions must be insured
under the Northern Potato Storage Coverage Endorsement unless the SP allow certain
potato varieties, types, or groups to be excluded from the endorsement. Potato production
grown under a contract that requires the production to be delivered to a buyer within three
days of harvest will not be insured under the Northern Potato Storage Coverage
Endorsement.

When such contract requires delivery of a stated amount of production, rather than all of the
production from a stated amount of acres, the number of acres not insured under the
endorsement will be determined by dividing the stated amount of production by the
approved APH yield for the acreage.

The extended coverage provided by the Northern Potato Storage Coverage Endorsement is
applicable only if insured potatoes are damaged within the insurance period by an insured
cause of loss other than freeze that later results in:

(1) tuber rot to the extent that 5.1 percent, by weight, or more of the insured production is
affected;

(2) certain internal defects, as provided in the Northern Potato Storage Coverage
Endorsement, but only if the insured also elected the Northern Potato Quality
Endorsement; or

(3) the potatoes failing to meet standards, as provided in the Northern Potato Storage
Coverage Endorsement, but only if the insured also elected the Northern Potato
Processing Quality Endorsement.

June 2015 FCIC 18180 36

913 Fresh Pear Quality Adjustment Endorsement

A. Applicability

The Fresh Pear Quality Adjustment Endorsement provides a quality adjustment provision
for pears located in a state designated for pear insurance and for which a premium rate for
the endorsement is provided.

B. Application, Cancellation, and Transfers

The Fresh Pear Quality Adjustment Endorsement must be elected on or before the SCD,
and is continuous.

Cancellation of the Fresh Pear Quality Adjustment Endorsement must occur on or before
the cancellation date of the CP.

If the policy is transferred to a different AIP, a new Fresh Pear Quality Adjustment
Endorsement must be signed by the insured and submitted to AIP on or before the SCD.

C. Damaged Production

When the fresh pear production is damaged by an insured cause of loss, and if 11 percent or
more of the harvested and appraised production does not grade at least U.S. No. 1 according
to the applicable United States Standards for Grade of summer and fall, or U.S. Standards
for Grades of winter pears, as applicable, the amount of production to count will be reduced
as follows:

(1) 2 percent for each full 1 percent in excess of 10 percent, when 11 percent through 60
percent of the pears fail the grade standard.

(2) 100 percent when more than 60 percent of the pears fail the grade standard.

(3) If the insured sells more fresh pear production as U.S. Number 1 or better than the
quantity of pears determined to grade U.S. Number 1 or better in the appraisal, the
quantity of such sold production exceeding the amount determined to grade U.S.
Number 1 or better in the appraisal will be included as production to count.

The Fresh Pear Quality Adjustment Endorsement applies only to additional coverage plans.
Election of CAT coverage for any crop year after the endorsement is effective will be
considered as notice of cancellation of the endorsement.

914 Table Grape Protective Cover Option

A. Applicability

The Table Grape Protective Cover Option is applicable for late harvest table grapes in
California if the option is available in the actuarial documents. Table grapes are considered
late harvest if the end of insurance date is October 31, or later.

June 2015 FCIC 18180 37

914 Table Grape Protective Cover Option (Continued)

A. Applicability (Continued)

The Table Grape Protective Cover Option is considered a premium rate discount and is not
an extension to the coverage available; therefore, the option is available for CAT coverage.

B. Application, Cancellation, and Transfers

The Table Grape Protective Cover Option must be elected on or before the ARD and is
continuous.

Cancellation of the Table Grape Protective Cover Option must occur on or before the
cancellation date of the CP.

If the policy is transferred to a different AIP, a new Table Grape Protective Cover Option
must be signed by the insured and submitted to AIP on or before the ARD.

C. Coverage

The Table Grape Protective Cover Option applies to all acreage of the insured crop that is
adequately protected by a plastic cover. Adequate protection means the placement of a
plastic film cover over the grape vines starting at one end of the trellis and continuing
uninterrupted to the other end, securely tied down.

The indemnity for the unit will be reduced by the percentage of premium reduction allowed
for the option if protection was not properly utilized or not properly reported at any time.

The insured must, when requested, provide records showing the purchase of protection
materials for acreage on which the protection was applied.

915 Contract Price Addendum (CPA)

A. General Information

The CPA applies to insured crops grown under contract with a buyer, executed on or before
the ARD, and in effect for the crop year. The contract must include: the insured’s
commitment to plant, grow, harvest, and deliver an insurable crop to the buyer; the buyer’s
commitment to purchase the production stated in the contract at the contract price; the
specific crop, type, or variety, which also must be insurable under the policy; the amount of
production or a statement that the buyer will accept all production from a specified number
of acres; the contract price or a method to determine the contract price.

B. Applicability

The CPA is available where the actuarial documents specify the availability of contract
pricing and contract pricing is not available by the CP or SP. The CPA may be available by
P/T and is identified by the “CP” option code.

June 2015 FCIC 18180 38

915 Contract Price Addendum (CPA) (Continued)

B. Applicability (Continued)

If the CPA is elected, a copy of the contract must be provided to the AIP by the ARD.
Failure to provide the contract by the ARD will result in the price defaulting to the
applicable projected price, harvest price, or price election for the insurance plan.

The contract price is applicable to all contracted acreage. If the insured acreage exceeds the
contracted acreage, then all acreage will be insured at a weighted average price of
contracted and non-contracted acreage. See subparagraph E(4).

When the SP restricts the total number of insured acres of a crop/P/T to not exceed 110
percent of the crop type’s contracted acres then the entire 110 percent gets the contract
price. If the crop/P/T is restricted by the SP to 110 percent of the contracted acres and the
total insured acres is greater than 110 percent, then none of the insured acres for the
crop/P/T can use the contract price, and all of the insured acres will use the RMA
determined projected price or price election, as applicable.

Each projected price or price election, as determined in E, is limited to the maximum

contract price. The maximum contract price is determined by multiplying the projected
price or price election, as applicable, by the maximum contract price factor contained in the
actuarial documents.

C. Application, Cancellation, and Transfers

The CPA must be elected on or before the SCD, and is continuous.

Cancellation of the CPA must occur on or before the cancellation date of the CP.

If the policy is transferred to a different AIP, a new CPA must be elected by the insured and
submitted to AIP on or before the SCD.

D. Determining Number of Acres Under Contract

(1) For an acreage only based contract, the acres under contract will be the lesser of:

(a) insured acres (planted and PP acreage); or

(b) number of acres specified in the contract.

(2) For a production only based contract, the acres under contract will be lesser of:

(a) the number of acres determined by dividing the production stated in the contract
by the approved APH yield; or

(b) insured acres (planted and PP acreage).

June 2015 FCIC 18180 39

915 Contract Price Addendum (CPA) (Continued)

D. Determining Number of Acres Under Contract (Continued)

(3) For an acreage and production based contract that specifies a maximum number of
acres, the acres under contract will be the lesser of:

(a) the number of acres determined by dividing the production stated in the contract
by the approved APH yield;

(b) insured acres (planted and PP acreage); or

(c) number of acres specified in the contract.

E. Determining Contract Price When CPA is Elected

The contract price is the price contained in the contract without regard to incentives or
discounts. When determining the contract price under CPA, the base price is the price
which results from a specified calculation method in a contract. The premium amount is
the added price above the base price for planned production and is not an incentive that is
related to the performance of the crop production, such as quality, timing, etc.

(1) For yield protection or APH plans of insurance, the projected price or price election,
applicable, will be:

(a) when the contract provides a fixed price for the contracted production, the
contract price; or

(b) when the contract provides for a premium amount over a base price to be
determined and:

(i) the base price is set on or before the ARD, the contract price; or

(ii) the base price is not set until after the ARD, the result of adding the
premium amount to the applicable projected price or price election.

Example: The contract specifies the price is $2/unit of measure

(e.g., bushel, pound, etc.) over a base price. The base
price is determined after the ARD. The price election is
$10/unit of measure, if the CPA was not elected. Under
CPA the price election is $12/unit of measure ($10 + $2).

(2) For revenue protection:

(a) if the contract provides a fixed price for the contracted production:

(i) the projected price under the CPA is the contract price.

June 2015 FCIC 18180 40

915 Contract Price Addendum (CPA) (Continued)

E. Determining Contract Price When CPA is Elected (Continued)

Example: The contract specifies a price for contracted production of

$10/unit of measure. The projected price contained in the
actuarial documents is $6/unit of measure, if CPA was not
elected. Under the CPA, the projected price is $10/unit of
measure, which is the contract price.

(ii) the harvest price under the CPA will be the result of the applicable
projected price contained in the actuarial documents subtracted from the
contract price and the difference added to the applicable harvest price
released by RMA.

Example: The contract specifies a price for contracted production of

$10/unit of measure. The projected price contained in the
actuarial documents is $6/unit of measure, if CPA was not
elected. The harvest price is $5/unit of measure, released
by RMA. Under the CPA, the harvest price is $9/unit of
measure ($10 - $6 + $5).

(b) if the contract provides for a premium amount over a base price that is set by the
ARD, the contract is considered to be a fixed price contract and projected and
harvest prices will be calculated as shown in E(2)(a).

(c) if the contract provides for a premium amount over a base price that is not set
until after the ARD:

(i) the projected price under the CPA is the result of adding the premium
amount to the applicable projected price contained in the actuarial
documents.

Example: The contract specifies premium of $4/unit of measure

over the base price as the price for contracted production.
The base price will be determined after the ARD. The
projected price contained in the actuarial documents is
$7/unit of measure. Under the CPA, the projected price is
$11/unit of measure ($7 + $4).

(ii) the harvest price is the result from adding the premium amount to the
applicable harvest price released by RMA.

Example: The contract specifies premium of $4/unit of measure

over the base price as the price for contracted production.
The base price will be determined after the ARD. The
harvest price released by RMA is $8/unit of measure.
Under the CPA the harvest price will be $12/unit of
measure ($8 + $4).

June 2015 FCIC 18180 41

915 Contract Price Addendum (CPA) (Continued)

E. Determining Contract Price When CPA is Elected (continued)

(3) If there is more than one contract price for the crop, the projected price or price
election under the CPA, as applicable, is calculated by:

(a) multiplying the acreage for each contract, as determined in D, by the contract
price, as determined in E(1) or E(2), as applicable; and

(b) dividing the results by the total acres of all the contracts.

Note: Each contract price is limited to the maximum contract price.

(4) The weighted average price of contracted and non-contracted acreage for the crop/P/T
is calculated according to the following table:

Step Action
1 Multiply the contracted acreage, as determined in D, by the contract price,
as determined in E(1) or E(2), as applicable. Each contract price is limited
to the maximum contract price.
2 Multiply the non-contracted acreage by the price contained in the actuarial
document or CEPP, as applicable.
3 Add the result of step 1 and step 2.
4 Divide the result of step 3 by the total insured acres of the crop, planted and
prevented planted acreage.

F. Proration of Contracted Bushels When CPA is Elected in Multiple Counties

The contracted bushels must be prorated to the appropriate counties when the contract(s)
specifies total bushels from acreage planted in more than one county and the CPA is elected
in multiple counties. The following table provides instructions for prorating the contracted
bushels to multiple counties.

Step Action
For each county, multiply the acres planted to the contracted crop/P/T times the
1 approved APH yield. For multiple APH database, multiply acres planted in
each APH database by the applicable approved yield.
2 Sum the result for each county.
3 Sum each applicable county to determine the total bushels.
Divide the result of step 2 for each applicable county by the result of step 3 to
4 determine the proration factor for that county. Round the result to three
decimals.
Prorate the contracted bushels to each applicable county by multiplying the total
5
contracted bushels times the result of step 4 for each applicable county.

After prorating the contracted bushels to each county, determine the contract price
according to subparagraph E.

June 2015 FCIC 18180 42

916 SCO Endorsement General Information and Requirements

A. General Information

The SCO Endorsement guarantee is established using information from the underlying
policy. Since there are no units for SCO, policy protection is based on all planted acreage
of the crop in the county insured by the underlying policy excluding acreage insured under
STAX, see Para. 916L, or acreage/FN(s) covered by the ARC, see Para. 916I. If there are
multiple coverage levels, types or practices for the insured crop in the county, the SCO
supplemental protection will be determined separately for acreage insured at each coverage
level, type and practice.

Since the SCO supplemental protection is based on the underlying policy, any premium
and/or indemnity reduction made on the underlying policy will apply to the SCO
Endorsement. For example, when the underlying policy premium and indemnity is reduced
due to first and second insured crop limitations, (see Para. 1223 A and B) the protection
under the endorsement will similarly be reduced. The SCO Endorsement must be
purchased from the same AIP as the underlying policy.

B. Endorsement Availability

The SCO Endorsement is available when provided in the actuarial documents.

C. Eligibility Requirements

To be eligible for the SCO Endorsement, the insured must:

(1) have an insurance policy under the CCIP-BP and the applicable CP (referred to as the
underlying policy);

(2) elect the SCO Endorsement on or before the SCD for the underlying crop policy; and

(3) comply with all terms and conditions of the SCO Endorsement.

D. SCO Plans of Insurance

When elected, the SCO Endorsement establishes a separate plan code for the SCO
Endorsement coverage for IT processing purposes only. The SCO Endorsement has three
plan of insurance codes which are based on the underlying policy’s plan of insurance. The
table below provides the applicable SCO Endorsement plan of insurance codes based on
underlying policy’s plan of insurance.

Underlying Policy Plan of Insurance Code SCO Endorsement Plan of Insurance

Code
YP - 01 31
RP - 02 32

June 2015 FCIC 18180 43

916 SCO Endorsement General Information and Requirements (continued)

D. SCO Plans of Insurance (Continued)

Underlying Policy Plan of Insurance Code SCO Endorsement Plan of Insurance

Code
RP-HPE - 03 33
Yield Based Dollar Amount of Insurance 31
- 55
APH - 90 31

Example: If the insured has elected the SCO Endorsement and has Yield Protection
01 for their underlying policy, the insured’s policy would be submitted to
RMA as the SCO Endorsement plan of insurance code 31.

Although the SCO Endorsement creates an insurance plan for processing to RMA, the
actuarial documents identify SCO Endorsement availability as additional tabs, for the
underlying policy’s plan of insurance, in the actuarial documents.

E. Continuous Endorsement

The SCO Endorsement is a continuous endorsement and will remain in effect until
cancelled by the insured or the AIP on or before the cancellation date.

F. Cancellation or Policy Change

(1) If the insured’s underlying policy for the crop is cancelled or terminated, coverage
under the SCO Endorsement is automatically cancelled.

(2) Other changes made to the underlying policy do not cancel the SCO Endorsement.
The SCO Endorsement will provide supplemental coverage based on the changes to
the coverage level or plan of insurance of the underlying policy.

Example: The insured changes their coverage level on their underlying policy
from 80 percent to 70 percent. Their SCO Endorsement coverage
will change from covering 80 to 86 percent to covering 70 to 86
percent, increasing SCO coverage from 6 percent to 16 percent.

G. Written Agreements

(1) A WA to add the SCO Endorsement to an underlying policy when the SCO
Endorsement is not provided in the actuarial documents for the crop/county/P/T is not
authorized.

June 2015 FCIC 18180 44

916 SCO Endorsement General Information and Requirements (continued)

G. Written Agreements (Continued)

Example: The insured has a XC WA (which allows insurance for a crop when
insurance is not available in that county for that crop) for corn, which
references another state/county where the SCO Endorsement is
available. SCO does not apply to the county where the XC insurance
offer was issued because SCO is only available in counties where it
is listed in the actuarial documents.

(2) If the SCO Endorsement is available in the actuarial documents for the crop/county
where the crop is physically located, the SCO Endorsement may be elected when a
WA applies to the underlying policy.

Example: The insured has a WUA on their underlying policy in the crop/county
and the SCO endorsement is available for the crop/county. Since the
SCO Endorsement is available for the crop/county the WA is
applicable to the SCO Endorsement.

H. Impact of High-Risk Land

(1) High-risk acreage insured by the underlying policy is insured under SCO.

(2) Any high-risk acreage excluded from an underlying policy under the High Risk Land
Exclusion Option is not insured under SCO, unless the high-risk acreage is insured
under a CAT policy. If the high-risk acreage is insured under a CAT policy the
insured may elect to insure their high-risk acreage under the SCO Endorsement.

(3) When high-risk acreage is insured under a separate policy by the HR-ACE, the SCO
Endorsement must be elected on the HR-ACE policy when the insured elects the SCO
Endorsement on their base policy.

I. Impact of Agriculture Risk Coverage Program (ARC)

ARC is a program administered by the FSA. ARC is elected on a FSA crop/FN basis and
SCO is elected on a crop/county basis. Benefits cannot be received for both ARC and SCO
on the same acreage/FN(s) of the crop. If these elections have been made, the insured is
required to report which acreage/FN(s) are under the SCO Endorsement and which
acreage/FN(s) are under ARC. See Para. 917B for more information.

J. Impact of Native Sod Acreage

The native sod acreage premium subsidy reduction of 50 percentage points less than the
premium assistance identified in the actuarial documents is applicable to the SCO
Endorsement premium.

June 2015 FCIC 18180 45

916 SCO Endorsement General Information and Requirements (continued)

K. Underlying Policy Requirements

The SCO Endorsement can only be elected if the insured has an underlying policy insured
under the CCIP-BP with the same AIP as the underlying policy. The SCO Endorsement is
not available with ARPI.

L. SCO and Stacked Income Protection Policy (STAX)

The insured may elect both the SCO Endorsement and STAX for upland cotton if they meet
the eligibility requirements of both programs. However, the insured cannot insure the same
acreage under both the SCO Endorsement and STAX.

If the insured has elected both the SCO Endorsement and STAX, then the upland cotton
must be insured under the CCIP-BP. If the underlying policy is ARPI or a standalone
STAX policy, the SCO Endorsement is not available for the insured’s upland cotton.

No later than the STAX SCD, the insured must designate which acres of upland cotton in
the county will be covered by STAX and which acres will be covered by SCO:

(1) The insured must provide a production report for the CCIP-BP policy for the
preceding year by the STAX SCD. The production report will be used by the AIP to
establish the insured’s CCIP-BP APH database(s).

(a) The insured must designate the acreage for SCO and STAX coverage by
identifying whether SCO or STAX applies to each CCIP-BP APH database.
AIPs will capture the insured’s designation by plan codes 31, 32, or 33 for SCO
and plan codes 35 or 36 for STAX (see STAX Standards Handbook for
explanation of STAX plan codes) in the “Other” field of the APH database.
Although an insured’s signature is not normally required on an APH database,
the insured must sign and date the APH database(s) certification and the AIP
must include the Document and Supplemental Standards Handbook required
statements on the APH database(s) certification.

Note: An APH database cannot be established lower than the optional

unit/practice/type, unless one of the exceptions provided in Para.
1505B applies.

(b) An insured is allowed to recertify their production history and the AIP may
update the CCIP-BP APH database(s) through the CCIP-BP production
reporting date. However, the designation for each APH database as SCO or
STAX coverage must not be changed after the SCD.

(2) The insured may identify on the STAX Application whether SCO or STAX coverage
applies to any acreage added to the operation that requires a new CCIP-BP APH
database. If no designation is made, the acreage is covered under SCO.

June 2015 FCIC 18180 46

916 SCO Endorsement General Information and Requirements (continued)

M. Duplicate Policy Exceptions

The SCO Endorsement is not considered a duplicate policy when available on the actuarial
documents.

N. Uninsured Causes of Loss

Indemnities will not be paid on acreage that has been determined to have been solely
damaged by causes of loss not covered by the underlying policy.

917 SCO Endorsement Acreage Reporting

A. Acreage Reporting Requirements for SCO

Because the SCO Endorsement uses the underlying policy’s acreage report, an insured is
not required to submit an additional acreage report for the SCO Endorsement.

Exception: Additional information is required when an insured elects the SCO

Endorsement and ARC in a county for a crop on a FSA FN(s).

The AIP must determine protection provided under the SCO Endorsement, by coverage
level, type and practice when applicable. The Summary of Coverage/Schedule of Insurance
must provide the protection, premium and administrative fee for the SCO Endorsement.

B. Acreage Reporting Requirements When Both SCO and ARC Are Applicable

When an insured has elected the SCO Endorsement in a county for the crop and has a share
in any acreage in the county for which ARC has been elected for the crop, the insured is
required to report which acreage/FN(s) are under the SCO Endorsement and which
acreage/FN(s) are under ARC. The same crop cannot have both the SCO Endorsement and
ARC on the same acreage/FN(s).

(1) The insured’s acreage report must:

(a) identify which acreage/FN(s) of the crop is covered by ARC by reporting all
acreage of the crop by FSA farm/tract/field number by the acreage reporting
date; and

(b) identify acreage/FN(s) of the crop covered under ARC with the acreage type of
“J”, ineligible SCO acres due to ARC election.

June 2015 FCIC 18180 47

917 SCO Endorsement Acreage Reporting (continued)

B. Acreage Reporting Requirements When Both SCO and ARC Are Applicable (Cont.)

Example: The insured has elected the SCO Endorsement for soybeans in
the county and ARC was elected on FN 1234 and 4512 for
soybeans in the county. Because both the SCO Endorsement
and ARC were elected for soybeans in the same county, all
soybean acreage must be identified by farm/tract/field on the
acreage report. Additionally, soybean acreage on FN 1234 and
4512 must be identified with the acreage type of “J”.

CY Crop Unit # FSA Acres Acreage Type

FN/Tract/Field(s)
2016 Soybeans 0001-0001 OU 1234-54321-01 20.0 J
2016 Soybeans 0001-0001 OU 1234-54321-02 15.5 J
2016 Soybeans 0001-0002 OU 1234-67891-01 44.0 J
2016 Soybeans 0002-0001 OU 6789-12345-01 80.0
2016 Soybeans 0002-0002 OU 6789-54321-03 60.0
2016 Soybeans 0003-0001 OU 4512-66779-02 55.0 J
2016 Soybeans 0003-0001 OU 4512-54776-01 120.0 J

(2) In addition to any other penalties for incorrect reporting, if the insured has incorrectly
reported any information required in (1) above and the correct information results in:

(a) Acreage that is insurable under the SCO Endorsement that was reported as
uninsurable, coverage under the SCO Endorsement will not be provided for such
acreage;

(b) Acreage that is uninsurable under the SCO Endorsement that was reported as
insurable, the SCO Endorsement for the acreage of the insured crop on a FN
where ARC has been elected will be revised, no indemnity will be payable, and
the insured is required to pay 20 percent of the premium to offset the cost
incurred by the AIP in servicing the SCO Endorsement; and

(c) Acreage/FN(s) that had both the SCO Endorsement and ARC elected for the
crop, that acreage/FN(s) with both elections will be ineligible for the SCO
Endorsement in subsequent crop years.

918 SCO Endorsement Determining Supplemental Protection and Indemnity

A. Supplemental Protection

To calculate the supplemental protection for all planted acres of the crop in the county with
the same coverage level, type and practice:

(1) Determine the insured’s supplemental coverage range by subtracting the coverage
level of the insured’s underlying policy from the area loss trigger of 86 percent.

June 2015 FCIC 18180 48

918 SCO Endorsement Determining Supplemental Protection and Indemnity (continued)

A. Supplemental Protection (Continued)

(2) Divide the liability of the underlying policy by the coverage level of the underlying
policy to determine the expected crop value. When the underlying policy is RP, the
expected crop value may go up at the time of harvest.

(3) Multiply the supplemental coverage range from (1) by the expected crop value from
(2) to determine the supplemental protection provided by SCO.

If there are multiple coverage levels, types, or practices for the insured crop in the county,
the insured’s supplemental protection will be determined separately for the acres at each
coverage level, type, and practice.

B. Indemnity

An indemnity will be due under the SCO Endorsement if:

(1) For RP underlying policies, the final area revenue is less than the expected area yield
multiplied by the higher of the projected price or harvest price and by the area loss
trigger. The payment factor for RP underlying policies for each coverage level, type
and practice is calculated as follows:

(a) multiplying the expected area yield by the higher of the projected price or
harvest price;

(b) dividing the final area revenue by the result of (a);

(c) subtracting the percent from (b) from the area loss trigger; and

(d) dividing (c) by the supplemental coverage range to determine the payment
factor.

(2) For RP-HPE underlying policies, the final area revenue is less than the expected area
revenue multiplied by the area loss trigger. The payment factor for RP-HPE
underlying policies for each coverage level, type and practice is calculated as follows:

(a) dividing the final area revenue by the expected area revenue;

(b) subtracting the percent from (a) from the area loss trigger; and

(c) dividing (b) by the supplemental coverage range to determine the payment
factor.

(3) For all other underlying policies, the final area yield is less than the expected area
yield multiplied by the area loss trigger. The payment factor for all other underlying
policies for each coverage level, type and practice is calculated as follows:

June 2015 FCIC 18180 49

918 SCO Endorsement Determining Supplemental Protection and Indemnity (continued)

B. Indemnity (continued)

(a) dividing the final area yield by the expected area yield;

(b) subtracting the percent from (a) from the area loss trigger; and

(c) dividing (b) by the supplemental coverage range to determine the payment
factor.

(4) All payment factors are limited to a maximum of 1.000.

(5) Indemnity is calculated by multiplying the supplemental protection by the payment

factor for each coverage level, type, and practice. Indemnities will be calculated and
paid under the SCO Endorsement within 30 days after final area yield and revenue has
been released.

919-1000 (Reserved)

June 2015 FCIC 18180 50

 PART 10 UNITS
Section 1 Basic Units

1001 Availability

The insured automatically qualifies for BUs without exception. A BU, unless otherwise specified
in the CP or SP, is all insurable acreage of the insured crop in the county on the date coverage
begins for the crop year in which the insured has:

A. 100 Percent Share in the Crop

This includes share as owner/operator and/or land that is rented for cash, a fixed commodity
payment or any consideration other than a share in the crop.

B. Less Than 100 Percent Share in the Crop

Land owned by one person and operated by another person on a share basis. A crop shared
with each different landlord, tenant or sharecropper is a separate BU. Reversed roles do
qualify for separate BUs. (Example: The insured is a landlord on part of the farming
operation and a tenant on another part of the farming operation.) Varying percentages of
shares within a BU do not qualify for separate BUs.

Example: An insured owns land and rents land from five landlords-three on a crop
share basis and two on a cash lease basis. The insured would be entitled to
four BUs, one for each crop share arrangement and one that combines the
two cash leases and the land owned by the insured.

Example: The Tobacco CP provides in lieu of the BP, a BU is all insurable acreage of an
insurable type of tobacco in the county in which the insured has a share on the
date of planting for the crop year and that is identified by a single FN at the time
insurance attaches.

1002 Premium Discount

A premium discount may be applicable as provided in the actuarial documents for certain crops
when BUs are not divided into OUs.

For each BU of an eligible crop that is not divided into OUs, the unit's premium (including CAT
imputed premium) will be decreased by the BUD. The discount also applies if only one OU
within a BU is planted and earning premium. The appearance of OU numbers on the acreage
report does not automatically indicate that the discount will not apply.

Once OUs are elected by the insured and processed by the AIP on the acreage report, the full
premium (without discount) is earned. However, if the acreage report is revised and the revision
changes the unit arrangement to a BU, the BUD (if applicable) will be based on the revised
acreage report if the AIP determines failure to comply with the OU requirements was inadvertent.

June 2015 FCIC 18180 51

1003 CAT Endorsement

The CAT Endorsement generally limits the units available for each insured crop to BUs
determined only by the crop share arrangement; on the date coverage begins for the crop year.
See Para. 1001.

A policy covering all landowners with an undivided interest in the land upon which an insured
crop is planted is limited to one BU see GSH Para. 251F. OUs or further BUs (e.g., type, non-
contiguous land, FSA FN, etc.) defined in the applicable CP or SP are not allowed for CAT
coverage. See the CAT Endorsement for the unit definition.

1004 APH Database Establishment

APH databases must be established for each BU by actuarial offer.

1005 APH Databases Below BU Level

APH databases below the BU level must be maintained by the AIP, if separate P/T/TMA/Other
Characteristics are contained on the actuarial documents. In addition, APH databases below the
BU level must be maintained by the AIP when:

(1) the insured elects to insure on a WU, EU, or BU basis or has CAT coverage; and

(2) the insured provides separate production reports for acreage that would qualify for separate
OUs under the terms of the policy or as specified in APH procedures.

Once APH databases below the BU level are established, they must be maintained. Production
reports are required for each APH database and the AIP must submit all APH databases to RMA.
The approved APH yield reported on the acreage report must match the corresponding APH
database within the BU (e.g., same section). If the insured does not provide a production report
on the basis of the APH databases below the BU level or if production is commingled between
the APH databases below the BU level, the AIP shall prorate the production and acreage to APH
databases with planted acres.

As provided by the policy or approved procedures, APH databases must not be established for
acreage that would not qualify for separate OUs for crop/P/T/TMA see Para. 1505. Any liability,
premium, and indemnity payments will be based on the BU structure, regardless of any APH
databases that may be established below that level.

1006 Commingled Acres and Production

Acres and production prorated between BUs are not acceptable production evidence for BUs.
Multi-Purpose Production and Yield Worksheet (commingled production worksheet) cannot be
used to prorate acreage and production between BUs.

June 2015 FCIC 18180 52

1006 Commingled Acres and Production (continued)

Exception: If the insured has a loss for the current crop year, the insured is required to
maintain production evidence to support the current crop year's unit arrangement
as shown on the acreage report. If, at loss time, production is discovered to be
commingled between BUs, the production must be apportioned or prorated, as
applicable, to the appropriate BU. The apportioned or prorated production is
used to process both the current year's claim and the following crop year's
production reports.

1007-1020 (Reserved)

June 2015 FCIC 18180 53

 Section 2 Optional Units

1021 Availability

Land that would otherwise be one BU may be divided into OUs according to the OU definition
contained in the BP, CP and/or SP. OUs are not available for crops insured under CAT.
Separate OUs are available for additional coverage policies only and are determined by the
following order of precedence.

A. Section

Separate OUs are available for sections. The boundaries of the section must be readily
discernible by the AIP without using survey instruments or locating survey markers.
See Para. 1073.

B. Section Equivalents

Separate OUs are available for section equivalents in the absence of sections. See Para.
1073 for definitions and examples of a section or section equivalent.

The boundaries of the section or section equivalent must be readily discernible by the AIP
without using survey instruments or locating survey markers.

C. Separate FSA FNs

Separate OUs are available by separate FSA FNs in the absence of sections, section
equivalents, or other unit division arrangements provided by RMA approved procedures,
such as WUA or UDO. Additionally, OUs are available by FSA FNs:

(1) in areas where survey boundaries are not readily discernible; or

(2) in Alabama, Arkansas, Florida, Louisiana, and Mississippi for Barley, Corn, Cotton,
Grain Sorghum, Oats, Rice, Rye, Soybeans, and Wheat as provided in the SP.

The boundaries of the FSA FNs must be readily discernible by the AIP without using
survey instruments or locating survey markers.

D. Written Unit Agreement (WUA)

Separate OUs are available for WUA approved by the RMA RO. WUAs must be available
for all Category B or Category C insured crops in the county regardless of AIP see WAH.

E. Unit Division Option (UDO)

Separate OUs are available by UDO approved by the AIP, where available. UDOs are used
to aggregate two or more (any shape) legally identifiable parcels of land of less than 640
acres into section equivalents for OU division purposes in lieu of FSA FNs see Para. 1074.

June 2015 FCIC 18180 54

1021 Availability (Continued)

F. IRR and NI Practice

If all the requirements in Para. 1024 are met, separate OUs are available by IRR and NI
practices within a single section, section equivalent, FSA FN, WUA, or UDO.

(1) To qualify as separate IRR and NI OUs:

(a) CP must allow division of OUs by IRR and NI;

(b) the NI acreage may not continue into the IRR acreage in the same rows or
planting pattern see (2) (c) below for exception; and

(c) the IRR acreage may not extend beyond the point at which the irrigation system
can deliver the quantity of water needed to produce the yield on which the
guarantee is based.

Exception: The NI corners of a field in which a center-pivot irrigation

system is used may be considered as IRR acreage if the NI
corners of a field in which a center-pivot irrigation system is
used do not qualify as a separate NI OU and production from
both practices will be used to determine the IRR approved
yield.

(2) Additional center pivot instructions:

(a) if the crop's planting pattern/rows continue into one or more NI corners of the
field and the portion of the field IRR by a center pivot irrigation system (circle),
the acreage within intersecting lines drawn at right angles to the radius of the
center pivot is not eligible for a separate optional NI unit see (c) below for
exception.
One Unit

June 2015 FCIC 18180 55

1021 Availability (Continued)

F. IRR and NI Practice (continued)

(b) if the crop's planting pattern/rows continue between the NI corners of the field
and the portion of the field IRR by a center pivot irrigation system (circle), but
do not extend into other NI acreage in the same section, section equivalent, or
FSA FN; other NI acreage can qualify as a separate NI OU if the requirements
are met.
May qualify for two units

(c) if the crop's planting pattern/rows continue between the NI corners of the field
and the portion of the field IRR by a center pivot irrigation system (circle), the
insured has yield monitor data separating IRR production from NI production;
and is practicing precision farming techniques.

May qualify for two units using yield monitors

and precision farming

June 2015 FCIC 18180 56

1021 Availability (Continued)

F. IRR and NI Practice (continued)

(d) if the crop's planting pattern/rows extend beyond intersecting lines drawn at
right angles to the radius of a center pivot into other NI acreage of the crop in
the same section, section equivalent, FSA FN; the insured is not eligible for a NI
OU.
One Unit

G. Organic Farming Practice

Separate OUs may be established for acreage of the insured crop grown and insured under
an organic farming practice. However, certified organic, transitional and buffer zone
acreages do not individually qualify as separate units (would be contained in the same OU).
Refer to Para. 1165B for additional procedure regarding acreage insured under an organic
farming practice.

Unit No 0001-0001
Unit No. 0001-
0002
NI Conventional Corn
NI Certified Corn
Buffer Zone

Sec. 5 Unit No. 0001-0002

NI Transitional Corn

June 2015 FCIC 18180 57

1021 Availability (Continued)

H. Policy Authorization

Separate OUs are allowed by certain perennial CPs on non-contiguous land. Other CP may
allow OUs based on different types or planting periods. Additionally, some crops require
authorization in the SP for separate OUs to be applicable.

Example: The Apple CP allow for OUs on non-contiguous land; and Dry Beans CP
allow OUs by processor contract; and Tobacco allows OUs by SP
authorization.

1022 APH Database Below OU Level

APH databases below the OU level must be maintained by the AIP, if separate P/T/TMA/Other
Characteristics are contained on the actuarial documents. As provided by the policy or approved
procedures, APH databases must not be established for acreage that does not qualify for separate
OUs for crop/P/T/TMA/Other Characteristics. APH databases below the OU/P/T/TMA/Other
Characteristics level may only be maintained by the AIP if the criteria in Para.1505 are met.

The approved APH yield reported must match the corresponding APH database within the OU
(e.g., same section). Once APH databases are established they must be maintained with
production reports for each APH database required and the AIP must submit them to RMA.

Any liability, premium and indemnity payments will be based on the OU structure, regardless of
any APH databases that may be established below that level based on the criteria in Para. 1505.

1023 Combination of OUs

OUs will be combined into the BU from which they were formed if insured does not comply with
the OU requirements.

1024 OU Qualifications

To qualify for an OU, all of the following apply.

A. Acceptable Production Report

Acceptable production reports must be filed for at least the most recent APH crop year in
the base period according to the OUs requested for the current crop year. See Para. 1302.
The following exceptions apply.

(1) The insured is a new producer who has not produced the crop, is not providing
records from another person sharing in the crop, and intends to keep separate acreage
and production records by P/T according to the OU division requirements. See Para.
1731.

June 2015 FCIC 18180 58

1024 OU Qualifications (continued)

A. Acceptable Production Report (continued)

(2) New land or a new P(IRR or NI)/T is added to the operation for the current crop year
which meets all OU requirements; and the insured has not produced the crop, is not
providing records from another person sharing in the crop on that acreage, and intends
to keep separate acreage and production records according to OU provisions.

(3) A person (or any member of the insured person) has NOT produced or shared in the
crop for more than two APH crop years in the county in the last 10 calendar years
preceding the current crop year (11 calendar years for crops with a lag year) if a
variable T-Yield exception is approved by the RMA RO and the person intends to
keep separate acreage and production records according to OU requirements. See
Para. 1738.

Inaccurate information on the production report must be corrected, in accordance with APH
yield tolerances provided in Para. 1583, such as: acreage or production on a reported unit;
transpositions of numbers; or incorrectly reporting quality adjustment. See LAM to
determine any liability adjustment factor.

Reporting a previously unreported unit is not considered a correctable error.

B. Clear and Discernible Break in Planting Pattern

The crop must be planted in a manner that results in a clear and discernible break in the
planting pattern at the boundaries of each OU.

Exception: If a geographic or topographic feature causes an insured to plant across

section/section equivalent lines, the insured may qualify for a WUA see
WAH.

Exception: For pears, OUs may either be established in accordance with Para. 1021
and Para. 1024B or by non-contiguous land, but not both. In addition to
this requirement, the SP may allow OUs by type. For OUs by type, the
requirement that the crop be planted in a manner that results in a clear and
discernible break in the planting pattern at the boundaries of each OU are
not applicable.

Planted includes the original planting, including any reseeding, or replanting. Cultivating,
disking, mowing, etc., between sections, section equivalents, FSA FNs, etc., after planting
or harvesting does not qualify the acreage for OUs.

Exception: For center pivot irrigation systems only, planting end rows either before or
after planting the crop or cultivating, disking, mowing, etc., after the crop
was planted between the IRR acreage and the NI corners of a center pivot
system may be used to establish breaks between IRR and NI planting
patterns for OU purposes.

June 2015 FCIC 18180 59

1024 OU Qualifications (continued)

B. Clear and Discernible Break in Planting Pattern (Continued)

Such breaks will be acceptable only if completed on or before the ARD for
the crop and are clearly discernible if a subsequent inspection is required
during the crop year (appraisal, claim for indemnity, APH review, etc.).

Producers using precision farming technology, identifying the boundaries

(between the IRR and NI acreage of the center pivot) and GPS yield
monitors that document the production separately, are considered to meet
the discernible break requirements between the IRR and NI acreage. See
Para. 1021F.

Additionally, if IRR and NI practices are carried out within a single section, section
equivalent, or FSA FN, proper planting and fertilization practices must be carried out for
each respective practice; and records of harvested production must also be maintained
separately for each practice.

1025 Production Evidence

A. Most Recent APH Crop Year

The insured must have acceptable production evidence for the most recent APH crop year
of planted acreage and production used to determine the approved APH yield or amount of
insurance for each OU.

If the insured has a loss for the current crop year, the insured is required to maintain
production evidence to support the current crop year's unit arrangement as shown on the
acreage report. If, at loss time, production is discovered to be commingled between OUs,
the units with commingled production must be combined on the current crop year's claim
for indemnity. However, the acreage and production history is continued to be maintained
separately unless combined according to Para. 1085.

For the subsequent crop year (the claim record must be used for APH), the insured will not
qualify for OUs on the combined unit.

B. Prior APH Crop Years

When a new insured is unable to provide separate acceptable production reports on an OU

basis for APH crop years prior to the most recent APH crop year but provides acceptable
records of acreage by unit and production for each BU by P/T, production for OUs within a
BU may be determined on a prorated basis (except for OUs determined by P/T), and
applied to OUs with planted acres.

When a new insured is unable to provide acceptable production reports or records of

planted acreage of the crop to prorate the production for OUs, such years are not acceptable
for APH purposes when OUs are requested.

June 2015 FCIC 18180 60

1025 Production Evidence (continued)

B. Prior APH Crop Years (Continued)

Example: 100 acres, 150 acres, and 50 acres were planted on units 0001-0001, 0001-
0003 and 0001-0005 respectively. The insured has records of 37,500 bu.
total production, 37,500 ÷ 300 = 125 bushels per acre.

For unit 0001-0001: 12,500 (100 acres x 125 bu.), 100.0 acres and
"PA"125 bu. are entered on the APH database in the Total Production,
Acres, and Yield columns respectively.

For unplanted units 0001-0002 and 0001-0004, 0.0 is entered in the acres
column and "Z" in the yield column.

The insured is eligible for five OUs.

C. Subsequent Crop Years

If OUs are desired, acceptable production reports must be filed for each OU.

Acceptable production evidence such as; farm management records for Category B APH
crops, must indicate planted acres and production for each OU and account for all planted
acreage and total production. This evidence must be available for each subsequent APH
crop year.

Acres and production submitted to qualify for OUs for the previous crop year may not be
combined into a BU (or OU) and then prorated if the insured wishes to continue to qualify
for OUs. For additional limitations for combining OUs, refer to Part 13 Section 7.

1026 Assigned Yields

Assigned yields will apply for all planted units of the crop that do not have loss claim records and
OUs will be combined if:

(1) acceptable production reports are not provided;

(2) production reports are provided with one or more units not reported; or

(3) production reports are provided, however, acceptable production evidence is not maintained
or available. See Part 14 for acceptable production evidence. The insured must have
acceptable production evidence of planted acreage and production used to determine the
production guarantee for each OU.

When assigned yields are used for the most recent crop year of the base period, OU provisions do
not apply for the crop/county. OUs will be combined at the time of loss adjustment if the insured
failed to meet any provision required to qualify for OUs. BUs cannot be further divided into
OUs at the time of loss adjustment.

June 2015 FCIC 18180 61

1026 Assigned Yields (continued)

Situations in (1)-(3) above are not correctable after the current year’s PRD. However, these
situations may be corrected in subsequent years prior to the PRD.

1027 Determining OUs

OUs are determined on or before the ARD, provided production reports were properly reported
on an OU basis on or before the PRD. However, OUs may be changed to BUs on or before the
ARD at insured’s discretion. OUs may be converted to BUs after the ARD if the AIP determines
the requirements for OUs are not met.

1028-1030 (Reserved)

June 2015 FCIC 18180 62

 Section 3 Enterprise Units

1031 Availability

(1) An EU consists of all insurable acreage of the same insured crop in the county in which the
insured has a share on the date coverage begins for the crop year:

(a) when an insured elects a single EU for all of the crop acreage in the county (not by
irrigated practice and non-irrigated practice) the unit structure code provided in the
actuarial documents for this election is EU; or

(b) when allowed by the actuarial documents, an insured elects and qualifies for separate
EUs by irrigated practice and non-irrigated practice see Part 10 Section 5 for
examples, the unit structure code provided in the actuarial documents for this election
is EP.

(2) EUs are only available on additional coverage policies for crops:

(a) for which revenue protection is available regardless of whether yield protection or
revenue protection is elected;

(b) for which revenue protection is not available, if authorized by the SP; and

(c) if shown as an authorized unit structure in the actuarial documents.

1032 EU Election

EU must be elected, on or before the earliest SCD, on an Application or Policy Change Form.

(1) For counties with a fall or winter SCD and a spring SCD specified in the actuarial
documents, the unit election may be changed on or before the spring SCD if there is no
insured fall planted acreage of the insured crop.

(2) The EU Election is continuous and remains in effect from year to year unless cancelled in
writing by the insured by the earliest cancellation date for the next crop year.

If the insured has an EU in effect and does not qualify for the current crop year the election
will continue to apply in subsequent crop years. See Para. 1033 below.

(3) An EU may not be further divided except as specified in this procedure. However, the unit
structure may be changed based on information determined to be correct when adjusting a
loss or at any other time.

1033 EU Qualifications

To qualify for an EU, all of the following must apply.

(1) The EU must contain all of the insurable acreage:

(a) of the same insured crop in the county as one EU; or

June 2015 FCIC 18180 63

1033 EU Qualifications (Continued)

(b) of irrigated acreage as one EU and of non-irrigated acreage as one EU for the same
insured crop in the county, if allowed by the actuarial documents. When elected by
the insured, two separate EUs will be established, one EU for all insurable irrigated
acreage of the crop and a second EU for all insurable non-irrigated acreage of the
crop, as long as both units separately meet the EU requirements below in (2). If the
insured fails to qualify for an EU on either of the irrigated or non-irrigated acreage,
the insured loses the option to select separate enterprise units by practice.

(2) The acreage in an EU must be located in:

(a) two or more sections, if OUs are available by sections;

(b) two or more section equivalents, if OUs are available by section equivalents;

(c) two or more FSA FNs, if OUs are available by FSA FNs;

(d) any combination of two or more sections, section equivalents, or FSA FNs, if more
than one of these is the basis for OUs;

(e) two or more units as established by WUA or UDO; or

(f) one section, section equivalent, or FSA FN that contains at least 660 planted acres,
based on the type of parcel that is utilized to establish OUs.

Items (a)-(e) above that are used to qualify for the EU must have planted acreage that
constitutes at least the lesser of 20 acres or 20 percent (20 acres/20 percent) of the insured
crop acreage in the EU. If there is planted acreage in more than two sections, section
equivalents, FSA FNs or units established by written agreement, these can be aggregated to
form at least two parcels to meet this requirement.

Example 1: If sections are the basis for OUs and the insured has 80 planted acres in section
15, 10 planted acres in section 34, and 10 planted acres in section 35, sections 34
and 35 may be aggregated to meet the 20 acres/20 percent requirement.

Example 2: The insured elects separate EUs for irrigated and non-irrigated practices.
Sections are the basis for OUs and the insured has planted acreage of the crop as
follows: 80 irrigated and 7 non-irrigated acres in section 15, 10 irrigated and 10
non-irrigated acres in section 34, 10 irrigated acres in section 35, and 40 non-
irrigated acres in section 36.

To qualify for the irrigated EU, the insured has 80 irrigated acres in section 15
and can aggregate the 10 irrigated acres in section 34 and 10 irrigated acres in
section 35 to meet the 20 acres/20 percent requirement. To qualify for the non-
irrigated EU, the insured has 40 non-irrigated acres in section 36 and can
aggregate the 7 non-irrigated acres in section 15 and 10 non-irrigated acres in
section 34 to meet the 20 acres/20 percent requirement.

June 2015 FCIC 18180 64

1033 EU Qualifications (Continued)

Calculation for qualifying for irrigated EU:

Total acres = 100 (80+10+10)

20 percent of total acres = 20 (100 x .20)

Section 15 with 80 acres is greater than 20 acres and greater than 20 percent.

Section 34 with 10 acres and section 35 with 10 acres aggregated together (10 +
10 = 20) meets the 20 acres/20 percent requirement.

The requirement of two or more sections with 20 acres/20 percent is met.

Calculation for qualifying for non-irrigated EU:

Total acres = 57 (7+10+40)

20 percent of total acres = 11.4 (57 x .20)

Section 15 with 7 acres and section 34 with 10 acres aggregated together

(7+10=17) meets the 20 percent requirement.

Section 36 with 40 acres is greater than 20 acres and also greater than 20
percent.

The requirement of two or more sections with 20 acres/20 percent is met.

Example 3: The insured elects separate EUs for irrigated and non-irrigated practices.
Sections are the basis for OUs and the insured has planted acreage of the crop as
follows: 80 irrigated and 4 non-irrigated acres in section 15, 10 irrigated and 6
non-irrigated acres in section 34, 10 irrigated acres in section 35, and 50 non-
irrigated acres in section 36. The insured does not qualify for separate EUs by
irrigated and non-irrigated practices because the non-irrigated acreage does not
meet the 20 acres/20 percent requirement for two or more sections and unit
structure will be assigned according to Para. 1037(2).

Calculation for qualifying for irrigated EU:

Total acres = 100 (80+10+10)

20 percent of total acres = 20 (100 x .20)

Section 15 with 80 acres is greater than 20 acres and greater than 20 percent.

Section 34 with 10 acres and section 35 with 10 acres aggregated together (10 +
10 = 20) meets the 20 acres/20 percent requirement.

The requirement of two or more sections with 20 acres/20 percent is met.

June 2015 FCIC 18180 65

1033 EU Qualifications (Continued)

Calculation for qualifying for non-irrigated EU:

Total acres = 60 (4+6+50)

20 percent of total acres = 12 (60 x .20)

Section 36 with 50 acres is greater than 20 acres and also greater than 20
percent.

Section 15 with 4 acres and section 34 with 6 acres aggregated together

(4+6=10) does not meet 20 acres/20 percent requirement.

The requirement of two or more sections with 20 acres/20 percent is not met for
each proposed EU. Insured does not qualify for separate EUs by irrigated and
non-irrigated practices. However, the insured would qualify for a single EU
because the requirement of two or more sections with 20 acres/20 percent for a
single EU by crop/county has been met.

(3) The crop must be planted in a manner that results in a clear and discernible break in
the planting pattern at the boundaries of the irrigated and non-irrigated acreage to
qualify for EUs by irrigated and non-irrigated practice.

“Planted” means the original planting, including any reseeding or replanting.

Cultivating, disking, mowing, etc., after planting or harvesting does not qualify for
separate EUs by irrigated and non-irrigated practices.

Exception: For center pivot irrigation systems only, planting end rows either
before or after planting the crop or cultivating, disking, mowing, etc.,
after the crop was planted between the IRR acreage and the NI
corners of a center pivot system may be used to establish breaks
between IRR and NI planting patterns for separate EUs by irrigated
and non-irrigated practices.

Such breaks will be acceptable only if they are completed on or

before the ARD for the crop and are clearly discernible if a
subsequent inspection is required during the crop year (appraisal,
claim for indemnity, APH review, etc.).

Producers using precision farming technology, identifying the

boundaries (between the IRR and NI acreage of the center pivot) and
GPS yield monitors that document the production separately, are
considered to meet the discernible break requirements between the
IRR and NI acreage.

June 2015 FCIC 18180 66

1034 Reporting Requirements

EU unit structure must be reported on the acreage report.

A. Separate Record Requirements

Each BU must be designated separately on the acreage report. Separate production reports
must be provided for APH purposes for each crop by P/T/TMA in the EU.

Separate records of acreage and production for BUs/OUs must be maintained to change unit
structure from EUs to BUs or OUs in any subsequent crop year.

(1) For BUs, to be eligible to use records to establish the production guarantee for the
BU, production reports must be provided for each BU by P/T/TMA. If production
reports are not provided for each BU, none of the production reports are acceptable
for APH purposes.

(2) For OUs, to qualify for OUs and to be eligible to use the records to establish the
production guarantee for all OUs, production reports must be provided for each OU
by P/T/TMA. If production reports are not provided for each OU, none of the
production reports are acceptable for APH purposes.

B. Maintaining APH databases below the EU level

The following are instructions for maintaining an APH database below the EU level.

(1) APH databases below the EU level must be maintained by the AIP when separate
P/T/TMAs are contained on the actuarial documents.

(2) APH databases below the EU level (at BU or OU level) must be established and
maintained by the AIP when:

(a) the insured provides separate production reports for acreage that would qualify
for separate OUs by crop/P/T/TMA. APH databases below the OU for
crop/P/T/TMA level may only be maintained by the AIP if the criteria in
Para.1505 are met.

(b) once APH databases below the EU level are established, they must be
maintained and the AIP must submit the APH databases to RMA electronically.
The approved APH yield reported on the acreage report must match the
corresponding APH database within the EU (e.g., same section).

(3) If the insured does not provide a production report on the basis of APH databases
below the EU level or if production is commingled between the APH databases below
the EU level, the AIP shall prorate the production and acreage to APH databases with
planted acres when APH databases below the EU level exist.

(4) Any liability, premium and indemnity payments will be based on the EU structure,
regardless of any APH databases that may be established below the EU level.

June 2015 FCIC 18180 67

1034 Reporting Requirements (continued)

C. EU Acreage Report Requirement

Each section or other basis used to qualify for an EU must be separately designated by BU
on the acreage report.

D. Qualification Determination

Qualification for the EU will be determined at acreage reporting time when the insured
reports all insurable acreage of the insured crop in the county for all BUs and/or OUs
comprising the EU.

E. Prorating Production

If an insured has only provided production reports for total acres and total production on an
EU basis and APH databases have not been maintained at the BU level, production will be
prorated for each BU for planted acres in accordance with Para. 1087C to determine the
approved APH yield when BUs are assigned up until payment of a claim.

1035 Discounts

Only planted acres are used when determining the appropriate EU discount factor contained in
the actuarial documents. Any applicable EU discount factor applies to planted and PP acres, if
applicable, in the EU when determining premium.

1036 Added Land and New Crop P/T

For land added to an EU or APH databases established for a new crop/P/T, use a simple average
of the approved APH yields for the applicable underlying units of the EU as the SA T-Yield
when the added land (or existing land in the case of new crop/P/T) is comparable in productivity;
otherwise, use the variable T-Yield for any APH databases established for the added land. See
Part 17 Section 9.

1037 Assigned Unit Structure

(1) If the insured does not qualify for an EU by crop/county, a unit structure will be assigned.
If this determination is made:

(a) on or before the ARD, the unit division will be based upon BUs or OUs, whichever is
reported on the acreage report and for which the insured qualifies, if the production
reporting requirements are met by the PRD.

(b) after the ARD, a BU structure will apply.

(2) If the insured does not qualify for separate EUs by irrigated and non-irrigated practices
(when elected) and this determination is made see Exh. 10E:

(a) on or before the ARD, the insured may elect the unit structure of:

June 2015 FCIC 18180 68

1037 Assigned Unit Structure (Continued)

(i) one EU on a crop/county basis, provided the requirements in Para. 1033 are met;
or

(ii) BUs or OUs, whichever is reported on the acreage report and for which the
insured qualifies, if the production reporting requirements are met by the PRD;
or

(b) after the ARD, the unit structure will be one EU by crop/county provided the
requirements in Para. 1033 are met. If the requirements for an EU is not met, a BU
structure will apply.

1038 Assigned Yields

Assigned yields and related procedures will apply if production reporting provisions are not
complied with for an EU. See Para. 1306 and 1503B for assigned yield and related procedures.
However, assigned yields do not apply if the insured provided an acceptable production report on
an EU basis and BUs are subsequently assigned.

1039 Cups

Cups do not apply if APH databases are combined or divided when switching from BUs or OUs
to an EU.

1040-1044 (Reserved)

June 2015 FCIC 18180 69

 Section 4 Whole Farm Units

1045 Availability

A WU consists of all insurable acreage of all insured crops planted in the county in which the
insured has a share on the date coverage begins for each crop for the crop year and for which the
WU structure is available. WUs may not be further divided, except as specified in this
procedure.

WUs are only available for additional coverage policies for:

(1) crops with revenue protection available, only if revenue protection is elected, or
(2) crops without revenue protection, only if allowed by the SP.

1046 WU Election

WU must be elected by the insured, in writing, on an application or policy change on or before

the earliest SCD for the insured crop(s) and county insured and unit structure must be reported on
the acreage report.

(1) For counties with a fall/ winter SCD and a spring SCD, the WU election may be changed
on or before the earliest spring SCD for crops in the unit, if there is not any insured
fall/winter planted acreage of the insured crop.

(2) The WU election is continuous and remains in effect from year to year unless cancelled in
writing by the insured by the earliest cancellation date for the crop years.

If the insured has a WU in effect and does not qualify for the current crop year, the election
will continue to apply in subsequent crop years. See Para.1047.

1047 WU Qualifications

To qualify for a WU, all of the following apply.

A. All Eligible Crops Must Be Insured

All insured crops eligible for WUs must be insured:

(1) under revenue protection (if the Harvest Price Exclusion is elected for any crop, it
must be elected for all crops in the WU), unless the SP allow WU for another plan of
insurance and all crops are insured under such a plan;

Any insured crop with WUs available under the SP (even if revenue protection is not
available) must also be included in the WU.

June 2015 FCIC 18180 70

1047 WU Qualifications (continued)

A. All Eligible Crops Must Be Insured (continued)

Example: If the insured plants corn and soybeans for which revenue protection
has been elected and the insured plants canola for which yield
protection was elected (revenue protection is available), the corn,
soybeans and canola do not qualify for WU and would be assigned
separate BUs unless production reports were filed on an OU basis
and ARD has not passed

(2) with the same AIP; and

Example: If corn and canola are insured with an AIP and soybeans are insured
with a different AIP, the corn, soybeans and canola do not qualify for
WU and would be assigned separate BUs

(3) at the same coverage level.

Example: If corn and canola are insured at the 65 percent coverage level and
soybeans are insured at the 75 percent coverage level; the corn,
soybeans and canola do not qualify for WU and would be assigned
separate BUs.

B. Must Contain Two Crops and 10 Percent or More of Planted Acreage

The WU must contain all of the insurable acreage of at least two crops.

At least two of the insured crops must each have planted acreage that constitutes 10 percent
or more of the total planted acreage liability of all insured crops in the WU. (For crops for
which revenue protection is available, liability will be based on the applicable projected
price only for the purpose of this paragraph).

1048 Separate Administrative Fees

The insured is required to pay the separate administrative fees for each crop included in the WU.

1049 Reporting Requirements

A. Acreage Report

Each BU for each crop in the WU must be designated separately on the acreage report.

June 2015 FCIC 18180 71

1049 Reporting Requirements (continued)

B. Production Report

Separate production reports must be provided for APH purposes for each crop by P/T/TMA
for the WU. To change unit structure from a WU to BU or OUs in any subsequent crop
year, separate records of acreage and production for each crop must be maintained by
P/T/TMA by the following.

(1) For each BU, to be eligible to use such records to establish the approved APH yield or
amount of insurance for the BUs.

(2) For OUs, to qualify for OUs and to be eligible to use such records to establish the
approved APH yield or amount of insurance for the OUs.

(3) If an insured has only provided production reports for total acres and total production
by crop on a WU basis and APH databases have not been maintained at the BU level,
production will be prorated for each BU based upon planted acres in accordance with
Para 1087C to determine the approved APH yield when BUs are assigned up until
payment of a claim.

C. Maintaining APH databases below the WU level

The following instructions apply when maintaining an APH database below the WU level.

(1) APH databases below the WU level must be maintained by the AIP when separate
P/T/TMA are contained on the actuarial documents.

(2) APH databases below the WU level (at BU, OU, or EU level) must be established
and/or maintained by the AIP when:

(a) the insured provides separate production reports for acreage that would qualify
for separate OUs by crop/P/T/TMA.

APH databases below the OU for crop/P/T/TMA level may only be maintained
by the AIP if the criteria in Para 1505 are met;

(b) APH databases below the WU level are established, they must be maintained
and the AIP must submit the APH databases to RMA electronically. The
approved APH yield reported on the acreage report must match the
corresponding APH database within the WU (e.g., same section).

(3) If the insured does not provide a production report on the basis of APH databases
below the WU level or if production is commingled between the APH databases
below the WU level, the AIP shall prorate the production and acreage to APH
databases with planted acres when APH databases below the WU level exist.

June 2015 FCIC 18180 72

1049 Reporting Requirements (continued)

C. Maintaining APH databases below the WU level (continued)

(4) Any liability, premium and indemnity payments will be based on the WU structure,
regardless of any APH databases that may be established below that level.

1050 Unit Structure Assignment

If the insured does not qualify for a WU for at least one insured crop, even when revenue
protection was elected for all crops and the insured does not meet all of the other requirements in
Para. 1047:

(1) on or before the ARD, the unit division for all crops for which a WU was elected, will be
based on BU or OUs (provided the production reporting requirements are met by the PRD),
whichever is reported on the acreage report and for which the insured qualifies; or

(2) at any time after the ARD, a BU structure will be assigned for all crops for which a WU
was elected.

If it is not possible to establish a projected price for at least one of the insured’s crops, the unit
structure will:

(1) be based on the unit structure reported on the acreage report; and

(2) qualify for only the crop for which a projected price could not be established, unless the
remaining crops in the unit would no longer qualify for a WU. In such case, the unit
division for the remaining crops will be based on the unit structure reported on the acreage
report for which the insured qualifies.

1051-1060 (Reserved)

June 2015 FCIC 18180 73

 Section 5 Unit Numbering

1061 General Information

The unit number is assigned by the AIP and identifies the unit. The unit number consists of an
eight-position number and a two-position alpha-character field to designate unit structure. See
Exh. 10 for unit numbering examples.

1062 The Structure Code

The unit structure code is a two-position alpha character field to designate the unit structure for
which the insured elects and qualifies.

Exception: When an insured elects and qualifies for OUs, unit numbers may be coded with
the OU (including UD or UA if OU established by UDO or WUA) or BU
structure code.

A unit number is coded with the BU structure code if an insured elects and
qualifies for OUs, and a BU is not further divided into OUs or only one OU
(including UD or UA if OU established by UDO or WUA) within a BU, that
contains multiple OUs, is planted.

The Unit Structure Code will not be required on the production report or APH database.
However, the Unit Structure Code must be reported on the acreage report.

Applicable Unit Structure Codes include:

(1) BU – Basic Unit;

(2) OU – Optional Unit;
(3) EU – Enterprise Unit;
(4) EP – Enterprise Unit by Irrigated and Non-Irrigated Practices;
(5) WU – Whole-farm Unit;
(6) UD – OU established by UDO; and
(7) UA – OU established by a WUA

1063 Unit Number

The unit number is an eight-position number divided into two separate fields. The unit structure
code will identify the unit structure, not the unit number. For example, an insured elects an EU
and reports acreage and production on an OU or BU basis, an AIP must assign unit numbers on
the basis the APH database is established and the unit structure code (EU) will designate the unit
structure.

The first four digits are the BU number and may be any number between 0001-9999. However,
BUs for an insured should start with 0001, if possible. The last four digits are the OU number
and may be any number between 0000-9999.

Example 1: An insured elects OUs and has two OUs within one BU. The unit numbers are:

June 2015 FCIC 18180 74

1063 Unit Number (continued)

(1) 0001-0001OU; and

(2) 0001-0002OU

Example 2: Same scenario as the previous example, but in the subsequent year, the insured
elects BUs, no other changes. The unit number does not change, only the unit
structure code (OU changed to BU) changes:

(1) 0001-0001BU; and

(2) 0001-0002BU

Example 3: An insured has three BUs and elects OUs: the first BU has two planted OUs, the
second BU contains multiple OUs but only one OU is planted in the current crop
year, and the third BU is not further divided into OUs. The unit numbers are:

(1) 0001-0001OU;
(2) 0001-0002OU;
(3) 0002-0001BU; and
(4) 0003-0000BU

The following examples demonstrate an insured with different share arrangements, who elects an
EU, is able to report production by OUs, BUs, or EU.

Example 1: An insured with different share arrangements and an OU APH database

structure elects an EU for the current crop year. The unit numbers are:

(1) 0001-0001EU, owns (100%) share, section 3;

(2) 0001-0002EU, cash rents (100% share) from landowner A, section 5;
(3) 0001-0003EU, owns (100% share) section 19;
(4) 0002-0001EU, 60% share with landowner B, section 2;
(5) 0002-0002EU, 60% share with landowner B, section 3;
(6) 0002-0003EU, 60% share with landowner B, section 7;
(7) 0003-0001EU, 60% share with landowner C, section 2;
(8) 0003-0002EU, 60% share with landowner C, section 5; and
(9) 0003-0003EU. 60% share with landowner C, section 33

Example 2: An insured with different share arrangements and a BU APH database structure
elects an EU for the current crop year. The unit numbers are:

(1) 0001-0000EU, 100% share: owns/cash rent landowner A;

(2) 0002-0000EU, 60% share with landowner B; and
(3) 0003-0000EU, 60% share with landowner C

Example 3: An insured without underlying BU or OU APH databases and an EU structure.

The unit number is:

0001-0000EU, all insurable acreage of the crop in the county.

June 2015 FCIC 18180 75

1063 Unit Number (continued)

The following examples demonstrate an insured who has different share arrangements, elects EP
unit structure (i.e., separate EUs by irrigated and non-irrigated practices) and is able to report
production by OUs, BUs, or EU. The examples assume the insured has irrigated and non-
irrigated land in each section and irrigated and non-irrigated practice/types are the same for all
the land.

Example 1: An insured with different share arrangements and an OU APH database

structure elects EP unit structure for the current crop year.

The unit numbers for the irrigated EU are:

(1) 0001-0001EP, owns (100%) share, section 3;

(2) 0001-0002EP, cash rents (100% share) from landowner A, section 5;
(3) 0001-0003EP, owns (100% share) section 19;
(4) 0002-0001EP, 60% share with landowner B, section 2;
(5) 0002-0002EP, 60% share with landowner B, section 3;
(6) 0002-0003EP, 60% share with landowner B, section 7;
(7) 0003-0001EP, 60% share with landowner C, section 2;
(8) 0003-0002EP, 60% share with landowner C, section 5; and
(9) 0003-0003EP. 60% share with landowner C, section 33.

The unit numbers for the non-irrigated EU are:

(1) 0001-0001EP, owns (100%) share, section 3;

(2) 0001-0002EP, cash rents (100% share) from landowner A, section 5;
(3) 0001-0003EP, owns (100% share) section 19;
(4) 0002-0001EP, 60% share with landowner B, section 2;
(5) 0002-0002EP, 60% share with landowner B, section 3;
(6) 0002-0003EP, 60% share with landowner B, section 7;
(7) 0003-0001EP, 60% share with landowner C, section 2;
(8) 0003-0002EP, 60% share with landowner C, section 5; and
(9) 0003-0003EP. 60% share with landowner C, section 33.

Example 2: An insured with different share arrangements and a BU APH database structure
elects EP unit structure for the current crop year.

The unit numbers for the irrigated EU are:

(1) 0001-0000EP, 100% share: owns/cash rent landowner A;

(2) 0002-0000EP, 60% share with landowner B; and
(3) 0003-0000EP, 60% share with landowner C.

The unit numbers for the non-irrigated EU are:

(1) 0001-0000EP, 100% share: owns/cash rent landowner A;

(2) 0002-0000EP, 60% share with landowner B; and
(3) 0003-0000EP, 60% share with landowner C.

June 2015 FCIC 18180 76

1063 Unit Number (continued)

Example 3: An insured without underlying BU or OU APH databases elects EP unit

structure.

The unit number for the irrigated EU is:

0001-0000EP, all insurable irrigated acreage of the crop in the county.

The unit number for the non-irrigated EU is:

0001-0000EP, all insurable non-irrigated acreage of the crop in the county.

1064 Unit Numbering Constancy

The unit number for a particular unit should remain the same from year to year to the extent
possible, even when a policy transfers to a different AIP.

Unit numbers do not change when a different unit structure is elected (i.e., an insured with OUs
elects EUs); the two-character unit structure code indicates unit election qualification. AIPs may
change unit numbers due to unit combination/division.

A. Numbering When Units are Combined

When units are combined, unit numbering should be handled as follows:

(1) When BUs are combined, the unit number for the resulting BU should be the lowest
unit number of the BUs which were combined. The first set of four characters of the
combined unit designate the BU (0001).

(2) When OUs are combined, the unit number of the resulting OU should be the lowest
unit number of the OUs which were combined. The second set of four characters
designate the OUs.

Example: Original units are 0001-0001OU, 0001-0002OU, and 0001-0003OU.

If 0001-0001OU and 0001-0002OU are combined due to
commingled production, the revised acreage report and unit numbers
would be 0001-0001OU and 0001-0003OU.

June 2015 FCIC 18180 77

1064 Unit Numbering Constancy (continued)

B. Numbering When Units are Divided

(1) When BU(s) are divided, the unit numbers for the resulting BUs will be the original
unit number and the lowest next available BU number.

(2) When BU(s) are divided into OUs, the unit numbers for the resulting OUs will be the
lowest available OU numbers for that BU.

(3) When OUs are divided, the unit numbers of the resulting OU will be the original unit
number and the lowest next available OU number.

Example: Original unit is 0001-0001OU. If 0001-0001OU is divided, the

resulting unit numbers will be 0001-0001 and 0001-0002OU (if
0001-0002 is not already in use).

1065 Unit Number Consistency

When possible, unit numbers should correspond for each crop as much as possible (i.e., wheat
unit 0001-0001 should match with the location of the corn unit 0001-0001).

1066 Master Yield Summary APH Database

Unit number is 0000-0000 with no unit structure code. Yield indicator is “M”. See Part 17
Section 7 for more information concerning Master Yields.

1067-1072 (Reserved)

June 2015 FCIC 18180 78

 Section 6 Sections, Section Equivalents, and FSA FNs

1073 Provisions

A. Sections

In regards to unit structure, a section is a unit of measure under a rectangular survey system
describing a tract of land usually one mile square and usually containing approximately 640
acres.

B. Section Equivalents

In some areas of some states (e.g., Illinois, Indiana, Louisiana, New Mexico, Ohio and
Texas), other methods of measure (i.e., Spanish grants, railroad surveys, leagues, labors,
Virginia Military Lands etc.) are employed. If these units of measure are legally identified
and consist of at least 640 acres, they will be considered a section equivalent.

Example:

C. FSA Farm Numbers

FSA assigns a FSA FN to farms owned or operated by a person.

D. Order of Precedence

The order of precedence to determine whether sections, section equivalents, or FSA FNs
are used to determine OUs is:

(1) Section;
(2) Section equivalent containing at least 640 acres; and
(3) FSA FNs in the absence of section descriptions or section equivalents.

Assume that for each survey identified, the insured has kept separate, acceptable records of
acreage and production, the survey boundaries are clearly visible, and that the planting pattern
does not cross the survey boundaries.

For Sections, Section Equivalents, and FSA FNs:

June 2015 FCIC 18180 79

1073 Provisions (Continued)

Example: The County is primarily surveyed in sections usually one-mile square containing
approximately 640 acres. However, some of the land is surveyed using methods
other than sections.

Units are determined by order of precedence:

(1) Survey #1 is a separate OU (section) – 0001-0001;

(2) Survey #3 is a separate OU (section equivalent survey containing at least 640 acres) –
0001-0002; and

(3) Survey #2, #4 and #5 are each FSA FN OUs (FSA FN units in the absence of section and
section equivalent descriptions) – 0001-0003, 0001-0004 and 0001-0005.

June 2015 FCIC 18180 80

1073 Provisions (Continued)

For Spanish Land Grant

Units are determined by order of precedence:

(1) Survey #79 is a separate OU (section equivalent) – 0001-0001;

(2) Survey #78 is an OU (FSA FN unit in absence of section equivalent description) –

0001-0002; and

(3) Surveys #’s 67, 76, and 77 is one OU (FSA FN unit in absence of section equivalent
descriptions because each survey contains less than 640 acres and is a single FSA
FN.) – 0001-0003.

1074 Unit Division Option – Illinois, Indiana, Ohio, and Texas

In areas of Illinois, Indiana, Ohio, and Texas not surveyed under the U.S. Rectangular Survey
System or similar surveys allowing for sections or "section equivalents"; see Para. 1073, insureds
may request the UDO to aggregate two or more, (any shape) contiguous legally identifiable
parcels of land of less than 640 acres into "section equivalents" for OU division purposes in lieu
of FSA FNs. The insured may not establish OUs by FSA FNs when UDO is applicable for the
county.

For the purpose of this option, if a survey is required to identify the parcels of land, the parcels
are not legally identified. Units cannot be separated by a physical boundary (i.e., road, creek,
drainage ditch, fence, etc.) which is not identified by a legal survey.

June 2015 FCIC 18180 81

1074 Unit Division Option – Illinois, Indiana, Ohio, and Texas (Continued)

A. OUs for the Proposed Aggregation

To qualify for OUs for the proposed aggregation, the insured must comply with the
production reporting, recordkeeping, and planting pattern guidelines specified in the
applicable crop policy or actuarial documents.

B. Policies with More than One AIP

If the insured has policies with more than one AIP, the insured must decide which AIP to
work with to develop the UDO aggregate and then provide the other AIP(s) copies of the
UDO on or before the ARD.

C. Establish the Same Aggregated OUs

The insured must establish the same aggregated OUs for all crops insured by all AIPs. The
purpose of the option is to provide aggregated OUs on the same basis as those determined
by section under the Rectangular Survey System.

(1) If it is discovered that the insured has more than one UDO, the one with the earliest
signature date will apply.

(2) If the insured does not have acreage and production records or does not file required
production to support the aggregated OUs, the insured will be limited to BUs for the
crop(s). See Para 1024B for exceptions.

(3) Bona fide landlord and tenant arrangements (companion policies) are not required to
have the same aggregated OUs. If a landlord and a tenant have different aggregated
OUs, each entity or policy will have its own approved APH yield and unit
arrangement.

D. Continuous Option

The option is a continuous option and applies (until canceled) to any crop for which OUs
are chosen. Written documentation must be completed on the UDO by the applicable ARD
and retained by the AIP. The option may be canceled by the insured or AIP for any
succeeding crop year by giving written notice on or before the cancellation date.

(1) If the insured chooses OUs for any crop(s), the aggregated OUs established on the
option apply to all insured crop(s) permitted OUs by section.

(2) OUs not elected. If the insured does not want OUs for a crop(s), the option is not
effective for that crop(s).

June 2015 FCIC 18180 82

1074 Unit Division Option – Illinois, Indiana, Ohio, and Texas (Continued)

D. Continuous Option (continued)

(3) All parcels of the aggregated OU MUST be legally identified by number or name of
each parcel (donation, section, labor, block, tract, etc.), and identified on the option.

(4) All parcels of land in an aggregated OU must be contiguous (lie adjacent to each
other). It is not required that the aggregated OU be of a rectangular shape.
Aggregated acreage may or may not be classified as cropland.

(5) Ownership or control of all land in the aggregate by the insured is not required.

(6) If the insured starts farming additional land that was not included in any of the
aggregated OUs, the added land may be:

(a) Added to an existing aggregated OU, or

(b) Combined with other non-aggregated land to form its own aggregated OU.

The additional or added land must be contiguous as stated in (a) and (b) above.

E. OUs

OUs determined by sections or "Section equivalents" (single parcels containing at least 640
acres) are not required to be entered on the option.

F. Agents Will Prepare the Option

Agents will prepare a UDO and forward it to the AIP for approval. If the agent needs
assistance in preparing the option, the AIP/RO will provide the assistance.

1075-1080 (Reserved)

June 2015 FCIC 18180 83

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

1081 General Information

This section provides instructions of establishing and maintaining APH databases when a
carryover insured with approved APH yield history combines or divides existing APH databases.

These instructions apply to both Category B and C crops unless otherwise specified. Separate
instructions are provided in Part 15 Section 2 for retaining previously reported acreage and
production history when P/T/TMAs change on the actuarial documents.

The following instructions are for structuring APH databases when:

(1) BUs change due to a change in the BU definition in the crop’s policy;
(2) BUs change due to a change in shares;
(3) OUs are combined;
(4) EUs, WUs, or BUs are divided into OUs; or
(5) OUs are further divided into additional OUs.

These instructions apply separately for each insured person, by crop and unit; however, APH
databases within a unit are required for each P/T and other situations such as TMA, high-risk
land, and may be required for added land and Category C crop APH databases.

Cups do not apply when APH databases with actual/assigned yields from more than one unit or
block (Category C) are combined or the APH database from a unit or block is divided into
additional APH databases. See Para. 1873.

Previous yield history must be updated according to these instructions based on the insured’s unit
structure for the current crop year.

1082 Establishing Separate APH Databases

When insureds provide separate production reports for acreage that would qualify for separate
OUs but elect to insure on an EU or BU basis (e.g., wants the BU discount instead of OUs, has
CAT coverage, or maintains APH databases on an OU basis when electing an EU), AIP must
establish separate APH databases for OUs within an EU or BU.

For new CAT insureds, verifiers must establish separate APH databases (corresponding to OUs
available to the crop at the additional coverage level) within an EU or BU, provided the insured
filed acceptable production reports in that manner.

However, it is the AIP’s responsibility to inform the insured of the correct unit structure. Refer
to Para. 1083 for procedures for maintaining separate OU APH databases for these situations.
Separate line entries are required on the acreage report for each APH database with planted
insurable acreage.

June 2015 FCIC 18180 84

1082 Establishing Separate APH Databases (Continued)

A. Impact of Failure to Provide an Acceptable Production Report

Failure to provide acceptable production reports for the most recent APH crop year will not
cause OU APH databases to be combined. Separate APH databases will continue to be
maintained for the OUs. However, assigned yields will apply and the insured will not be
eligible for OUs for the current crop year.

B. Impact of Commingled OU Production

If production from OUs is commingled (including at the time of loss), separate APH
databases must be maintained for the current and subsequent crop years as indicated in
Para. 1083 unless the Agreement to Combine OUs is authorized see Para. 1085.

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

APH databases previously established for OUs that continue to meet the crop’s OU requirements
under Para. 1082 or 1084E must be maintained separately unless, the insured can justify and
adequately document that the acreage will no longer be farmed separately and OUs are combined
according to Para. 1085.

Example: An insured had additional coverage and elects CAT coverage or elects BUs,
EUs or WUs and the previous APH yield history is on an OU basis. The verifier
must continue to maintain separate OU APH databases within the BU, EU, or
WU unless the OUs are combined.

A. APH Databases Maintained Separately

When APH databases are maintained separately, the yield history from all units that contain
actual and/or assigned yields will be entered in the appropriate current (policy) crop year
APH database. However, insureds must file separate reports of acreage and production for
the most recent APH crop year to qualify for OUs.

B. Commingled OU Production

If production from OUs is commingled in subsequent crop years, the production will be
prorated to APH databases with planted acreage.

C. Acceptable Production Reports

If acceptable production reports not provided, assigned yields will apply to APH databases
with planted acreage (except where claims are applicable).

For Category B Crops, if the insured chooses to combine the APH databases, the AIP must
agree in writing to combine the acreage and production history; see Para. 1085.

June 2015 FCIC 18180 85

1083 Maintaining Separate APH Databases Within BUs, EUs, or WUs (continued)

D. Acreage and Production History Maintained Separately

When the acreage and production history must be maintained separately, use the following.

Step 1 Change the BU/EU/WU to reflect the current year’s unit structure and for data
tracking purposes assign a yield record number (record) to each previously
established OU APH database see Appendix III.

Step 2 Complete the most recent year in the APH database by using the current year’s
production report(s).

(1) If acceptable production reports are not filed, and insurable acreage was planted the
previous (policy) crop year, use assigned yields (by P/T/TMA) for APH databases
with planted acres.

(2) If the production was commingled, prorate the production to APH databases with
planted acres (divide the total production by the total acres and then prorate it to each
APH database with planted acres by multiplying the average yield times the planted
acreage see Exh. 10). Identify the prorated actual production with the yield descriptor
“P” prior to the actual yield descriptor (e.g., “PA”, “PV”, and “PG” if applicable).

(3) For APH databases with no acres planted, enter a “Z” yield descriptor if sufficient
space in the APH database.

Step 3 If T-Yields are required to complete four-year APH databases, the applicable T-
Yield for each individual APH database will be used. Calculate the approved
APH yield using the applicable Category B or C procedures for each APH
database.

1084 Situations that Require Combining and Dividing APH Databases

The following situations require combining or dividing APH databases.

A. The BU Definition Changes

The crop policy’s BU definition changes and two or more BUs must either be combined
into one BU or a BU must be divided into more than one BU.

B. A BU Structure is Assigned

A BU structure is assigned and APH databases were not previously established at a BU

level. A BU structure is assigned when it is discovered that an insured does not qualify for
an EU or WU. If an insured has only provided production reports for total acres and total
production on an EU basis and APH databases have not been maintained at the BU level,
production will be prorated for each BU based on planted acres in accordance with Para.
1087C to determine the approved APH yield when BUs are assigned.

June 2015 FCIC 18180 86

1084 Situations that Require Combining and Dividing APH Databases (continued)

C. BU Change Due To Share Arrangement

BUs change due to a change in the share arrangement and either:

(1) two or more BUs must be combined into one BU (e.g., the insured bought or cash
leased acreage that was previously share rented and has other 100 percent acreage and
the acreage does not meet the crop’s policy requirements for OUs), or

(2) a BU must be divided into more than one BU (e.g., the insured share rented acreage
that was previously cash rented and it still has a 100 percent share in the insured crop
on some of the acreage that was contained in the database).

D. Unit Change Due to Reconstituted FSA FN

Units that are by FSA FN and FSA FNs are reconstituted. The yield history in the APH
database from BUs or OUs established by FSA FN must be combined if more than one FSA
FN is reconstituted into a single FSA FN by the PRD. The production history from a BU
must be divided if a single FSA FN is reconstituted into more than one FSA FN by the
PRD. If reconstituted after the PRD, the APH databases will be changed the following crop
year.

E. OU Division

Units are divided into OUs. APH database yield history is divided when EUs, WUs, or
BUs are divided into OUs or OUs are further divided into additional OUs.

1085 Agreements to Combine OUs for Category B Crops

Agreements should only be used by insureds that have established separate APH databases for
OUs that adjoin or has added land that qualifies as a separate OU that adjoins another OU and the
insured does not or will not want the acreage divided into separate OUs.

This Agreement must not be used to combine OU APH databases for added land that must be
maintained separately according to the added land rules see Part 17 Section 9. APH databases
established for OUs that meet the crop’s OU policy requirements must be maintained separately,
unless an insured requests to combine in accordance with the Agreement and the AIP approves
the Agreement.

Combining OU APH databases (that are not required to be maintained separately by other
procedures) that meet the crop’s policy provisions for separate OUs is restricted for APH
purposes to the following.

June 2015 FCIC 18180 87

1085 Agreements to Combine OUs for Category B Crops

A. OUs Combined from the Same BU

The combined OUs must be from the same BU and the acreage must be physically located
in the same county and in separate sections, section equivalents or FSA FNs whichever
applies. The Agreement may not be used to combine OU APH databases for different
P/T/TMA.

B. Combined OUs Must Be Adjoined

The sections, section equivalents, or FSA FNs containing the OUs being combined must lie
next to or be in contact with each other (section, section equivalents, or FSA FNs whose
corners touch will be considered adjoining) and the insured must provide:

(1) accurate legal descriptions of the units to be combined and if OUs are determined by
FSA FNs, the legal descriptions of the FSA FNs that are being combined and;

(2) a copy of a recent aerial photo or map with the sections, section equivalents or FSA
FNs that contain the OUs being combined clearly identified (delineated) that
demonstrates they adjoin.

C. Signature and Acceptance

Insureds must accurately complete and sign the Agreement on or before the PRD and
designate the crops to which it will apply. Agreements are subject to AIP approval.

AIPs may approve Agreements to combine the acreage and production from OU databases
after verifying that the information provided by the insured meets all the underwriting
requirements. Once approved by the AIP, the Agreement is continuous and becomes an
official document that must be retained by the AIP.

The AIP must provide the insured a copy of the Agreement that indicates whether the
Agreement was approved. The Agreement remains in force if the insured changes from
yield protection to revenue protection or vice versa.

D. Transfer of Agreements

The Agreement transfers when the crop’s policy is transferred to another agent or AIP.
Insureds are not allowed to divide the combined units back into OUs by transferring or by
cancelling and rewriting a policy for the same crop year.

If the crop’s policy is transferred to another AIP the ceding AIP must transfer the
Agreement (provide a copy of the required underwriting information) to the assuming AIP.

June 2015 FCIC 18180 88

1085 Agreements to Combine OUs for Category B Crops (continued)

E. Agreements are Continuous

The Agreement is continuous and may not be cancelled. However, the agreement will be
void:

(1) For any unit combined under the agreement (by crop) that is no longer valid for the
crop year due to a change in the BU structure or reconstitution of FSA FNs.
Unaffected combined unit structures are not void.

Example: The Agreement for a crop covers two different units, each consisting
of combined OUs. The BU structure changed for one of the
combined units causing acreage contained in it to be located in two
different BUs. In this example, the agreement is void only for the
affected unit.

Example: The Agreement for a crop covers three combined share rent OUs, but
the insured cash rents the same acreage for the crop year. The BU
structure changed; however, the combined unit structure is
unaffected and the agreement remains valid.

(2) For a crop, if the entire combined unit structure(s) for the crop are no longer valid.

Example: Two OUs are combined under the Agreement and become two
different BUs for a crop year.

(3) If the crop’s policy is cancelled, and the crop has not been insured for at least one
crop year, continuity of insurance broken. If an APH based crop policy is canceled
and the crop is insured under another insurance plan for at least one crop year that
does not use APH to establish the guarantee, the agreement will be void if acceptable
production reports are not provided that maintains continuity of APH for the period
insured under the other insurance plan.

APH databases for OUs combined under the Agreement must be identified with the
option code “CU” on the yield record and reported to RMA.

F. Violation of the Agreement

When it is discovered that combined units were separated into OUs in violation of the
Agreement, the AIP will:

(1) combine the acreage and production history according to the Agreement, beginning
with the crop year that the combined units were separated;

(2) combine the OUs and correct the approved APH yield for the current crop year and if
any indemnities were paid while the combined OUs were separated, combine the units
and correct the approved APH yields for those crop years; and

June 2015 FCIC 18180 89

1085 Agreements to Combine OUs for Category B Crops (continued)

F. Violation of the Agreement (Continued)

(3) recalculate the indemnity according to the combined units under the Agreement. If
the corrected indemnity is less than the indemnity that was calculated in violation of
the Agreement, collect the difference from the insured.

G. BU Structure Changes After the Agreement is Approved

If the BU structure changes due to a change in the insured’s farming operation and the
combined unit must be divided into more than one BU after the Agreement is approved, the
acreage and production history must be divided and recertified for at least the most recent
APH crop year according to the land (specific legal descriptions) contained in each new
BU.

If the acreage and production cannot be recertified according to the new BUs, the acreage
and production history is not acceptable and assigned yield provisions apply to carryover
policies. See Para. 1087B for additional instructions and Para. 1086 for situations requiring
combining of APH databases into a BU.

1086 Combining APH Databases

Any yield history of acreage from existing APH databases that do not meet the crop’s policy
provisions for separate OUs that make up a BU must be combined. See also Para. 1084 A, C,
and E.

Exception: Unless the procedures provide a situation that requires separate yields, e.g.,
added land, high-risk land, etc.

Example: An insured has produced and reported the insured crop on his/her own land
(100% share) for five years. For the current crop year, the insured purchased
land in the same section that was previously rented for two crop years on a crop
share basis. The acreage does not meet the policy requirements for separate
OUs; therefore, the acreage and production history must be combined into the
BU APH database.

Yield history (acreage and production) from all units (separated by P/T/TMA) being combined
that contain actual and/or assigned yields, will be entered in the current (policy) crop year APH
database according to the following procedure; see Exh. 10. If the insured requests combining
units after the PRD, do not combine the APH databases and continue to maintain multiple line
entries on the acreage report for that crop year.

Step 1: Complete the most recent APH crop year in the database by using the current year’s
production report(s).

June 2015 FCIC 18180 90

1086 Combining APH Databases (continued)

(1) If acceptable production report(s) are not filed and insurable acreage was
planted the previous (policy) crop year, use the assigned yield for units that were
planted.

(2) If insurable acreage was planted on more than one unit/P/T, use a simple
average of the prior approved APH yields for the applicable units, times 0.75 to
calculate the assigned yield.

(3) For units that were not planted, use zero-planted procedures.

Step 2: Combine the total production and actual acres for each APH crop year.

(1) For APH crop years with assigned yields, multiply the insurable planted acres
times the assigned yield to establish the amount of production, and calculate in
the same manner as a year with actual yields.

(2) Divide the combined production by the combined acres for each APH crop year.

(3) Next, enter the combined total production, acres and average yields in the
current (policy) crop year's APH database.

Step 3: For (policy) crop years in which no acres have been planted on any of the units (by
P/T/) being combined, a “Z” is entered if the APH database contains sufficient space.

(1) A production report containing zero acres maintains continuity for production
reporting purposes.

(2) If fewer than four years of actual/assigned yields have been reported, the
variable T-Yield must be used to complete the four-year database (previously
established SA T-Yields are NOT used).

Step 4: Calculate the approved APH yield using the applicable Category B or C procedure.

1087 Dividing APH Yield History for Category B Crops

Use these procedures if the following applies.

A. The BU Definition Changes

If the BU definition in the CP changes and a BU must be divided into additional BUs,
insureds may submit production report(s) according to the BU definition for the current
(policy) crop year or as BUs were defined the previous (policy) crop year. The following
crop year the production history must be submitted according to the new BU definition to
be acceptable.

If acceptable production reports for the most recent APH crop year are:

June 2015 FCIC 18180 91

1087 Dividing APH Yield History for Category B Crops (Continued)

A. The BU Definition Changes (continued)

(1) filed according to the previous BU definition,:

(a) add the production history to the APH database and transfer the yield history
(total production, acres, actual/assigned yields) from the prior (policy) crop
year’s BU APH database to the new BU APH databases that were derived from
it.

(b) if less than four years of actual and/or assigned yields are available:

(i) enter the applicable variable T-Yield(s) to complete each 4-year APH
database (previously established SA T-Yields are not used); and

(ii) then calculate the approved APH yields according to applicable Category
B procedures.

(2) filed according to the new BU definition, enter the acreage and production data in the
appropriate APH databases. Indicate zero planted acres where applicable.

(a) If the prior history is also recertified, follow the instructions in Para. 1087B;
however, assigned yield provisions will not apply if actual acreage and
production is submitted for years with assigned yields. Recertified production
reports must be for continuous APH years.

(b) If the prior history is not recertified, transfer the yield history (total production,
acres, actual/assigned yields) from the prior (policy) crop year’s BU database to
the new BU APH databases derived from it.

If less than four years of actual and/or assigned yields are available, enter the
applicable variable T-Yield(s) to complete each 4-year APH database
(previously established SA T-Yields are not used) and then calculate the
approved APH yields according to applicable Category B procedures.

(3) not filed for the current crop year, enter the assigned yield in all applicable (planted
acreage) APH databases. Follow the procedure in Para. 1087A for the remaining crop
years in the APH databases.

B. Farming Operations Changes

Changes to farming operations cause BUs to be divided into additional BUs see Para.
1084C:

(1) For the current (policy) crop year, the insured must submit acceptable production
reports for the most recent APH crop year according to the current year's unit
arrangement. See Exh. 10.

June 2015 FCIC 18180 92

1087 Dividing APH Yield History for Category B Crops (Continued)

B. Farming Operations Changes (continued)

(2) The insured may submit (recertify) production reports for prior APH crop years that
were previously reported as one unit.

When recertifying, production reports must begin with the most recent APH crop year
in the base period and work backward.

Reported acreage must include insurable planted acres and PP acreage for which
yields have been assigned (“PP” and “PW” yield descriptors).

Step 1: Complete the most recent APH crop year in each unit's APH database
using the current year’s production reports.

(a) If acceptable production report(s) are not filed and insurable acreage
was planted the previous (policy) crop year, use assigned yields for
divided units that were planted.

(b) For units that were not planted, use zero planted procedures.

Step 2: If additional APH crop years that were previously reported are recertified,
update the prior APH crop years using the actual production history from
each unit (by P/T/TMA).

(a) For crop years that the production cannot be recertified, the insured
should report acres by unit by crop year.

(b) When acres are reported by unit, but the production is commingled,
prorate the commingled production to unit APH databases with
planted acres by dividing the total production by the total acres and
multiply the resulting average yield times the planted acres.

(i) Identify prorated actual production with the “P” yield

descriptor prior to the applicable actual yield descriptor.

(ii) Duplicate assigned yields to appropriate APH databases.

(c) For crop years that are not recertified or if acres are not reported by
unit, enter the total acres and production (including assigned yields)
in each unit for each APH crop year.

(i) Identify duplicated actual production with the “D” yield

descriptor prior to the applicable actual yield descriptor.

(ii) Duplicate assigned yields to appropriate APH databases.

June 2015 FCIC 18180 93

1087 Dividing APH Yield History for Category B Crops (Continued)

B. Farming Operations Changes (continued)

Step 3: If less than four years of actual and/or assigned yields are available, enter
the applicable variable T-Yield(s) to complete each 4-year APH database.
Previously established SA T-Yields are not used.

Step 4: Calculate the approved APH yield.

C. Dividing a WU/EU into BUs, BUs into Additional BUs, WU/EU and BUs into OUs and
Further Dividing OUs (Category B Crops)

This procedure applies the initial crop year that WU/EUs or BUs are divided into OUs or
OUs are further divided into additional OUs. Although CAT coverage does not allow OUs,
this procedure applies if establishing separate APH databases for acreage that could be OUs
under additional coverage.

(1) For the current (policy) crop year, the insured must submit acceptable production
reports by BU or OU for the most recent APH crop year in the base period to be
eligible for OUs. However, insureds with an agreement to combine OUs are not
allowed to divide OUs combined under the Agreement. See Exh. 10.

(2) If the acreage and production has not been maintained separately for BUs or OUs, the
insured may submit (recertify) production reports for BUs or OUs for prior APH crop
years that were previously reported as one unit. When recertifying, production reports
must begin with the most recent APH crop year in the base period and work backward
(2015, 2014, 2013, etc.) to maintain continuity. Reported acreage must include
insurable planted acres and PP acreage for which yields have been assigned (“PP” and
“PW” yield descriptors). Only continuous recertified production reports will be used
to complete the new APH database and compute the APH yields.

Step 1: Complete the most recent APH crop year in each unit's APH database
using the current year’s production reports.

Step 2: If additional APH crop years (previously reported) are recertified, update
prior APH crop years using the actual production history from each unit
(by P/T/TMA).

(a) For crop years that the production cannot be recertified, the insured
should report acres by unit by crop year.

(b) When acres are reported by unit, but the production is commingled,
prorate the commingled production to unit APH databases with
planted acres:

(i) By dividing the total production by the total acres and multiply
the resulting average yield times the planted acres.

June 2015 FCIC 18180 94

1087 Dividing APH Yield History for Category B Crops (Continued)

C. Dividing a WU/EU into BUs, BUs into Additional BUs, WU/EU and BUs into OUs and
Further Dividing OUs (Category B Crops) (continued)

(ii) Identify prorated actual production with the “P” yield

descriptor prior to the applicable actual yield descriptor.

(iii) Duplicate assigned yields to appropriate APH databases.

(c) For crop years that are not recertified or acres reported by unit, enter
the total acres and production (including assigned yields) in each unit
for each APH crop year.

(i) Identify duplicated actual production with the “D” yield

descriptor prior to the applicable actual yield descriptor.

(ii) Duplicate assigned yields to appropriate APH databases.

Step 3: If less than four years of actual and/or assigned yields are available, enter
the applicable variable T-Yield(s) to complete each 4-year database.
Previously established SA T-Yields are NOT used.

Step 4: Calculate the approved APH yield.

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

The insured must submit acceptable production reports by BU/OU for at least the most recent
APH crop year in the base period according to the applicable unit division requested for the
current (policy) crop year and:

A. Recertify Production Reports

The insured must recertify production reports for prior APH crop years by BU or OU unless
production records have been maintained corresponding to the proposed unit structure.

(1) If corresponding APH block production or prior years block production worksheets
have been completed, the actual yields must be used to calculate the APH yield for
each BU or OU.

(2) When recertifying, production reports must begin with the most recent APH crop year
in the base period and work backward (2015, 2014, 2013, etc.) to maintain continuity.

(3) Only continuous recertified production reports will be used to complete the new APH
database and calculate the approved APH yields.

June 2015 FCIC 18180 95

1088 Dividing a BU into Additional BUs or OUs, or OUs into Further OUs for Category C (cont.)

B. Commingled Production

If the insured is unable to separate (recertify or if APH block production or prior years
block production worksheets are not available for the BUs or OUs) all prior years’
production history (other than the most recent crop year) for each requested BU or OU (by
P/T/TMA or other characteristics) the initial year BUs or OUs are requested:

(1) the AIP must use the lower of the actual yield (from the OU or BU being divided) or
variable T-Yield (based on the number of years actual records certified for the crop)
as the yield each crop year that the production history is not separated according to the
BU or OU structure.

When variable T-Yields are used instead of actual yields, use the applicable yield
descriptor (“SX”, “EX”, “NX”, or “IX” for 100 percent) (e.g., “NX” 500). These
yields remain in the APH database until outside of the base period and do not increase
if additional years of actual/assigned yields are provided;

(2) if different T-Yields by P/T/TMA or other characteristics are applicable and separate
acres are available, the Multi-Purpose Production and Yield Worksheet in Exh. 10
may be used to separate the production. These yields are not eligible for yield
substitution and must be identified with the applicable yield descriptor plus “C” (i.e.,
“AC”, “GC”, or “VC”). This procedure is not applicable for separate T-Yields by
age and/or density; or,

(3) the insured may request a RO Determined Yield. The RO Determined Yield must be
requested by the applicable PRD for the crop year.

The RO will establish databases, which may be updated by the insured/AIP in

subsequent years. When fewer than four years have been separated, and RO
Determined Yields are used to complete the four-year database, such yields are
identified by the “F” yield descriptor.

1089 Adding Land to an Existing Unit for Category B Crops

See Part 17.

June 2015 FCIC 18180 96

1090 Retaining Yield History for the Same Land

To retain yield history when the BU or OU is from a valid APH database and the same
entity/person and land is involved:

A. Unit Renumbered or FSA FN Reconstituted

Verify that the same entity and land is involved. If the same entity and land, the
actual/assigned yield history is retained. Yield limitation provisions, if applicable, will
apply.

B. Complete the APH Database for the Current Policy Crop Year

Enter the yield history for all (policy) crop years in the database using current APH rules.

1091-1100 (Reserved)

June 2015 FCIC 18180 97

June 2015 FCIC 18180 98
 PART 11 UNDERWRITING RULES FOR SPECIFIC PRACTICES
Section 1 Irrigated Practice

1101 IRR Practice Guidelines

AIPs must provide the Irrigated Practice Guidelines to insureds for whom the irrigated practice
may apply prior to the time that insurance generally attaches in an area. See FCIC 24040 DSSH
for Irrigated Practice Guidelines.

1102 Insurable Acreage

To be insurable under the IRR practice, the acreage must be insurable acreage for which the
insured demonstrates to the AIP’s satisfaction that adequate facilities and reasonable expectation
of receiving adequate water existed at the time insurance attached to carry out a good irrigation
practice for the insured crop.

If the insured knew or had reason to know prior to the time insurance attached that their irrigation
water supply may be reduced before coverage begins, no reasonable expectation exists.

When acreage does not qualify for insurance under the IRR practice, such acreage will be insured
under a practice other than IRR. If no other appropriate practice is available for the acreage,
insurance will not be considered to have attached on the acreage.

1103 Applicable Terms

The following table provides terms and requirements to facilitate a uniform understanding of
standards and guidelines for the IRR practice.

TERM REQUIREMENT
Irrigation facilities are considered adequate if it is determined that, at the time
Adequacy of insurance attaches to planted or perennial acreage, they will be available and
Irrigation usable at the times needed and have the capacity to timely deliver water in
Facilities sufficient quantities to carry out a good irrigation practice for the acreage
insured under the IRR practice.
The determination of the adequacy of water shall be based upon:

(1) the water available, at the time insurance attaches, from the irrigation
water supply, soil moisture levels, and, as applicable, snow pack storage
Adequacy of levels; and
Water (2) supplementary precipitation which would normally be received after
insurance attaches, during the period that a good irrigation practice is
normally carried out. Consideration will also be given to the factors
identified in Para. 1104, including the legal entitlement or rights to water.

Application of adequate water in an acceptable manner, at the proper times, to

Good Irrigation
allow production of a normal crop which is often identified as the approved
Practice
APH yield for crops.

June 2015 FCIC 18180 99

1103 Applicable Terms (Continued)

TERM REQUIREMENT
The physical resources, other than water, used to regulate the flow of water
from a water source to the acreage. This includes pumps, valves, sprinkler
heads, and other control devices. It also includes pipes or pipelines which:
Irrigation
Equipment and
(1) are under the control of the insured; or
Facilities
(2) routinely deliver water only to acreage which is owned or operated by
the insured. A center pivot system is considered irrigation equipment
and facilities.
The water source and means for supplying irrigation water, not including the
equipment or facilities. This includes the water source and dams, canals,
ditches, pipelines, etc., which contain the water for movement from the water
Irrigation Water source to the acreage that:
Supply
(1) are not under the control of the insured; or
(2) routinely deliver water to acreage in addition to that which is owned or
operated by the insured.
The insured had no reason to know at the time coverage began the amount
Reasonable
irrigation water may be limited or reduced. No reasonable expectation exists
Expectation of
if the insured knew, or had reason to know, the amount of irrigation water
Adequate Water
may be reduced before coverage begins.
The source from which water is made available. This includes wells, lakes,
Water Source
reservoirs, streams, aquifers, etc.

1104 Factors to Consider for IRR Practice Reporting and Coverage

Insureds must maintain, and provide upon request, documentation of the factors which were
considered in reporting acreage under IRR practice. Factors to consider in determining planted
or perennial crop acreage reported and insured under IRR practice include, but are not limited to:

(1) water source history, trends, and forecasting reliability;

(2) supplemental water supply availability and usage, including return flow;

(3) pumping plant efficiency and capacity;

(4) water distribution uniformity and flexibility of the system or district;

(5) water requirements, such as amount and timing, of all crops to be irrigated;

(6) water rights, such as primary, secondary, urban versus agricultural use, etc.;

(7) contingency plans available to handle water shortages;

(8) number of acres to be irrigated, amount of water to be applied to acres, and expected yield;

June 2015 FCIC 18180 100

1104 Factors to Consider for IRR Practice Reporting and Coverage (Continued)

(9) ownership of water, such as state, federal, landowner or insured;

(10) use of meters and other measuring devices or methods;

(11) soil types, soil moisture levels, and pre plant irrigation needs;

(12) water conserving methods, devices, and plans utilized;

(13) past crop planting history, trends, and recommended local practices;

(14) prudent activities and practices utilized by non insured producers;

(15) irrigation water supply, both quantity and quality, and facilities;

(16) recommendations from local CES, NRCS, and sources recognized by CES or NRCS to be
an expert in the area regarding irrigation and crop production; and

(17) information the insured knew, or should have known, and when the insured knew, or should
have known, such information.

AIPs shall use these and any other appropriate factors necessary, to verify whether acreage was
properly reported under the IRR practice.

1105 Failure to Carry Out Good IRR Practice

Failure to carry out a good irrigation practice on acreage properly insured under the IRR practice
will result in an appraisal for uninsured causes, unless the failure was caused by unavoidable
failure of the irrigation water supply after insurance attached.

If a loss is evident, acreage reported as an IRR practice that qualified as an IRR practice at the
time insurance attached cannot be revised to a NI practice after the ARD even if liability stays the
same or decreases, regardless of whether the insured applied any water.

1106 IRR Practice Guidelines for PP

Insureds may be eligible for a PP payment for acreage historically grown under an IRR practice
even if the acreage could have been planted with a NI practice, provided:

(1) all other PP requirements have been met; and

(2) there is not a reasonable expectation of having adequate water to carry out an IRR practice
due to an insured cause of loss occurring on or after the applicable SCD through the FPD, or
within the LP period, if applicable.

The applicable SCD for:

(1) carryover insureds is the SCD for the previous crop year; and

June 2015 FCIC 18180 101

1106 IRR Practice Guidelines for PP (continued)

(2) new insureds is the SCD for the current crop year.

Insureds must maintain, and provide upon request, documentation of the factors which were
considered in reporting there was no reasonable expectation of receiving adequate water for the
acreage reported as PP under an IRR practice.

1107 Determined IRR Yields

A. Applicability of Determined IRR Yields

Determined IRR yields may be used the first time an IRR practice is carried out on a unit if
a NI practice has previously been carried out. Determined IRR yields are not applicable to
acreage assigned high-risk T-Yields or if carried out on added land, unless acceptable
production reports are filed for the NI practice based on records from another person
sharing in the crop.

B. Qualifying for Determined IRR Yields

AIPs may approve a determined yield for an IRR practice the first time the IRR practice
qualifies as an added practice on a unit, provided:

(1) a NI practice has been carried out for the crop and acceptable production reports have
been provided for the NI practice;

(2) the NI practice for the same unit/location, such as FSA FN, legal description, or
location if the IRR unit is a separate OU, has a higher approved APH yield than the
approved APH yield available for the IRR practice using variable T-Yield procedures
that apply for the added IRR practice when no IRR records are available for the unit;
and

(3) the situation does not require a RO determined yield.

A request for a determined IRR yield must be sent to the RO for approval in situations
requiring a RO determined yield. See Part 17 and 18 for Category B and Category C
procedures for RO determined yields.

C. Request Requirements for Determined IRR Yield

A written request for a determined IRR yield must be received by the AIP no later than 20
days after the PRD.

Requests must include:

(1) legal descriptions of the unit(s) for which the determined IRR yield is being
requested;

June 2015 FCIC 18180 102

1107 Determined IRR Yields (Continued)

C. Request Requirements for Determined IRR Yield (Continued)

(2) copies of the production reports for the most recent crop year; and

(3) documentation indicating the water quality, supply, and irrigation equipment and
facilities are adequate to meet a good irrigation practice.

If a request is not timely made the first time an IRR practice is carried out on a unit then
determined IRR yields will not apply.

D. T-Yield Reference Factor

A T-Yield reference factor must be calculated to establish a determined IRR yield. The
following table provides instructions for calculating a T-yield reference factor.

STEP ACTION
1 Determine the location where the IRR practice will be carried out.
Determine the approved APH yield for the NI practice applicable to the same
2
unit/location. This is the NI reference unit.
Compare the NI approved APH yield for the reference unit to the variable T-Yield that
would apply to the IRR practice.
If the NI approved APH yield for the reference unit is less than the variable T-Yield for
the IRR practice, the unit does not qualify for the determined factored T-Yield. The
3 variable T-Yield for the IRR practice applies.
If the NI approved APH yield for the reference unit is greater than the approved APH
yield available for the IRR practice using variable T-Yield procedures, identify the
reference unit number in the “other” block on the APH database to document the
reference unit used for calculating the determined IRR yield.
Divide the NI approved APH yield by the applicable NI T-Yield and determine a
reference factor. Round to two decimal places.
4 If the reference unit contains more than one NI approved APH yield, calculate a reference
factor for each NI approved APH yield and then determine a simple average reference
factor.

June 2015 FCIC 18180 103

1107 Determined IRR Yields (Continued)

D. T-Yield Reference Factor (Continued)

STEP ACTION
Ensure the T-Yield reference factor calculated in step 4 does not exceed the applicable
maximum T-Yield reference factor. The maximum T-Yield reference factor allowed is
determined by the number of years of actual yields provided for the crop/county. The
maximum T-Yield reference factor is:
(1) 1.20 when one or two years of actual yields are provided;
(2) 1.30 when three years of actual yields are provided; and
(3) 1.40 when four or more years of actual yields are provided.

5 Example 1: The reference unit is 0001-0000 in N1/2 Section 15. The NI practice
approved APH yield for the reference unit is 425 lbs. The 100 percent T-Yield for the NI
practice is 320 lbs. Four years of actual yields have been provided for the crop in the
county. Therefore, the T-Yield reference factor is 1.33 (425 ÷ 320 = 1.33).

Example 2: The reference unit is 0001-0000 in N1/2 Section 15. The NI practice
approved APH yield for the reference unit is 420 lbs. The 100 percent T-Yield for the NI
practice is 320 lbs. Two years of actual yields have been provided for the crop in the
county. Therefore, the T-Yield reference factor is 1.20 (420 ÷ 320 = 1.31, but limited to
1.20). It is limited to 1.20 because only two years of actual production were provided.

E. Establishing Determined IRR Yield

Once a T-Yield reference factor has been determined, establish a determined IRR yield.
The following table provides instructions for establishing a determined IRR yield.

STEP ACTION RESULT

Calculate the factored IRR T-Yield by multiplying the T-Yield
Factored IRR T-
1 reference factor times the 100 percent T-Yield for the IRR
Yield
practice.
Determine the approved IRR yield of nearest existing unit.

If any IRR production records have been provided for any unit for
the crop, select the approved APH yield for the unit, basic or
Approved IRR yield
optional, containing records for the IRR practice that is physically
2 of nearest existing
located nearest to the reference unit.
unit
Use the IRR unit with the most years of records if more than one
unit with IRR production records are located an equal distance
from the reference unit.

June 2015 FCIC 18180 104

1107 Determined IRR Yields (Continued)

E. Establishing Determined IRR Yield (Continued)

STEP ACTION RESULT

Assign the determine IRR yield. If IRR production records in step
2 were:

(1) not provided, the determined yield is the factored IRR T-Yield
calculated in step 1; or
Determined IRR
3
yield
(2) provided, the determined yield is the lessor of:

(a) the factored IRR T-Yield calculated in step 1; or

(b) approved IRR yield of nearest existing unit determined in
step 2.

Example 1: In this example the reference unit is 0001-0000, N1/2 Section 15. It has a
NI practice approved APH yield of 425 lbs. Four years of actual yields
have been provided for the crop in the county, and the NI 100 percent T-
Yield is 320 lbs.

Calculate the T-Yield reference factor by dividing the NI practice

approved APH yield by the applicable NI T-Yield. The T-Yield reference
factor is 1.33 (425 ÷ 320 = 1.33).

An IRR practice is added to N1/2 Section 15, it becomes part of unit 0001-
0002, and the 100 percent T-Yield for the IRR practice is 400 lbs.

Calculate the factored IRR T-Yield by multiplying the 100 percent T-Yield
for the IRR practice times the T-Yield reference factor (step 1). The
factored IRR T-Yield is 532 lbs. (1.33 x 400 = 532).

IRR practice production records from the nearest unit were provided (step
2). The approved IRR yield of that unit is 550 lbs.

The determined IRR yield is 532 lbs, which is the lesser of the factored
IRR T-Yield (532 lbs.) or the approved IRR yield of the nearest existing
unit (550 lbs.).

Compare the determined IRR Yield (532 lbs.) to the added practice
variable T-Yield (400 lbs. 100 percent of IRR T-Yield) and use whichever
is higher.

Example 2: In this example the reference unit is 0001-0000, N1/2 Section 15. It has a
NI practice approved APH yield of 420 lbs. Two years of actual yields
have been provided for the crop in the county, and the NI 100 percent T-
Yield is 320 lbs.

June 2015 FCIC 18180 105

1107 Determined IRR Yields (Continued)

E. Establishing Determined IRR Yield (continued)

Calculate the T-Yield reference factor by dividing the NI practice

approved APH yield by the applicable NI T-Yield. The T-Yield reference
factor is 1.20 (420 ÷ 320 = 1.20). The T-Yield reference factor is limited
to 1.20 because only two years of actual production were provided.

An IRR practice is added to N1/2 Section 15, it becomes part of unit 0001-
0002, and the 100 percent T-Yield for the IRR practice is 400 lbs.

Calculate the factored IRR T-Yield by multiplying the 100 percent T-Yield
for the IRR practice times the T-Yield reference factor (step 1). The
factored IRR T-Yield is 480 lbs. (1.20 x 400 = 480).

IRR practice production records from the nearest unit were provided (step
2). The approved IRR yield of that unit is 460 lbs.

The determined IRR yield is 460 lbs., which is the lesser of the factored
IRR T-Yield (480 lbs.) or the approved IRR yield of the nearest existing
unit (460 lbs.).

Compare the determined IRR Yield (460 lbs.) to the added practice
variable T-Yield (400 lbs. 100 percent of IRR T-Yield) and use whichever
is higher.

F. Documenting the Determined IRR Yield

When determined IRR Yields are established and used, four determined IRR yields are
entered in the yield column of the APH database identified with the yield descriptor "C".

For subsequent crop years, the determined IRR T-Yield is used to complete the 4-year APH
database until four years of actual and/or assigned yields are available.

The request for the determined IRR yield, supporting documentation, and determined IRR
yield calculations must be retained and provided if the policy is selected for an APH
review.

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

Separate production reports must be provided and separate APH databases must be established
for IRR and NI practices when IRR and NI practices are indicated on the actuarial documents. If
production is commingled between an IRR and a NI practice, separate yields must be established
for the two practices by using the Multi-Purpose Production and Yield Worksheet or by using the
insured's certification of estimated production for the IRR and NI production. See Para. 1715 for
more information about separating comingled production.

Insureds are required to keep their production records separate for:

June 2015 FCIC 18180 106

1108 Reporting Production and Establishing APH Databases for IRR and NI Acreage (Cont.)

(1) acreage insured under the IRR practice;

(2) acreage insured under a practice other than IRR or with no practice applicable; and
(3) uninsured acreage.

Exception: Separate production reports and APH databases are not required when the
planting pattern for NI corners of a center pivot irrigation system continues into
the irrigated acreage of the center pivot irrigation system and the acres and
production from the NI corners are not separated from the acres and production
from the irrigated acres. See Para. 1109 for procedures for center pivot
irrigation systems.

1109 Special Requirements for Center Pivot Irrigation Systems

A. Applicability

The procedures in this paragraph pertain to all annual crops except rice. See Para. 1021E
for unit division instructions.

B. Determining NI Corners of a Center Pivot Irrigation System

Corners of a center pivot irrigation system are limited to the acreage within intersecting
lines drawn at right angles to the radius of the center pivot when the planting pattern for NI
corners continues into the irrigated acreage of the center pivot irrigation system. The
following is an example of how to identify NI corners in a center pivot irrigation system by
drawing lines at right angles to the radius of the center pivot circle.

June 2015 FCIC 18180 107

1109 Special Requirements for Center Pivot Irrigation (Continued)

C. Production Reports and APH Yields

The acres and production from the NI corners of a field must be included with the acres and
production from the field irrigated by the center pivot irrigation system when the same
insured crop is planted on the NI corner acres and the irrigated acres; and separate
production records for NI corner acres and irrigated acres are not provided.

Separate approved APH yields are not calculated for the NI corner acreage when such
acreage is considered IRR practice. However, a separate approved APH yield is required
for NI acreage that extends beyond the intersecting lines drawn at right angles of the radius
of the center pivot system or other NI fields.

When separate production reports are provided for the NI corner acreage and the irrigated
acreage under a center pivot irrigation system:

(1) two separate practices, IRR and NI, will be considered as carried out;
(2) a separate APH database for each practice is required; and
(3) IRR acreage is limited to acreage contained within the center pivot irrigation system.

D. Acreage Reports

When acreage in NI corners of a center pivot irrigation system is considered an IRR

practice, a separate line entry for the NI corner acreage is not required on the acreage
report. The acreage in the NI corners considered to be an IRR practice will not extend
beyond intersecting lines drawn at right angles to the radius of the center pivot.

When the corners are considered as a separate NI practice the following are applicable:

(1) separate records of acreage are provided for the NI corner acreage and the irrigated
acreage under a center pivot irrigation system.

(2) a separate line entry for each practice is required on the acreage report; and

(3) IRR acreage is limited to acreage contained within the center pivot irrigation system.

E. Separate Units in Subsequent Crop year

If, in a subsequent crop year, the insured requests separate OUs for the IRR and NI
practices, acceptable production reports for the previous APH crop year must be provided
for each practice by the PRD. If the insured does not recertify previous crop years, the
Multi-Purpose Production and Yield Worksheet must be used to apportion the production
for APH crop years prior to the previous crop year for the IRR and NI practices.

If the acreage planted to the IRR and NI practices are not known, the acres and production
must be attributed to the IRR practice and the NI practice by using the variable T-Yields or
a determined yield, if applicable, calculated according to Part 17 Section 3.

June 2015 FCIC 18180 108

1109 Special Requirements for Center Pivot Irrigation (Continued)

F. PP Production Guarantee for Corners

The approved IRR APH yield is used to calculate the PP production guarantee for the NI
corners when the NI corners are considered IRR practice and qualify for PP.

1110-1120 (Reserved)

June 2015 FCIC 18180 109

 Section 2 Summer Fallow Practice

1121 General Information and Insurability

A. General Information

SF practice uses mechanical tillage or chemicals on uncropped land to control weeds and
store moisture.

B. Insurability

SF is an insurable practice in some counties.

All of the following must be met to qualify as SF practice for the current crop year.

(1) The SF practices must be consistent with:

(a) NRCS soil erosion control measures; and

(b) recommended SF practices, such as method(s), frequency, adequate tillage

and/or chemical controls, for the area.

(2) In addition to lying fallow for a full crop year, plant growth on the acreage must be
terminated on or before the applicable plant growth termination date, followed by a
continuous chemical and/or mechanical control program. Plant growth termination
dates are:

(a) May 1 for California;

(b) June 15 for North Dakota, South Dakota, and Montana; and
(c) June 1 for all other states.

Example: Acreage in North Dakota was planted to a crop in 2014 crop year.
To qualify for SF practice in the 2016 crop year the land must lay
fallow during the 2015 crop year and any plant growth on the
acreage, including but not limited to weeds and volunteer crops, must
be:

(1) terminated by mechanical and/or chemical means on or before

June 15, 2015; and

(2) continuously controlled for the entire 2015 crop year.

(3) The land must not have been planted or devoted to a crop in the immediately
preceding crop year and must lie fallow for a full crop year.

(a) For land devoted to a perennial crop, such as grasses, alfalfa, clover, or other
perennial plants or forbs, including land previously enrolled in CRP, the
perennial crop must be terminated by mechanical or chemical means a full crop
year before planting of the crop qualifying for the SF practice.

June 2015 FCIC 18180 110

1121 General Information and Insurability (Continued)

B. Insurability (continued)

(b) When a cover crop is planted on SF acreage in a fallow year, the following
planted crop will not meet the SF practice definition until the acres lie fallow for
a full crop year. If the acreage did not lie fallow the preceding full crop year:

(i) in those counties where SF and CC practices are available, the acreage
may be insured under the CC practice, provided all other provisions of the
CC practice are met; or

(ii) in those counties where the only non-irrigated practice available is SF, the
acreage may be insurable by WA, provided the cover crop meets the
criteria outlined in the SP and the cover crop is not hayed, grazed or
otherwise harvested in any manner.

Exception 1: Representative sample areas left for loss adjustment purposes will qualify
for SF practice provided the:

(1) remainder of the field qualifies for the SF practice; and

(2) representative sample areas are destroyed within 30 days after the
applicable plant termination date for the acreage.

If the representative sample areas are not destroyed within 30 days

after the applicable plant termination date, such acreage will be
considered sub-fields and will not qualify for SF practice.

Example 1: Representative sample areas of a crop were left on

acreage in North Dakota for loss adjustment
purposes. All the representative sample areas were
destroyed on June 29, 2015. All other plant growth
on the acreage was terminated by mechanical and/or
chemical means on or before June 15, 2015. All
plant growth on the entire acreage was continuously
controlled for the rest of the crop year, and all other
SF practice requirements were met.

The entire acreage qualifies for the SF practice for

the 2016 crop year.

Example 2: Same as example 1, except the representative

sample areas were not destroyed until July 20, 2015.
The representative sample acreage does not qualify
for the SF practice for the 2016 crop year.

June 2015 FCIC 18180 111

1121 General Information and Insurability (Continued)

B. Insurability (continued)

Exception 2: Acreage on which a crop was planted in the preceding crop year shall
qualify for the SF practice in the current crop year, provided:

(1) the acreage qualified for the SF practice the crop year preceding the
current crop year;

(2) the crop planted on the acreage in the crop year preceding the current
crop year:

(a) was not harvested; and

(b) failed and/or was destroyed on or before the applicable plant

termination date; or

(c) the AIP gives consent to put the acreage to another use and a
different second crop is planted on the acreage in the current
crop year, if SF is an applicable practice for the second crop;
and

(3) all other SF practice requirements are carried out.

Example: Acreage in North Dakota was not planted and all SF

practice requirements were met in 2014. Therefore
the acreage qualified for the SF practice for the 2015
crop year. A crop was planted on the acreage in the
spring of 2015. The crop failed, was not harvested,
and was destroyed on June 1, 2015. All plant
growth on the entire acreage was continuously
controlled for the rest of the year after the planted
crop failed and was destroyed, and all other SF
practice requirements were met.

The acreage qualifies for the SF practice for the

2016 crop year.

Example: Acreage in North Dakota was not planted and all SF

practice requirements were met in 2014. Therefore,
the acreage qualified for the SF practice for the 2015
crop year. A crop was planted on the acreage in the
spring of 2015. The crop failed, was not harvested,
and was destroyed on June 1, 2015. All plant
growth on the entire acreage was continuously
controlled for the entire 2015 crop year and all other
SF practice requirements were met.

June 2015 FCIC 18180 112

1121 General Information and Insurability (Continued)

B. Insurability (continued)

A crop was planted on the acreage in the spring of

2016. The crop failed, was not harvested, and was
destroyed on June 1, 2016. The AIP gave consent to
put the acreage to another use and the insured
planted a different second crop on the acreage for
the 2016 crop year.

The acreage qualifies for the SF practice for the

second different crop planted for the 2016 crop year.

Exception 3: Acreage that did not qualify for SF practice in the preceding crop year and
on which a crop was planted in the preceding crop year shall qualify for
the SF practice in the spring of the current crop year, provided:

(1) the crop planted on the acreage in the crop year preceding the current
crop year:

(a) was not harvested; and

(b) failed and/or was destroyed on or before the applicable plant

termination date; and

(2) all other SF practice requirements are carried out.

Example: Acreage in North Dakota was planted and the crop

was taken to harvest in 2014. Therefore the acreage
did not qualify for the SF practice for the 2015 crop
year. A crop was planted on the acreage in the
spring of 2015. The crop failed, was not harvested,
and was destroyed on June 1, 2015. All plant
growth on the entire acreage was continuously
controlled for the entire 2015 crop year and all other
SF practice requirements were met.

The acreage qualifies for the SF practice for the

spring 2016 crop year.

1122 SF APH Database Instructions

A. Special Procedures

Special production reporting and APH database procedures are applicable in counties with
separate T-Yields for SF and CC practices.

June 2015 FCIC 18180 113

1122 SF APH Database Instructions (Continued)

B. Determining Yield

If the SF APH database contains less than three years of actual and/or assigned yields, the
approved APH yield for the SF practice will be, unless the insured indicates otherwise, the
higher of the:

(1) APH yield calculated for the SF practice using variable T-Yields;

(2) approved APH yield calculated for the CC practice, provided a CC practice has been
carried out on the same APH database; or

(3) APH SF yield derived from SA T-Yield, provided the SF practice will be carried out
on added land or a new practice on an existing unit. See Part 17 section 9 and 10 for
more information about determining yields for added land and new practices.

C. Completing the APH Database and Subsequent Years

If the APH yield calculated for the CC practice is used for the SF practice, enter it in the
approved APH yield column of the acreage report for the SF practice. For data processing
purposes, identify the CC yield record being used. The APH database must be updated in
subsequent crop years with SF actual/assigned yields.

The production history for the SF practice must be retained and used to update the SF APH
database according to the applicable procedure for subsequent crop years.

This method applies until the SF practice contains at least three years of actual or assigned
yields. When the SF APH database contains three years of actual and/or assigned yields,
the SF APH database will be used to calculate the approved APH yield for the SF practice
according to applicable subsequent crop year procedure.

1123-1144 (Reserved)

June 2015 FCIC 18180 114

 Section 3 Skip-Row Planted Crops

1145 Insurability

Skip-row planted crops are not insurable unless:

(1) authorized by the CP;

(2) authorized by the actuarial documents; or
(3) insured under an Unrated P/T WA.

See the WAH for more information about Unrated P/T WA.

1146 Skip-Row Planted Corn

A. Insurability

The SP for NI corn for grain in certain counties provide specific criteria, including specific
skip-row planting patterns, that must be met to insure skip-row planted NI corn for grain
without a WA. A WA is required to insure skip-row planted corn for any specific types,
practices or planting patterns not addressed in the SP, and in any counties that do not
identify skip-row planted corn as insurable.

B. Determining Planted Acreage

The following table provides instructions for determining the number of acres considered
planted to corn when acreage is planted on a skip-row basis.

THEN the number of acres considered planted to corn

IF the skip-row planted corn is insured …
is …
without an WA
based on the number of physical land acres planted to
Note: To be insured without a WA, skip- the crop. A FSA percent planted factor is not used to
row planted corn must meet all the SP determine the number of acres considered planted.
requirements.
determined by the terms of the WA, which may
under an WA
include the use of a FSA percent planted factor.

Example 1: A 100 acre field in Phillips County, Colorado is planted to NI corn for
grain in a two rows planted one row skipped planting pattern with a 30
inch row width. All the SP requirements are met; therefore, a FSA percent
planted factor is not used to determine the number of acres planted.
Accordingly, the total number of acres planted to the crop is 100 acres.

Example 2: A 100 acre field in Jefferson County, Kansas is planted to NI corn for
grain in a two rows planted one row skipped planting pattern with a 30
inch row width. Skip-row planted corn is not insurable in Jefferson
County, Kansas unless insured under a WA. The terms of the WA will
determine whether a FSA percent planted factor will be used to determine
the number of acres planted to the crop.

June 2015 FCIC 18180 115

1146 Skip-Row Planted Corn (Continued)

C. Recording and Reporting Skip-Row Planting Patterns and Row-Widths on Acreage

Report

Beginning with the 2009 crop year, the skip-row planting pattern and row-width for skip-
row planted corn must be:

(1) recorded on the insured’s acreage report; and

(2) reported to RMA.

A separate line entry is required on the acreage report for solid planted acreage and each
separate skip-row planting pattern and row width. The skip-row planting pattern and row
width established on the FPD is the planting pattern used for determining the number of
acres planted.

The following table provides the skip-row codes for skip-row planted corn. The following
RMA skip-row codes are only for skip-row planted corn. Do not use the codes for other
skip-row planted crops or for solid planted corn acreage.

SKIP-ROW PLANTING PATTERN ROW WIDTH SKIP-ROW CODE

1 row planted 1 row skipped 30 inch 10130
2 rows planted 1 row skipped 30 inch 20130
2 rows planted 1 row skipped 36 inch 20136
2 rows planted 2 rows skipped 30 inch 20230
Other 11111

Example: Insured A plants NI corn for grain in Phillips County, Colorado. Some of
the acreage is solid-planted and some acreage is planted using different
skip-row patterns and row widths. All the acreage planted in skip-row
patterns meets all the SP requirements. Insured A plants the following
acreage to NI corn for grain.

• 100 acres solid-planted.

• 80 acres in a 2x1 skip-row pattern with 30 inch rows;
• 90 acres in a 2x2 skip-row pattern with 30 inch rows; and
• 40 acres in a 2x1 skip-row pattern with 36 inch rows.

Insured A’s acreage report has the following 4 separate entries.

• 100 acres of solid-planted (no skip-row code);

• 80 acres of 2x1 30 inch skip-row (20130 skip-row code);
• 90 acres of 2x2 30 inch skip-row (20230 skip-row code); and
• 40 acres of 2x1 36 inch skip-row (20136 skip-row code).

June 2015 FCIC 18180 116

1146 Skip-Row Planted Corn (Continued)

D. No Separate APH Databases

AIPs shall not establish or maintain separate APH databases for skip-row planted corn.
In 2009, AIPs were instructed to convert insured’s existing skip-row NI corn APH database
to a solid planted basis and combine the converted APH databases with the insured’s
existing solid planted NI corn APH database.

E. Recording and Reporting Skip-Row Planting Patterns and Row Widths on APH
Database

Beginning with the 2009 crop year, the skip-row planting pattern and row width for skip-
row planted corn must be recorded on the insured’s APH database. The recorded skip-row
planting pattern and row width must be identified using a skip-row code and reported to
RMA on the applicable Yield Record.

The skip-row planting pattern and row width established on the FPD is the planting pattern
to be recorded. Use the skip-row codes in Para. 1146C to record the skip-row planting
pattern and row width. The following table provides instructions on recording applicable
skip-row codes in APH databases.

IF the corn acreage recorded in the APH database for

THEN AIP shall …
the crop year …
not record any skip-row code in insured’s
was all planted on a solid-planted basis
APH database for that year.
included some corn acreage planted on a solid-
record the skip-row code 11111 in insured’s
planted basis and some acreage planted on a skip-row
APH database for that year.
planted basis
was all planted using the same skip-row planting record the applicable skip-row code in the
pattern and row width insured’s APH database for that year.
was all planted on a skip-row basis but more than one record the skip-row code 11111 in insured’s
planting pattern and/or row width was used APH database for that year.

Example 1: Insured B plants NI corn for grain in Phillips County, Colorado. All the
acreage is planted on a skip-row basis and all SP requirements are met.
Insured B plants the following acreage to NI corn for grain.

• 80 acres in a 2x1 skip-row pattern with 30 inch rows;

• 90 acres in a 2x2 skip-row pattern with 30 inch rows; and
• 40 acres in a 2x1 skip-row pattern with 36 inch rows.

Insured B’s acreage report has the following 3 separate entries.

• 80 acres of 2x1 30 inch skip-row (20130 skip-row code);

• 90 acres of 2x2 30 inch skip-row (20230 skip-row code); and
• 40 acres of 2x1 36 inch skip-row (20136 skip-row code).

June 2015 FCIC 18180 117

1146 Skip-Row Planted Corn (Continued)

E. Recording and Reporting Skip-Row Planting Patterns and Row Widths on APH
Database (continued)

AIP records skip-row code 11111 in Insured B’s subsequent year’s APH
database.

Example 2: Same as example 1, except Insured B plants all 210 acres using a 2x1 skip-
row pattern with 30 inch rows. Insured B’s acreage report has one entry
for the 210 acres with skip-row code 20130. AIP records skip-row code
20130 in Insured B’s subsequent year’s APH database.

F. “S” Yield Indicator

Do not use a “S” yield indicator to identify APH databases that include skip-row planted
corn. The skip-row code will identify APH databases that contain skip-row planted corn
acres and production; therefore, a “S” yield indicator is not needed or authorized.

G. Skip-Row Yield Conversion Factor

Yield conversion factors are not applicable to skip-row planted corn. Calculate actual
yields for skip-row planted corn by dividing the total production by the total number of
planted acres, as determined according to Para. 1146B.

1147 Skip-Row Planted Grain Sorghum

A. Insurability

Skip-row planted grain sorghum is not insurable unless authorized by the SP or insured
under an Unrated P/T WA.

B. Determining Planted Acreage

AIPs shall use the applicable FSA percent planted factor to determine the number of
planted acres of grain sorghum planted on a skip-row basis. To determine the number of
planted acres, multiply the number of physical land acres planted to the crop times the
applicable FSA percent planted factor. See Para. 1149 for FSA percent planted factors for
grain sorghum.

The skip-row planting pattern and row width established on the FPD is the planting pattern
and row width that will be used to determine the number of planted acres. The number of
planted acres determined using the applicable FSA percent planted factor is the number of
acres to be recorded on the insured’s acreage report and APH database.

June 2015 FCIC 18180 118

1147 Skip-Row Planted Grain Sorghum (continued)

B. Determining Planted Acreage (Continued)

Example: Insured A plants a 300 acre field entirely to grain sorghum using a 2 rows
planted one row skipped planting pattern with 40 inch row width.
Multiply 300 acres times .6667, the FSA percent planted factor for the
planting pattern and row width, to determine the number of acres planted.
The number of acres considered planted to grain sorghum that would be
reported on Insured A’s acreage report and APH database is 200 acres
(300 x .6667 = 200).

C. Separate APH Databases

AIPs shall establish and maintain separate APH databases for:

(1) skip-row planted grain sorghum; and

(2) solid-planted grain sorghum.

D. “S” Yield Indicator

APH databases for skip-row planted grain sorghum must be identified by a “S” yield
indicator, and reported to RMA on the Yield Record.

E. Skip-Row Yield Conversion Factor

Yield conversion factors are not applicable to skip-row planted grain sorghum.

F. Calculating Actual Yields

Calculate actual yields for skip-row planted grain sorghum by dividing the total production
by the total number of planted acres, as determined according to B above.

Example: Insured A plants a 300 acre field entirely to grain sorghum using a 2 rows
planted one row skipped planting pattern with 40 inch row width. The
number of acres considered planted to grain sorghum reported on Insured
A’s acreage report and APH database is 200 acres (300 x .6667 = 200).
When calculating the actual yield, the total production is divided by 200
acres.

1148 Skip-Row Planted Cotton and ELS Cotton

A. Insurability

IRR and NI skip-row planted cotton and IRR ELS skip-row cotton are insurable according
to the applicable CP and SP.

June 2015 FCIC 18180 119

1148 Skip-Row Planted Cotton and ELS Cotton (continued)

B. Determining Planted Acreage

AIPs shall use the applicable FSA percent planted factor to determine the number of
planted acres of cotton and ELS cotton planted on a skip-row basis. To determine the
number of planted acres, multiply the number of physical land acres planted to the crop
times the applicable FSA percent planted factor. See Exh. 11 for FSA percent planted
factors for cotton.

The number of planted acres determined using the applicable FSA percent planted factor is
the number of acres to be recorded on the insured’s acreage report and APH database.

Example: Insured A plants a 300 acre field entirely to cotton using a 2 rows planted
two rows skipped planting pattern with 36 inch row width. Multiply 300
acres times .5000, the FSA percent planted factor for the planting pattern
and row width, to determine the number of acres planted to cotton. The
number of acres considered planted to cotton that would be reported on
Insured A’s acreage report and APH database is 150 acres (300 x .5000 =
150).

C. Recording and Reporting Skip-Row Planting Patterns and Row Widths on Acreage
Report

Beginning with the 2007 crop year, the skip-row planting pattern and row width for skip-
row planted cotton and ELS cotton must be recorded on the insured’s acreage report.

A separate line entry is required on the acreage report for solid planted acreage and each
separate skip-row planting pattern and row width. The skip-row planting pattern and row
width established on the FPD is the planting pattern used for determining and reporting the
number of acres planted.

The recorded skip-row planting pattern and row width must be reported to RMA on the
applicable Acreage Record.

The tables in Exh. 11 provide the skip-row codes for skip-row planted cotton and ELS
cotton, by state and county.

Example: Insured A plants 400 acres of NI cotton in Baylor County, Texas in a two
rows planted one row skipped planting pattern with 30 inch rows. The 400
acres were determined using the applicable FSA percent planted factor.
Insured A’s acreage report has a skip-row code of 20230 for the 400 acres
of skip-row planted cotton. 202 is the skip-row code and 30 is the row
width. See Exh. 11 for more examples.

June 2015 FCIC 18180 120

1148 Skip-Row Planted Cotton and ELS Cotton (continued)

D. No Separate APH Database

When an insured has both skip-row planted and solid planted cotton, AIPs shall not
establish or maintain separate skip-row and solid planted APH databases regardless of
whether the actuarial documents contain a separate practices for skip-row.

AIPs shall establish and maintain APH databases based on other applicable practices, such
as irrigated, organic transitional and organic certified.

Use the following table to determine the correct APH database for skip-row and solid-
planted cotton.

THEN the APH database would be

IF the acreage recorded in the APH database is …
identified as …
All irrigated solid planted conventional cotton Irrigated 002.
All irrigated solid planted organic transitional cotton Organic (transitional) irrigated 712.
All irrigated solid planted organic certified cotton Organic (certified) irrigated 702.
All irrigated skip-row planted conventional cotton* Irrigated 002.
All irrigated skip-row planted organic transitional cotton* Organic (transitional) irrigated 712.
All irrigated skip-row planted organic certified cotton* Organic (certified) irrigated 702.
A combination of irrigated conventional solid planted and
Irrigated 002.
irrigated conventional skip-row planted cotton*
A combination of irrigated solid planted organic
transitional and irrigated skip-row organic transitional Organic (transitional) irrigated 712.
planted cotton
A combination of irrigated solid planted organic certified
Organic (certified) irrigated 702.
and irrigated skip-row organic certified planted cotton*
All non-irrigated solid planted conventional cotton Non-irrigated 003.
All non-irrigated solid planted organic transitional cotton Organic (transitional) non-irrigated 714.
All non-irrigated solid planted organic certified cotton Organic (certified) non-irrigated 713.
All non-irrigated skip-row planted conventional cotton* Non-irrigated 003.
All non-irrigated skip-row planted organic transitional
Organic (transitional) non-irrigated 714.
cotton*
All non-irrigated skip-row planted organic certified cotton* Organic (certified) non-irrigated 713.
A combination of non-irrigated conventional solid planted
Non-irrigated 003.
and non-irrigated conventional skip-row planted cotton*
A combination of non-irrigated solid planted organic
transitional and non-irrigated skip-row organic transitional Organic (transitional) non-irrigated 714.
planted cotton
A combination of non-irrigated solid planted organic
certified and non-irrigated skip-row organic certified Organic (certified) non-irrigated 713.
planted cotton*


Includes different skip-row planting patterns and row widths. Separate APH databases shall not be established or
maintained based on different planting patterns or row widths
June 2015 FCIC 18180 121
1148 Skip-Row Planted Cotton and ELS Cotton (continued)

E. “S” Yield Indicator

Do not use a “S” yield indicator to identify APH databases that include skip-row planted
cotton or ELS cotton.

F. Recording and Reporting Skip-Row Planting Patterns and Row Widths on APH
Database

Beginning with the 2007 crop year, the skip-row planting pattern and row width for skip-
row planted cotton and ELS cotton must be recorded on the insured’s APH database.

Record the planting pattern and row width using the applicable skip-row code and row
width. See Exh. 11 for the applicable skip-row codes for cotton and ELS cotton. The skip-
row planting pattern and row width established on the FPD is the planting pattern to be
recorded.

The recorded skip-row planting pattern and row width must be reported to RMA on the
applicable Yield Record.

G. Skip-Row Yield Conversion Factors

Skip-row yield conversion factors are used to convert:

(1) harvested production from skip-row acreage to an equivalent solid-planted acreage

production amount; and

(2) solid-plant approved APH yields to skip-row approved APH yields when qualifying
skip-row planting patterns are carried out for the current crop year.

See Exh. 11 for more information about yield conversion factors for skip-row planted
cotton and ELS cotton.

Skip-row yield conversion factors are applicable to, and used only for, NI cotton and NI
ELS cotton. Skip-row yield conversion factors are not applicable to, and are not used for,
IRR cotton or IRR ELS cotton.

H. Minimum Skip Width

To qualify for a skip-row yield conversion factor greater than 1.00, the minimum width of
the skipped area must be at least:

(1) 24 inches in counties covered by Table 1 in Exh. 11; and

(2) 30 inches in counties covered by Tables 2 and 3 in Exh. 11.

June 2015 FCIC 18180 122

1148 Skip-Row Planted Cotton and ELS Cotton (continued)

H. Minimum Skip Width (continued)

A skip-row yield conversion factor of 1.00 shall be applied to skip-row planting patterns
with skipped widths of less than the applicable minimum. However, the number of planted
acreage for such acreage shall continue to be determined using the applicable FSA percent
planted factor.

Example: Insured B plants NI cotton in Baylor County, Texas in a 2 rows planted

one row skipped planting pattern with 28 inch rows.

Because the width of the skipped area, 28 inches, is less than the minimum
for Baylor County, Texas, 30 inches, the skip-row yield conversion factor
applied to the production from the skip-row planted acres will be 1.00.
However, the applicable FSA percent planted factor shall be used to
determine the number of planted acres.

I. Calculating Factored Production

Calculate the factored production by dividing the gross production by the applicable skip-
row yield conversion factor based on the location of the acreage and the skip-row planting
pattern and row width used. See Exh. 11 for an example of calculating factored production.

June 2015 FCIC 18180 123

1149 Percent Planted Factors

The following table provides the FSA percent planted factors for skip-row planting patterns and
row widths. See Exh. 11 for tables that include additional skip-row planting patterns that are
unique to cotton.

Skip-Row Planting Pattern Row Width Percent Planted Factor

1 row planted 1 row skipped 40 inch .5000
1 row planted 1 row skipped 36 inch .5556
1 row planted 1 row skipped 32 inch .6250
2 rows planted 1 row skipped 30 to 40 inch .6667
2 rows planted 2 rows skipped 30 to 40 inch .5000
3 rows planted 1 row skipped 30 to 40 inch .7500
3 rows planted 2 rows skipped 30 to 40 inch .6000
4 rows planted 1 row skipped 30 to 40 inch .8000
4 rows planted 2 rows skipped 30 to 40 inch .6667
4 rows planted 4 rows skipped 30 to 40 inch .5000
5 rows planted 1 row skipped 30 to 40 inch .8333
5 rows planted 2 rows skipped 30 to 40 inch .7143
6 rows planted 1 row skipped 30 to 40 inch .8571
6 rows planted 2 rows skipped 30 to 40 inch .7500
7 rows planted 1 row skipped 30 to 40 inch .8750
7 rows planted 2 rows skipped 30 to 40 inch .7777
8 rows planted 1 row skipped 30 to 40 inch .8889
8 rows planted 2 rows skipped 30 to 40 inch .8000
Other patterns FSA Rules

1150-1160 (Reserved)

June 2015 FCIC 18180 124

 Section 4 Organic Practice

1161 Conditions of Insurance

A. Insurance Availability

Insurance coverage is available for crops grown on certified organic acreage and
transitional acreage; i.e., acreage transitioning to certified organic acreage in accordance
with an organic system plan, or more commonly an organic plan, if:

(1) a premium rate for an organic practice is specified on the actuarial documents;

(2) no premium rate for an organic practice is specified on the actuarial documents; the
insured may request insurance coverage for a crop by written agreement.

If coverage is not requested and provided by written agreement, the acreage

designated on the organic plan as certified organic or transitioning to organic is
uninsurable and must be reported as uninsured acreage.

B. When Organic Practices Do Not Apply

Organic practices do not apply to:

(1) acreage transitioned to certified organic acreage without an organic plan, or written
documentation from a certifying agent indicating an organic plan is in effect, as
specified in the BP;

In this situation:

(a) the same policy terms and conditions for conventional practices will apply;

(b) appraisals for production lost due to uninsured causes may apply for not
following weed or disease control measures or GFP recommended for
conventional practices; and

(c) adjustments to the APH database for the conventional practices may be
warranted due to a change in practice. APH database considerations can be
found in Exh. 11; or

(2) MYs on acreage transitioning to organic without an organic plan or written

documentation from an organic certifying agent.

C. New Producer

New Producer is defined in GSH Exh. 2. The New Producer procedures apply to crops
grown on certified organic acreage and acreage transitioning to certified organic.

June 2015 FCIC 18180 125

1161 Conditions of Insurance (Continued)

D. Added Land/New Crop/P/T APH Databases

SA T-Yields do not apply for Added Land/New Crop/P/T APH databases for organic or
transitional practices, see Para. 1702E.

E. Deadlines for Documentation

The policy gives the AIPs permission, if warranted, to ask for records related to a planted
crop. This includes crops grown under an organic practice.

The insured must have, on the date acreage is reported, a current organic plan, organic
certificate (written certificate), or documentation from a certifying agent indicating an
organic plan is in effect.

(1) The insured is not required to have an organic certificate by the ARD when:

(a) the certifying agent has not, for the current crop year, inspected the certified
organic farming operation in order to issue an updated organic certificate.
Therefore, at claim notice, the insured must provide the most current effective
organic certificate; or

(b) the certifying agent did not reissue an organic certificate to the certified organic
farming operation when the organic plan was updated. However, all crops and
legal descriptions and additional updates; such as, changes in practices or
production methods, procedures and inputs from previous crop year’s organic
plan, must be identified on the current crop year’s organic plan.

(2) If the insured:

(a) is a new insured and receives an organic certificate after the ARD, the acreage
cannot be insured under the organic practice for the current crop year, but the
acreage can be insured under a conventional practice. However, the following
crop year the acreage can be insured under an organic practice.

(b) has certified organic acreage with an organic certificate, but the certifying agent
did not reissue an organic certificate when the organic plan was updated, the
most current organic certificate is considered valid.

June 2015 FCIC 18180 126

1162 Organic Practice Requirements

A. Certified Organic Acreage Requirements

(1) The current organic plan and organic certificate in effect must be from a certifying
agent. The documentation must show the:

(a) name of the person certified, or certified operation’s name, farm, or business
name (all legal names);

(b) address(es), including a physical address if the mailing address or legal address
is not the physical location of certified organic farming operation;

(c) telephone number, and if applicable website;

(d) effective date (the date when the current or initial certifying agent first certified
the farming operation);

(e) issue date of certification (or certificate);

(f) certificate number;

(g) type of commodities certified refer to Examples in (4) below; and

(h) name, address, website, and telephone number of the certifying agent.

The “Types of commodities” certified as stated in section 37(c)(1) of the BP are

considered to be “Crops” or “Livestock”. To qualify [see BP] for this portion of the
requirements for the certified organic coverage, the certificate must list the name of
the crop(s) (not livestock, wild crops, or processed products) on the organic
certificate.

(2) If an organic certificate is not issued every year, it is possible that the organic
certificate may not list every crop the insured may plant and insure.

Scenario: An organic certificate was issued in 2015 and lists: corn, oats, dry
beans, and wheat. The next crop year, the insured plants canola, flax,
and dry peas which are not listed not the organic certificate. The
organic plan has not been updated for the current crop year to show
these crops. In this case:

June 2015 FCIC 18180 127

1162 Organic Practice Requirements (Continued)

A. Certified Organic Acreage Requirements (continued)

Example 1: The type of organic operation is still “crops”, and as long as the
canola, flax, and dry peas were grown on ground that had previously
been identified in the organic plan to be certified organic, the crops
would be insured under the organic practice, as “certified organic”.

Example 2: Using the same scenario above but “Certificate” lists livestock or the
type of livestock, such as hogs, sheep, cattle, etc. In this case, the
type of organic operation cannot be identified as “crops” because the
written “Certificate” lists livestock or the type of livestock, such as
hogs, sheep, cattle, etc. The commodity type would not be “crops”,
but “livestock”. Therefore, the crops (e.g., canola, flax, and dry peas,
etc.) cannot be considered certified organic under the written
“Certificate”.

(3) An organic certificate issued to an operator/tenant may be used to qualify the same
acreage for a landlord or other similar arrangement.

(4) The insured must immediately notify the AIP of any application of a prohibited
substance (non-synthetic or synthetic), including drift, onto any certified organic field,
and production unit(s) that is part of the organic farming operation.

B. Transitional Acreage Requirements

Insureds converting their conventional acreage or transitional acreage to certified organic

acreage must have, on the date the acreage is reported, an organic plan and written
documentation from a certifying agent indicating an organic plan is in effect.

Although an organic plan and written documentation from a certifying agent indicating an
organic plan is in effect is required for crop insurance purposes, the NOP does not consider
transitional acreage as certified organic. The organic plan must:

(1) identify the acreage that is in transition for organic certification;

(2) list crops grown on the acreage during the 36-month transitioning period; and
(3) include all other acreage; e.g., conventional acreage in the farming operation.

An insured must give notification regarding the application of a prohibited substance or

drift as specified in Para. 1162A.

June 2015 FCIC 18180 128

1162 Organic Practice Requirements (Continued)

C. Certification Exemption

The National Organic Program (NOP) standards allow a grower whose annual gross
agricultural income from organic sales totals $5,000 or less to be exempted from
certification. Although NOP standards provides for this allowance, in order to receive crop
insurance coverage under an organic practice, the insured must have an approved organic
plan in effect by the date the acreage is reported and production records are specified in
Para. 1163.

The products from exempt operations must not be sold as organic and cannot be used as
ingredients identified as organic in processed products by an organic handling or processed
operation.

The organic practice does not apply when the exempt insured does not provide written
documentation from a certifying agent indicating an organic plan is in effect for the
acreage.

Refer to the NOP standards for additional information pertaining to exemptions from
certification.

1163 Maintaining Organic Records

A. Production Records

An insured that grows a crop under the organic practice is:

(1) required to have separate acceptable acreage and production records to support acres,
total production, and yields certified for the organic and transitional acreage. The data
from acreage and production records is used for APH purposes.

(2) not required to have records of acreage and production if the new acreage initially
qualified as certified organic or transitional acreage, or the acreage was farmed
previously under an organic practice, and the insured is not using the crop history
from another person.

B. Recordkeeping Requirement

In accordance with the OFPA and NOP standards, an insured must maintain records that
fully disclose all activities in sufficient detail and in a format that can be readily understood,
audited, and available for inspection. In addition, these records must be maintained for a
period of five years.

If the insured has a split farming operation, the insured must maintain and provide separate
records for each type of practice used in the farming operation; e.g., certified organic,
transitional, and conventional practices.

June 2015 FCIC 18180 129

1163 Maintaining Organic Records (continued)

C. Record Specifications

(1) At acreage reporting, the insured must have available:

(a) for certified organic acreage, an organic plan and an organic certificate.

(b) for transitional acreage, an organic plan or documentation from a certifying

agent that indicates an organic plan is in effect.

(2) The insured must have:

(a) records specific to the organic farming operation as written in Para. 1162A(4);

(b) records that are current and sufficiently document all practices, procedures, and
inputs used by the organic farming operation;

(c) records, e.g., aerial or GIS maps, from the organic farming operation that show
the exact location of each field for certified organic, transitional, buffer zone,
and conventional acreage not maintained under an organic practice.

(d) records of acreage and production applicable to the certified organic farming
operation that:

(i) fully disclose all activities and transactions (including activities for
transitional and conventional acreage);

(ii) contain a current on-site field inspection. If the insured provides a copy of
the certifying agent’s on-site inspection report, the AIP should use this
inspection report as additional documentation in their reviews; and

(iii) contain information for the certified organic, transitional, and conventional
acreage not in production.

1164 Organic Certification and Accreditation Issues

An insured who is not eligible to receive or has been denied organic certification, or whose
organic certificate has been suspended or revoked cannot insure acreage under the organic
practice. In the event an organic farming operation’s certification has been suspended or
revoked, only the NOP has the authority to approve its reinstatement; not the certifying agent.

June 2015 FCIC 18180 130

1164 Organic Certification and Accreditation Issues (Continued)

A. Denial of Certification

If certification is denied on:

(1) all of the certified organic farming operation, the insured does not qualify for the
organic (certified) practice.

(2) a portion of the acreage. This portion does not qualify for the organic (certified)
practice.

B. Suspension of Certification

If certification is suspended:

(1) before the ARD, the insured does not qualify for the organic (certified) practice; the
acreage is uninsurable under this practice. The insured can insure acreage under the
conventional practice.

(2) after the ARD, the insured will remain qualified for the organic (certified) practice
and the acreage will continue to be insured under the organic practice for the
remainder of the crop year. Any loss for not following GFP and organic standards
will be considered an uninsured cause of loss; see BP, 37(e).

The following crop year, the insured cannot insure the acreage under an organic
(certified) practice; unless:

(a) the insured receives an Eligibility for Reinstatement letter from the NOP and a
new organic certificate from the certifying agent. The new organic certificate
should include the issue date of certification which is the date the NOP
reinstated the organic certification, and

(b) the insured provides a copy of the new organic certificate to the AIP by the
ARD.

Refer to the NOP regulations for additional information regarding suspended certification.

C. Revocation of Certification

The insured or certified organic farming operation identified on the certificate, whose
certification is revoked:

(1) before the ARD, does not qualify for the certified organic practice.

June 2015 FCIC 18180 131

1164 Organic Certification and Accreditation Issues (Continued)

C. Revocation of Certification (Continued)

(2) after the ARD, the insured will remain qualified for the certified organic practice and
the acreage will continue to be insured under the certified organic practice for the
remainder of the crop year. The production from the acreage cannot be sold as
organic and any loss for not following GFP and organic standards will be considered
an uninsured cause of loss, see BP, 37(e).

(3) before or after the ARD will be:

(a) ineligible to receive insurance coverage under an certified organic practice for a
period of at least five years following the date of such revocation.

(b) eligible to insure the acreage under a conventional farming practice the
following crop year, if all applicable requirements of the BP are met.

D. Accreditation of Certifying Agents

The Program Manager of Agriculture Marketing Service oversees the accreditation of

certifying agents. When the Program Manager has reason to believe a certifying agent is
not able to comply with the requirements of the OFPA and the NOP standards and denies
accreditation to a certifying agent, the insured of a certified organic farming operation must:

(1) within the timeframe allowed by the NOP; find another certifying agent; or

(2) contact a NOP representative for assistance in finding another certifying agent, if
there is difficulty in finding a certifying agent.

E. Transfers of Organic Certificates

The NOP provides that an organic certification or certificate that is issued to a certified
organic farming operation is not transferable to another person or business entity. This
includes mergers or acquisitions, or other transfers of ownership of a certified organic
farming operation. When there is a change of ownership of the organic farming operation,
the new owner must apply for organic certification through a certifying agent.

In accordance with Section 28 of the CCIP, transferee’s have the rights and responsibilities
under the terms of the policy. Accordingly, the policy remains qualified for the organic
practice and continues to be insured under the organic practice for the remainder of the crop
year. However, any production from the acreage cannot be sold as organic and any loss for
not following GFP and organic standards will be considered an uninsured cause of loss, see
BP, 37(e) unless the transferee has an organic certificate in place at the time of transfer.

June 2015 FCIC 18180 132

1165 Additional Policy Elements for Organic Acreage

A. Insurance Guarantees, Coverage Levels and Premium Determination

The production guarantee or amount of insurance, coverage level, and prices are available
in the actuarial documents.

Example: An insured with certified organic soybeans must use the projected prices,
and harvest prices, for the certified organic soybeans shown in the
actuarial documents for the applicable P/T and may not select the price
available for non-organic soybeans.

B. Unit Determination

In addition to, or instead of, establishing OUs by section, section equivalent or FSA FN, or
irrigated and non-irrigated acreage, separate OUs may also be established for acreage of the
insured crop grown under an organic practice, certified and transitional acreage do not
qualify for separate OUs.

The example illustrates OUs for conventional, transitional, certified organic, and buffer
zone acreages. There are three OUs, unit 0001-0001 and 0001-0002 (are established for
the conventional acreage) and unit 0001-0003 (is established for both the transitional and
certified non-irrigated acreage).

June 2015 FCIC 18180 133

1165 Additional Policy Elements for Organic Acreage (Continued)

C. Prevented Planting

Prevented planting, if available, is identified in the CP, BP, and SP. For eligible crops
grown under an organic practice, PP coverage will:

(1) be provided, if such PP acreage is identified as certified organic acreage, transitional

acreage (i.e., acreage transitioning to certified organic) or buffer zone acreage on the
organic plan and as stated in the BP and CP.

(2) not be provided for acreage in excess of the number of acres shown on the acreage
report. This includes acres exceeding those identified on the organic plan.

D. Acreage Reporting

The buffer zone acreage must be included in the organic acreage of the unit that it buffers,
either transitional or certified organic acreage and reported on the same basis.

E. Quality Adjustment

There is no additional quality adjustment for crops grown under the organic practice.
Quality adjustment, if available for a crop, will be identified in the CP, BP, and SP and the
same quality adjustment procedures that apply will also apply to the same crop(s) produced
under an organic practice.

1166 MY Instructions

Refer to Part 17 Section7 Category B procedures for general instructions and deadlines for
Master Yields (MYs). MYs are selected on a crop basis and must be established by P/T/TMA.
When selected for a crop, MYs will apply to conventional, certified, and transitional practices.

(1) Separate MY Summary APH databases are required for each practice.

(2) If there are less than four years of certified organic yield history, complete the MY
Summary with the yield history from the transitional MY acreage, if available, in place of
the T-Yield. When there are four years of actual and/or assigned yields in the certified
organic MY Summary; use these yields to calculate the average yield.

(3) The insured does not qualify for MYs when transitioning acreage under an organic practice
without an organic plan or written documentation from a certifying agent indicating an
organic plan is in effect.

June 2015 FCIC 18180 134

1167 APH Database Reporting Instructions for Acreage with an Organic Plan

The APH database reporting instructions identified below apply to annual and perennial crops
grown on organic acreage.

Separate APH databases are required for each practice; this includes organic practices. APH
databases are established by unit, practice, type, TMA, and Other Characteristics. See Part 15.
To keep the integrity of the certified organic and transitional APH databases, the AIP must not
use conventional APH yield data to complete the four yield minimum in these APH databases.

A. Category B Certified Organic APH Database

(1) To establish a Certified Organic APH database for Category B certified organic
acreage:

(a) use all years of certified organic yield history available for that acreage to
complete at least the four year minimum in APH database;

(b) if there are less than four years of certified organic yield history available in the
APH database, use up to four of the most recent APH crop years of yields from
the insured’s Transitional APH database for the missing year(s) in place of
variable T-Yields. See Exh. 11 for examples. Only the yield from the
transitional APH database, identified with a G yield descriptor, is used in the
Certified Organic APH database. Do not include acre and total production from
the Transitional APH database; and

(c) if there are not enough years of transitional yield history available to complete
the certified organic APH database, use the applicable variable T-Yields. See
Part 15 for information on variable T-Yield. The variable T-Yields and yields
taken from the transitional APH database are replaced with actual yields from
the certified organic acreage in subsequent APH crop years.

B. Category B Transitional APH Database

The acres, total production, and yield from the acreage transitioning to organic will be
maintained in the Transitional APH database. Do not use conventional APH yield data to
complete the four year minimum in the Transitional APH database.

(1) To establish a Transitional APH database for acreage transitioning to organic:

(a) use all years of transitional APH yield data available for that acreage to
complete at least the four year minimum APH database;

(b) if less than four years of actual/assigned yields for the transitional acreage are
available, use the applicable variable T-Yield(s) to complete the Transitional
APH database. The variable T-Yield(s) will be replaced by the insured’s
transitional yield history as it is reported.

June 2015 FCIC 18180 135

1167 APH Database Reporting Instructions for Acreage with an Organic Plan (Continued)

C. Category C APH Database(s)

Refer to Section 7 of Part 18 Category C procedures for APH database establishment. An

APH database is established by crop/type and practice. When an insured changes practices
for a Category C crop, it is considered a change in practice on the PAW and triggers an RO
Determined Yield.

D. OG Yield Descriptors

For the Crop Year 2014 only, AIPs were required to convert any applicable T-Yield in
existing 2013 APH databases to an organic determined yields. These yields are identified
by an “OG” yield descriptor.

E. Yield Descriptors

Refer to Exh. 15 for additional procedures that pertain to Yield Descriptors and Appendix
III for APH Database Reporting instructions.

The AIP must identify the types of yields entered into the APH database with the yield
descriptor; e.g. V75, and transmit the APH database to RMA. Use “V” for certified organic
and “G” for acreage transitioning to certify organic.

For YA purposes, if the yield qualifies for yield substitution for the certified organic or
transitional yield, use only the yield descriptors “V” or “G”; e.g., V50. If a yield does not
qualify for a yield substitution, use “V” or “G” in conjunction with “Y (“VY” or “GY”);
VY50, which indicates the certified organic actual yield is less than 60 percent of the T-
Yield and does not qualify for yield substitution.

F. Commingled Production

For Category B crops:

Separate records are required for certified organic and acreage transitioning to certified
organic. For APH purposes, if the commingled production for Category B crops is from
the:

(1) conventional acreage and certified organic or acreage transitioning to certified

organic, the production is considered conventional and the yield data must be added to
the Conventional APH database.

(2) certified organic acreage and acreage transitioning to certified organic, the production
is considered transitional and the yield data must be added to the Transitional APH
database.

The Multi-Purpose Production and Yield Worksheet cannot be used to separate production
between certified organic, transitional, and conventional practices.

June 2015 FCIC 18180 136

1167 APH Database Reporting Instructions for Acreage with an Organic Plan (Continued)

For Category C crops:

Separate records are required for certified organic and acreage transitioning to certified
organic. If production is commingled between practices, for APH purposes, the insured
must request a RO Determined yield.

G. Acreage Affected by Prohibited Substances

In the event of an occurrence of a Federal or State emergency pest or disease spraying

treatment, or prohibited substance or drift onto the organic acreage:

(1) Organic certification is not affected when a Federal or State emergency pest or disease
spraying is mandatory according to the NOP regulations.

(2) Organic certification is affected when there is a prohibited substance or drift onto the
acreage. In this case, the insured must provide the AIP with a copy of the certifying
agent’s determination pertaining to the prohibited substance or drift before the acreage
can be insured under the organic practice.

For Category B crops:

(1) Before the ARD, the yield from the affected acreage will be added to the
Conventional APH database.

(2) After the ARD, the yield from the affected acreage will be added to the Certified
Organic or Transitional APH database.

For Category C Crops:

If the acreage affected by a prohibited substance results in a change in insurable practice:

(1) Before the ARD, a RO Determined Yield must be requested for the change in
practice.

(2) After the ARD, the crop is insurable as it was reported; however if the prohibited
substance results in a change in practice for the subsequent crop year, a RO
Determined Yield must be requested in the subsequent crop year. See Parts 18 and
22.

June 2015 FCIC 18180 137

1168 APH Database Reporting Instructions: Acreage in Transition without an Organic Plan

A. Policy Requirements

The BP specifies that for acreage transitioning to organic, the insured must have an organic
certificate, or written documentation from a certifying agent that indicates an organic plan
is in effect. If the insured does have not an organic certificate or written documentation, the
acreage cannot be insured under the organic practice and must be insured under the
conventional practice. Any production will be included in the APH database for
conventional acreage. The acreage report must be revised to show the conventional
practice to correspond with the conventional APH database.

When there is a change in production methods, the insured must report the change in
production methods to the AIP. If the different production method is likely to result in a
yield lower than the than the production method upon which the approved APH yield is
based, the approved APH yield will be reduced to reflect the different production method.

Since converting to an organic practice is a change in production method, the AIP must
determine whether the approved APH yield for the conventional APH database should be
reduced, or if a certified organic APH database should be reduced when the insured
transitioned the acreage without an organic plan.

B. Analysis Database for Conventional Acreage Transitioned without an Organic Plan

An AIP must establish an analysis database to determine whether the conventional

approved APH yield should be reduced.

(1) Establish an analysis database:

(a) Use yields for transitional acreage for the same

crop/practice/type/age/density/unit, as applicable.

(b) Complete the analysis database with applicable variable T-Yields, if needed to
complete four years in the database.

(c) Calculate an average yield for the analysis database using any applicable yield
limitations or adjustments.

(2) Compare the analysis database average yield to the conventional APH database
approved APH yield:

(a) If the conventional approved APH yield is lower than the analysis database
yield, the approved APH yield is not reduced.

(b) If the analysis database average yield is lower:

(i) The conventional approved APH yield is reduced to the analysis database
average yield.

June 2015 FCIC 18180 138

1168 APH Database Reporting…: Acreage in Transition without Organic Plan (Continued.)

B. Analysis Database for Conventional Acreage Transitioned … Organic Plan (Cont.)

(ii) The AIP must report the conventional APH database to RMA with a yield
limitation flag “11” if no yield limitations or adjustments, (substitutions)
applies, or “12” or “13” if any applicable yield limitations or adjustments
(substitutions) apply.

The analysis database is not be transmitted by the AIP to RMA; however, it must be
provided with any transfers by the insured to a different AIP.

C. Analysis Database Certified Organic Acreage Transitioned without an Organic Plan

When acreage in transition to organic certification without a plan becomes certified

organic, the AIP must determine whether the approved APH yield for the certified organic
acreage should be reduced for any acreage that was transitioned to organic certification
without a plan.

(1) If the insured has four or more years of certified organic annual or assigned yield, the
certified organic approved APH yield is not adjusted by the AIP.

(2) If the insured has less than four years of certified organic annual or assigned yields,
the AIP must assure acreage that was in transition to organic certification without an
organic plan, or written documentation in effect, from a certifying agent is accounted
for in the organic APH database production history. The AIP must determine whether
the approved APH yield for the certified organic APH database must be reduced.

(a) Establish an analysis database for the same crop/unit/P/T, as applicable:

(i) use any certified organic annual yields;

(ii) annual yields from the transitional acreage (without a plan or written
documentation from a certifying agent indicating an organic plan is in
effect) in the most recent four APH crop years;

(iii) complete the analysis database with variable T-Yields, as applicable to

complete the analysis database; and

(iv) determine the analysis database yield with any applicable yield limitations
or adjustments.

(b) When the analysis database’s approved yield is lower, the certified organic APH
database approved APH yield is reduced to the analysis database approved yield.

June 2015 FCIC 18180 139

1168 APH Database Reporting…: Acreage in Transition without Organic Plan (Cont.)

C. Analysis Database Certified Organic Acreage Transitioned … Organic Plan (Cont.)

(c) If the approved APH yield is reduced, the AIP must report the APH database to
RMA with a yield limitation flag “11” if no yield limitations or adjustments,
(substitutions) applies, or “12” or “13” if any applicable yield limitations or
adjustments (substitutions) applies.

The analysis databases are used by the AIP to determine whether the certified
approved APH yield should be reduced. The analysis database should not be
transmitted by the AIP to RMA; however, it must be provided with any transfers by
the insured to a new AIP.

The AIP must continue to use the analysis database until four years of certified
organic history is obtained. See examples provided in Exh. 11.

1169 Frequent Questions and Answers

Below are questions and answers pertaining to organics.

Q 1: If an insured grows crops under both conventional and organic practices, are they
required to insure both if there are organic premium rates in the county?

A 1: YES, it is not an option; all insurable acreage must be insured.

Q 2: Could insureds choose to insure everything under the conventional premium rates
even though there are organic premium rates in the county? (Uninsured cause
appraisals applied if appropriate.)

A 2: NO, if the acreage is grown using "organic farming practices" and under
an organic plan in effect from a certifying agent, it must be insured as
organic.

Q 3: Could insureds choose to insure the conventional crop under the conventional rate and
decline coverage for the organic crop?

A 3: NO, it is not an option; all insurable acreage of the crop must be insured.

Q 4: Could insureds choose to decline coverage for the organic acreage if there weren't any
organic premium rates in the county?

A 4a: If organic premium rates are not on the actuarial table, but the acreage is
under an organic plan in effect from a certifying agent; such acreage would
only be insured by an approved written agreement, which would provide
for the organic premium rate. If a written agreement was NOT approved,
the crop acreage would NOT be insured.

June 2015 FCIC 18180 140

1169 Frequent Questions and Answers (Continued)

A 4b: If an organic plan was not in effect from a certifying agent for the acreage,
such acreage does not meet the policy definition of “organic practice” and
would, therefore, be insured under the conventional rates and uninsured
causes may apply.

Q 5: Could insureds choose to insure everything under the conventional rate if there were
no organic premium rates in the county? (Uninsured cause appraisals applied if
appropriate.)

A 5: See answer 4 above.

1170-1200 (Reserved)

June 2015 FCIC 18180 141

June 2015 FCIC 18180 142
 PART 12 ACREAGE REPORT
Section 1 General Requirements

1201 General Information

This part provides uniform procedures for obtaining acreage reports. The acreage report
(tonnage report for raisins) is the document used to determine the liability or amount of
insurance, the premium, and the insurable share at the time insurance attached.

1202 Filing Requirements

To be considered an acceptable acreage report, the requirements below must be met.

(1) The insured, or authorized representative for the insured, must sign and submit an annual
acreage report for the insured crop policy.

Exception: For CCIP CAT coverage only, the operator may sign the acreage report for
another person sharing in the crop. Unless a person with an insurable
interest in the crop objects in writing on or before the ARD, and provides a
signed acreage report, the operator may file and sign the acreage report for
all other persons with an insurable interest in the crop. A POA is not
required. All other persons with an insurable interest in the crop, for
whom the operator signs and represents, are bound by the information
contained in that acreage report.

(2) Acreage reports must be submitted on or before the crop’s ARD contained in the actuarial
documents.

Exception: For CCIP only:

(a) in lieu of the specific crop’s ARD, when multiple crops are insured
with the same AIP and have:

• Fall (or winter) final planting dates (August 15-December 30):

Insureds are allowed until the latest applicable fall (or winter)
ARD for their insured crops to submit the acreage report.

• Spring final planting dates (December 31-August 14): Insureds

are allowed until the latest applicable spring ARD to submit the
acreage report for their insured crops.

(b) On or before the ARD for each planting period if the actuarial
documents designate separate planting periods for a crop.

(c) When planting continues after the final planting date or the insured is
prevented from planting during the late planting period, the ARD
will be the later of:

June 2015 FCIC 18180 143

1202 Filing Requirements (continued)

• the ARD contained in the actuarial documents;

• the date determined according to (a) and (b) above; or
• five days after the end of the late planting period for the insured
crop.

(3) Separate line entries are required on the acreage report for the following:

(a) EUs, BUs and OUs, and within each unit, separate line entries for differing
P/T/TMAs, shares, approved APH yields, and risk classifications, when units are
applicable. When units are not applicable, separate line entries are required for
differing P/Ts and shares;

(b) For WUs, a separate line for each crop and for each crop with differing P/T/TMAs,
shares, APH yields, and risk classifications;

(c) Timely planted acres (full production guarantee);

(d) LP acres, with a separate line entry for each day of planting during the LP period
(with a reduced production guarantee based upon the number of days planted late), or
a separate line entry for acres of a crop prevented from planting after the LP period or
a separate line entry after the FPD for crops that do not have a LP period;

(e) Planted acres of the first insured crop for which 100 percent of the premium is due
and a separate line of first insured crop acreage for which 65 percent reduction of the
premium is applicable;

(f) Eligible PP acres that are eligible for 100 percent of the PP payment; and for which
100 percent of the premium is due will be a separate line from eligible PP acres that
will have a 65 percent reduction of the PP payment and which will result in a 65
percent reduction in premium;

(g) Uninsurable acreage, designated as specified in Para. 1217;

(h) Uninsured acreage of an insured crop, designated as specified in Para. 1218;

(i) Unreported acreage (within the same unit) is insurable acreage not reported timely
and that did not meet the criteria for the AIP to accept the liability for such acreage
and designated as such as specified in Para. 1219B; and

(j) Unreported units are units which were not reported timely, or did not meet the criteria
for the AIP to accept the unit acreage designated as such, as specified in Para. 1219A.

(4) Contain the required elements of the acreage report, see Para. 1211.

June 2015 FCIC 18180 144

1203 Failure to Submit Acceptable Acreage Report

(1) If the insured fails to submit an acceptable acreage report or to report all units, when units
are applicable, the AIP may:

(a) deny liability, by unit when units are applicable. Any acreage not reported by the
insured and the AIP denies liability must be documented as unreported acreage; or

(b) determine the insurable acreage, share, P/T, etc., and by unit when units are applicable
or to deny liability. If the AIP denies liability for the unreported acreage, no premium
will be due on such acreage and no indemnity will be paid.

Acreage can only be accepted by the AIP if it is determined from a crop inspection
that the acreage meets the criteria for accepting unreported acreage as specified in
Para. 1219.

If the AIP declares the crop "insured” the applicable premium and administrative fee
are considered earned and payable.

(i) For additional coverage policies, the AIP is entitled to any premium due.
(ii) For CAT coverage policies, RMA is entitled to the imputed premium credit.

See Para. 1219 for reporting requirements for unreported acreage or units.

(2) For CCIP policies, if an unsigned acreage report is submitted, but all other requirements are
met, the AIP may send a letter to the insured advising that the reported information will be
binding if the insured does not provide revised information within a specified amount of
time. If the insured responds with any changes to the reported information, the AIP must
document that response in the insured’s file folder. In this situation and for loss purposes,
this acreage report may be considered to be a signed acreage report.

1204 Inaccurate Acreage Reports

Insureds must provide all required reports and are responsible for the accuracy of all information
contained in those reports.

The AIP will determine all premiums and indemnities based on the information submitted on the
acreage report or upon the factual circumstances determined to have existed.

Inaccurate information reported on the acreage report can result in over- and under-reported
liability.

(1) If information on the acreage report is different than what is determined to be correct and
the information reported on the acreage report results in:

(a) a lower liability than the actual, correct liability determined, the production guarantee
(policy protection for ARPI policies) will be reduced to an amount consistent with the
information reported on the acreage report; or

June 2015 FCIC 18180 145

1204 Inaccurate Acreage Reports (continued)

(b) a higher liability than the actual, correct liability determined, the information
contained in the acreage report will be revised to be consistent with the correct
information.

(2) If the share is misreported and the share is:

(a) under-reported at the time of the acreage report, any claim will be determined using
the share reported on the acreage report; or

(b) over-reported at the time of the acreage report, any claim will be determined using the
share determined to be correct.

If an AIP discovers that an insured has incorrectly reported any information on the acreage report
for any crop year, the insured may be required to provide documentation in subsequent crop
years substantiating the acreage report including, but not limited to, an acreage measurement
service at their own expense.

If the correction of any misreported information would affect an indemnity that was paid in a
prior crop year, such claim will be adjusted, and the insured will be required to repay any
overpaid amounts.

1205-1210 (Reserved)

June 2015 FCIC 18180 146

 Section 2 Acreage Report Elements

1211 Required Elements

The following elements must be included in the annual Acreage Report (additional information
for certain elements is contained in Para. 1212-1223).

ELEMENT REQUIRED INFORMATION

Insured’s Name,
Enter the insured’s name, address (Street, City, State, and Zip code), and
Address, and
telephone number.
Telephone Number
Insured’s
Identification Enter the insured’s SSN, EIN or RAN and identification number type.
Number
Insured's Authorized
Enter the insured’s authorized representative, if any.
Representative
Policy Number Enter the insured’s Policy Number.
Enter the specific person type (e.g., partnership, trust, individual,
Person Type
corporation, etc.).
Spouse’s Name and
Identification Enter the insured’s Spouses Name and Identification Number, if applicable.
Number
Enter the Landlord/Tenant whose share is being insured, if applicable. See
Landlord/Tenant
GSH.
Enter the insured’s share of the crop at the time insurance coverage
Insured's Share
attaches.
Name of Other
If applicable, enter name of other person(s) that have a share in the insured
Person(s) Sharing in
crop, this is not an SBI or a landlord/tenant policy.
Crop
Crop Year Enter the crop year.
Crop Enter the name of the insured crop.
State and County
Enter the State and County where the crop is insured.
Name
Plan of Insurance Enter the plan of insurance elected by the insured.
Price Election,
Projected price Enter the price election, projected price, amount of insurance or protection
Amount of Insurance factor elected by the insured.
or Protection Factor
Coverage Level Enter the coverage level elected by the insured.
Options, Elections or Enter any options, elections or endorsements elected by the insured, when
Endorsements applicable.
Practice Enter the insured crop practice for the acreage being reported.
Type Enter the insured crop type for the acreage being reported.
Unit Number Enter the unit number for the unit. Blank, if units are not applicable.
Unit Structure Code Enter the unit structure code for the unit. Blank, if units are not applicable.

June 2015 FCIC 18180 147

1211 Required Elements (continued)

ELEMENT REQUIRED INFORMATION

Enter the section, township and range, or other descriptions for land if
Legal Description rectangular survey is not applicable. This may include GPS coordinates or
other land identification.
FSA Farm/Tract/Field number reporting is optional for those policies under
CCIP except for the following situations:
 acreage insured under a WA, if required by the WA as determined by
the RO;
 units containing acreage emerging from CRP the initial year of planting
and all subsequent crop years thereafter;
FSA  units containing acreage being planted the initial year of new breaking
Farm/Tract/Field and all subsequent crop years thereafter;
Number  units containing native sod acreage the initial year of planting and all
subsequent crop years thereafter; or
 units are based on FSA FN (with tract/field number optional).
FSA Farm/Tract/Field number reporting is required for ARPI and STAX,
when the FSA Farm/Tract/Field is available from FSA. IS-12-002 and
Appendix III may also provide additional field level reporting
requirements.
Enter the number of acres being reported for those policies with acres.
Reported Acres/No.
Enter the number of trees or number of pounds for those policies that
of Trees or Pounds
require such.
Enter the approved APH yield that applies to the acres being reported,
Approved APH Yield
when the approved APH yield is applicable.
Date Planting Enter the date that the insured crop was planted on the unit, see Para. 1212
Completed below. Required for all planted acreage.
Area Classification Enter the map area classification, if applicable.
Acreage Type Identify applicable acreage type. See Para. 1213.
Acreage
Enter the method for determining the number of acres being reported. See
Determination
GSH.
Source
Measurement Indicate whether measurement service is requested. When measurement
Service service is requested estimated acreage must be provided.
Document pertinent information, such as skip-row planting pattern and
Remarks skip-row width when the acreage being reported is planted in a skip-row
pattern.
Insured's Signature
Insured must sign and date.
and Date
Agent Information Enter Agent’s name, address, and agent code number.
Agent’s Signature
Agent must sign and date.
and Date

June 2015 FCIC 18180 148

1212 Date Planting Completed

A. CCIP

The date planting is complete for CCIP policies is:

(1) For acreage planted on or before the final planting date, the last date of planting and
the total acres planted.

(2) For acreage planted during the late planting period, the date of planting and the
number of acres planted per day.

Failure to report the number of planted acres on a daily basis, will result in all acreage
planted during the late planting period being presumed to have been planted on the
last day planting took place during the late planting period. See Para. 1215 for
additional late planting requirements.

B. ARPI

The date planting is complete for ARPI policies is:

(1) For acreage planted on or before the FPD, the last date of planting and the total acres
planted by that date.

(2) For acreage after the FPD, the date that the insured crop was planted. Acreage
planted after the FPD is uninsurable.

1213 Acreage Type

A. CCIP Acreage Types

Identify whether acreage is:

(1) Insured (planted);

(2) Insured - Acreage emerging from an USDA program the initial crop year, see Para.
1216A(2) and 1763;

(3) Insured - New breaking acreage insured in accordance with the policy (i.e.., 5 percent
or less of insured acreage planted in the unit) the initial crop year or insured under SP
and the insured is able to substantiate the acreage has previously been in production,
see Para. 1216A(3) and 1764;

(4) Insured – New breaking acreage insured in accordance with the policy or under SP
and the insured is unable to substantiate the acreage has previously been in
production, see Para. 1216A(3) and 1764;

June 2015 FCIC 18180 149

1213 Acreage Type (continued)

A. CCIP Acreage Types (continued)

(5) Insured – New breaking acreage insured by WA and the insured is able to substantiate
the acreage has previously been in production, see Para. 1216A(3) and 1764;

(6) Insured – New breaking acreage insured by WA and the insured is unable to
substantiate the acreage has previously been in production, see Para. 1216A(3) and
1764;

(7) Insured – Total native sod acreage greater than five acres insured under the terms of
the policy, see Para. 1216A(4) and 1765;

(8) Insured – Total native sod acreage greater than five acres insured under the terms of
the SP, see Para. 1216A(4) and 1765;

(9) Insured – Total native sod acreage greater than five acres insured by WA see Para.
1216A(4) and 1765;

(10) Insured – Short rated acreage, see Para. 1232F;

(11) Insured – Late-planted acreage, see Para. 1215;

(12) Prevented planting, see Para. 1214;

(13) Uninsured, see Para. 1218;

(14) Uninsurable, see Para. 1217;

(15) Uninsurable due to 2nd crop provisions, see Para. 1217A(8);

(16) Uninsurable due to new breaking and the insured substantiates the acreage has been in
production, see Para. 1216A(3) and 1764;

(17) Uninsurable due to new breaking and the insured cannot substantiate the acreage has
previously been in production, see Para. 1216A(3) and 1764;

(18) Uninsurable due to total native sod acreage greater than five acres and is not insured
by SP or WA, see Para. 1216A(4) and 1765;

(19) Unreported acreage (within the same unit), see Para. 1219;

(20) Unreported units, see Para. 1219;

(21) Zero acreage report for unit, see Para. 1220; or

(22) Zero acreage report for county, see Para. 1220.

June 2015 FCIC 18180 150

1213 Acreage Type (continued)

B. ARPI Acreage Types

Identify whether acreage is:

(1) Insured (planted);

(2) Insured - Acreage emerging from an USDA program the initial crop year, see Para.
1216B;

(3) Insured – New breaking acreage insured in accordance with the policy, or insured
under SP, and the insured is able to substantiate the acreage has previously been in
production, see Para. 1216B(2);

(4) Insured – New breaking acreage insured in accordance with the policy or under SP
and the insured is unable to substantiate the acreage has previously been in
production, see Para. 1216B(3);

(5) Insured – Total native sod acreage greater than five acres insured under the terms of
the policy, see Para. 1216B(4);

(6) Insured – Total native sod acreage greater than five acres insured under the terms of
the SP, see Para. 1216B;

(7) Uninsurable, see Para. 1217B(4);

(8) Uninsurable due to 2nd crop provisions, see Para. 1217B(4);

(9) Uninsurable due to new breaking and the insured substantiates the acreage has been in
production, see Para. 1216B(3);

(10) Uninsurable due to new breaking and the insured cannot substantiate the acreage has
previously been in production, see Para. 1216B(3);

(11) Uninsurable due to total native sod acreage greater than five acres and is not insured
by SP, see Para. 1216B(4);

(12) Unreported acreage, see Para. 1219; or

(13) Zero acreage report for county, see Para. 1220.

1214 Prevented Planting Acreage

See FCIC 25370 Prevented Planting Loss Adjustment Standards Handbook to determine the
number of PP acres and for PP acreage reporting requirements for CCIP policies.

PP is not applicable to crops insured under ARPI.

June 2015 FCIC 18180 151

1215 Late Planted Acreage

The CCIP contains the requirements for insuring acreage of an insured crop planted after the
crop’s final planting date. The applicable CP (including the applicable SP) may limit the late
planting period and/or change the percentage that coverage is reduced per day from those
specified in the CCIP. Late planted acreage is not insurable under an ARPI policy.

A. Production Guarantee or Amount of Insurance Reductions for CCIP Policies

For each late planted acre of the insured crop, the production guarantee or amount of
insurance that is applicable to timely planted acreage will be reduced for:

(1) Crops with LP periods, one percent per day for each day planted after the final
planting date during the LP period, equal to 25 days, unless:

(a) the number of days is otherwise specified by the CP or SP; or

(b) the percentage reduction is otherwise specified by the CP.

(2) Acreage planted after the late planting period, or after the final planting date for crops
that do not have a late planting period, by multiplying the production guarantee by the
applicable PP coverage level percent, e.g., the production guarantee per acre is 90.0
bu. and the insured elected 65 percent PP coverage.

The LP production guarantee is 58.5 bu. per acre (90.0 X 0.65).

(a) The insured must have been prevented from planting the acreage by the final
planting date, or during the late planting period for crops that have a late
planting period, by an insurable cause that occurred within the insurance period
for PP.

(b) It is the insured’s option to insure this acreage.

B. Reporting Planting Dates and Acreage

The insured must report separately all acreage planted on or before the final planting date,
acreage planted per day (including the date) during the late planting period; and acreage
planted after the late planting period.

The AIP must identify the acreage specified in Para. 1215A on the acreage report
transmitted to RMA according to Appendix III.

C. Premium

The premium amount for LP coverage is the same as for acreage that was planted timely.
If the insured's premium (gross premium minus the subsidy) for acreage that is late planted
exceeds the liability, coverage for that acreage will not be provided, no premium is due and
no indemnity will be paid.

June 2015 FCIC 18180 152

1215 Late Planted Acreage (Continued)

D. Inability to Complete the Planting Method

Any acreage on which an insured cause of loss prevented completion of planting as

specified in the definition of planted acreage, will be considered as late planted and will
have the coverage reduced as indicated in Para. 1215A(2). For example, when seed
broadcast on the soil surface cannot be incorporated into the soil, the AIP must identify
such acreage on the acreage report transmitted to RMA according to Appendix III.

E. Crop LP Guidelines

Crops with LP provisions are listed in the first column of the following chart. The second
column indicates the percent the production guarantee, the final stage production guarantee
for Onions and Sugar Beets, for timely planted acreage, is reduced for acreage planted
during the LP period as indicated by the BP or CP. Additional limitations may be specified
on the SP. The 3rd column indicates the percentage of the production guarantee that
applies if the acreage was planted to the insured crop after the LP period (after the final
planting date for crops that do not have a LP period) and the acreage was prevented from
planting by the FPD or during the LP period, if applicable.

CROP LP GUIDELINES
Planted after the LP period or
if no LP period after final
Planted during the LP planting date and acreage was
The insured crop is: period 3: prevented from planting by
FPD or during LP period, if
applicable:
The production guarantee is:
Canola/Rapeseed, Coarse Grains (Corn, Grain For Additional Coverage 60,
Sorghum, and Soybeans), Dry Beans, Dry Peas, Reduced 1% per day for *
65, or *70% Onions limited to
Hybrid Sorghum Seed, Mustard, Onions, Popcorn4, each day planted after the 35% Coverage
Safflower, Silage Sorghum, Small Grains (Barley, Flax, final planting date (up to a
Oats, Rye, and Wheat 1), Sunflower Seed and acreage maximum of 25 days). For CAT Coverage 60%
planted after the final planting date is: Onions limited to 35% Coverage
Reduced 1% per day for the For Additional Coverage 60,
1st 10 days and 3% per day the *
65, or *70%
Millet and acreage is planted after the final planting date
11th through the 20th day
is:
after the final planting date For CAT Coverage 60%
(up to a maximum of 20 days).
Reduced 1% per day for For Additional Coverage 45,
*
2
Rice and Sugar Beets and acreage planted after the each day planted after the 50, or *55%
final planting date is: final planting date (up to a
maximum of 25 days). For CAT Coverage 45%
Reduced 1% per day for For Additional Coverage 25,
*
Potatoes (Central and Southern, Northern) and each day planted after the 30, or *35%
acreage planted after the final planting date is: final planting date (up to a
For CAT Coverage 25%
maximum of 25 days).

1
Wheat or Barley acreage covered by the Winter Coverage Endorsement does not have a LP Period.
2
LP is not available in California counties with an April 30 contract change date and a July 15 cancellation date.
June 2015 FCIC 18180 153
1215 Late Planted Acreage (Continued)

CROP LP GUIDELINES
Planted after the LP
period or if no LP period
after final planting date
Planted during the LP
and acreage was
The insured crop is: period3:
prevented from planting
by FPD or during LP
period, if applicable:
The production guarantee is:
For Additional Coverage
50, 55, or *60%
Reduced 1% per day for
Cotton, Hybrid Seed Corn and Peanuts and each day planted after the
acreage planted after the final planting date is: final planting date (up to a
For CAT Coverage 50%
maximum of 25 days).

For Additional Coverage

ELS Cotton and acreage planted after the final No LP period, refer to third 50, *55, or *60%
planting date is: column.
For CAT Coverage 45%
No LP period unless For Additional Coverage
allowed by the SP, if 40, *45, or *50%
allowed, the production
Green Peas4, Processing Beans4 and Processing guarantee is reduced as
Sweet Corn4 and acreage planted after the final indicated by the SP (up to
planting date is: the maximum days For CAT Coverage 40%
indicated). If no LP period
indicated by SP, refer to the
third column.
The production guarantee
is reduced 1% per day
for the 1st 10 days and 2%
per day the 11th through
Tobacco acreage planted after the final the 15th day after the For Additional and CAT
planting date is: final planting date. If Coverage 35%
planted more than 15
days after the final
planting date refer to the
third column.

3
The CP may indicate a different percentage coverage reduction and/or the CP or SP may modify the number of days
contained in the late planting period.

If additional levels of PP coverage are available and elected. Refer to actuarial documents to determine if additional PP
coverage is available.
4
Requires written approval from the processor by the ARD that it will accept the production from the late planted acres.

June 2015 FCIC 18180 154

1216 Insurable Acreage

A. CCIP

All acreage planted to the insured crop in the county in which the insured has a share is
insurable if the acreage has been planted and harvested or insured (including insured
acreage that was prevented from being planted) in any one of the three previous crop years.
Production from insurable acreage must be reported on a Production Report and APH
Database. See Part 13 and Part 15 for requirements and exceptions.

(1) Acreage that has not been planted and harvested (grazing is not considered harvested)
or insured (i.e., insured acreage that failed and was appraised by an AIP would be
insurable) in at least one of the three previous crop years may still be insurable if:

(a) such acreage was not planted:

(i) in at least two of the three previous crop years to comply with another
USDA program;

(ii) due to a qualifying crop rotation, the acreage would not have been planted
in the previous three years (e.g., a crop rotation of corn, soybeans, and
alfalfa; and the alfalfa remained for four years before corn was planted
again); or

(iii) because a perennial tree, vine, or bush crop was on the acreage in at least
two of the three previous crop years;

(b) such acreage constitutes five percent or less of the insured planted acreage on
the unit;

(c) such acreage was not planted or harvested because:

(i) it was pasture or rangeland;

(ii) the insured crop is pasture or rangeland; and
(iii) the CP, SP, or a WA specifically allows for insurance on such acreage; or

(d) the CP, SP, or a WA specifically allow insurance for such acreage.

(2) Acreage emerging from a USDA program within the two most recent crop years that
is being planted to a crop for the first time since being in the USDA program is
insurable under the terms of the policy. See Para. 1763 for requirements for acreage
emerging from a USDA program.

(a) All acreage emerging from a USDA program must be reported as a separate line
on the acreage report by FN/Tract/Field and include the applicable acreage type
from Para. 1213A.

June 2015 FCIC 18180 155

1216 Insurable Acreage (Continued)

A. CCIP (Continued)

(b) The FN/Tract/Field for the acreage that has emerged from a USDA program
must continue to be reported on the acreage report, regardless of whether it is a
different crop or not. However, the initial year requirement to report acreage as
a separate line item does not apply in subsequent years.

(3) New breaking acreage may be insurable or uninsurable. See Para. 1764 for new
breaking acreage requirements. Report all new breaking acreage as a separate line,
regardless of its insurability on the acreage report by FN/Tract/Field the initial year of
planting. Any additional acreage reported for the unit containing the new breaking
acreage must also report the FN/Tract/Field.

(a) The applicable acreage type must be identified on the acreage report by the
applicable code. See Para. 1213A for the applicable acreage types.

(b) The FN/Tract/Field number for the new breaking acreage must continue to be
reported on the acreage report in subsequent years, regardless of whether it is a
different crop or not. However, the initial year requirement to report acreage as
a separate line item does not apply in subsequent years.

(4) Native sod acreage may be insurable or uninsurable. See Para. 1765 and GSH Part 7
for native sod acreage requirements. Report all native sod acreage as a separate
line(s), regardless of its insurability, on the acreage report by FN/Tract/Field.
However, native sod acreage in multiple CLUs for a FN may be combined on a single
acreage line, provided the acres for each FN/Tract/Field (CLU) are reported separately
on corresponding land identification records (P27). The program indicator code of
“NS” is reported on each native sod acreage line. Any additional acreage reported for
the unit containing the native sod acreage must also report the FN/Tract/Field.

(a) The applicable acreage type must be identified on the acreage report by the
applicable code. See Para. 1213A for the applicable acreage types.

(b) The FN/Tract/Field number for the native sod acreage must continue to be
reported on the acreage report in subsequent years, regardless of whether it is a
different crop or not. However, once the first four crop years of planting on the
native sod acreage have been completed, the requirement to report acreage as a
separate line item does not apply.

(5) Some CPs, endorsements or options (APH crops only) require that a processor
contract be in effect for the crop to be eligible for insurance.

(a) There are three types of processor contracts.

June 2015 FCIC 18180 156

1216 Insurable Acreage (continued)

A. CCIP (continued)

(i) Acreage contracts are a processor contract that states the amount of
acreage to be planted by the insured and that the processor agrees to
purchase all production from this acreage meeting the requirements as
stated in the contract.

(ii) Production contracts are a processor contract that states a specific amount
of production to be grown by the insured and that the processor agrees to
purchase all production (up to the specified amount) meeting the
requirements of the contract.

(iii) A combination of acreage/production contracts. An acreage/production

processor contract specifies a combination of acreage and production
requirements.

Most CPs require all processor contracts to be executed not later than the ARD
for the insured crop. Refer to the individual CP.

(b) To determine insurable acreage under a processor contract:

(i) for an acreage processor contract, specifying a minimum number of acres,

maximum number of acres, or both, the insurable acreage will be:

• zero, if the insured plants less than the minimum acreage stated in the
contract and the contract contains no provision that makes the
processor liable to accept the production and the insured cannot
provide documentation confirming that the processor will accept the
lesser amount; or

• the lesser of the planted acres or maximum number of acres specified

in the contract.

(ii) for a production processor contract the insurable acreage will be the
planted acres.

(iii) for an acreage/production processor contract, apply A(5)(a) above.

(c) The following examples illustrate insurable acreage under a processor contract.
These situations assume that the acreage is otherwise insurable under the terms
of the policy and the actuarial documents (e.g., there is no uninsurable land
designated in the actuarial documents).

June 2015 FCIC 18180 157

1216 Insurable Acreage (continued)

A. CCIP (continued)

Example 1: The insured has a processor contract stating that the processor
will accept the production from a specific number of acres and
the insured plants more than this amount. The insurable
acreage will be the acreage stated in the processor contract.
The remaining acreage must be reported as uninsurable.

Example 2: The insured has a processor contract stating a minimum number

of acres and the insured fails to plant the minimum number of
acres. When a minimum number of acres is specified and the
contract contains no provision that makes the processor liable
to accept the production and the insured fails to plant that
amount, there is no contract and thus no insurable acres.

Example 3: The insured has a processor contract stating a maximum

number of acres. If a maximum number of acres is specified,
the acreage to be reported as insurable is planted acres, not to
exceed the maximum. Planted acres that exceed the maximum
are to be reported as uninsurable.

Example 4: The insured has a processor contract stating both a minimum

and a maximum number of acres. If both a minimum and a
maximum are specified, the same rules as stated in Example 2
and 3 above apply. For PP purposes, the minimum number of
acres stated in the contract will be used if both a minimum and
a maximum are specified.

Example 5: The insured plants more acres than are stated in the processor
contract and the processor is willing to accept the production
from the additional acreage. The additional acreage will be
insurable and the contract can be amended to add the acres
prior to or on the ARD, unless otherwise specified by the CP.
If the contract is amended after the ARD, the additional acreage
cannot be reported as insurable.

Example 6: The processor contract does not state the insured’s name. For
the crop to be considered as being under contract in most
instances, the processor contract must contain the name or
names of each individual whose production will be accepted
under the processing contract. However, in some cases a
person’s name may not be listed on the contract even though
their share of the production is considered to be under contract
by the processor. In these instances, if the AIP can verify that
the production will be accepted under the processor contract,
then the AIP can consider all production under this contract as
insurable. Verification that the production is under contract
should be documented and maintained in the insurance file.
June 2015 FCIC 18180 158
1216 Insurable Acreage (continued)

A. CCIP (continued)

Example 7: A processor contract that stipulates both the number of acres to

be planted and the amount of production to be delivered is not
eligible for OUs unless specified otherwise in the CP or SP.
For example, Green Pea Crop Provisions state that OUs for
green peas may be established based on shell type and pod
type. If the AIP verifies that the processor will take all of the
production from the listed acres in the processor contract, the
insured acreage would be eligible for OUs.

Example 8: The insured must designate on the acreage report on or before

the ARD, what acreage is under which contract when an
insured contracts with more than one processor and plants the
crop in one or more fields. For example, 10 acres in the south
part of the field is covered under processor A, the 15 acres in
the middle of the field is covered under processor C.

Example 9: All acreage specified in the contract will be insurable when the
contract contains both an acreage and production figure and the
AIP verifies that the processor will take all of the production
from the listed acres in the processor contract, even particularly
if harvested production exceeds the production listed in the
contract.

Example 10: If the processor contract allows for an acreage tolerance, the
insurable acreage would be up to the amount stated with
tolerance applied. For example, if the stated acres were 100
acres with a tolerance of 5 percent, then the insurable acres
could be up to 105 acres.

B. ARPI

The insurable acreage is all of the acreage of the insured crop, for which a premium rate is
provided in the actuarial documents, in which the insured has a share, and which is planted
in the county listed on the application.

(1) Acreage must have been planted and harvested (grazing is not considered harvested)
or insured (excluding Rainfall and Vegetation Index policy or any other specific
policy listed in the SP) in at least one of the three previous crop years unless:

(a) the acreage was not planted:

(i) in at least two of the three previous crop years to comply with another
USDA program;

June 2015 FCIC 18180 159

1216 Insurable Acreage (continued)

B. ARPI (Continued)

(ii) due to the crop rotation, the acreage would not have been planted in the
previous three years (e.g., a crop rotation of corn, soybeans, and alfalfa;
and the alfalfa remained for four years before corn was planted again); or

(iii) because a perennial tree, vine, or bush crop was on the acreage in at least
two of the three previous crop years;

(b) the acreage constitutes five percent or less of the insured planted acreage on the
unit;

(c) the acreage was not planted or harvested because it was pasture or rangeland and
the insured crop is pasture or rangeland; or

(d) the CP or SP specifically allows insurance for such acreage.

(2) Acreage emerging from an USDA program (such as CRP, etc.) within the two most
recent crop years that is being planted to a crop for the first time since being in the
USDA program is insurable under the terms of the policy.

(a) All acreage emerging from a USDA program must be reported as a separate line
on the acreage report by FN/Tract/Field and include the applicable acreage type
from Para. 1213B.

(b) The FN/Tract/Field for the acreage that has emerged from a USDA program
must continue to be reported on the acreage report, regardless of whether it is a
different crop or not. However, the initial year requirement to report acreage as
a separate line item does not apply in subsequent years.

(3) New breaking acreage may be insurable or uninsurable. Report all new breaking
acreage as a separate line, regardless of its insurability on the acreage report by
FN/Tract/Field the initial year of planting.

(a) The applicable acreage type must be identified on the acreage report by the
applicable code. See Para. 1213B for the applicable acreage types.

(b) The FN/Tract/Field number for the new breaking acreage must continue to be
reported on the acreage report in subsequent years, regardless of whether it is a
different crop or not. However, the initial year requirement to report acreage as
a separate line item does not apply in subsequent years.

June 2015 FCIC 18180 160

1216 Insurable Acreage (continued)

B. ARPI (Continued)

(4) Native sod acreage may be insurable or uninsurable. See GSH Part 7 for native sod
acreage requirements. Report all native sod acreage as a separate line(s), regardless of
its insurability, on the acreage report by Farm/Tract/Field. However, native sod
acreage in multiple CLUs for a FN may be combined on a single acreage line,
provided the acres for each FN/Tract/Field (CLU) are reported separately on
corresponding land identification records (P27). The program indicator code of “NS”
is reported on each native sod acreage line. Any additional acreage reported for the
unit containing the native sod acreage must also report the FN/Tract/Field.

(a) The applicable acreage type must be identified on the acreage report by the
applicable code. See Para. 1213B for the applicable acreage types.

(b) The FN/Tract/Field number for the native sod acreage must continue to be
reported on the acreage report in subsequent years, regardless of whether it is a
different crop or not. However, once the first four crop years of planting on the
native sod acreage have been completed, the requirement to report acreage as a
separate line item does not apply.

1217 Uninsurable Acreage

A. CCIP

Uninsurable acreage includes acreage:

(1) on which the only crop that has been planted and harvested in the previous three crop
years is a cover crop, hay (except wheat for hay) or a forage crop (except corn or
sorghum silage). However, such acreage may be insurable if:

(a) the insured crop is a hay or forage crop; and

(b) the CP, SP or a WA specifically allow for insurance on such acreage; or
(c) the hay, or forage crop is used in a crop rotation;

(2) that has been strip-mined unless:

(a) an agricultural commodity other than a cover crop, hay (except wheat harvested
for hay) or forage crop (except insurable silage) has been harvested from the
acreage for at least five crop years after the strip-mined land has been reclaimed;
or

(b) a WA specifically allows insurance for such acreage;

(3) for which the actuarial documents do not provide the information necessary to
determine the premium rate, unless insured by a WA that provides such information;

June 2015 FCIC 18180 161

1217 Uninsurable Acreage (Continued)

A. CCIP (Continued)

(4) that was damaged and it is practical to replant the insured crop but it was not
replanted (insurance did not attach);

(5) that is inter-planted with another crop, unless allowed by the CP;

(6) on which insurance is otherwise restricted by the CP or SP;

(7) that is planted in any manner other than specified by the CP or SP unless insurance is
permitted for such planting by a WA;

(8) of a second crop, if the insured elected not to insure such acreage when an indemnity
for a first insured crop may be subject to a reduction in accordance with the provisions
of BP section 15 and the insured intends to collect an indemnity payment that is equal
to 100 percent of the insurable loss for the first insured crop acreage see Para. 1223;

(9) of a crop planted following a second crop or following an insured crop that is
prevented from being planted after a first insured crop, unless it is a practice that is
generally recognized by agricultural experts or organic agricultural experts for the
area to plant three or more crops for harvest on the same acreage in the same crop
year, and additional coverage insurance provided under the authority of the Act is
offered for the third or subsequent crop in the same crop year;

(10) that is a volunteer crop;

(11) of a second planting of the same crop when the first planting has been harvested in the
same crop year unless specifically permitted by the CP or SP;

(12) that is planted for the development of production of Hybrid Seed or for experimental
purposes, unless insurance is permitted for such purposes by the CP or by WA;

(13) used solely for wildlife protection or management;

(14) initially planted after the final planting date unless late planting coverage is provided
by the crop’s policy; and

(15) that is not grown on planted acreage (except for the purposes of PP coverage), or that
is a type, class or variety or where the conditions under which the crop is planted are
not generally recognized for the area. For example, where agricultural experts
determine that planting a NI corn crop after a failed small grain crop on the same
acreage is not a generally recognized practice for the area.

June 2015 FCIC 18180 162

1217 Uninsurable Acreage (continued)

B. ARPI

The following acreage is not insurable under the ARPI plan of insurance:

(1) acreage where the crop was destroyed or put to another use during the crop year for
the purpose of conforming with, or obtaining a payment under, any other program
administered by the USDA;

(2) acreage where the AIP has determined the insured failed to follow good farming
practices for the insured crop;

(3) acreage where the conditions under which the crop is planted are not generally
recognized for the area;

Example: Acreage where agricultural experts determine that planting a NI corn crop
after a failed small grain crop on the same acreage in the same crop year is
not appropriate for the area.

(4) acreage of a second crop, if the insured elected not to insure such acreage when an
indemnity for a first insured crop may be subject to a reduction in accordance with the
provisions of ARPI, Section 13 and the insured intends to collect an indemnity
payment that is equal to 100 percent of the insurable loss for the first insured crop
acreage. The election must be made for all first insured crop acreage that may be
subject to an indemnity reduction if the first insured crop is under ARPI or on a first
insured crop unit basis if the first insured crop is not insured under ARPI (e.g., if the
first insured crop insured under ARPI consists of 40 acres, or the first insured crop
unit insured under another policy contains 40 planted acres, then no second crop can
be insured on any of the 40 acres). In this case:

(a) if the first insured crop is insured under ARPI, the insured must provide written
notice to the AIP of the election not to insure acreage of a second crop by the
ARD for the second crop if it is insured under ARPI, or before planting the
second crop if it is insured under any other policy;

(b) if the first insured crop is not insured under ARPI, at the time the first insured
crop acreage is released by the AIP or another AIP who insured the first insured
crop (if no acreage in the first insured crop unit is released, this election must be
made by the earlier of acreage reporting date for the second crop or when the
insured signed the claim for the first insured crop);

(c) if the insured fails to provide notice required in (a) and (b) above, the second
crop acreage will be insured in accordance with applicable policy provisions and
the insured must repay any overpaid indemnity for the first insured crop;

(d) in the event a second crop is planted and insured with a different AIP, or planted
and insured by a different person, the insured must provide written notice to
each AIP that a second crop was planted on acreage on which the insured had a
first insured crop; and
June 2015 FCIC 18180 163
1217 Uninsurable Acreage (continued)

B. ARPI (continued)

(e) the insured must report the crop acreage that will not be insured on the
applicable acreage report;

(5) acreage of a crop planted following a second crop or following an insured crop that is
prevented from being planted after a first insured crop, unless it is a practice that is
generally recognized by agricultural experts or organic agricultural experts for the
area to plant three or more crops for harvest on the same acreage in the same crop
year, and additional coverage insurance provided under the authority of the Act is
offered for the third or subsequent crop in the same crop year. Insurance will only be
provided for a third or subsequent crop as follows:

(a) the insured must provide acceptable records that show:

(i) the insured has produced and harvested the insured crop following two
other crops harvested on the same acreage in the same crop year in at least
two of the last four years in which the insured produced the insured crop;
or

(ii) the applicable acreage has had three or more crop produced and harvested
on it in the same crop year in at least two for the last four years in which
the insured crop was grown on the acreage; and

(b) the amount of the insurable acreage will not exceed 100 percent of the greatest
number of acres for which the insured provides acceptable records.

1218 Uninsured Acreage of an Insured Crop

Uninsured acreage of an insured crop only applies to CCIP policies and includes:

(1) insurable acreage on land classified as high-risk land excluded with a High-Risk Land
Exclusion Option; and

(2) acreage of Category C crops that does not meet age and/or production minimums that is
excluded.

1219 Unreported Acreage or Units

Unreported acreage is insurable acreage not reported timely, or not reported, and does not meet
the criteria to be reported as insured acreage on a revised acreage report, see Para. 1231.

Unreported units, when units are applicable, are units which were not reported timely, or not
reported, for which the AIP denies liability.

A. Unreported Units (Unreported Acreage Insured as a Separate Unit)

For acreage that would be insured as a separate unit:

June 2015 FCIC 18180 164
1219 Unreported Acreage or Units (continued)

A. Unreported Units (Unreported Acreage Insured as a Separate Unit) (Continued)

(1) if the acreage and all other reported unit(s) for the crop meet the requirements for
accepting acreage as outlined in LAM Para. 182, revise the acreage report to add the
unreported unit acreage.

(2) if the acreage or any other reported unit(s) for the crop does not meet the requirements
for accepting acreage:

(a) the acreage report will not be revised, and

(b) the harvested or appraised production from the unreported unit acreage will be
prorated to all insured units if an indemnity is claimed on any unit, (refer to
LAM).

(3) when there may be damage on other reported units and the unreported unit will not be
added for this reason:

(a) appraise the unreported unit acreage (that could have been insured) if it has not
been harvested, and

(b) it appears that it will not be harvested. This appraisal will be used if a claim is
filed on any insured unit as outlined in the LAM.

B. Unreported Acreage in a Reported Unit

If acreage (including the reported acreage for that unit):

(1) meets the requirements for accepting acreage as outlined in the LAM, revise the
acreage report to add the under reported acreage to the unit.

(2) does not meet the requirement for accepting acreage as outlined in the LAM, the:

(a) guarantee will be computed on the information reported, and

(b) production from the unreported acreage will count against the guarantee .

C. Late Planted Unreported Acreage

Acreage which the insured did not report or designate (even as uninsured acreage), and
which the insured asserts was planted after the FPD (or LPD, if applicable) will be handled
according to (1) and (2) below.

(1) Insurable (but not insured) acreage will be considered insurable (but not insured) if:

(a) The acreage is insurable under the actuarial documents or by a WA; i.e., rates
and coverage are available for the acreage itself, or crop P/T; and

(b) The acreage was planted on or before the:

June 2015 FCIC 18180 165
1219 Unreported Acreage or Units (continued)

C. Late Planted Unreported Acreage (Continued)

(i) FPD for the crop shown on the SP for the applicable county, or

(ii) latest allowable date under the LP provisions found in the applicable CP, if
applicable to the crop, and the acreage was not prevented from planting.

(2) Acreage will be considered uninsurable if the acreage is not insurable under the policy
provisions, SP, actuarial documents, or by WA. Acreage is not insurable if:

(a) rates and coverage are not available for the acreage itself or the crop/P/T carried
out; or

(b) the acreage was initially planted after the LPP (FPD if LPP is not applicable)
and the acreage was not prevented from planting by an insurable cause of loss
within the insurance period for PP.

1220 Zero Acreage Report

The insured must submit a zero acreage report for the county on or before the ARD if the insured
does not have a share in the insured crop in the county.

If the insured crop is not planted on an entire unit, the insured must report zero acres on a unit, if
units are applicable.

1221 Preliminary Acreage Reports for CCIP

AIPs may request planting intentions from the insured at the time of Application or when
servicing the policy for subsequent crop years (e.g., updating the APH). Information generated
from the preliminary acreage report must be issued to each insured no earlier than 30 days prior
to the final ARD.

AIPs must provide the insured with instructions to verify the accuracy of their preliminary
acreage report and to submit any corrections or additions to the AIP by the final ARD.

If the insured submits nothing further by the final ARD, coverage is based on the preliminary
acreage report and is considered complete and accurate. If liability is under or over-reported, the
liability and any potential indemnity may be impacted unless the insured has requested acreage
measurement service, see Para. 1234.

Preliminary acreage reports are not applicable for PP reporting purposes. See FCIC 25370
Prevented Planting Loss Adjustment Standards Handbook for intended acreage report
instructions for PP.

June 2015 FCIC 18180 166

1222 Reporting IRR Practices for CCIP

AIPs shall provide a copy of the Irrigated Practice Guidelines to all insureds annually for whom
the IRR practice may apply. The Irrigated Practice Guidelines identify factors to be considered
in determining the proper acreage to be reported and insured under an IRR practice. See Para.
1101-1106 for IRR practice requirements and the DSSH for the Irrigated Practice Guidelines.

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

A. 1st Insured Crop Limitations

1st insured crop limitations may apply to acreage planted to a 1st insured crop which has
suffered an insurable loss. This excludes acreage that qualifies for double cropping. See
LAM for more information on double cropping.

An insured that does not plant, or plants and does not insure, a 2nd crop on the same
acreage for harvest in the same crop year as a first insured crop may:

(1) collect an indemnity payment that is equal to 100 percent of the insurable loss for the
1st insured crop, and

(2) elect not to insure 2nd crop acreage on the same acreage, even if the insured has a
policy for a 2nd crop. This is considered uninsurable acreage, see Para. 1217 for
acreage reporting requirements of such acreage.

B. 2nd Insured Crop Limitations

When the person insuring the 1st crop, or another person, plants and insures a 2nd crop on
the same acreage for harvest in the same crop year and there is an insurable loss to the
second crop, a full indemnity may be paid on the 2nd crop.

(1) Indemnity payment is limited to 35 percent of the insurable loss for the 1st insured
crop. The person insuring the 1st crop will be responsible for 35 percent of the 1st
crop’s premium.

(2) If the 2nd crop does not suffer an insurable loss, an indemnity payment, if applicable,
for the other 65 percent of the 1st crop’s insurable loss that was not previously paid
will be made and the remainder of the premium will be due.

A subsequent crop, such as a 3rd crop, planted on the same acreage does not limit an
indemnity being paid on the 2nd crop.

C. 3rd and Subsequent Insured Crop Limitations

Acreage of a crop planted following a 2nd crop or acreage of a crop planted following a
prevented planted 2nd insured crop which followed an insured 1st crop is not insurable
unless:

June 2015 FCIC 18180 167

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

C. 3rd and Subsequent Insured Crop Limitations (Continued)

(1) it is generally recognized for the area to plant three or more crops for harvest on the
same acreage in the same crop year by agricultural experts or organic agricultural
experts;

(2) additional coverage is offered for the 3rd or subsequent crop; and

(3) the insured provides acceptable records that demonstrate:

(a) the insured has produced and harvested the insured crop following two other
crops harvested on the same acreage in the same crop year in at least two of the
last four years in which they produced the insured crop; or

(b) the applicable acreage has had three or more crops produced and harvested on it
in at least two of the last four years in which the insured crop was grown on it.

The amount of insurable acreage for the 3rd or subsequent crop will not exceed the greatest
number of acres for which the insured provided the records required in the applicable
preceding [subparagraph (3)(b)].

D. General Information

(1) A 2nd crop does not include replanting of 1st crop acreage to the same 1st crop,
except as stated in the LAM Para. 174 D or G.

(2) Forage production and other insured perennial crops are considered a 1st insured crop.
Although forage and other perennial crops may not be planted each year, they are the
1st insured crop.

(3) If an insured plants and insures skip-row cotton, it fails, and grain sorghum is planted
in the rows that were not planted to cotton, the grain sorghum is still considered the
2nd crop for this acreage.

(4) The 1st insured/2nd crop rules apply to certified seed potatoes and malting barley the
same as they do to other crops such as regular potatoes and the all others type barley.

(5) AIPs should make insureds aware that an insured’s election not to insure acreage of a
2nd crop may affect any linkage requirement for FSA program participation.

(6) When an insured elects to not insure 2nd crop acreage, the acreage and production
from such acreage is not included for APH purposes for subsequent years except
when it is commingled with production from insured acreage.

E. Insured’s Options

(1) Not plant a 2nd crop on the same acreage for harvest in the same crop year and
receive 100 percent of indemnity due for the 1st insured crop acreage.
June 2015 FCIC 18180 168
1223 First (1st) Insured Crop Planted and Second (2nd) Crop (Continued)

E. Insured’s Options (Continued)

(2) Plant, but not insure a 2nd crop planted on the same acreage as the 1st insured crop
was planted for harvest in the same crop year. For this situation, the following
applies:

(a) This decision is on a unit basis. If the insured has multiple units of the 1st
insured crop, the election to insure 2nd crop acreage is made separately for each
of the 1st insured crop units and applies to all 2nd crop acreage in the unit,
unless double-cropping provisions apply in which case, the 2nd crop acreage
meeting the double-cropping-history requirements must be insured.

Example: Insured’s Unit 0001-0001OU corn = 150 acres of 1st insured

crop corn, 50 of which suffers an early loss and is released.
Insured plans to plant 2nd crop on acreage. Unit 0001-0001OU
soybeans = 250 acres of planted soybeans consisting of 200 1st
insured crop acres and 50 2nd crop acres (same 50 acres that
corn was planted in corn unit 0001-0001OU). The insured
timely elects to not insure the 50 acres of 2nd crop acreage in
unit 0001-0001OU soybeans. Insured’s Corn Unit 0001-
0002OU = 175 acres of 1st-insured crop corn, 20 of which
suffers an early loss. Unit 0001-0002OU soybeans = 250 acres
of planted soybeans consisting of 230 1st crop acres and 20 of
2nd crop acres (same 20 acres that corn was planted on in corn
unit 0001-0002OU). However, the insured timely elects to
insure the 20 acres of 2nd crop acreage in unit 0001-0002OU
soybeans.

(b) Election to not insure 2nd crop acreage must be made by the following deadline:

(i) if the 1st insured crop is insured under the CCIP, at the time the 1st insured
crop acreage is released (if no acreage is released, on the earlier of the
ARD for the 2nd crop or when claim is signed for the 1st insured crop);

(ii) if the 1st insured crop and the 2nd crop are both insured under ARPI, by
the ARD for the 2nd crop; or

(iii) if the 1st insured crop is insured under ARPI and the 2nd crop is insured
under the CCIP, before the 2nd crop is planted.

(c) The insured will collect 100 percent of indemnity due for the 1st insured crop
acreage, provided:

(i) Written notice is provided, signed, and dated by the insured to the AIP
stating that the insured elects not to insure acreage of a 2nd crop by the
deadline for the specific situation stated in subparagraphs B (2) (b) (i), (ii),
or (iii) above. A Written Notice can be considered a statement on: (1) the
Production Worksheet (PW), (2) an attachment to the PW (e.g., Special
June 2015 FCIC 18180 169
1223 First (1st) Insured Crop Planted and Second (2nd) Crop (Continued)

E. Insured’s Options (Continued)

Report), or (3) a form developed by the AIP for this purpose that states the
insured elects to not insure the 2nd crop.

(ii) If the insured fails to provide notice of his or her election to not insure 2nd
crop acreage by the deadline for the specific situation stated in
subparagraphs E(2)(b) (ii), or (iii) above, the 2nd crop acreage will be
insured in accordance with policy provisions (the same as (3) below), and
the insured must repay any overpaid indemnity for the 1st insured crop.

(A) Situation 1

IF: AND: THEN

If the insured had 1 timely elected in writing the acreage report
control of the land not to insure any 2nd must be revised to
(owns or leases crop acreage, and designate the 2nd
the land for the crop acreage as
entire crop year), 2 subsequently plants and uninsured acreage
reports 2nd crop acreage instead of insured
as insured crop acreage, acreage.

This is because the

insured had
previously elected
not to insure the 2nd
crop acreage.

(B) Situation 2

IF: AND: THEN

If insured A insured A will be
has elected in 1 someone else (insured B) limited to 35%
writing that a plants an insured crop (2nd indemnity on the
2nd crop will crop) on that same acreage; 1st crop acreage.
not be insured and
on the same This is because a
acreage as the the second crop acreage 2nd crop was
1st insured contributed to the losses on the planted on the 1st
crop was units for both the 1st insured crop acreage on
planted, and crop, and the 2nd crop, and which insured B
does not own collected an
or have control3 insured B receives an indemnity.
of the land indemnity on the unit in which
the 1st insured-crop acreage
was planted,

June 2015 FCIC 18180 170

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

E. Insured’s Options (Continued)

(d) The insured must designate the 2nd crop acreage planted on 1st insured-crop
acreage (within the same crop year) that will not be insured as uninsured acreage
on the acreage report.

(3) Plant and insure the 2nd crop on the same acreage (as the 1st insured crop was
planted) for harvest in the same crop year. For this situation, the following applies:

(a) if the 2nd crop acreage is planted and insured with a different AIP, the insured
must provide written notice to each AIP that a 2nd crop was planted on acreage
on which the insured had a 1st insured crop.

(b) if there is an insurable loss on the 2nd crop acreage and the insured has not
waived the indemnity for the 2nd crop acreage, the insured will:

(i) receive 100 percent of the indemnity due for the 2nd crop acreage. The
insured will pay the full premium (producer-paid premium) for the 2nd
crop acreage. Subsequent crops planted on the same acreage within the
same crop year will not affect the indemnity of the 2nd crop acreage;

(ii) collect an indemnity payment that is 35 percent of the insurable loss for the
1st insured-crop acreage;

(iii) owe 35 percent of the premium (producer-paid premium) for the 1st
insured-crop acreage having a 2nd crop planted on it;

(c) if the insured’s option was to plant 2nd insured crop acreage but:

(i) no crop is planted,

(ii) the acreage is planted to a crop not insured, or
(iii) the insured 2nd crop acreage does not suffer an insurable loss,

the following applies:

(A) the insured should request to receive the remainder (65 percent) of
the 1st insured-crop indemnity that was not previously paid.
However, if the insured does not request such payment, the AIP
should contact the insured for follow-up to determine the status of
any 2nd crop. For most situations, this should be done on or before
the billing date for the 1st insured crop.

(B) if the insured certifies there is no 2nd crop loss on the same acreage
on the 1st insured-crop unit, or the AIP otherwise verifies there is no
2nd crop loss, then:

June 2015 FCIC 18180 171

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

E. Insured’s Options (Continued)

1 the remainder (65 percent) of the 1st insured-crop indemnity

must be paid to the insured, and

2 if the entire premium is not offset by the indemnity, a bill for

the remaining premium is sent.

Payment of the indemnity should be made in accordance with the 30-

day provisions in the policy, unless the AIP is unable to verify
whether an insured loss occurred to the 2nd crop. It is the insured’s
responsibility to provide sufficient documentation to the AIP.

(C) the insured does not have the option to avoid payment of the
additional premium for the 1st insured crop by refusing the
remaining 65 percent of the indemnity owed for the 1st insured crop.

(D) AIPs may make payment of the additional indemnity for the 1st
insured crop before announcement of the harvest price for revenue
plans of insurance, or they may choose to wait until after the
announcement to avoid making two additional payments.

(d) Separate records of production

(i) If the 1st insured crop suffers a loss, the insured must provide separate
records of production for all insured crops planted on the same acreage as
the 1st insured crop. Those records acceptable for loss adjustment
purposes are acceptable as documentation for separate production from
acreage that is and is not planted to a 2nd crop.

Example: The insured has an insurable loss on 100 acres of wheat

and subsequently plants cotton on 10 acres of that wheat
acreage. The insured must provide records of the wheat
and cotton production on those 10 acres separate from any
other wheat and cotton production that may be planted in
the same unit.

(ii) If the insured fails to provide separate records, the production of each crop
will be allocated to the acreage in proportion to the liability of the acreage.

June 2015 FCIC 18180 172

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

F. Possible Impacts on Companion Contracts

It is possible when different insureds share an insurable interest on the same acreage that
one insured might have a greater loss amount on the 1st insured-crop acreage, while the
other insured has a greater loss amount on the insured 2nd-crop acreage. Different levels of
coverage, different APHs, or different insurance plans, etc., between landlords, tenants or
other sharing parties may cause this situation to occur. The following scenarios illustrate
this.

Scenario 1: Both the landlord and the tenant have insurance policies in effect for both
the 1st insured and 2nd crops and neither qualify for double-crop
exemption. One insured has CAT level of coverage, while the other has
additional coverage.

LANDLORD’S 1st INSURED TENANT 1st INSURED’S CROP

CROP
CAT No Loss Buy-up Policy $10,000 Loss
35% =
Policy $3,500
LANDLORD INSURED 2nd nd
TENANT INSURED 2 CROP
CROP
Buy-up $10,000 Loss CAT Policy No Loss
Policy

The landlord did not have a 1st insured crop loss. Therefore, the landlord
would not have the option to decline insurance on the 2nd crop. Even
though the tenant did not have an insured 2nd crop loss, the landlord did.
The tenant would be restricted to $3,500 (35 percent of the 1st insured
crop loss) if the landlord accepted the $10,000 2nd crop indemnity.

Scenario 2:

LANDLORD’S FIRST 1st CROP TENANT’S FIRST 1st CROP

CAT $500 Loss 35% = $175 Buy-up Policy $10,000 Loss 35% =
Policy $3,500
LANDLORD INSURED 2nd CROP TENANT INSURED 2 CROPnd

Buy-up Policy $10,000 Loss CAT Policy $500 Loss

The landlord and tenant will each receive at least 35 percent of their
insured share of any 1st insured crop loss. Each would have the option to
waive insurance on the 2nd crop acreage.

June 2015 FCIC 18180 173

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

F. Possible Impacts on Companion Contracts (Continued)

Prior to knowing the outcome of the 2nd crop, each may have been given
the opportunity to request the AIP to calculate and then pay the greatest
possible indemnity for both crops as allowed by the policy provisions
(refer to item A (8) above). In certain situations, this may mean waiving a
2nd crop indemnity in order to be eligible for the remaining 65 percent 1st
insured crop indemnity.

However, once any entity is indemnified for an insured 2nd crop loss on
the same acreage, all entities with an insurable interest in the1st insured
crop will be limited to 35 percent of their insured share of any payable
loss. Precedence is based on whether any insured accepts a 2nd crop
indemnity. If the landlord is indemnified ($10,000) for their 2nd crop loss,
the greatest possible indemnity allowed by the policy provisions for the
tenant from both crops would be $4,000 ($3,500 which is 35 percent of
their insured share of the 1st insured crop loss plus $500 from the 2nd
crop).

Thirty-five percent (35 percent) of any 1st insured crop indemnity plus any
insured 2nd crop indemnity is the greatest possible indemnity outcome
allowed by the policy provisions for all insured entities sharing in the 1st
insured crop if any entity accepts an indemnity on the 2nd crop acreage.

G. Additional Information About Reduction of Payments and Premium due to 2nd Crop

Except in the case of double cropping as described in the LAM, the following applies:

(1) Another Person Plants 2nd Crop Acreage

(a) Even if another person plants a 2nd crop on acreage where the 1st insured crop
was planted and suffered a loss and the 2nd crop is insured and suffers an
insurable loss, the indemnity payment for the 1st insured crop acreage will be 35
percent of the indemnity due for the 1st insured crop acreage.

Example: Insured AA plants corn and receives an indemnity. Insured AA

then cash rents this acreage to Insured ZZ who plants insured
soybeans on this same acreage. Insured AA must notify his/her
AIP and must notify Insured ZZ’s AIP that a 2nd crop was
planted on acreage on which he/she (Insured AA) had a 1st
insured crop.

June 2015 FCIC 18180 174

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

G. Additional Information About Reduction of …. due to 2nd Crop (Continued)

(b) If the 1st insured crop is planted, is shared with another person or other people,
and the crop suffers a loss, each of the shareholders can decide whether they
want to insure a 2nd crop that is planted on the same acreage independently of
each other. However, if the 2nd crop suffers a loss and the person or any one of
the people who chose to insure the 2nd crop accepts their indemnity check, the
1st insured crop indemnity will be limited to 35 percent for all shareholders.

(c) If the 1st insured crop acreage was planted acreage and the 2nd crop acreage
does not suffer a loss or is not insured, 100 percent of indemnity of the 1st
insured crop acreage will be applicable.

(d) For prevented planting, refer to the Prevented Planting Handbook.

(2) 1st Insured Crop Acreage that is Cash Rented by Another Person Who Plants a Crop
on this Acreage

(a) Cash rent, as used in this paragraph means cash renting for agricultural use
(growing a crop, haying, grazing, etc.). This does not apply when the acreage is
cash rented for a non-agricultural use; e.g., hunting.

(b) The crop that is planted by the person cash renting the acreage is considered the
2nd crop for both the person having the 1st insured crop, and is also considered
the 2nd crop for the person that cash rented the acreage and planted a crop on
this acreage.

(c) Another person planting the 2nd crop cannot choose not to insure the acreage if
the 2nd crop is an insurable crop and that person has an active policy for this
crop in the county. This is because only the insured that had the 1st crop
indemnity may elect to not insure any 2nd crop acreage to preserve 100 percent
of his/her 1st crop indemnity.

1224-1230 (Reserved)

June 2015 FCIC 18180 175

 Section 3 Acreage Report Revisions

1231 Overview

If incorrect, the acreage report may be revised when allowed under these procedures.

A revised acreage is permitted when the criteria in Para. 1232 is met in following situations:

(1) the insured files a request for a revision, on a unit basis when units are applicable.

(2) the AIP may file a revised acreage report to correct a keying error on the original acreage
report, improper unit division to delete uninsurable acreage reported as insurable acreage,
and so on, provided the revision falls within the allowed parameters outlined in this section.

1232 Acceptable Revisions for CCIP

A. Acreage Report Revision Guidelines

Acreage reports may only be revised if one of the following is applicable.

(1) If it is on or before the applicable final ARD, insureds may revise acreage reports for
planted acres without a crop inspection and AIP approval. See C below for
requirements.

(2) If it is after the applicable final ARD, insured cannot revise an acreage reports except:

(a) as expressly permitted by the policy:

(i) if the insured requests acreage be short rated and the provisions in the CP
are met, the acreage report will be revised to designate the short rated acres
separately (see F); or

(ii) if the insured requests measurement service on or before the ARD and
such measurement service results in a different acreage determination, the
acreage report will be revised to reflect the determined acres. See Para.
1234; or

(b) with consent of AIP. AIPs may only provide consent when the AIP determines:

(i) a cause of loss has not occurred and an appraisal indicates the crop will
produce at least 90 percent of the yield used to determine the guarantee or
amount of insurance for the unit (including reported and unreported
acreage), except when there are unreported units. See Para. 1219 for
additional information regarding acceptance of unreported units];

(ii) information on the acreage report is clearly transposed; or

(iii) adequate evidence is provided that the AIP or someone from USDA has
committed an error regarding information on the acreage report.

June 2015 FCIC 18180 176

1232 Acceptable Revisions for CCIP (continued)

A. Acreage Report Revision Guidelines (continued)

(3) If the revision is to include unreported units and/or unreported acreage, the revision
may be made at any time; however, this acreage is not considered insurable unless it
meets the requirements in 2(b) above. Such acreage must be identified as unreported
units and/or unreported acreage on the acreage report.

(4) If an acreage report is initially submitted for PP acreage, it cannot be revised at any
time to change crops or types. After the applicable ARD, information on the acreage
report for PP acres cannot be revised, except for (2)(b)ii and iii above.

B. Acreage Report Revisions Requirements

All acreage report revisions require:

(1) documentation in the “Remarks” section of the acreage report, or other form specified
by the AIP to revise acreage reports, explaining why the revision took place and what
change(s) were made (if a form was used to document, or notate; see attached (Form
Number) in the “Remarks” section of the acreage report;

(2) date, signature, and code number of the person preparing the revised acreage report or
other form designated by the AIP to revise acreage reports;

(3) insured’s signature, or authorized representative’s signature, and date, unless

circumstances warrant the absence of the required signature. If the insured’s signature
is not obtained, document why the signature was not obtained in the “Remarks”.
Based on the nature of the revision and the reasons the insured’s signature was not
obtained, the AIP will determine whether the revised acreage report should be
approved without the insured’s signature; for example, correcting keying errors would
not require the insured’s signature.

For CAT coverage only: Unless a person with an insurable interest in the crop objects
in writing on or before the ARD and provides a signed acreage report on his or her
own behalf, the operator may file/sign the acreage report for all other persons with an
insurable interest in the crop, including a revised acreage report. A POA is not
required and all other persons with an insurable interest in the crop, and for whom the
operator purports to sign for and represent, are bound by the information contained in
that acreage report.

June 2015 FCIC 18180 177

1232 Acceptable Revisions for CCIP (continued)

B. Acreage Report Revisions Requirements (Continued)

If the insured’s signature is not obtained, document why the signature was not
obtained. Based on the nature of the revision and the reasons the insured’s, or
authorized representative’s signature was not obtained, the AIP will determine
whether the revised acreage report should be approved without the insured’s, or
authorized representative’s, signature. For example, correcting keying errors would
not require the insured’s, or authorized representative’s signature; and

(4) for acreage reports revised after the final ARD, the AIP’s authorized representative’s
approval.

C. Revised Acreage Reports On or Before the ARD

(1) Acreage reports for a planted crop may be revised on or before the ARD when
information that affects the guarantee, premium, or liability for the crop was
incorrectly reported. No crop inspection or approval is required when revisions are
filed BEFORE the ARD.

(2) Acreage reports for a PP crop may be revised on or before the ARD to change any
information on any initially submitted acreage report. For example, the insured can
add acreage of the insured crop prevented from planting, or to correct a share.

Exception: The insured CANNOT revise the insured’s initially submitted

acreage report AT ANY TIME, and the AIP cannot approve, to
change the insured crop or type that was reported as prevented from
planting on the acreage report, unless the insured can provide
adequate evidence that the insured did report the correct crop or type,
but the AIP, agent, or someone from the USDA committed an error
regarding the crop or type shown on the processed acreage report.

Refer to the PP LASH for examples of revised acreage reports for PP

acreage.

D. Revised Acreage Reports After the ARD

(1) Acreage reports for planted acres may be revised after the ARD ONLY with the AIP’s
consent (i.e., approval) as follows.

(a) The AIP can provide consent for a revised acreage report if:

(i) No cause of loss has occurred. When insureds request revisions to reduce
acres, AIPs can provide consent as stated in subparagraph E(8) below;

June 2015 FCIC 18180 178

1232 Acceptable Revisions for CCIP (continued)

D. Revised Acreage Reports After the ARD (Continued)

(ii) The unit passes the crop inspection criteria for accepting unreported
acreage information; for example, adding acreage or units, as stated in the
LAM; or

(iii) A crop inspection is not needed to revise the acreage report as stated in
subparagraph E below.

(b) Acreage reported as an IRR practice that qualifies for an IRR practice at the time
insurance attaches, cannot be revised to a NI practice, even when the insured
never applied any irrigation water. When a loss is evident on the unit or when
harvest is general in the area, unless D(1)(c) below or B applies. The LAM
provides procedure that applies when acreage cannot be revised from IRR to NI
and when acreage does not qualify for an IRR practice.

(c) When the insured has reported both an IRR and NI practice and claims there is
an error in the reported acreage of IRR and/or NI practices, a revised acreage
report may be approved to change a NI practice to an IRR practice (acreage
must qualify for an IRR practice) or IRR may be revised to a NI practice),
provided:

(i) no damage or loss has occurred,

(ii) harvest is not general in the area, and

(iii) the AIP has verified that the practice for which the change was requested
actually existed and is being carried out in a manner consistent with a good
farming practice for the practice that the acreage is being revised.

(2) For revisions to the acreage report for PP Acreage, refer to the PP LASH.

E. When Acreage Report Revisions Can Be Done Without a Crop Inspection

Acreage reports may be revised to add or revise information on a crop unit without crop
inspections for the following situations and a LAF is ONLY applicable to misreported
information on the revised acreage report:

(1) Short-rated acreage (refer to subparagraph F below);

(2) Measurement service requested by the date specified in Para. 1234;

June 2015 FCIC 18180 179

1232 Acceptable Revisions for CCIP (continued)

E. When Acreage Report Revisions Can Be Done Without a Crop Inspection (Cont.)

(3) The crop is replanted to a different P/T than was initially reported and that is specified
on the actuarial documents; e.g., initially planted oil-type sunflowers, and replanted to
non-oil type, unless specified otherwise in the CPs or SPs. The same acres as were
shown on the initial acreage report would be shown on the revised acreage report,
unless the insured requested that additional acreage be added, which would then
require a crop inspection.

(4) Keying errors of the acreage report caused an incorrect Summary of Insurance to be
issued;

(5) Incorrect unit arrangement has been reported;

(a) Two or more OUs must be combined anytime separate records of production
and acreage are not maintained. (Refer to Commingled Production, in the
LAM).

(b) Part of a unit or an entire unit may be deleted.

(c) Additional units may not be created after the ARD, except for basic/policy units.
Basic units are defined by the BP; or if, applicable, the CP or SP. BUs must be
separated even if damage has occurred on the unit.

(6) The insured provided evidence that the agent, AIP or someone from USDA has
committed an error regarding the information on the insured’s acreage report.
Following are some, but not limited to, items and documents from which the agent or
AIP could make an error when transferring information from the document to the
acreage report and which would substantiate that an error was made:

(a) approved APH yield from the APH database.

(b) information from an approved WA.

(c) information from actuarial documents; e.g., the actuarial map was incorrectly
read resulting in an incorrect classification, and so forth.

(d) a document the insured claims he or she completed and submitted to the AIP to
report the original acreage report information. The acreage report may be
revised to agree with the information on this document provided the AIP can
substantiate that this document was on file in with the AIP on or prior to the
ARD.

June 2015 FCIC 18180 180

1232 Acceptable Revisions for CCIP (continued)

E. When Acreage Report Revisions Can Be Done Without a Crop Inspection (Cont.)

(e) a document the insured claims he or she completed and submitted to the AIP to
report the skip-row planting pattern for the planted crop/unit. The percent
planted factor and/or yield-conversion factor may be revised to agree with the
information shown on this document, provided the AIP can substantiate that this
document was on file with the AIP on or prior to the ARD.

(f) the information on the acreage report is clearly transposed; e.g., 87.0 is written
as 78.0. Also, refer to subparagraph E(9) below for transposition of information
between acreage report lines that are also correctable.

(7) Any other reasons specified in the policy provisions, including those shown in
subparagraph E(1), F, and Para. 1234.

(8) Acreage has been over reported:

(a) When an insured requests a decrease in reported acres of a unit, the acreage
report may be revised to remove those acres, provided:

(i) at the time the insured requests a decrease in reported acreage, no cause of
loss has occurred;

(ii) all units of the crop for which the revision is NOT requested must have
existing acceptable determined acres, as defined in the LAM; and

(iii) for the unit for which the insured has requested a decrease in acres the
insured must, at his or her expense have a current measurement of the unit
acreage done by FSA or a disinterested firm whose primary function is
land measurement.

(b) Document the acceptable determined and measured acreage on a form used for
documentation purposes or aerial photo map.

(c) Insured’s request to reduce acres is not the same as automated revisions that
occur during claims processing to adjust over-reported liability. However, in
both cases, the premium due is based on what actually exists; e.g., less acres
actually exist than reported.

(9) Correctable transposition acreage report errors. When it is obvious that the acreage
was inadvertently switched between lines at the time the insured’s acreage report was
completed resulting in incorrect acres between crops or practices, FSA FNs, types,
etc., AIPs may approve a revised acreage report to correct the error. The reason for
the revision must be documented. The insured must sign the revised acreage report.

June 2015 FCIC 18180 181

1232 Acceptable Revisions for CCIP (continued)

E. When Acreage Report Revisions Can Be Done Without a Crop Inspection (Cont.)

(a) AIPs are to use this type of correction prudently and are to be approved only
when it is obvious that:

(i) acreage reported on one line was inadvertently switched with acreage on
another line, and

(ii) the AIP believes the insured did not intentionally report this information to
obtain additional benefits; e.g., misreporting land location to obtain a
lower premium. The AIP should try to establish whether there is a pattern
of misreporting every year. If so, the AIP should not consider the
misreported acres as inadvertent switching of acreage.

(b) This procedure cannot be used to correct overall variances between acres
reported and acres determined;

Example: If the IRR practice was reported as 100.0 acres and the NI
practice is reported as 150.0 acres, and it is determined that
there are 95.0 IRR acres and 155.0 NI acres, this is a variance
in reporting - under-reporting and over-reporting, and is not
considered an inadvertent switch.

(c) When the acreage report is revised to correct an inadvertent switching of

acreage, the revised acreage report must be processed prior to the claim. The
acreage, the revised acreage report will be used as the reported acres and cannot
be used as the determined acres also. The determined acres must remain a
separate determination.

Example: 100.0 acres was initially reported as IRR and 50.0 as NI;
however, the acres for the two practices were inadvertently
switched. The determined acres for the IRR acreage is 51.5
acres; the revised reported acres are 50.0, so there is 1.5 acres
under reported for this practice. The determined acres for the
NI acres are 98.0 and the revised reported acres are 100.0, so
there is 2.0 acres over-reported for this practice.

(d) The following can be considered correctable if the AIP believes that the insured
did not switch the acreages to benefit from lower premiums, and so on:

(i) Acreages for practices were inadvertently switched. For example: 100.0
acres were reported as IRR and 50.0 as NI; however, the acres for the two
practices were inadvertently switched when reported. The inadvertent
switch of acreage may occur within the same unit, or for additional
coverage, it may occur between different units when there are optional
units for IRR and NI acreage.

June 2015 FCIC 18180 182

1232 Acceptable Revisions for CCIP (continued)

E. When Acreage Report Revisions Can Be Done Without a Crop Inspection (Cont.)

(ii) Acreages for different types were inadvertently switched. For example:
150.0 acres were reported as oil type (048) sunflowers and 100.0 acres
were reported as non-oil type (049) sunflowers; however, the acres for the
types were inadvertently when reported. The inadvertent switch may
occur within the same unit, or when optional units are allowed by type for
the coverage selected, the inadvertent switch may involve different units.

(iii) Acreage between legal descriptions was inadvertently switched. For

example: Unit 0001-0002OU has 100.0 acres reported with legal
description Section 2, Township 5, Range 3. Unit 0001-0001OU has 150.0
acres reported with legal description Section 1, Township 5, Range 3. The
legal descriptions are correct for the unit structures shown on the APH
form. However, the acreage for the legal descriptions was inadvertently
switched. The inadvertent switch may occur within the same unit; or may
involve different units (for additional coverage) when optional units are
allowed by sections (or other legal descriptions described in the policy). If
this inadvertent switch was between the same crop that an insured has
insured in two different counties, and the AIP requires separate acreage
report forms be completed to report the acreage report information for the
two different counties rather than reporting the information on one form,
the AIP may consider this a correctable error if the criteria in (9)(a) are
met.

(iii) When unit structure for the crop is by FSA FN and the acreage between
two FSA FNs were inadvertently switched. For example, 200.0 acres for
FSA FN 1234 was reported and 300.0 acres for FSA FN 2345 was
reported; however, the acreage for the FSA FNs was inadvertently
switched.

(iv) Acreages between two crops were inadvertently switched. For example:
one line showed 120.5 acres of corn and one line showed 155.6 acres of
soybeans; however, there was actually 155.6 acres of corn and 120.5 acres
of soybeans.

F. Revisions to Reduce Premium for Acreage Destroyed Prior to Harvest (Short Rate)

Acreage reports CANNOT be revised after the ARD to remove or reduce premium because
the insurable acreage was destroyed prior to harvest, except when the actuarial documents
provide a reduced premium rate (short-rate) for acreage destroyed prior to harvest. Short
rate provides a reduced premium rate for acreage that will be destroyed prior to harvest and
reported to the AIP by the date designated in the crop's SP. If the insured requests such
acreage be designated separately on their acreage report, the AIP must revise the acreage
report if the conditions stated in the CP and SP are met.

June 2015 FCIC 18180 183

1232 Acceptable Revisions for CCIP (continued)

F. Revisions to Reduce Premium … Destroyed Prior to Harvest (Short Rate) (continued)

(1) Separate line entries are required on the acreage report for the acreage on which
insurance will continue and the acreage eligible for the reduced premium rate (short
rated acreage).

(a) The premium amount will be reduced (short rated), including CAT coverage, by
the amount shown on the Actuarial Documents only if the insured notifies the
agent by the date shown on the SP that the acreage will be destroyed by grazing
or mechanical means prior to harvest, and the insured does not claim an
indemnity on such acreage.

(b) If a notice of damage or loss is filed and the insured wants to file a claim for
indemnity on the acreage at this time rather than short rate, the acreage must be
appraised, accordance with the LAM. If the insured wishes to destroy the
acreage to comply with other USDA programs, the acreage must be released
when an adequate appraisal is made; or if applicable, the insured has agreed to
leave representative samples so that adequate appraisals can be made at a later
date.

(c) When timely and proper notification that the acreage will be destroyed is
received, the AIP will revise the acreage report and reduce (short-rate) the
premium accordingly. Insurance coverage will cease on any acreage the insured
does not intend to harvest on the date the insured notifies the agent of such
intent.

If the acreage that is short rated is not destroyed as intended, the insured will be
subject to the under-reporting provisions contained in section 6 (f), (g)(1), and
(g)(2) of the CCIP-BP. The acreage short-rated and taken to harvest is
considered under-reported. If part of unit acreage is short rated and taken to
harvest, the production harvested from the short rated acreage will be counted
against the remaining insured acres on the unit. If the entire unit acreage is
short-rated and taken to harvest, the harvested production from the short rated
unit will be allocated to the insured units in the county. Such acreage cannot be
added back to the acreage report, even if the crop would pass a crop inspection.

Example: Part of the acreage in the unit is short-rated and taken to

harvest:

Unit 0001-0001OU wheat = 100.0 insured acres initially

reported. The insured timely notifies the AIP that he/she is
destroying 20.0 of the 100.0 acres. The AIP short-rates the
20.0 acres, but the insured takes all 100.0 acres to harvest. The
insured files a claim for unit 0001-0001OU.

June 2015 FCIC 18180 184

1232 Acceptable Revisions for CCIP (continued)

F. Revisions to Reduce Premium … Destroyed Prior to Harvest (Short Rate) (continued)

If the short-rated acreage is harvested, and the production from

the short-rated acreage is not commingled with the insured
acreage production, then the APH would include 80.0 acres and
the production from the 80.0 insured acres. However, if the
short-rated acreage production is commingled with the insured
acreage production, the APH would include 100.0 acres and
production from the 100.0 acres.

Example: All of the insured acreage in the unit is short-rated and taken to
harvest:

Unit 0001-0001OU wheat = 100.0 insured acres initially

reported. The insured timely notifies the AIP that the acreage
will be destroyed. The AIP short rates the 100.0 acres, but the
insured takes all 100.0 acres to harvest.

Wheat units in the county with remaining insured acres

reported:

0001-0002OU = 50.0 acres

0001-0003OU = 100.0 acres
0001-0004OU = 25.0 acres

(2) Short rated acreage is not eligible for a claim for indemnity. However, a year the crop
is short rated is considered a year of producing the crop; and is reported as zero
production, identified by a “Q” yield descriptor, with the actual acres short rated on
the production report and APH database.

(3) Short rated acreage cannot be reinstated for insurance coverage after the insured
notifies the AIP that the acreage will be destroyed prior to harvest. Any production
from short rated acreage will be considered production from uninsurable acreage for
APH purposes.

(4) For situations other than short rated acreage, if the insured destroys or puts acreage to
another use without consent, an appraisal of not less than the guarantee will be
assessed on such acreage. However, such appraisals are not used for APH purposes.

Premium adjustments will not be made for insured acreage destroyed or put to another use
after the ARD.

June 2015 FCIC 18180 185

1232 Acceptable Revisions for CCIP (continued)

G. Cannot Add Acreage of Small Grain Crop Initially Reported as Uninsurable

Acreage Reports cannot be revised to add acreage of a small grain crop initially reported as
uninsurable because the crop was planted for a use other than for which coverage is
provided (e.g., wheat planted for the purpose of being grazed or destroyed before harvesting
for grain). When acreage of a small grain crop reported as uninsurable is harvested, the
under-reporting provisions (under-reported for a reported unit or an unreported unit) in the
section entitled “Report of Acreage” in the BP apply.

1233 Acceptable Acreage Report Revisions for ARPI

ARPI acreage reports may only be revised when the following is applicable.

(1) Insureds may revise acreage reports for planted acres without AIP consent on or before the
ARD.

(2) Acreage reports can only be revised after the ARD with the consent of the AIP when the
AIP determines:

(a) information on the acreage report is clearly transposed; or

(b) adequate evidence is provided that the AIP or someone from USDA has committed an
error regarding information on the acreage report.

(3) Acreage reports may be revised for land acquired after the ARD and AIPs may choose to
insure or not insure the acreage, provided the acreage is insurable and an acreage report is
filed. Acreage must meet all insurability requirements and policy elections cannot be
modified, e.g. coverage level, protection factor, for the added acreage.

This does not apply to any acreage for which insurance attached under a different person’s
policy and a transfer of coverage and right to indemnity is executed.

1234 Measurement Services Requested for Acreage Reports

On or before the ARD, an insured may request an acreage measurement service. If an acreage
measurement service is requested the following are applicable.

(1) An acreage report must:

(a) be filed on or before the final ARD;

(b) include estimated acreage for the acreage for which a measurement service has been
requested; and

June 2015 FCIC 18180 186

1234 Measurement Services Requested for Acreage Reports (Continued)

(c) clearly identify the acreage (e.g., field number) for which the measurement has been
requested. If an acreage measurement is requested for only a portion of the acreage,
or a portion of the acreage within a unit when units apply, such acreage must be
separately designated on the acreage report.

(2) Documentation that verifies acreage measurement was requested must be furnished to the
AIP on or before the final ARD.

(3) The measurement service may be completed by FSA or businesses that provide land
measurement (including those with which sales agents are associated).

Exception: For claim purposes, measurement services performed by the agent are not
allowed, see LAM.

(4) The measurement, when completed, must be provided to the AIP.

(5) If the acreage measurement is not provided at least 15 days prior to the premium billing
date, the premium will be based on the estimated acreage and will be revised, if necessary,
when the acreage measurement is provided.

(6) For CCIP policies, if the insured fails to provide the acreage measurement to the AIP by the
time a notice of loss is filed, the AIP may:

(a) make all necessary loss determinations, except the acreage measurement, and defer
finalization of the claim until the measurement is completed and provided. If the
acreage measurement is not provided, the claim will not be paid; or

(b) elect to measure the acreage and finalize the claim. In addition, estimated acreage
will not be accepted from the insured for any subsequent acreage report.

(7) For ARPI policies, if the acreage measurement is not provided by the time the final county
revenue or final county yield, as applicable, is calculated, the AIP may:

(a) elect to measure the acreage and finalize the claim in accordance with applicable
policy provisions;

(b) defer finalization of the claim until the measurement is completed with the
understanding that if the insured fails to provide the measurement prior to the
termination date, any claim will not be paid; or

(c) finalize the claim in accordance with applicable policy provisions after the insured
provides the acreage measurement.

(8) If the acreage measurement is not provided to the AIP by the termination date, the insured
will be precluded from providing any estimated acreage for all subsequent crop years.

June 2015 FCIC 18180 187

1234 Measurement Services Requested for Acreage Reports (Continued)

(9) The acreage report will be revised if there is a discrepancy between the estimated acreage
report and the measurement unless:

(a) the acreage measurement is not turned in timely; or

(b) the AIP has measured in accordance with E above and there is an irreconcilable
difference in the measurements see (10) below.

(10) If there is an irreconcilable difference between:

(a) the acreage measured by FSA or a measuring service, and the AIP on-farm
measurement, the AIP on-farm measurement will be used; or

(b) the acreage measured by a measuring service, other than the AIP on-farm
measurement, and FSA, the FSA measurement will be used.

1235 Examples for Acreage Report Revisions

Following are some examples of incorrect acreage report and applicable revisions. Always
document the reason for the revision on the form used to revise acreage reports.

(1) Insured reported unit 0001-0001OU and 0001-0002OU of grain sorghum as insurable.
Upon inspection 0001-0002OU was found to be planted to an uninsurable practice.

ACTION: Revise 0001-0002OU to designate the acreage as uninsurable acreage

instead of insurable. Indicate the reason why the acreage is uninsurable.

(2) During an inspection prior to harvest being general in the area, the AIP discovered that unit
0001-0001BU of soybeans had not been reported on the original acreage report. The crop
inspection indicated that this unit and all other units met the appraisal criteria for accepting
additional liability for the additional unit, as defined in the LAM.

ACTION: Unit 0001-0001BU may be added.

(3) An incorrect risk classification for unit 0001-0001BU was entered on the original acreage
report.

ACTION: Revise the acreage report to show the correct risk classification, and notate
the reason for the revision.

(4) The original acreage report shows 25.0 acres for unit 0001-0001BU, and the inspection
reveals 50.0 acres were planted. The crop inspection indicated that all the criteria for
accepting additional acreage for this unit (reported and unreported acreage) were met, as
defined in the LAM.

ACTION: The acreage report may be revised to add the additional acreage.

June 2015 FCIC 18180 188

1235 Examples for Acreage Report Revisions (Continued)

(5) The original acreage report shows all of unit 0001-0001BU (108.0 acres) was planted by
the FPD and there is no LP provision for the crop, but it was determined 20.0 acres of unit
0001-0001BU were planted after the FPD.

ACTION: Revise the acreage report to reduce the 108.0 acres of insured acreage to
88.0 insured acres. Document that unit 0001-0001BU was revised to
designate the 20 acres planted after the FPD as uninsured acreage.
Harvested production from insured acreage (88.0 acres) must be kept
separate from harvested production from the uninsured acreage (20.0
acres).

(6) The original acreage report shows all of unit 0001-0002BU (200.0 acres) was planted by
the FPD, but it was determined that 50.0 acres were planted 5 days after the final planting
period. This is a crop that the policy provisions provide for automatic late-planted acreage
coverage.

ACTION: Revise the acreage report to show 150.0 acres as timely planted with a
separate line entry showing the 50.0 acres with the correct planting date.

(7) The original acreage report shows 50 percent share for unit 0001-0001BU. It is determined
that the share at the time of planting was 100 percent and is still 100 percent. (No
additional acreage is being added.)

ACTION: Provided a crop inspection indicates that unit 0001-0001BU acreage meets
the criteria for accepting additional liability, as defined in the LAM, the
acreage report can be revised to reflect 100 percent share.

(8) The original acreage report shows 100 percent share for unit 0001-0001BU soybeans. The
inspection revealed the share at the time of planting was 50 percent.

ACTION: Revise the acreage report to reflect the appropriate share at the time of
planting.

(9) The original acreage report shows unit 0001-0002BU of wheat with 100 percent share. The
inspection revealed there were two BUs, one with 100 percent share and one with 50
percent share.

ACTION: Revise the acreage report to show the correct unit structure (two BUs).
The APH database for 0001-0002 must also be divided to reflect the
correct unit structure.

(10) The original acreage report shows two OUs of soybeans. The inspection determined that no
separate records of production or acreage were maintained to support the production report
filed.

ACTION: Revise the acreage report to combine the two OUs. Delete the unit number
not kept.

June 2015 FCIC 18180 189

1235 Examples for Acreage Report Revisions (Continued)

(11) The original acreage report show unit 0001-0002BU soybeans with .333 share. The
verification of the share revealed that the insured had no interest in this unit.

ACTION: Revise the acreage report to remove unit 0001-0002BU soybeans.

(12) The insured reported two units (0001-0001OU and 0001-0002OU) of soybeans on the
acreage report. After the ARD, the insured reviewed the Summary of Coverage that was
generated from the soybean acreage report and discovered that he/she had failed to report
unit 0001-0003OU soybeans. The insured requests that unit 0001-0003OU be added. The
crop inspection to accept additional acreage reveals that the appraisal for unit 0001-
0001OU and the appraisal for 0001-0003OU exceed 90 percent of the yield upon which the
per-acre guarantee for each unit is based. However, unit 0001-0002OU acreage appraises
below 90 percent of the yield upon which the per-acre guarantee is based.

ACTION: The AIP must deny the request to add unit 0001-0003OU (additional
acreage) since unit 0001-0002OU is considered to be in a potential loss
situation as outlined in the LAM.

(13) The insured reports 100.0 planted acres on the acreage report, but only 75.0 acres are
planted and the insured claims that 25.0 of the acres were actually prevented from planting.
The insured claims he/she reported the 100.0 acres because he/she was planning to plant
100.0 acres, but then it started raining and the insured was unable to plant the other 25.0
acres as reported.

ACTION: If it is prior to the ARD, both the planted and PP acres can be revised. If it
is after the ARD, the acreage report cannot be revised to add the PP acres.
However, the planted acres can be revised downward, if at the time the
revision is requested, no insured cause of loss affecting the planted acres
has occurred, as stated in Para. 1232E(8) above. If it is before the ARD,
the acreage report can be revised to add the PP acres and reduce the
planted acres; and if it is after the ARD, no PP acres can be added.

1236-1300 (Reserved)

June 2015 FCIC 18180 190

 PART 13 PRODUCTION REPORT
1301 General Information

An annual production report is required for all crops with a yield-based plan of insurance that is
required to establish the approved APH yield. Additionally, an annual production report is
required for all ARPI policies, unless otherwise specified in the SP (e.g., forage). For CCIP
polices, the production report collects the prior crop year(s)’ production from the insured and the
information contained within the production report is used to establish the approved APH yield.
For ARPI policies, the production report collects the current crop year’s production by the PRD
at the end of the crop year.

A. Producing the Crop

An insured that received a share of the insured crop’s production or was a member or SBI
of a person that received a share of the insured crop’s production is considered to have
produced the crop that crop year in the county in which it was produced.

Likewise, if a member or SBI of the insured received a share of the insured crop’s
production, the insured is considered to have produced the insured crop that crop year in the
county in which it was produced.

See Part 14 for requirements for acreage and production records, and Part 15 for use of
another producer’s acreage and production history, landlord/tenant Approved APH Yields,
and use of APH Database Yields when insured person change or land is transferred to
another person.

B. Production Report versus APH Database

Production reports are separate from APH databases. The production report contains the
insured’s report of production whereas, the actual yield information reported on the
production report is used by the AIP to establish an APH database and calculate an
approved APH yield for CCIP polices.

While an insured’s APH database(s) may be used to capture the same information provided
on the insured’s production report, the purpose and function of a production report is
different than that of an insured’s APH database. See Part 15 for procedure and instructions
regarding APH databases. The AIPs may use the APH database or other forms, such as the
Schedule of Insurance, to collect the production report from the insured.

The production report is designed to accommodate both a carryover insured with an

established APH database, and a new insured by allowing the reporting of multiple APH
crop years’ yield history for new insureds and carryover insureds that recertify previous
year(s)’ history. For those insured under the ARPI plan of insurance, the production report
will accommodate the reporting of the current year’s production on the same basis of the
current crop year’s planting.

June 2015 FCIC 18180 191

1302 Acceptable Production Report

A. Acceptability

Production reports must meet all of the following to be acceptable.

(1) Include all acreage and production (insured and uninsurable/uninsured) by P/T/TMA
as identified on the actuarial documents from the insured’s operation for each APH
crop year being reported.

For CCIP policies, this includes prior year units not contained in the insured’s
operation for the current crop year. See Part 17 Section 3 and Part 18 for additional
reporting requirements for P/T/TMA.

Example: Insured A had 10 OUs in 2015. In 2016, the insured only has 8 OUs.
Insured A must report all acreage and production from all 10 OUs the
insured had in 2015 when the insured submits a production report for
the 2016 crop year; However, the APH databases are not updated for
the 2 units no longer in the farming operation.

For ARPI policies, if the acreage is unharvested, the insured must certify either
unharvested and destroyed, unharvested and put to another use or unharvested
appraised. See Para. 1305F.

(2) Conform at least to the unit structure (EU, BU, and/or OU) that applies for the current
crop year in which the insured had an interest in the crop for each APH crop year
production reports are certified for those currently insured under a CCIP policy.

Exception: This does not prohibit the insured from reporting production at a
level lower than the elected unit structure if such production can be
summed to the elected unit structure by the AIP see Para. 1303.

For ARPI polices insureds may report production on a CCIP policy unit or lower level
though units are not applicable for ARPI policies. See Para. 1791 for use of
production reports when switching to a CCIP policy. Although reporting on an OU
basis is not required for ARPI, failure to report on an OU basis may limit choices
regarding unit structure if the insured switches to a CCIP policy in subsequent year.

(3) Report all APH crop years continuously when multiple years of production history are
certified; there cannot be a break in continuity of production history. See Para. 1306
and Para. 1307 for additional procedure related to continuity of production reports.

(4) Be supported by acceptable production evidence. See Part 14 for production evidence
requirements. The insured must maintain and provide upon request acceptable
production evidence for each crop year by unit, when units are applicable, for each
P/T/TMA See Part 14 for production evidence and record retention requirements.

June 2015 FCIC 18180 192

1302 Acceptable Production Report (continued)

A. Acceptability (continued)

If the insured does not have acceptable supporting production records to support the
information on the production report, the insured will be subject to the procedures in
Para. 1302 D.

(a) See additional production history provisions by crop in Part 19 Section 1 for
Category B crops, Part 19 Section 2 for Category C crops and Part 20 for other
coverage plans.

(b) See Exh. 13 for completed samples for individual crops and for directions
outlining adjustments to total production entries. Directions for sample
production worksheets for Sugar Beets, Dry Beans, and Northern Potato Quality
Endorsement and for Multi-Purpose Production and Yield Worksheets are also
provided in Part 17 and Exh. 17.

If the insured does not have acceptable supporting production records to support
the information on the production report, the insured will be subject to the
provisions in D below.

(5) Be signed by the insured.

(6) Be submitted by the insured to the AIP by the PRD.

B. Zero Planted Acreage Report

(1) For annual crops insured under CCIP policies, a zero planted acreage report,
submitted the previous year, will be considered an acceptable production report for
the current crop year, provided the acreage report was acceptable.

(2) For crops insured under ARPI policies, a zero planted acreage report submitted for the
current crop year will be considered an acceptable production report for the current
crop year, provided the acreage report was acceptable.

C. Claims for Indemnity

Claims for indemnities are considered production reports for CCIP policies and must be
used; however, some claims may have to be reviewed to ensure that the correct production
is used for APH database purposes. See Para. 1310B.

D. Acceptable Production Reports Not Provided

(1) For CCIP policies, assigned yield provisions apply to carryover policies on an APH
crop year basis to APH databases (units, P/T/TMA) that had planted acres (except for
units with claims for indemnities) if an acceptable production report for the prior crop
year is not provided by the PRD. See Para. 1306C.

June 2015 FCIC 18180 193

1302 Acceptable Production Report (continued)

D. Acceptable Production Reports Not Provided (Continued)

(2) For ARPI policies, if an insured does not submit an acceptable production report to
the AIP by the PRD, the PF for the insured’s policy in the following crop year will be
limited to the lowest PF available. AIPs must transmit a production report to RMA
indicating the insured did not provide a production report using a record type of “L”.
For transferred policies, the assuming AIP may obtain production report information
for the prior crop year from RMA systems.

If the insured subsequently switches to a CCIP policy in the following crop year, the
insured will be subject to assigned yields and related procedures. Since there is not a
prior crop year’s approved APH yield available, the assigned yield will be 65 percent
of the applicable T-Yield. The assigned yield will apply beginning with the 2016 crop
year, e.g., 2014 production reports are required, assigned yield in 2015 is waived,
2015 production reports are required, assigned yield applies in 2016.

E. Accuracy

Insureds must certify to the accuracy of the information on the production report. If the
insured fails to accurately report the production, the insured will be subject to the
provisions in D above unless the information is corrected:

(1) on or before the PRD; or

(2) the incorrect information was the result of AIP error or the error of someone from
USDA.

Anytime it is discovered the insured has misreported any material information on the
production report, the insured will be subject to the provisions in D above.

1303 Production Reporting Requirements

A. Certification

(1) Insureds must certify the crop acreage and production by unit and P/T/TMA (within
the unit that requires separate APH databases) for the most recent APH crop year.
Insureds may report production using either of the following:

(a) the insured’s current unit structure; or

(b) any level, such as field, provided the AIP can aggregate the production reported
to the lowest level unit structure by APH database. Such as:

(i) EU structure;
(ii) BU structure;
(iii) OU structure; or
(iv) any level, such as field, tract, etc.

June 2015 FCIC 18180 194

1303 Production Reporting Requirements (continued)

A. Certification (continued)

Example 1: Insured A elected an EU structure for 2016. The policy allows

for the election of OU. Insured A may report his 2015
production at any of the following levels, provided the AIP can
aggregate the production in the APH database to the OU level.

(a) EU structure;
(b) BU structure;
(c) OU structure; or
(d) Any level, such as field, tract, etc.

Example 2: Insured B elected a BU structure for 2016. The policy allows

for the election of OU. Insured may report his 2015 production
at any of the following levels, provided the AIP can aggregate
the production in the APH database to at least the OU level.

(a) BU level;
(b) OU level; or
(c) Any level, such as, field, tract, etc.

Example 3: Insured C elected BU structure for 2016. The policy does not
allow for the election of OU. Insured may report his 2015
production at any of the following levels, provided AIP can
aggregate the production in the APH database to the BU level,

(a) BU level; or
(b) Any level, such as, field, tract, etc.

Insureds cannot report production at a level greater than the insured’s current
unit structure, e.g., the insured cannot report at the BU level when insured as an
OU.

(2) For ARPI policies, insureds must certify the harvested and unharvested crop acreage
and production by P/T for the current crop year. Insureds may report production by
any of the following:

(a) the county;

(b) the basic unit or lowest level unit structure available for the crop under an APH-
based plan of insurance (e.g., maintain OU for subsequent policy transfer to
APH-based plan of insurance);

(c) any level, such as field.

June 2015 FCIC 18180 195

1303 Production Reporting Requirements (continued)

A. Certification (continued)

Example: Insured A insures corn under ARPI in 2016. The APH-based plan of
insurance allows for the election of OU. Insured A may report his
2016 production at any of the following levels:

(a) County
(b) BU or OU structure; or
(c) Any level, such as field.

B. Multiple Insureds on the Same Unit

If more than one person is insured on the same unit, each person is responsible for
submitting an acceptable production report(s). When acceptable production records are
submitted by the PRD for all units/P/T/TMA, see Part 15. Different yield calculation
methods may apply based on the production reports provided by each person.

C. MY

Refer to Part 17 Section 7 for MY production reporting requirements, when MY applies.

D. Amended Production Reports

The insured may amend the production report on or before the PRD.

For CCIP policies, any amended production report submitted after the PRD will be used
when computing the following year's approved APH yield. If policy is insured on a
continuous basis, all actual and assigned yields from the prior crop year’s APH database
within the base period must be used; however, assigned yields may be replaced with actual
yields.

Amended production reports are subject to APH field reviews and acceptable production
evidence must be available.

E. Submission or Certification of Production Reports for Crop Years Other Than the
Most Recent APH Crop Year

(1) Insureds may certify production reports for crop years other than the most recent for
various reasons, including:

(a) certification of crop years not previously certified;

(b) correction;
(c) replacement of temporary yield;
(d) replacement of assigned yield;
(e) certification of multiple years by new insured;

June 2015 FCIC 18180 196

1303 Production Reporting Requirements (continued)

E. Submission or Certification of Production Reports for Crop Years Other Than the
Most Recent APH Crop Year (Continued)

(f) certification using another producer’s history for new acreage;

(g) recertification for new actuarial offer;
(h) recertification for new unit structure; or
(i) other.

(2) Continuity of production reports must be maintained.

(3) Acceptable production reports must be submitted by the applicable PRD for the
current crop year to be used for the current crop year.

(4) Production reports for all certified crop years are subject to APH field reviews and
acceptable production evidence must be available.

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

Include all production from the following types of acreage on the production report and in the
APH databases, when APH databases are applicable.

A. Insurable Acreage

(1) For CCIP, this includes insurable acreage of the insured crop that should have been
reported for insurance but was not reported as required by the CP. If a claim and the
production from the unreported acreage are combined with production from the
reported acreage, the total acreage (reported and unreported) and total production
must be used to calculate the actual yield for the APH crop year. However, if separate
APH databases are required (e.g., separate units, TMAs and etc.) for APH database
purposes, then the acreage and production that is applicable to each APH database
must be entered in the appropriate APH database.

(2) For ARPI policies, report as insurable production, all production from:

(a) insurable acreage planted to the insured crop for harvest as provided in the CP;
(b) uninsurable acreage, when commingled with insurable production.

B. Uninsured Acreage when Commingled with Production from Insured Acreage

Uninsured acreage is insurable acreage on land classified as high-risk land excluded with a
High-Risk Land Exclusion Option or acreage of Category C crops that does not meet age
and/or production minimums excluded in accordance with Para. 1803. If production
records do not clearly indicate separate production from uninsured acreage:

June 2015 FCIC 18180 197

1304 Production Included on Production Report and in the APH Database…. (continued)

B. Uninsured Acreage when Commingled with Production from Insured Acreage (cont.)

(1) uninsured acreage is considered commingled with production from the insured
acreage; and

(2) total acreage and total production (insured and uninsured) is entered in the APH
database used to calculate the actual yield for the APH crop year.

Exception: If commingled production is allocated for claims purposes, only the

insured acreage and production allocated to the insured acreage is used to
calculate the actual yield for the production report and APH database.

C. Uninsurable Acreage when Commingled with Production from Insurable Acreage

Uninsurable acreage is acreage of an insured crop that does not meet the policy
requirements for insurance or is insurable acreage the insured elected not to insure to collect
a full indemnity on the first insured crop planted on the same acreage (see Para. 1223). If
production records do not clearly indicate separate production from uninsurable acreage:

(1) uninsurable acreage is considered commingled with production from the insured
acreage; and

(2) total acreage and total production (insured and uninsurable) is reported on the
production report and entered in the APH database used to calculate the actual yield
for the APH crop year, when APH databases are applicable.

Exception: If commingled production is allocated for claims purposes, only the

insured acreage and production allocated to the insured acreage is used to
calculate the actual yield for the production report and APH database.

D. PP Acreage on which the PP Payment was Limited

Production assigned on PP acreage on which the PP payment was limited to 35 percent of

the PP coverage, see Para. 1702J, must be included on the production report and in the APH
database. Such acreage and yields must be identified with “PP” or “PW” yield descriptors.

E. Unharvested Acreage

Appraised potential production, determined by a RO, FSA, or AIP representatives, is

included on the production report.

(1) The production report and APH database must include planted insurable acreage for
Category B crops. For Category C Crops, see Part 18 for instructions concerning how
to report insurable and uninsurable acreage.

June 2015 FCIC 18180 198

1304 Production Included on Production Report and in the APH Database….. (continued)

E. Unharvested Acreage (Continued)

(2) If acreage of the crop was destroyed/put to another use and an appraisal of the
potential production was not made (not requested for APH database purposes or no
claim), the production report will indicate the planted acres and a yield of zero.

F. Zero Planted and Short Rated Acreage

The acreage report serves as the production report for zero planted and short rated acreage.
Although there is not any production from short rated acreage it is considered a year of
producing the crop.

(1) For zero planted acreage, zero production, identified by a “Z” yield descriptor, is
reported on the production report and included in the APH database.

(2) For short rated acreage, zero production, identified by a “Q” yield descriptor, with the
actual acres short rated is reported on the production report and included in the APH
database.

Exception: If short rated acreage is harvested, see Para. 1305C.

G. Native Sod Acreage

Production reports are required for native sod acreage. Production from native sod acreage
must be reported:

(1) separately; and

(2) by FN/Tract/Field(s).

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

Include all production from the following acreage types on the production report but do not
include in the APH database.

A. Uninsured Acreage

For Category B crops the production from uninsured and insured acreage is not
commingled, the uninsured production must be reported on a production report but not
included in the APH database. The production report for uninsured acreage must be
identified as “uninsured acreage” and is not used to calculate the actual yield for the APH
crop year. Separate APH databases for such acreage and production are not established.

For Category C crops uninsured acreage and production see Part 18.

June 2015 FCIC 18180 199

1305 Production Included on Production Report but not in the APH Database (continued)

B. Uninsurable Acreage for CCIP and ARPI Polices

If the production from uninsurable and insurable acreage is not commingled, it must be
reported on a production report but not included in the APH database, when APH databases
are applicable. A production report containing the acreage and production of uninsured
acreage of a second crop that the insured elected not to insure to collect a full indemnity on
the first insured crop planted on the same acreage is required, see Para. 1223. Although
considered uninsurable production, a year when only uninsured acreage of a second crop is
grown will be considered a year of producing the crop for new producer determinations and
a year of actual yields for determining the applicable percentage of the variable T-Yield.
See Para. 1215 for information on uninsurable acreage.

The production report for uninsurable acreage must be identified as “uninsurable acreage”
and is not used to calculate the actual yield for the APH crop year, when APH databases are
applicable. Separate APH databases for such acreage and production are not established.

For Category C crops, separate APH database for such acreage and production are not
established, see Part 18.

Exception: Previously uninsurable acreage, crops, practices, or types made insurable

by RMA may be reported by insureds and have APH databases established
that contain such production history if all record requirements are met.

C. Short-Rated Acreage

Production from acreage that was short-rated will be reported as uninsurable production.
The production will not be used to calculate the approved APH yield, if the AIP was
notified, prior to the published date in the SP, that the insured intended to destroy acreage
of the crop prior to harvest either by grazing or mechanical means.

(1) If short-rated acreage is harvested, the acreage and production from the short-rated
acreage is used in the APH database only if the production is commingled with
production from acreage of the insured crop that was not short rated.

(2) If the AIP is not notified, and the crop’s acreage is grazed, destroyed, or put to another
use, the total planted acres and harvested production (if any) will be used to calculate
the approved APH yield. The full premium rate will apply (not short-rated). For
claim purposes, such acreage is destroyed without consent and uninsured cause of loss
procedures apply.

D. Acreage Appraised for Production Lost due to Uninsurable Causes of Loss

The appraised production from uninsurable causes of loss (e.g., chemical drift, fire,
terrorism, etc.) must be reported on the production report as an uninsurable cause of loss
appraisal.

June 2015 FCIC 18180 200

1305 Production Included on Production Report but not in the APH Database (continued)

E. Acreage with Appraisal from Only a Portion of the Field

Appraisals obtained from only a portion of the acreage in a field that remains unharvested
after the remainder of the crop within the field has been destroyed or put to another use
must be reported on the production report as uninsured production, unless the appraisals
were taken from representative samples are left in accordance with the CP.

F. Unharvested Production for ARPI Policies

For ARPI policies, when acreage is unharvested, the insured must report zero (0)
production using the yield descriptor of UG, the number of unharvested acres and whether
acreage was:

(1) unharvested and destroyed; or

(2) unharvested and put to another use.

Exception: Even though appraisals for production are not required, if an appraisal is
made on representative samples, the insurable production reported is the
amount determined by the appraisal. If an appraisal is for only a portion of
the acreage in a field that remains unharvested after the remainder of the
crop within the field has been destroyed or put to another use, the
production must be reported on the production report as uninsured
production, unless the appraisals were taken from representative samples.

1306 Continuity

There may be no break in the continuity of years for which production reports for all units (for
the entire farming operation) are provided. All years' actual yields reported for use on the
production report must be continuous.

A. Zero and Short Rate Acreage Reports

A valid acreage report indicating the insured crop was not planted (zero acreage or not
planted for an insurable purpose, e.g., soybeans for hay) or was planted and short rated, is
considered a year of records for purposes of determining production report continuity. This
applies to Category B crops only, unless the exception in Para. 1307B is met.

June 2015 FCIC 18180 201

1306 Continuity (Continued)

B. New Insureds

For new insureds, there may be no break in the continuity of years for which production is
certified for all units for a production report to be acceptable. See exception in Para. 1307.
If an insured omits a crop year that it received a share of the crop’s production, continuity is
broken that crop year and acreage and production provided on the production report prior to
that crop year is not used. Variable T-Yields will be used to complete the APH database, if
necessary.

C. Carryover Insureds

For carryover insureds, if acceptable production reports are not submitted or acceptable
production evidence is not provided when requested, OUs are not allowed on the policy and
assigned yields apply to all units (unless a unit has a claim for indemnity to determine the
actual production and yield. In this instance, the production to count from the claim is used
to determine production for the applicable unit).

However, assigned yields are used to maintain continuity of records and previously
reported yields in the APH database will continue to be used. Loss of OUs does not require
combination of OU APH databases. Refer to Part 18, 20, and 21 for Category C and D
crops and Pecan Revenue.

1307 Break in Continuity

If a break in continuity of production reports occurs for a crop year due to the insured having no
interest in the crop (did not farm, cash-leased to another party, sold the land and then gets it back,
etc.) and the insured requests to use acreage and production history prior to the break in
continuity, prior production reports and records may be used as follows.

A. Category B Crops

For new insureds, if the verifier approves use of the production reports prior to the break in
continuity, enter a “Z” in the crop year that broke continuity and calculate the approved
APH yield according to the current procedure.

B. Category C Crops

When the insured (new or carryover) certifies the acreage and production and provides
acceptable production evidence for the crop year (obtained from an insured who had an
interest in the crop that crop year). If such records are not available or were not provided
for such crop years:

(1) for Avocados, Lowbush Blueberries in Maine, Stonefruit in California, Table Grapes
and Grapes with Flame Seedless, Princess, Ruby Seedless, and Thompson Seedless
types, a yield descriptor of “U” is entered in the APH databases for the applicable
year that the crop was insured either:

June 2015 FCIC 18180 202

1307 Break in Continuity (Continued)

B. Category C Crops (Continued)

(a) under a different crop policy (e.g., grapes); or

(b) for a change in management practices, such as buckhorning or stumping for

avocados and mowing for blueberries.

Although acres are reported, the crop years with a “U” yield descriptor are not considered
APH crop years but are considered a year for determining the base period see also Para.
1860 Added Land/New Producer Procedures.

(2) for all other crops/types:

(a) a RO determined yield may be requested. New insureds must include records
for the crop years prior to the break in continuity. Both new and carryover
insureds must certify to the circumstances causing the break in continuity.

The RO will review the production history (including claims history), determine
if the prior years’ production history may be used and the applicable yield (“F”
yield descriptor) that is substituted for the missing year(s).

(b) if a RO determined yield is not requested, “Z”s are not entered for such crop
years to maintain continuity of production reports.

1308 Required Elements of Production Report

(1) For CCIP policies, production must be reported by crop year for each unit, share
arrangements (landlord or tenant), different P/T/TMA and other characteristics. Production
may be reported at a field/CLU basis.

(2) For ARPI policies, production must be reported by crop year for each share arrangement
and P/T. Although ARPI does not have units, production may be reported at BU or OU, if
OUs are available for the crop under an APH-based plan of insurance or a field basis to
facilitate subsequent APH database establishment, if the insured switches to CCIP policy in
the future.

(3) Required elements and information for a production report. See Exh. 13 for completed
examples of the Production Report.

June 2015 FCIC 18180 203

1308 Required Elements of Production Report (continued)

ELEMENT REQUIRED INFORMATION

State
County State, county and policy number to which the report pertains.
Policy Number
Insured’s Name
Address Phone No. Name, address, phone number and code of the agent.
Agent Code
AIP AIP’s name and address.
Crop/Practice/Type/
Crop name, P/T/TMA/Other characteristics and unit number. Enter the
TMA/Other
abbreviation for the P/T. For ARPI policies, unit number is not required
Characteristics/ Unit
unless the insured chooses to report on a unit basis.
Number
Enter the section, township and range, or other descriptions for land if
rectangular survey is not applicable. This may include GPS coordinates or
Legal Description other land identification.

If additional space is needed, attach a supplemental sheet.

FSA Farm/Tract/Field number is optional unless:

Units are based on FSA FN, then the FSA FN is required, when units are
applicable; or
FSA
Farm/Tract/Field
Production is being reported from acreage emerging from an USDA program,
Number
new breaking acreage, or native sod acreage is applicable in the initial or any
subsequent crop years. See Part 17 Sec. 8

Production is being reported at the Farm/Tract/Field level.

Enter the names of other persons with an insurable share in the crop acreage
Other Persons
(not a SBI or landlord/tenant policy). If none, enter "NONE".
Indicate the type of acceptable records maintained for the last year in the base
period: Production Sold/Commercial Storage; Farm Stored Measured by
Insured, Pick/Daily Sales Records, Automated Yield Monitoring System,
Farm-Stored Measured by Authorized Representative, Livestock Feeding
Records, Claim for Indemnity, Appraisal (non-loss), Field Harvest Records,
Record Type
and/or Other. See Part 14 for description of types of records.

For ARPI policies: when acreage is unharvested specify whether unharvested

and destroyed, unharvested and put to another use, or unharvested appraised;
if insured does not report production, indicate unreported.
Processor If applicable, enter the processor contract number(s) and processor name.
Number/Name N/A for ARPI policies.

June 2015 FCIC 18180 204

1308 Required Elements of Production Report (continued)

ELEMENT REQUIRED INFORMATION

Number of Total number of trees or vines for perennial crops, if applicable. N/A for
Trees/Vines ARPI policies.
Enter total production from the acreage being reported. For ARPI
Total Production
unharvested acres, enter 0, unless there is an appraisal.
For Category C crops, enter the year or weighted average year (W) the
insurable trees or vines in the unit, were planted/set out, grafted, or
dehorned in the orchard, vineyard, grove or bog;

For alfalfa seed, forage production, forage seeding, mint and sugarcane
enter the applicable planting dates;

For green peas, enter the contract price;

For Sugarcane and Sugar Beets, enter the percent of sugar;

Other For potatoes insured under the Northern Potato Quality Endorsement, enter
the Northern Potato option percentages (for the most recent year in the base
period);

For new producers of the crop, enter the crop years they have produced the
crop (e.g., 2014 and 2015). See individual crop examples in Exh. 13 for
completed samples. If not applicable, leave blank; and

For skip-row corn insurable in certain counties in Colorado, Kansas and

Nebraska through a SP, and for all skip-row cotton, enter the skip-row
planting pattern and row width code.

For CCIP policies, indicate whether acreage and production being reported
is from insurable, uninsurable, uninsurable cause of loss appraisal,
uninsured acreage or from acreage on which a PP payment was reduced due
Insurability to a second crop being planted.

For ARPI policies, indicate whether acreage and production being reported
is from insurable or uninsurable acres.
Enter the map area classification from the actuarial documents if applicable.
Area Classification
If not applicable, leave blank.
Enter the appropriate year for the annual production and yield being
Crop Year
reported.

June 2015 FCIC 18180 205

1308 Required Elements of Production Report (continued)

ELEMENT REQUIRED INFORMATION:

Enter applicable reason an insured is reporting a crop year other than the most
recent APH crop year. Insureds may certify production reports for crop years
other than the most recent for various reasons, including:

(a) certification of crop years not previously certified;

(b) correction;
Multi Crop Year (c) replacement of temporary yield;
Reporting (d) replacement of assigned yield;
Reason (e) certification by new insured;
(f) certification using another producer’s history for new acreage;
(g) recertification for new actuarial offer;
(h) recertification for new unit structure; or
(i) other.

If not applicable, leave blank. See Para. 1303E.

Enter planted acreage in acres for each year production is available in the total
Acres production column. For annual crops, enter “0.0” if the crop was not planted
for any year.
Enter the appropriate yield type descriptor for each yield. See Exh. 15.
Yield Descriptor
For ARPI policies: for unharvested acres, enter “UG”; if the insured does not
provide a production report, enter “UR”.
Yield Enter the appropriate yield. See Part 17 and 18 for instructions.
New Producer Indicate whether the insured is a New Producer. N/A for ARPI policies.
Added Land Indicate whether production report is for Added Land. N/A for ARPI policies.
Insured
Signature and Insured must sign and date production report.
Date

(4) AIPs must obtain the insured's signature and the date of the signature; explain certification
statements to ensure the insured understands what is being certified and the consequences
of an inaccurate production report and certification.

1309 Verification, Review and Correction

The production report is subject to verification and review. When the crop is selected for review,
supporting evidence of acreage and production will be required by unit/P/T/TMA for all crop
years' acreage and production.

(1) Policies without records (65 percent T-yields only) are subject to a file review only.

(2) The production report will not be subject to the AIP APH field review process for that crop
year if:

June 2015 FCIC 18180 206

1309 Verification, Review and Correction (Continued)

(a) the insured submits production evidence for all units and years for which yields are
being certified; and

(b) the AIP verifier reviews the information and determines it is acceptable. If AIP
verifier determines the production records are not acceptable or yield does not appear
reasonable, AIP must verify the production information.

(3) For CCIP policies, when it is discovered during an APH review that an established
tolerance has been exceeded, the APH database will be corrected for the current crop year.
If tolerances are not exceeded, correction may be deferred until the subsequent year. See
Para. 1582.

Exception: When it is discovered during a claim for indemnity that an established

tolerance is not exceeded, the APH database must be corrected in the
current year. Such reviews will be performed by authorized RMA/AIP
personnel.

Actual yield information obtained from, but not limited to, the following may be used to
correct approved APH yields:

(a) production evidence for loss adjustment purposes which is recorded on proof of loss,
production worksheet, etc., which is accepted by RMA or an AIP;

(b) FSA records; or

(c) production determined in the course of RMA/AIP review.

1310 Production

The total production is entered into the total production column when actual yields are reported.
When available, the adjusted production is entered in the total production column when actual
yields are reported. Adjustments to production for ARPI policies will be made on the same basis
as a claim for indemnity for CCIP policies when such information is available on the acceptable
supporting production records.

A. Adjustments or Conversions

Some crops require an adjustment or conversion to total production. If a worksheet is used

to adjust production, it must be sent to the verifier along with the production report. For
adjustments or conversions required to determine production for individual crops. See Part
19 for Category B and Category C Crops.

June 2015 FCIC 18180 207

1310 Production (Continued)

B. Claim for Indemnity

Production determined on a Claim for Indemnity for the 1986 and subsequent crop years
(Production Worksheet, Proof of Loss, etc.,) will be used, except for appraisals made for
excluded causes of loss (hail and/or fire when the Hail and Fire Exclusion Option is
elected). Beginning with the 1992 crop year, appraisals made for uninsured causes of loss
(e.g., failure to follow recognized good farming practices and acreage destroyed without
consent) are not used for APH database purposes.

(1) Appraisals for potential production remaining in the field (for unharvested acreage)
are considered production for APH database purposes.

(2) Use production from the Claim for Indemnity if production reported by the insured on
the production report is not the same as the production on the claim for indemnity.

Exceptions:

(a) apple/pear claims where the production was adjusted for quality and an Optional
Coverage for Quality Adjustment (Apples) or the Fresh Pear Quality Adjustment
Endorsement was in force;

(b) potato claims where the production was adjusted for quality and the Northern
Potato Quality Endorsement was in force;

(c) allocated production from an unreported unit(s); and

(d) crop appraisals that were reduced because the crop was in the first stage (e.g.,
sugar beets and onions). Use appraisals prior to reduction. Also see LAM
regarding allocated production from unreported unit(s).

(3) Reduced Production on a Claim.

(a) If the production used for a claim determination was reduced according to the
policy to account for transportation to market, reconditioning cost, etc., the
reduced production amount will be added back to the production for APH
database purposes.

(b) Insureds must document the amount of added back production and provide
documentation supporting the amount that is acceptable to the verifier. AIP
must maintain a copy of the documentation in insured’s file.

(4) Production from claim determinations will be used for APH database purposes
regardless of whether the insured files a production report for the year.

June 2015 FCIC 18180 208

1310 Production (Continued)

C. Production Adjustments

Production reported on the production report will be adjusted for moisture, foreign material,
dockage, test weight, quality, grade, etc., on the same basis as claims for indemnities see
exceptions in B above, when acceptable records provide such information. However, if
such information is not included on the acceptable production evidence, production will not
be adjusted.

D. Moisture

Production having less moisture than the percentage stated in the policy will not be
increased to account for the difference.

E. Seed

Grain used as seed for the insured’s own use shall be included in the APH database. The
insured must furnish scale tickets or weight slips showing date of weighing, name of
insured and commodity. The insured must also certify the amount of seed which was used
for planting by:

(1) certifying to amount of the seed planted per acre; and

(2) certifying to and identifying the acreage on an aerial photo.

F. IRR and NI Acreages

Separate APH databases must be determined for IRR and NI practices when IRR and NI
practices are indicated on the actuarial documents.

Exception: When the planting pattern for the NI corners of a field continues into the
IRR acreage of a center pivot or acres and production from the center pivot
is not separated from the NI corners. For more information regarding
reporting production from IRR and NI acreage, see Para. 1109.

G. Acreage Adjustments

Acreage reported on the production report may require adjustments due to planting
requirements and unplanted acreage. For additional information on specific crops see the
following:

(1) acreage planted on a skip-row basis. See Part 11 for determining acreage adjustments
for crops planted on a skip-row basis.

(2) Category C crops. See Part 18 for determining acreage adjustments for Category C
crops; see also Part 19.

(3) tomatoes, peppers and sweet corn. See Part 19 for instructions for specific crops.

June 2015 FCIC 18180 209

1311 Multi-Year Production Report

See Exh. 19 for example of the Multi-Year Production Report.

1312 Production Reporting Differences for ARPI and CCIP

The chart below highlights differences in production reporting requirement between ARPI and
CCIP.

PRODUCTION
ARPI CCIP
REPORTING
Required: by unit (OU, BU, EU) by
Required: crop/county by actuarial offer/share. actuarial offer.
Production
Allowed: lower level reporting, such as OU, field, Allowed by lower level reporting, such
Report Structure
etc. as field, OU when insured as an EU,
etc.
PRD as provided in the actuarial documents.
Production reports are due by PRD at the end of PRD – as defined in the policy,
Due Date the policy crop year insured, e.g., production is generally 45 days after cancellation
reported at the end of the growing season to close date or the ARD, whichever is first.
out the policy crop year.
Supporting Supported by acceptable production
Supported by acceptable production records.
Documentation records.
Protection factor limited to the lowest amount
Assigned yields apply; 75% of prior
Penalty for available for following year’s policy; and
year’s approved APH yield and loss of
misreporting assigned yield will apply if switching to an APH-
optional units in the following year.
based plan of insurance the following year.
Producer certifies acreage as unharvested put to
Production
another use; or unharvested destroyed. If later Counted as zero production unless an
Report for
transfers to APH-based plan of insurance; will not appraisal for unharvested production is
Unharvested
be included in the calculation of the approved APH completed.
Production
yield.
Record type 57
Required. Allowed.
reported to PASS
No penalty for not providing a production report in
Grace Period N/A.
2014.
Quality Control Incorporated into the Appendix IV requirements Appendix IV requirements; claims
Reviews using data mining for anomalies. reviews.

1313-1400 (Reserved)

June 2015 FCIC 18180 210

 PART 14 PRODUCTION EVIDENCE
Section 1 General Information

1401 Acceptable Production Evidence

Procedures in this section regarding acceptable production evidence to substantiate total

production and acceptable production evidence to separate and document the production from
different units are applicable for APH purposes. Production record requirements for indemnity
purposes may be different. AIPs shall follow applicable loss adjustment standards to determine
production record requirements for indemnity purposes.

1402 Certifying Production

A. Acceptable Supporting Production Evidence Required

Insureds must have acceptable production evidence to support the total production certified
on a production report. See Part 13 for production reporting requirements. Insureds are not
required to submit production evidence unless requested by the AIP or RMA; however,
they may choose to substantiate total production, acres and unit structure at the time of
certification.

B. Types of Records

The records described in Section 2 and 3 are to be used by insureds as acceptable records to
substantiate an insured’s total certified production and for separating and documenting
production from different units, provided the record clearly identifies the production by
unit.

However, additional documentation is required to be submitted for certain crops in order for
production records to be acceptable. See Parts 18, 19, 20, and 21 for additional
information/record requirements for Category B crops, Category C crops, Dollar Plan, and
Pecan Revenue.

C. Ensuring Records do not Duplicate Production

AIPs must carefully review each record of production to ensure multiple records have not
been submitted for the same production.

Example: Insured A provides an elevator receipt for 10,000 bushels of corn dated
November 15, and a FSA measurement service for 30,000 bushels of corn
dated September 1. AIP must determine whether the 10,000 bushels of
corn sold on November 15 was part of the 30,000 bushels measured by
FSA.

D. APH Review Record Requirements

The insured must provide acceptable production records that support the certified
production report at the time of a review, whenever an APH review is required.

June 2015 FCIC 18180 211

1402 Certifying Production (Continued)

E. Questionable or Unreasonable

If any records appear questionable or if the amount of production on any of the acceptable
record(s) appears unreasonable, the AIP/RMA may require the insured to provide
supporting documentation to verify the certified production and/or its actual disposition.

(1) Verify the physical existence of the production.

(2) Require additional acceptable verifiable records (e.g., settlement sheets, etc.).

1403 Unit of Measure and Production Adjustments

The production provided on the record must contain both of the following to be an acceptable
record of production:

A. Unit of Measure

(1) The crop production must be provided in the unit of measure required by the policy,
or in a unit of measure that can be converted to such basis.

(2) If converted, the method of conversion must be explained and maintained with the
production records.

B. Adjustments to Production

When the acceptable record provides moisture, foreign material, dockage, test weight,
quality, grade, etc., the reported production will be adjusted on the same basis as claims for
indemnities. However, if such information is not included on the acceptable production
evidence, production will not be adjusted. For example, livestock feeding records may not
have factors to adjust production for moisture, foreign material, etc.; therefore these records
will not be adjusted for such factors.

This does not negate the varying record and/or crop requirements for production evidence.
See sections 2, 3, and 4 of this Part and Part 19 for production evidence requirements by
crop.

June 2015 FCIC 18180 212

1404 Record Retention Period

Insureds must retain and, upon request, provide acceptable production evidence to substantiate
total production and acceptable evidence to separate and document the production from different
units. When requested, the production evidence must be provided on a unit basis or at a level
that can be aggregated to the unit level.

Insured’s must retain the acceptable records until the calendar date for the end of the insurance
period of the third crop year after the crop year for which the production report was certified.

Example 1: Insured A submits a production report certifying production for the 2012
through 2015 crop years used for the 2016 APH database. All evidence
substantiating the 2012 through 2015 crop year production must be retained
until the calendar date for the end of the insurance period of the 2019 crop year.

Example 2: Insured B submits a production report certifying production for the 2015 crop
year used for the 2016 APH database. All evidence substantiating the 2015 crop
year production must be retained until the calendar date for the end of the
insurance period of the 2019 crop year.

AIPs or USDA may extend the record retention period beyond the three year period by notifying
the insured of such extension in writing before the record retention period ends.

AIP or USDA may request/obtain production records from third parties after the record retention
period expires if fraud or misrepresentation is suspected.

Anytime within the record retention period, AIPs and/or authorized USDA employees may
request and review all production records. When requested by AIP or any authorized USDA
employee, records of production evidence must be provided by the insured for all the applicable
crop years.

1405-1414 (Reserved)

June 2015 FCIC 18180 213

 Section 2 Acceptable Verifiable Records

1415 Crops Requiring Verifiable Records

Verifiable production evidence is considered an acceptable record, if it meets the requirements of

Para.1416-1421 as applicable for the crop. Verifiable production evidence is required for
following crops:

 Almonds  Pears
 Apples  Peaches
 Blueberries  Peanuts
 Citrus (Arizona-California and Texas Citrus  Plums
Fruit)
 Cranberries  Processing Beans
 Dry Beans (Contract Seed Beans)  Processing Sweet Corn
 Dry Peas (Contract Seed Peas)  Prunes
 Figs  Stonefruit (Apricots, Nectarines and Peaches)
 Forage Production (sold production)  Sugarcane
 Florida Avocados  Sugar Beets
 Grapes  Table Grapes
 Green Peas  Tobacco
 Macadamia Nuts  Tomatoes (Processing and Fresh Market
Production Guarantee Plan)
 Onions  Walnuts

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

A. Records

The following records, or similar records, from a disinterested third party of commercially
sold or stored production are acceptable when all the information in Para. B is provided.

 Gin Records  Warehouse Receipts

 Ledger Sheets  Elevator Receipts
 Load Summaries  Settlement Sheets
 Marketing Outlet
 Storage Facility Records
Records
 Processor Records  Packer Records
 Buyer Records  Broker Records
 Distiller Records  Boiler House Records
 First Handler
Records

June 2015 FCIC 18180 214

1416 Records of Production Commercially Sold …(Continued)

B. Required Information

The following information must be included on the record for the record to be acceptable (if
items (7) through (9) below are not provided on the record, the insured must provide this
information separately):

(1) crop;
(2) quantity of production that can be converted to the proper unit of measure, if
necessary;
(3) name of insured;
(4) the unit number, block number, or location of the production;
(5) date of transaction;
(6) name of warehouse, elevator, marketing outlet, storage facility, processor, packer,
buyer, broker, distiller, boiler house or first handler, as applicable;
(7) practice and type of crop;
(8) crop year commodity was produced; and
(9) planting period from which production was produced, if actuarial documents
designate separate planting periods for the crop.

1417 Claim for Indemnity

If the production used for a claim determination was reduced see Para 1311B for instructions to
add back the reduced production amount when allowed.

1418 FSA or CCC Verified Documents

To be acceptable, the FSA or CCC document must provide evidence of production that was
determined and verified by an authorized representative of FSA or CCC. The FSA and CCC
documents that provide an insured’s certification of production or an estimate of production are
not acceptable records for substantiating production. Many FSA and CCC loan documents
include the amount of production; however, in most cases, neither FSA nor CCC determines or
verifies the existence of the amount of production listed on such documents.

1419 Authorized AIP or FSA Personnel Appraisals of Unharvested Acreage

The following is applicable for an unharvested acreage appraisal performed by a(n) authorized
AIP or FSA personnel to be acceptable.

A. Subject to review

Appraisals used as acceptable verifiable records for substantiating production are subject to
AIP review to verify the accuracy of the appraisal, the same as other acceptable records are
subject to review.

June 2015 FCIC 18180 215

1419 Authorized AIP or FSA Personnel Appraisals of Unharvested Acreage (Continued)

B. Appraisal worksheets

Properly completed appraisal worksheets are considered acceptable verifiable production

records for acreage that is appraised.

C. Production by P/T

Appraised production must correspond to the insurable P/T for the county indicated on the
acreage report.

D. Use of production worksheet

If the insured has not or will not file a claim for indemnity, AIP may complete a production
worksheet, to use as production evidence.

E. Representative sample areas

See LAM for applicable appraisal requirements.

F. Exceptions

(1) Appraisals of production of unharvested acreage when, based on the consent of the
AIP, the insured leaves representative sample areas of the crop, in accordance with the
CP and LAM, provides sufficient care of the crop in the sample areas, and harvests
the sample areas. Actual harvested records from the sample areas must be used in
such situations.

(2) Appraisals of production lost due to an uninsured cause of loss.

(3) Appraisals of production of a crop that was destroyed or put to another use without
the consent of the AIP.

(4) Pre-harvest appraisals alone are not acceptable records unless a claim for indemnity is
involved for the following crops that allow pick records.

June 2015 FCIC 18180 216

1419 Authorized AIP or FSA Personnel Appraisals of Unharvested Acreage (Continued)

F. Exceptions (continued)

 Category C crops  Dry Beans (Contract Seed Beans)

 Onions  Forage Production (sold production)
 Peanuts  Potatoes (Northern, Central and Southern)

 Tomatoes (Processing and Fresh Market Guaranteed

 Green Peas
Production Plan)
 Pecan Revenue  Processing Sweet Corn

 Processing Beans  Sugar Beets

 Sugarcane  Tobacco

1420 Authorized AIP or FSA Personnel Measurement of Farm Stored Production

To be acceptable the production determined from measurements of farm stored production must
be based on the use of applicable pack factors for the following crops. (See the appropriate Crop
LASH for pack factors and the LAM for calculating production using pack factors.)

(1) Barley
(2) Corn
(3) Grain Sorghum
(4) Oats
(5) Popcorn
(6) Rice
(7) Soybeans
(8) Wheat

1421 Pre-harvest Appraisal and Other Record Types

A. Pre-Harvest Appraisals

(1) A pre-harvest appraisal, performed by the AIP or RMA, may be required by the
policy if production is marketed directly to consumers see Section 5. This appraisal is
used as supporting documentation in conjunction with pick records, machine harvest
records, and/or daily sales records.

Exception: For vertically integrated producers see Section 4, a pre-harvest

appraisal alone is an acceptable production record.

(2) RMA may waive the requirement for a pre-harvest appraisal if both of the following
are met:

(a) actuarial documents for the crop allow for waiver.

June 2015 FCIC 18180 217

1421 Pre-Harvest Appraisal and Other Record Types (Continued)

A. Pre-Harvest Appraisals (Continued)

(b) RMA determines, based on evidence provided by the insured, that acceptable
substantiating evidence is being maintained by the insured.

(3) Pre-harvest appraisals alone cannot be used to substantiate fresh market production.

B. Pick Records

Pick records, that are piece rate based, alone are considered acceptable production records
unless the policy requires a pre-harvest appraisal and/or records of sold production.

Pick records must be legible and include all of the following to be acceptable.

(1) The name of the individual(s) paid by the grower for the harvest of the crop.

(2) The price paid, per volume picked for picking the crop. The price paid must be on the
basis of the insurable unit of measure and weight.

(3) Verifiable proof of payment to the picker(s) for the harvesting of the crop. Any of
following is acceptable verifiable proof of payment.

(a) Photocopy of cancelled check(s) to picker showing the banking institutions

stamp of payment.

(b) Photocopy of payments made to Social Security Administration for tax

payments made on behalf of picker(s).

(4) Include the calculations used to determine the total production certified by the
insured.

The calculations may be provided on a cover page for the pick records. All
calculations must be on the basis of the insurable unit of measure and weight. The
AIP must verify all calculations.

When applicable, the volumes of the field containers must be provided (i.e., bins,
logs, etc.) and any applicable volume/weight of the pieces picked.

Upon request of RMA or the AIP, a photocopy of all pick records for the applicable crop
year must be provided by the insured. When applicable, the photocopies must be of the
actual daily running tallies of production harvested by each picker.

June 2015 FCIC 18180 218

1421 Pre-Harvest Appraisal and Other Record Types (Continued)

B. Pick Records (continued)

If the AIP determines it is not feasible to provide a photocopy of all pick records, a
summary that itemizes each picker’s total with an example of the pick records used to
calculate the total may be acceptable. The total payments made for each picker must
reconcile to the total production picked by the picker (i.e., fields picked by the picker on
hourly wage must reconcile to the amount of production delivered from the applicable
fields/units picked by the picker).

C. Machine Harvest Records

Machine harvest records alone are considered acceptable production records unless the
policy requires a pre-harvest appraisal and/or records of sold production.

Machine harvest records must be legible and include all of the following to be acceptable.

(1) The insured’s name

(2) The name of the crop
(3) The date of harvest
(4) The unit number or the location of the production
(5) The practice, type, and crop year
(6) The quantity of weighed production

D. Daily Sales Records

Daily sales records alone are considered acceptable production records unless the policy
requires a pre-harvest appraisal and/or records of sold production. Daily sales records must
meet both of the following to be acceptable.

(1) A photocopy of the insured’s actual daily account ledger.

(2) Accompanied by tax forms or other receipts verifying income from the sale of the
crop.

E. Tax Records

Unless otherwise stated see Para. 1437, tax records alone are not considered acceptable
production records. AIPs may use tax records in combination with other records for
verification, such as to substantiate direct sales (e.g., identify income and production
derived from the sale); or verification of payments paid to pickers when pick records are
provided.

Tax records, such as Schedule F Forms, when used in combination with other records, may
be used to identify the income received from the sale of the harvested crops; allowing the
total production derived from the crop to be determined.

June 2015 FCIC 18180 219

1421 Pre-Harvest Appraisal and Other Record Types (Continued)

E. Tax Records (Continued)

Milk (including any premiums received) $233,874

Steers and calves raised* on the operation $7,914
Miscellaneous vegetables grown & sold $5,457
Pecans ($7,286), Peaches ($8,944), and wheat ($8,543) $24,773
sold
Total reported on line2 $272,018

* Raised other than for draft, breeding, sport, or dairy purposes

For example, on Line 2 of the Schedule F form the insured enters the income received
during the previous crop year from the sales of crops produced within their operation. This
income amount is reflective of the total income received from the sale of the applicable
crop.

F. Unacceptable Records

Production summaries or estimates of production are not acceptable regardless of who

provides the summary or estimate.

1422-1430 (Reserved)

June 2015 FCIC 18180 220

 Section 3 Acceptable Farm Management Records

1431 Crops that Qualify for Farm Management Records

Farm management records, as well as acceptable verifiable records, are considered acceptable
records (if they meet the requirements of Para. 1432-1435) for the following crops:

 Barley  Millet
 Buckwheat  Mint
 Canola/Rapeseed  Oats
 Corn  Popcorn
 Cotton  Rice
 Cultivated Wild Rice  Rye
 Dry Beans (except Contract Seed Beans)  Safflower
 Dry Peas (except Contract Seed Peas)
 ELS Cotton  Soybeans
 Flax  Sunflower Seed
 Forage Production (fed and farm-stored)  Wheat
 Grain Sorghum

1432 Measurement of Farm Stored Production by Insured

A. Crop Applicability

An insured’s measurement of farm stored production may be accepted for the crops listed in
Para. 1431.

Exception: For Dry Peas farm storage measurements are acceptable, provided there
are accompanying grade certificates to appropriately adjust production
according to the SP quality requirements.

B. Central Drying/Storage Facilities

When central drying/storage facilities are used to store the production from multiple units
(including different P/T/TMA), insureds must maintain written records that reflect the
production from each unit/P/T/TMA prior to being placed in the structure if separate
structure measurements will not be made for each unit.

1433 Automated Yield Monitoring Systems

If the insured elects to use yield monitoring technology as production evidence, the following
requirements must be met.

A. Calibration

The yield monitoring system must be calibrated, by crop, in accordance with the owner’s
manual specifications. The sensor calibration must result in an error rate of three percent or
less based on actual production from the sample acres.

June 2015 FCIC 18180 221

1433 Automated Yield Monitoring Systems (Continued)

A. Calibration (Continued)

(1) If the sensor calibration difference exceeds the three percent error rate when compared
to the actual production harvested from the sample acres, additional sensor
calibration(s) must be made until the results are within the acceptable error rate of
three percent or less.

(2) If, after additional sensor calibrations of the yield monitoring system are performed as
stated in (1) above, and the error rate still exceeds three percent of the actual
production harvested from the sample acres, the insured may use a post-harvest
calibration.

(3) If the insured is using a post-harvest calibration as their production evidence, the
insured must provide documentation of the actual production harvested based on
acceptable weight records that were used to post-harvest calibrate the yield
monitoring system.

B. Annual Calibration Report

The annual calibration report, from the yield monitor system or documentation from the
insured, must include all sensor calibrations and adjustments performed, by crop, for the
crop year, including the date each sensor calibration/adjustment was performed and the
percentage change from the previous setting.

The annual calibration report must be provided to AIP or RMA upon request.

C. Yield Map or Summary Report

The insured must provide to the AIP or RMA, upon request, either a yield map or a
production summary report generated by the yield monitoring system, which provides all of
the following, by P/T/TMA (if items a - d below are not provided in the summary report or
on a yield map, the insured must provide this information separately).

(a) Insured’s name

(b) Unit number
(c) FSA farm/tract/field ID number (optional)
(d) Legal description of acreage
(e) Crop name
(f) Acres harvested
(g) Harvest date
(h) Total weight
(i) Total yield (unadjusted for moisture)
(j) Average moisture
(k) Total dry weight/yield adjusted for moisture, as required by the CP, actuarial
documents and loss claims standards

June 2015 FCIC 18180 222

1433 Automated Yield Monitoring Systems (Continued)

C. Yield Map or Summary Report (continued)

For those insureds that are using yield mapping technology the items below may also be
included with the yield map report.

(a) GPS/GIS referenced colored map depicting yield variations

(b) GPS/GIS legend map key indicating ranges in yield variations

1434 Livestock Feeding Records

AIPs should encourage insureds who feed all or a portion of the harvested production to have the
total amount of production determined by the AIP prior to beginning feeding. Contemporaneous
livestock feeding records will not be required if all production is determined by the AIP prior to
insured beginning to feed production.

If production from the current year will be commingled with production from the prior year(s),
the amount of the prior year(s) production must be measured by AIP or FSA before the beginning
of harvest of the current year production.

Requests to measure prior year(s) production must be made at least 15 days before the beginning
of harvest of the current year production.

To be acceptable, feeding records must meet all of the following requirements.

(1) Be contemporaneous for each feeding as the feeding occurs

(2) Be in writing

(3) Provide the amount of production, by crop, fed at each feeding

(4) Provide the number, kind and average weight of livestock fed

(5) Provide the physical location of the livestock and where livestock was fed

(6) Provide the unit number from which the fed production was harvested, if the production
went directly from field to being fed.

(7) Identify and provide the physical location of the bin/storage facility from which the
production was taken, if the production was stored before feeding.

(8) Identify the crop year in which fed production was harvested

June 2015 FCIC 18180 223

1435 Field Harvest Records

Field harvest records include records of production determined from any of the following.

(1) Truck, wagon or hopper loads that are documented by weight tickets or conveyance
measurements.

(2) Separate measurements of production, by unit, when placed in farm storage structures.

(3) Cotton module measurements.

June 2015 FCIC 18180 224

 Section 4 Vertically Integrated

1436 Vertically Integrated Producer Defined

A producer is vertically integrated when all stages of production of a crop, from acquisition of
materials to the retailing or use of the final product, are controlled by one person, or by different
persons that are related.

1437 Acceptable Records for Vertically Integrated Producers

When an insured is vertically integrated and cannot provide records of production from a
disinterested third party, the production evidence listed in Section 2 can be submitted
independently as acceptable production records. In addition, records contained in A and B below
may be provided as stand-alone acceptable production records.

A. Certified Scale Weight Records

Certified scale weight records alone are considered to be acceptable production records,
unless the CP requires a pre-harvest appraisal and/or records of sold production. Certified
scale weight records must be legible and include all of the following to be acceptable.

(1) The insured’s name

(2) The name of the crop
(3) The date of harvest or the date weighed
(4) The unit number or the location of the production
(5) The practice, type, and crop year
(6) The quantity/weighed production. For wineries that process their own grapes, the
weight can be recorded on the form used for reporting to the Alcohol and Tobacco
Tax and Trade Bureau.

B. Tax Records

See Para. 1421 E.

1438 Required Documentation

AIPs must advise vertically integrated insureds with more than one producer’s production present
in the vertically integrated operation, that upon request, the insured must provide a statement of
the insured’s internal control procedures and processes. The statement must substantiate how the
vertically integrated insured’s production is kept separate from the production of other producers
whose crop(s) are handled or marketed through the same operation, packing or processing facility
or marketing. For example, a vertically integrated insured may provide producer load(s) or end
of season payment summaries that are in accordance with Section 2 (see Para. 1416). All
documentation submitted must be legible.

1439-1450 (Reserved)

June 2015 FCIC 18180 225

 Part 5 Direct Marketing

1451 Direct Marketing Defined

A crop is direct marketed when the insured crop is sold directly to consumers without the
intervention of an intermediary such as a wholesaler, retailer, packer, processor, shipper or buyer.

Examples of direct marketing include selling through an on-farm or roadside stand, farmer’s
market, and permitting the general public to enter the field for the purpose of picking all or a
portion of the crop.

1452 Direct Marketing Requirements

For acreage with production that will be sold by direct marketing, if insurance is permitted by the
SPs or by WA, the insured must notify the AIP at least 15 days before any production from the
insured acreage will be sold by direct marketing.

1453 Acceptable Records for Direct Marketing Producers

For direct-marketed production as provided by the SP, follow acceptable production evidence
guidelines in Para. 1421 and Para. 1437A-D.

1454-1500 (Reserved)

June 2015 FCIC 18180 226

 PART 15 APH DATABASE
Section 1 General Information

1501 APH Database Requirements

The production reports provided by the insured are used by the verifier to establish the APH
database for CCIP policies. The APH database consists of all years of production (within the
base period) reported by the insured and is used to calculate the approved APH yield. The APH
database may also be used as the insured’s production report(s).

If insured on a continuous basis, all actual and assigned yields from the past APH database within
the base period must be used; however, assigned yields may be replaced with actual yields. This
includes policies that have been canceled and rewritten or transferred.

For specific procedure to calculate the approved APH yield, see Part 19 for Category B and for
Category C crops. The APH database is used to establish and maintain or update the yield
history for a farming operation by crop, unit/P/T/TMA. Supporting evidence (records), when
required, must meet acreage and production requirements outlined in Part 14. AIPs are required
to calculate preliminary yields for new insureds and are authorized to calculate approved APH
yields.

1502 The Base Period

The base period for the APH database for Category B and Category C crops consists of the 10
most recent APH crop years, except:

(1) crops with a lag year:

(a) AZ-CA Citrus;

(b) Macadamia Nuts;
(c) Sugarcane;
(d) Texas Citrus Fruit; and
(e) CT & MA Tobacco (cigar wrapper).

For example, the APH database base period begins with the 2015 APH crop year for the
2016 policy crop year.

(2) apples and peaches have a base period of the five most recent APH crop years.

1503 Types of Yields

A. Acceptable Production Reports Filed

When acceptable production reports for the crop and county have been submitted by the
PRD, the APH database will be updated with the following types of yields:

June 2015 FCIC 18180 227

1503 Types of Yields (Continued)

A. Acceptable Production Reports Filed (continued)

(1) actual yields from:

(a) claim forms, or

(b) production reports.

(2) applicable variable T-Yields if less than four years of actual and/or assigned yields are
available for the database.

(a) The T-Yield percentage is determined by the number of actual/assigned yields

available for the crop in the county, except, for new producers and for new
insureds if farming entirely different land. For variable T-Yield purposes, AIPs
may retain APH databases established for land previously contained in the
farming operation that is no longer in the current farming operation.
Additionally, a year when the entire crop was short-rated or was an uninsured
second crop may count as a year of actual yields for determining T-Yield
percentage, see Para. 1304 F and 1305 B. See chart for yield indicators and
descriptors in Exh. 15 to identify whether a yield counts as a yield of records for
determining variable T-Yield percentage.

(b) To meet the four year minimum yield requirement, variable T-Yield percentage
determinations are made as follows:

(i) one year of actual/assigned yield, 80 percent of the applicable T-Yield.

(ii) two years of actual/assigned yields, 90 percent of the applicable T-Yield.

(iii) three years or more of actual/assigned yields, 100 percent of the applicable
T-Yield.

If added land or new crop/P/T, see Part 17 section 9 and Para. 1788 for
procedure to determine approved yields.

(3) temporary yields which are the prior year’s approved APH yield, used only as a
temporary yield (by unit) for the most recent year in the base period if an insured is
unable to finish harvest (due to an insurable cause), it is a delayed claim, or records
are unavailable from the processor or marketing outlets by the PRD.

(a) The temporary yield is considered an actual yield when determining the number
of actual and assigned yields for APH database calculation purposes.

(b) Insureds using a temporary yield may retain OUs for the current crop year.

June 2015 FCIC 18180 228

1503 Types of Yields (Continued)

A. Acceptable Production Reports Filed (continued)

(c) The temporary yield is valid for one year only. A production report indicating
the actual yield for that year must be filed by the following year’s PRD or
assigned yield provisions will apply.

(d) Temporary yields are not updated when the insured provides a production report
or a claim is finalized after the PRD for the current crop year.

(4) zero-planted acres yields for annual crops with zero-planted acres (by unit,
P/T/TMA). Enter zero (0.0) in the Acres Column and a Z in the Yield Column of the
APH database.

(a) Do not count a year of zero-planted acres (by unit and by P/T/TMA if
applicable) when determining the number of years of actual and assigned yields.

(b) The yield descriptor Z is entered in the APH database primarily to indicate
continuity of production reports.

(c) If the APH database requires removal of a zero-planted year to provide space to
retain an actual/assigned yield, remove the oldest zero-planted year. See Part 18
for Category C crops.

B. Acceptable Production Reports Not Submitted

For carryover insureds when acceptable production reports are required but not submitted
for all units, the APH database will be updated in the following order when applicable:

(1) actual yields and appraised potential production from loss claims, if any.

(2) assigned yields – 75 percent of the prior year’s approved APH yield for the same unit
(by area classification, P/T/TMA).

(3) variable T-Yields, when no prior approved yield exists, and there are less than four
years of actual and/or assigned yields available for the APH database. See Para.
1503A.

The insured will not qualify for OUs unless loss records account for all units, or other
exceptions apply see Para. 1024-1027.

1504 Yield Descriptors

Yield descriptors are required to identify the types of yields entered in APH databases and must
be indicated on the yield records transmitted to RMA. See Exh. 15 for a listing of the Yield
Descriptors. Appendix III also has a listing of yield descriptor and may include additional yield
descriptors for plans and crops not addressed in the CIH, such as pilot crop programs.

June 2015 FCIC 18180 229

1505 Required Separate APH Database

Any yield adjustments, limitations or reductions will be determined on an APH database basis.
No further division of APH databases is authorized. APH databases are established by:

A. Units

The verifier shall not establish an APH database below the lowest level authorized by the
policy (e.g., if CP authorizes OUs, APH databases cannot be established lower than OUs by
P/T/TMA) unless it is one of the exceptions listed in 1505E below. This does not prohibit
the insured and AIP from maintaining production reports at a lower level (e.g., field level).
However, production reports by the insureds must be combined, when necessary by the AIP
to determine the approved APH yield in the APH database.

Acres and production prorated between BUs are not acceptable records for BUs unless
prorated on a claim for indemnity.

Exception: When BUs are assigned due to the determination that planting
requirements for an EU are not met in accordance with Part 10, APH
databases for BUs may be established after the PRD using procedures in
Part 10. This is only allowed in those instances when the insured does not
have APH databases established and maintained at the BU level.

B. P/T

AIPs must establish a separate APH database for each P/T listed on the actuarial documents
that has been carried out and/or will be carried out for the current crop year, regardless if
the T-Yields are the same. Refer to Part 11 Section 3 for establishing APH databases for
corn, grain sorghum, and cotton, when skip-row is an applicable practice. See also Part 17
Section 3 and Part 18 and 19 for additional reporting P/T requirements.

Exception: For those category C crops where the end use is identified as a type on the
actuarial documents, such as the types Fresh and Processing for apples, a
separate APH database by type is not required if it is for the same exact
acreage. For example, a block of apples would be reported in an APH
database containing the applicable production reports by crop year, an
APH database would not be established for each end use of processing
and/or fresh if for the same acreage.

An AIP could transmit the block of apples contained in the APH database
as processing in CY 2014 and submit as fresh in CY 2015. Maintaining
the block of apples by APH database allows an AIP to assure that any
production minimums contained in the policy are met, allows continuous
production record for Category C, allows high variability testing to be
performed, etc., see Part 18.

June 2015 FCIC 18180 230

1505 Required Separate APH Database (Continued)

B. P/T (continued)
Previously established APH databases for P/Ts with the same T-Yield must be separated
according to the actuarial structure. APH databases may be separated by duplicating prior
years’ history for each P/T in this situation only. Yield descriptors DA, DV and DG will be
used to identify such duplicated actual production history. Production and acres for each
P/T must be reported and maintained separate in subsequent years. See Exh. 15.

C. TMA

Except where weighted average T-Yields are required, AIPs must establish an APH
database for each T-Yield map area if different T-Yields are established and different area
classifications, including high-risk land, are provided in the actuarial documents.

Separate APH databases for area classifications that are for a rate only are not permitted
unless such acreage is excluded under a High–Risk Land Exclusion Option.

D. Other Characteristics

For Category C crops only, the actuarial documents may provide T-yields by other
characteristic, such as age/leaf year, density, and early/mid/late season.

E. Exceptions, Other Situations Requiring an APH Database

An AIP may establish multiple APH databases by unit/P/T/TMA/Other Characteristics only

for the situations listed below.

When reporting to RMA, the AIP must transmit these exceptions with an APH Procedural
Exception Code. The APH Procedural Exception Code is an alpha-numeric four digit code,
e.g., 001A. The first three numbers represent the unique record number within the
unit/P/T/TMA/Other Characteristics. The last character is the alpha exception code.

(1) Added land see Part 17 Section 9, Exception Code - A;

(2) Block reporting for Category C crops see Part 18 Section 7, Exception Code - B;

(3) Combination/division of unit see Part 10 Section 7, Exception Code – C;

(4) Skip-Row Grain Sorghum see Para. 1147; Exception Code – S;

(5) Multiple plant dates by year within a P/T see Part 17 Section 3; only applicable for
forage seed, mint, and sugarcane; Exception Code – P;

(6) Newly broken acreage required to be maintained in a separate APH database the
initial year of new breaking; Exception Code – N;

June 2015 FCIC 18180 231

1505 Required Separate APH Database (Continued)

E. Exceptions, Other Situations Requiring an APH Database (continued)

(7) Acreage emerging from a USDA program required to be maintained in a separate

APH database the initial year it is planted see Para. 1763; Exception Code – R; and

(8) Native sod acreage required to be maintained in a separate APH database for the first
four crop years of planting; Exception Code – D.

1506 Production or Acreage Not to be Included

Do not include production or acreage from uninsurable/uninsured acreage in the APH database,
unless commingled with insured production, see Para. 1305.

1507 Transfer of APH Data

When all the following requirements are met, an AIP may transfer certain APH database actual
yields of an insured to another person who is taking over all or part of an insured farming
operation.

A. Basic Requirements

When an insured with an approved APH yield transfers all or part of their operation to
another person, the AIP may transfer the insured’s (transferor) actual yields for the acreage
being transferred to the other person (transferee), provided the transferee meets both of the
following:

(1) participated in the operation and establishment of the approved APH yield for the
acreage being transferred, or had a share of the crop on the acreage being transferred.

(a) Participated in the operation and establishment of the approved APH yield
means the transferee did both of the following in the years for which the transfer
is requested:

(i) participated in the management decisions regarding the acreage being

transferred; and

(ii) performed the physical activities necessary to produce the crop on the
acreage being transferred.

(b) Persons who provided management only do not meet the eligibility requirements
for transfer of actual yields.

(c) Persons who provided physical labor only do not meet the eligibility
requirements for transfer of actual yields.

(2) provides AIP with verifiable evidence which indicates the transfer of the actual yields
for the applicable acreage is appropriate.

June 2015 FCIC 18180 232

1507 Transfer of APH Data (Continued)

B. Years of Actual Yields Eligible for Transfer

AIPs may only transfer those years for which there is an actual yield and the transferee
meets the requirements in Para.1507A. Years with non-actual or assigned yields are
considered a break in continuity of production reports for APH transfer purposes and
cannot be transferred regardless of whether the transferee meets the requirements in Para.
1207 A for those years. Actual yields prior to the break in continuity cannot be used.

C. SA T-Yields Transfer

A person change in name only with no other changes to the farming operation (e.g., an
individual or partnership incorporates without adding new members or changing existing
members, all existing years of the APH database, actual and non-actual/assigned yields
(including SA T-Yields), will transfer to the new person. If members are added or changed,
non-actual /assigned yields (including SA-T Yields) do not transfer. If a partnership or
other entity is dissolved and the land is split between members, non-actual/assigned yields
(including SA T-Yields) do not transfer.

D. Examples

Example 1: Insured A, has a corn APH database comprised of 6 crop years of actual
yields. For all 6 crop years, Producer B has been participating in
management decisions and assisting in performing all the physical
activities necessary to produce corn on 500 acres insured by Insured A.
Producer B will be taking over the entire operation and has requested a
transfer of Insured A’s APH yield history.

As long as Producer B provides the AIP with verifiable evidence

indicating the transfer of yield history is appropriate, the AIP may transfer
the actual yields for all 6 crop years.

Example 2: Insured B has a corn APH database comprised of 10 crop years of actual
yields. For 3 of the last 10 crop years, Producer C has been participating
in management decisions and performing some of the physical activities
necessary to produce corn on 750 acres insured by Insured B. Producer C
will be taking over the entire operation, and has requested a transfer of
Insured B’s APH yield history.

As long as, Producer C provides the AIP with verifiable evidence

indicating the transfer of actual yields is appropriate, the AIP may transfer
the actual yields for the last 3 crop years only due to Producer C not
meeting the transferee requirements for all 10 crop years.

June 2015 FCIC 18180 233

1507 Transfer of APH Data (Continued)

D. Examples (continued)

Example 3: Insured D has a corn APH database comprised of 10 crop years of actual
yields. For all 10 crop years, Producer E has maintained all the accounts
and ledgers for Insured D’s entire operation. Producer E has not
participated in any management decisions, nor has he provided any
physical labor necessary to produce the crop. Producer E will be taking
over the entire operation, and has requested a transfer of Insured D’s actual
yields.

The AIP cannot transfer any actual yields because Producer E does not
meet the transferee eligibility requirements.

Example 4: Insured F has a corn APH database comprised of 10 crop years of actual
yields. For all 10 crop years, Producer G has participated in all
management decisions and performed all physical activities necessary to
produce the crop. Producer G will be taking over 300 acres of Unit 00104
consisting of 600 acres and has requested a transfer of Insured F’s actual
yields.

The AIP can transfer actual yields only for the 300 acres being transferred
to Producer G. See Part 10 Section 7 for instructions on dividing units.

1508 Use of Another Person’s Production History - BFR

A BFR may use the APH of the previous producer when the BFR (transferee) was previously
involved in the farming or ranching operation. When all of the requirements of this paragraph
are met, an AIP may transfer APH database actual yields of another insured to the BFR when it is
higher than what the approved APH yield would be based on the variable T-Yield. However, this
benefit is not applicable when a person is required to use another person’s history due to insureds
changing or land being transferred to another person as required in Para. 1510. In such instances,
the procedure contained in Para. 1510 must be followed and this paragraph will not apply.

A. Basic Requirements

When an insured with an approved APH yield transfers acreage to a BFR, the AIP may
transfer the previous insured’s actual yields for the acreage to the BFR. To qualify for the
use of the previous insured’s production history, the BFR must meet both of the following:

(1) The BFR must have been previously involved in the farming or ranching operation’s:

(a) decision making necessary to produce the crop or livestock on the farm; or
(b) physical activities necessary to produce the crop or livestock on the farm; and

(2) The BFR must provide the AIP with verifiable evidence indicating the involvement in
the farming or ranching operation decision making or physical activities.

June 2015 FCIC 18180 234

1508 Use of Another Person’s Production History - BFR (continued)

B. Approved APH Yield Determinations

(1) When establishing APH databases for BFRs who qualify to use the production history
from the previous insured for the transferred acreage, use the higher of:

(a) the approved APH yield calculated from the transfer of actual yields from the
APH database of the previous insured on the acreage transferred; or

(b) the applicable variable T-Yield (see Para. 1503 of the CIH), unless the insured
qualifies as a new producer. If the insured qualifies as a new producer, 100
percent of the applicable T-Yield will apply when 100 percent of the T-Yield is
higher than the approved APH yield in (1)(a). In such instances, follow the new
producer procedures contained in Part 17, Section 5.

(2) AIPs may only transfer production history for those years for which there is an actual
yield.

(a) Years with non-actual or assigned yields are considered a break in continuity of
production reports for APH transfer purposes and cannot be transferred.

(b) Actual yields prior to the break in continuity cannot be used.

(c) Actual yields transferred must be identified with the yield descriptor of “BF” to
denote they are actual yields that have been transferred to a BFR, with the
exception of:

(i) actual yields less than 60 percent of the T-Yield that do not qualify for
yield substitutions identified with the yield descriptors of AY, GY, VY,
OY, UY, WY. These yields should continue to be identified with their
original yield descriptor;

NOTE: When a yield identified with a NA, NG or NV yield descriptor

is transferred to a BFR, the yield should be identified with a BF
yield descriptor unless the BFR chooses to not substitute the
transferred actual yield that is less than 60 percent of the T-
Yield and qualifies for yield adjustment. In this situation, the
yield descriptors of NA, NG or NV, as appropriate, should be
used.

(ii) transitional yields, for acreage transitioning to certified organic, identified

with G, PG, DG, GW yield descriptors in certified organic APH databases
only. These yields should continue to be identified with their original
yield descriptor; and

(iii) actual yields that are reduced or replaced identified with the yield
descriptors of AC, AX, EX, GC, GX, IX, NX, TX, VC, and VX. These
yields should continue to be identified with their original yield descriptor.

June 2015 FCIC 18180 235

1508 Use of Another Person’s Production History - BFR (continued)

B. Approved APH Yield Determinations (continued)

(3) The BFR will only be required to maintain production records within the record
retention period of the previous insured to support the transferred actual yields.

(4) Unlike the Transfer of APH Data in Para. 1507, the number of years of production
history that may be transferred is NOT limited by the number of years the BFR was
previously involved in the other person’s farming or ranching operation. However, a
BFR can only use another person’s production history for a crop that the BFR was
previously involved in. If the BFR was involved with livestock, the BFR can use the
other person’s livestock records. If the BFR was involved with a crop, the BFR can
use the other person’s crop production records, provided all of the requirements in this
paragraph are met. Only the production history of the specific acreage being
transferred may be transferred to the BFR.

1509 Use of Another Person’s Acreage and Production History

When an insured has not maintained acceptable records or has not previously produced the crop
on a specific land location (legal description), acreage and production evidence from another
person (either insured or not insured) may be used to support production reports certified by the
insured. (Transfer of farming operation has not occurred.)

A. General Requirements

(1) To use another person’s actual records the other person must:

(a) share in the crop on that land location for the current crop year; or

(b) when APH data is transferred to the insured’s policy from another policy for that
land location on which the insured shared in the insured crop’s production see
Para. 1207.

(2) Insureds must obtain either:

(a) permission to use the other person’s APH production reports/databases for the
current crop year; or

(b) copies of the other person’s acreage and production records.

(3) Non-actual yields, such as SA T-Yields and assigned yields, contained in the other
person’s APH database are not transferred/used. Assigned yields break continuity of
records for insureds using another person’s production reports/database to establish
their own APH databases.

(4) Insureds must certify only the acreage and production history from locations where
they share in the crop (same acreage, legal description, FN, etc.) on their production
reports.

June 2015 FCIC 18180 236

1509 Use of Another Person’s Acreage and Production History (continued)

A. General Requirements (Continued)

(5) Production and acreage history for all years for the appropriate locations must be
reported, unless fewer years of acceptable production reports have been provided for
the balance of the insured’s farming operation.

If fewer total years have been reported on other units and the insured did not report all
years that the crop was produced on those units, the number of years that may be used
from the new acreage is limited to those provided for the other units.

Example: The insured previously had one BU (0001-0000BU) in the farming

operation. Although the crop had been produced for 10 years, the
APH database only contains production for the five most recent
consecutive APH crop years. Insured adds unit 0002-0000BU for the
current crop year.

The APH database obtained from another person sharing in the crop
contains ten years of production history. However, the insured may
only use the five most recent APH crop years for unit 0002-0000BU
because only the five most recent APH crop years were reported for
unit 0001-0000BU.

(6) All other APH requirements must be met.

(7) Production evidence must be available for all crop years within the record retention
period of the person from which the APH databases were obtained. If acceptable
production evidence is not available for all such crop years, then the other person’s
APH database(s) may not be used.

The insured using another person’s production reports/databases is responsible for

providing acceptable production evidence for APH reviews. Additionally, bona fide
shares must be verified and documented.

B. Another Person’s Production Evidence Requirements

Another producer’s acreage and production evidence may not be used unless all of the
following are met:

(1) the insured, using another person’s production evidence, and the other person both
have a bona fide share (rented for a percentage of the crop) in the insured crop for the
current crop year;

(2) the production evidence is acceptable and account for all of the other person’s acreage
and production of the crop in the county;

(3) continuity and all other APH requirements are met; and

June 2015 FCIC 18180 237

1509 Use of Another Person’s Acreage and Production History (continued)

B. Another Person’s Production Evidence Requirements (continued)

(4) acceptable production evidence is obtained. An insured that uses another person’s
records must keep those records for three crop years after the end of the crop year that
the insured initially certifies the acreage and production (record retention period).

If selected for an APH review during the record retention period the insured must
provide acceptable production evidence for all years certified if requested.
Additionally, bona fide shares must be verified and documented.

C. Landlord and Tenant APH Yields

When determining APH yields for landlords and tenants (when share renting the same
land), each party must file production reports unless one party authorizes the other party to
file production reports on his or her behalf.

(1) Parties sharing in the crop may use production reports submitted by other insureds
sharing in the crop, provided their use has been authorized by power of attorney or
other form of written authorization by the PRD and all APH requirements are met.

(2) If a written authorization statement is used, it must include the certification statement
required on the APH form.

(3) Each APH database is updated with the production reports filed by the designated
party each crop year. However, this does not relieve the party on whose behalf the
production report is being filed of any responsibility to file accurate production
reports or maintain acceptable production evidence.

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

A. Insured Person

Insured Person is the person insured as defined in the BP. Some states require persons that
are doing business under an assumed name (e.g., doing business as...) to register that name
in the county in which they do business.

B. APH Yield Determinations for New Persons

For the purpose of this paragraph, a “new person” includes persons who have changed their
names, dissolved business entities, and/or formed new business entities. If a person
changed his or her name or created a new person that insures a crop(s) for the current year
that was produced on land farmed by the previous person and that land is contained in the
new person’s farming operation, the crop(s)’ acreage and production must be reported for
APH purposes.

June 2015 FCIC 18180 238

1510 Use of APH When Insureds Change or Land is Transferred to Another Person (continued)

B. APH Yield Determinations for New Persons (continued)

Assigned yields break continuity and SA T-Yields do not transfer unless the “new person”
is a change in name only (meaning members of the Person have not changed). If the
insured is not eligible to have the APH data transferred (different land or different crops
involved) follow the procedures below.

(1) New persons who have produced the insured crop in the county for more than two
APH crop years do not qualify as new producers. If any member of a new person has
produced the crop as an individual or member of another person, the new person is
considered to have produced the crop.

Members of a person include: stockholders of a corporation, partners of a partnership,

or members of a joint venture, etc. See Part 17 Section 5 for new producer
requirements and procedures.

(2) When new persons insure crops they previously produced, production reports must be
filed for all land contained in their current farming operations according to all
applicable APH procedures for each crop year certified.

For persons consisting of more than one member, their production reports must
include all land contained in the current farming operations upon which crop(s)
insured for the current crop year were produced by all members of the entity.

(a) Acceptable records must be available to support the acres and production
certified.

(b) Acres and production history must not be transferred from existing unit
databases, unless the new person is eligible to use the acreage and production
history and the same acreage is involved. If only part of the land (specific legal
descriptions) will be transferred to the new person, the acreage and production
must be certified according to the new unit/farming operation.

Example: A member of the new person previously produced the insured

crop as a member of another person on four different
units/sections (Sections 11, 25, 27, and 35). Section 35 was
transferred to the new person and the new person will produce
the insured crop on this section. The acreage and production
history from only Sec. 35 must be certified by the new person
and transferred to the new person.

(3) For new persons who have produced insured crop(s) on entirely different land than is
contained in the current farming operation, 65 percent of the T-Yield will apply unless
the new person provides production reports for those years.

June 2015 FCIC 18180 239

1510 Use of APH When Insureds Change or Land is Transferred to Another Person (continued)

B. APH Yield Determinations for New Persons (continued)

In such cases, those years of production will be used in determining the applicable
percentage of the variable T-Yield. See Part 17 for procedure to determine if the new
person qualifies as a new producer.

(4) Added land and new crop/P/T procedures will apply after the APH for a new person is
structured according to the preceding procedures. However, new persons may also
file production reports based on acreage and production records from another person
with whom they have a bona fide share in the insured crop who is not a member of the
insured person.

C. Land is Transferred to Another Person Who is Not a New Person

If land with acreage and production history is transferred from a person (transferor) to a
different person that insures the same crop on a different policy (transferee), the acreage
and production history must be transferred to and/or certified by the transferee for the
current crop year if:

(1) the transferee shared in the insured crop’s production with the transferor as a tenant,
landlord, member of a partnership, member or owner of a corporation, spouse, co-
owner, etc., in previous crop years;

(2) the transferor is a member of the entity to which the land was transferred; or

(3) the acreage was transferred on or before the PRD for the current crop year. For
acreage transferred after the PRD, the acreage and production history must be
transferred/certified by the transferee by the PRD for the following crop year.

An incomplete or unacceptable production report for the crop year results when the
transferee fails to report acreage and production for the applicable crop year. For carryover
insureds, assigned yield provisions apply; however, the acreage and production from the
acreage transferred must be used the succeeding crop year.

For new insureds, continuity of production reports is broken. Members of an entity include
owners and stockholders of a corporation, partners of a partnership, persons insured as co-
owners or joint ventures, etc.

Acreage and production history for previous crop year(s) must not be transferred/used by
another person who did not share in the insured crop’s production unless the transferor is a
member of the entity to which the land was transferred or the transferee and transferor share
in the insured crop’s production for the current crop year.

June 2015 FCIC 18180 240

1511 APH Database Instructions

AIPs must include the following information in an APH database. See Exh. 15 for examples of
completed APH databases.

ELEMENT REQUIRED INFORMATION

Insured’s Name Insured’s name or insurable person, address, phone number, SSN, EIN or
and Address RAN.
Required Field
If a field review is required, the “Field Review” box must be checked.
Review
The “Inspection” box must be checked when the agent has specifically
Required
identified acreage on which a crop inspection is required. These inspections
Inspection
will be performed only by individuals delegated the authority by RO/AIP.
State, County
State, county and policy number to which the APH database pertains.
Policy No.
AIP AIP’s name and address.
Crop/Practice/Type
Crop name, P/T/TMA/Other Characteristics (if applicable) and unit number
/TMA
for the unit.
Unit No.
Yield Indicator Indicate any yield indicators that may apply to the APH database.
Enter the section, township and range, or other descriptions for land if
rectangular survey is not applicable.
Legal Description
If additional space is needed, attach a supplemental sheet.
FSA Farm/Tract/Field number is optional, unless units are based on FSA
FSA
FNs.
Farm/Tract/Field
Number
When units are based on Farm Numbers, the Farm Number is required.
Others Sharing in Enter the names of others sharing in the crop (this is not a SBIs or
the Crop landlord/tenant policy). If none, enter “NONE”.
For perennial crops, enter the year or weighted average year (W) the
insurable trees or vines in the unit, were planted/set out, grafted, or dehorned
in the orchard, vineyard, grove or bog;

For green peas, enter the contract price;

For Sugarcane and Sugar Beets, enter the percent of sugar;

For potatoes insured under the Northern Potato Quality Endorsement, enter
Other
the Northern Potato option percentages (for the most recent year in the base
period);

For new producers of the crop, enter the crop years the insured has produced
the crop (e.g. 2010 and 2011). See individual crop examples for completed
samples. If not applicable, leave blank; and

For skip-row corn insurable in certain counties in Colorado, Kansas and

Nebraska by a SP, enter the skip-row planting pattern and row width code.

June 2015 FCIC 18180 241

1511 APH Database Instructions (continued)

ELEMENT REQUIRED INFORMATION

T-Yield The applicable 100 percent T-Yield.
Crop Year of Enter the appropriate year for each annual yield for yields contained in the
History base period.
Enter total production as adjusted for production reporting purposes when
actual yields are reported.

Total Production Multi-Purpose Production and Yield Worksheets are needed to determine
total production for certain crops. Sample production worksheets have been
provided for Sugar Beets, Dry Beans, Northern Potato Quality Endorsements
and Skip-Row Cotton. See Part 17 and Exh. 17.
Enter planted insurable acreage in acres to tenths for each year an actual
Acres yield is available in total production column. For annual crops, enter ‘0.0” if
the crop was not planted for any year.
Enter the appropriate yield descriptor for each yield entered in the APH
Yield Descriptor
database. See Exh. 15 for yield descriptors.
Yields Enter the appropriate yield see Part 17 and 18.
Total Enter the total of all entries in yield column.
Average Yield Divide the total by the number of APH crop years.
When authorized for crops listed in Part 19, (if weighted average APH yield
not required), divide the Total by the number of APH crop years. Apply any
Preliminary Yield
applicable yield limitations adjustments and/or reductions and enter the result
as the preliminary yield.
Enter the prior approved APH yield, if applicable. If it is not applicable,
Prior Yield
enter N/A.
Enter the approved APH yield after all entries are verified and any applicable
adjustments/reductions are made.
Approved APH
For potatoes insured under the Northern Potato Quality Endorsement or the
Yield
Northern Potato Processing Quality Endorsement, enter the appropriate
percent for #1 and #2 or better potatoes for both fresh and processing
potatoes when applicable.
Rate Yield Enter the Rate Yield.
Adjusted Yield Enter the Adjusted Yield when applicable.

1512 Impact of Combining and Dividing

When APH databases are established and continuity of insurance participation is not broken, the
prior yield history must be considered if unit structure is changed see Part 10 for directions and
examples of unit structure. Prior year(s)’ production history from a unit cannot be duplicated
across multiple units when an insured changes unit structure.

Example: Insured C reported acreage and production under an EU structure in years prior
to 2015. If insured C elects an OU structure for 2016, the insured must follow
procedure in Part 10 Section 7 to divide the EU into OUs. The prior production
history of the EU cannot be duplicated across all OU APH databases.

June 2015 FCIC 18180 242

1513-1520 (Reserved)

June 2015 FCIC 18180 243

 Section 2 APH Databases and Yield Determinations Combined and Divided

1521 General Rules for Combining and Dividing APH Databases

This section addresses combining or dividing APH databases applicable to crop/P/T/TMA/Other

Characteristics when the actuarial documents change.

(1) This procedure applies to both Category B and C crops when P/T/TMAs requiring separate
approved APH yields change (are combined or divided) for the current crop year.

(2) This procedure must be applied for each P/T/TMA by unit.

(3) Insureds must file production reports according to the P/T/TMA listed on the actuarial
documents for the current crop year.

(4) The initial year the P/T/TMA are combined or divided:

(a) cups do not apply;

Exception: When the production history contained within an APH database is

not changed when the P/T/TMA is combined or divided (i.e., APH
database is not combined or divided, only the P/T/TMA
identification is changed), cups will apply.

For example, the practice NI wheat is divided into SF and CC

practices. If the insured has only grown CC wheat in the past on the
APH database and there is no required division of prior production
history, cups will apply to the resulting CC wheat APH database the
initial year the NI practice is divided.

(b) any existing SA T-Yields still needed to complete the APH databases for Category B
Crops are recalculated based upon the resulting P/T/TMAs, see Para. 1774. SA T-
Yields do not apply to Category C Crops.

(c) if both types and practices change for the crop the same crop year, types should be
combined/divided prior to combining/dividing practices. For example, Spring Wheat
is divided into Spring Wheat and Durum Wheat types and the NI practice is divided
into SF practice and CC practice. The spring wheat should be divided first into spring
and durum types and then the resulting APH databases divided according to the
CC/SF practice.

(5) For the purposes of reporting or re-designating grade quality percentages which are utilized
by a crop’s quality endorsement, (e.g., apples), references to “production” shall be
applicable since these percentages are determined from measured production at a specific
grade compared to the corresponding total production.

June 2015 FCIC 18180 244

1522 Combining APH Databases

Combining APH databases when more than one P/T/TMA requiring separate approved APH
yields has been combined into a P/T (e.g., CC and SF practices are combined into a NI practice)
or TMA requiring a separate approved APH yield/APH database, use the following instructions.
See Part 10 for combining or dividing APH database(s) exceptions/restrictions.

(1) If a single APH database (one P/T/TMA reported) contains actual or assigned yield(s), use
the following procedure, see Exh. 15.

Step 1: Complete the most recent year (2015 for most crops) in the APH database by
using the current production report(s) filed for the most recent APH crop year.
For carryover insureds, if acceptable production report(s) are not filed for the
previous (policy) year and insurable acreage was planted, use the assigned yield.
Zero-planted acres are used to indicate that continuity of records is maintained.

Step 2: Retain all actual and assigned yields and acres.

Step 3: Remove T-Yields in the database and if less than four years of actual and/or
assigned yields, enter the applicable variable T-Yield (by P/T/TMA) to establish
an APH database with a minimum of four years. If a T-Yield is not established,
a RO Determined Yield will be necessary.

Step 4: Calculate the approved APH yield using the applicable Category B or C
procedure.

(2) If more than one APH database (more than one P/T/TMA was reported which has been
combined into a single APH database) contains actual and/or assigned yields, use this
procedure, see Exh. 15.

Step 1: Complete the most recent crop year (2015 for most crops) in the APH database
by using the current production reports filed for the previous (policy) year. If
separate production reports are filed according to the previous (policy) year's
requirements (more than one P/T/TMA), combine the acres and production from
the separate production reports.

If separate production reports are filed according to the previous (policy) year's
requirements (more than one P/T/TMA):

(a) Combine the acres and production into the applicable P/T/TMA. See
instructions for Para. 1522(1);

(b) If zero acres were planted, enter “Z” in the yield column when sufficient
space exists in the database.

June 2015 FCIC 18180 245

1522 Combining APH Databases (Continued)

For carryover insureds, if acceptable production report(s) are not filed for the
previous (policy) year and insurable acreage was planted, use the assigned yield.
If insurable acreage was planted on more than one P/T/TMA, use a simple
average of the prior approved APH yields for the applicable P/T/TMAs times
.75.

Step 2: Combine the total production and actual acres for each APH crop year (for the
yields that are being combined). For APH crop years with assigned yields,
multiply the planted acres times the assigned yield to establish a production
amount and handle in the same manner as a year with actual yields.

Divide the combined production by the combined acres for corresponding crop
years.

Next, enter the combined total production, acres and average yields in the
current crop year's database.

For crop years in which no acres have been planted, enter “Z” in the yield
column if sufficient space exists in the database. Zero-planted acres are used to
indicate that continuity of records is maintained for the P/T/TMAs being
combined.

Step 3: If less than four years of actual and assigned yields for the crop, enter the
applicable variable T-Yield (by P/T/TMA) in the yield column to establish an
APH database with a minimum of four years.

If SA T-Yields were applicable in the prior year and there are less than four
years of actual and assigned yields for the APH database, recalculate the SA T-
Yields.

Use the simple average of approved APH yields for all APH databases by
P/T/TMA and enter the recalculated SA T-Yield in the yield column to establish
an APH database with a minimum of four years see Part 17 Section 10.

Step 4: Calculate the approved APH yield using the applicable Category B or C current
procedure.

1523 Dividing APH Databases

When a P/T/TMA is divided into more than one P/T/TMA the insured must establish production
and acreage history according to the new structure in the actuarial documents to the following
procedure.

An existing APH database established for one P/T/TMA may not be duplicated to establish an
APH database for a different P/T/TMA.

June 2015 FCIC 18180 246

1523 Dividing APH Databases (continued)

Exception: In those instances where a fall and winter or spring practices are divided into
additional practices due to the establishment of multiple planting periods (e.g.,
potatoes in Riverside, CA) APH databases may be separated by duplicating prior
years’ history for each P/T in this situation only. Yield descriptors DA, DV and
DG will be used to identify such duplicated actual production history.
Production and acres for each P/T must be reported and maintained separate in
subsequent years.

(1) For the most recent APH crop year, acceptable production report(s) must be filed according
to new P/T/TMAs for the current crop year. If not:

(a) for carryover insureds, assigned yields will apply to APH databases with planted
insurable acreage for the most recent APH crop year. For APH databases with no
planted insurable acres, enter zero acres and a “Z” in the yield column (if sufficient
space in the APH database) to indicate that continuity of records is maintained.

(b) for new insureds, follow standard APH database procedures (actual records, variable
T-Yields, etc.) for establishing separate APH databases according to P/T/TMAs
applicable for the current crop year, refer to Part 17 Section 13.

(2) The insured must separate all prior production and acreage history by APH database
according to the new structure in the actuarial documents using one of the following
methods (i) thru (iii) below in the order listed see Example below.

(a) Only one of the three methods below may be elected within a crop year for the
crop/county and the selected method applies across all units by P/T/TMA for that crop
year.

(i) Actual record certification/re-certification of separate production from known

acres by P/T/TMA for the new structure in the actuarial documents see (3)
below. When types or varieties are separated and the production was not
commingled but was reported together according to the previous structure in the
actuarial documents, the acreage and production must be recertified separately.

Example: Production is not commingled between grape varieties and the

previous actuarial indicated several varieties of grapes insured
under one group; for the current year one variety was removed
from the group and made insurable as a separate type.

(ii) Apportion commingled production by P/T/TMA if different T-Yields have been

established for the new structure in the actuarial documents using acreage
records provided by the insured.

Use the Multi-Purpose Production and Yield Worksheet. See (4) below, Para.
1715 and Exh. 17. If the T-Yields are the same, prorate the production to
planted acres of the applicable P/T according to Para. 1715C.

June 2015 FCIC 18180 247

1523 Dividing APH Databases (continued)

(iii) Attribute the acres and production to the P/T/TMAs for the new structure in the
actuarial document that normally has the highest yield (i.e., the highest T-Yield
or, if the T-Yields are the same, the highest yielding P/T designated by RMA),
see Para. 1523(5) and 1715D.

(b) Exceptions:

(i) If the production history contained within the APH database(s) does not change
as a result of the new P/T code change as indicated on the actuarial documents,
or the insured already has APH databases established according to the new P/Ts,
no action is necessary to divide the APH databases. Apply the new P/T code to
the APH database(s). Cups are applicable to these APH databases.

(ii) On any unit for any year, if only one P/T/TMA was planted on the unit, that
unit’s actual acres and production may be re-certified without regard to
instructions for apportioning or attributing the acreage and production for other
units for that year. Hard copy records of production previously reported will not
be required for years outside the record retention period.

Example: In 2015, the insured had two units planted. On one unit both
SF and CC practices were planted; on the second unit only CC
acreage was planted and the insured may re-certify the CC
acreage as actually planted (SF acreage will be re-certified as
zero planted).

(c) Production report records are separated one year at a time from the most current year
to the least current year. If method (a)(i) is selected, the insured must re-certify year
by year until records are not available and then move to method (a)(ii), then to method
(a)(iii). Once an insured elects (a)(ii) or (a)(iii), he/she cannot go back to the prior
method.

Exception: Loss records must be used.

Example: Crop years 2015 to 2007 are being separated for the 2016 crop year. The
insured certifies actual production and acreage records, by P/T/TMA for
the 2015 crop year for the new structure in the actuarial documents. The
insured uses actual production and acreage records to re-certify the 2014,
2013 and 2012 actual yields by the P/T/TMA for the new structure in the
actuarial documents. Acceptable records are not available to re-certify
other prior years.

The insured provides acreage records to apportion 2011 production 2010

and prior years may not be separated based on re-certified production and
acres. Prior years may only be separated by apportioning or attributing,
see (b) Exception above.

June 2015 FCIC 18180 248

1523 Dividing APH Databases (continued)

If the insured cannot apportion the 2010 crop year because separate
acreage records are not available, 2010 must be attributed. The insured
must then attribute 2009 and prior years’ acres and production to the
highest-ranking P/T/TMA. Attributing is mandatory for 2009 and prior
crop years, see (b) Exception above.

(3) If production is certified/re-certified to the P/T/TMAs, follow standard APH database

procedures:

Step 1: Acceptable production report(s) must have been filed according to P/T/TMAs
for the current crop year, refer to Part 17 Section 3. If acceptable production
reports are not filed for carryover insureds, enter the assigned yield.

Step 2: Enter the certified/re-certified production, acres, actual yields, and assigned
yields (for carryover insureds) into the APH database.

Step 3: If less than four years of acceptable records are available and other production
history is not available that could be apportioned or attributed, enter the
applicable variable T-Yield to establish an APH database with a minimum of
four years.

If SA T-Yields were applicable in the prior year and there are less than four
years of actual and assigned yields for the APH database, recalculate the SA T-
Yields using the simple average of approved APH yields for all APH databases
by P/T/TMA and enter the recalculated SA T-Yield in the yield column to
establish an APH database with a minimum of four years, see Para. 1774.

Step 4: Calculate the approved APH yield according to applicable Category B or C

procedure.

(4) If production is apportioned to P/T/TMAs, the Multi-Purpose Production and Yield

Worksheet must be used. If the T-Yields are the same, prorate the production to planted
acres of the applicable P/T according to Para. 1715C. If SA T-Yields were applicable in the
prior year and there are less than four years of actual and assigned yields for the APH
database, recalculate the SA T-Yields using the simple average of approved APH yields for
all APH databases by P/T/TMA and enter the recalculated SA T-Yield in the yield column
to establish an APH database with a minimum of four years. See Para. 1774 and Exh. 17.

Step 1: Acceptable production report(s) must have been filed according to P/T/TMAs
for the current crop year, refer to Part 17 Section 3. If acceptable production
reports are not filed for carryover insureds, enter the assigned yield.

Step 2: Enter the acres, apportioned production and yields, and assigned yields (for
carryover insureds) in the APH database.

June 2015 FCIC 18180 249

1523 Dividing APH Databases (continued)

Step 3: If less than four years of acceptable records are available and other production
history is not available that could be attributed, enter the applicable variable T-
Yield to establish an APH database with a minimum of four years. If a T-Yield
has not been established, a RO Determined Yield is necessary. See Part 17
Section 6 and Part 20 for RO Determined Yield Request.

Step 4: Calculate the approved APH yield according to applicable Category B or C

procedure.

(5) If production is not certified/re-certified or apportioned to the P/T/TMAs, the acreage and
production is attributed to the P/T/TMA that has the highest T-Yield (e.g., when the NI
practice divided into SF and CC, attribute the production to the SF APH database) or, if the
T-Yields are the same, to the highest yielding P/T designated by RMA, see Exh. 15.

(a) For the P/T/TMA with the highest T-Yield:

Step 1: Acceptable production report(s) must have been filed according to P/T/TMAs
for the current crop year, refer to Part 17 Section 3. If acceptable production
reports are not filed for carryover insureds, enter the assigned yield.

Step 2: Enter the production, acres, actual yields, and assigned yields (for carryover
insureds) in the APH database.

Step 3: If less than four years of acceptable records are available, enter the applicable
variable T-Yield (by P/T/TMA) to establish the new four year APH database. If
SA T-Yields were applicable in the prior year and there are less than four years
of actual and assigned yields for the APH database, recalculate the SA T-Yield
using the simple average of approved APH yields for all APH databases by
P/T/TMA, see Para. 1774 and enter the recalculated SA T-Yield in the yield
column to establish an APH database with a minimum of four years.

(b) For the P/T/TMAs with lower T-Yields:

Step 1: Acceptable production report(s) must have been filed according to P/T/TMAs
for the current crop year, refer to Part 17 Section 3. If acceptable production
reports are not filed for carryover insureds, enter the assigned yield.

Step 2: Divide the lower T-Yield published for each applicable P/T/TMA by the highest
P/T/TMA T-Yield published to determine a percentage factor. For example, CC
T-Yield of 32 (lower) divided by the SF T-Yield of 40 (highest): 32/40 = 0.80
(rounded to two places) or 80 percent.

Step 3: Apply the percentage factor (by P/T/TMA) determined in Step 2 to the approved
APH yield for the highest T-Yield P/T/TMA to calculate a Determined Yield for
the lower T-Yield P/T/TMAs.

June 2015 FCIC 18180 250

1523 Dividing APH Databases (continued)

Example: SF approved APH yield of 29 x 0.80 = 23. The Determined

Yield will not exceed the lower T-Yield for each applicable
P/T/TMA for any year acreage and production is attributed.
The Determined Yield will be identified with a “F” Yield
descriptor.

Step 4: Calculate the approved APH yield following the applicable Category B or C
procedure.

1524 No Actual or Assigned Yields

If there are no actual or assigned yields in the APH databases being combined or divided:

Step 1: Acceptable production report(s) must have been filed according to P/T/TMAs for the
current crop year. For carryover insureds, if acceptable production report(s) are not
filed for the current crop year and insurable acreage was planted for the previous
policy year, enter the assigned yield. For zero-planted, enter “Z” in the yield column
if sufficient space exists in the APH database. Zero-planted acres are used to indicate
that continuity of records is maintained. For new insureds, standard APH database
procedures (actual records, variable T-Yields, new producer, etc.) apply according to
the applicable P/T/TMA for the current crop year.

Step 2: Complete the APH database with a minimum of four years the current variable T-
Yield (by P/T/TMA). If no T-Yield has been established, a RO Determined Yield
will be necessary. See Part 17 Section 6 and Part 22 for RO Determined Yield
Request.

Step 3: Calculate the approved APH yield using applicable Category B or C procedure.

1525-1540 (Reserved)

June 2015 FCIC 18180 251

 Section 3 APH Yield Adjustment

1541 Yield Adjustment General Information

For APH yield calculation purposes, insureds may elect to substitute 60 percent of the applicable
T-Yield for actual yields (does not apply to assigned and temporary yields) that are less than 60
percent of the applicable T-Yield to mitigate the effect of catastrophic year(s). Insureds may
elect the APH YA and substitute 60 percent of the applicable T-Yield for low actual yields
caused by drought, flood, or other natural disasters.

BFRs who elect APH YA will substitute 80 percent of the applicable T-Yield instead of 60
percent of the applicable T-Yield. All other requirements for YA remain unchanged, including
the requirement that the actual yield being replaced must be less than 60 percent of the applicable
T-Yield to qualify for YA. When a person no longer qualifies as a BFR in subsequent crop
years, the YA elected by the insured will use a replacement yield of 60 percent of the applicable
T-Yield which is the same replacement yield used by all non-BFRs.

Example: The insured is a BFR and qualifies to use his/her father’s actual yields on
transferred acreage and has elected YA for all eligible actual yields. In this
example:

• the 2007-2013 county T-Yield are 97 bushels (97*.8=YA 78),

• the 2014- 2015 county T-Yields are 110 (110*.8=YA 88).

1542 Election of APH Yield Adjustment

(1) The election must be made no later than the applicable PRD for the crop.

(2) The election is made on crop/county basis and are applied on an APH database actual yield
basis by year.

(3) The election is continuous and will remain in place unless cancelled.

(a) Substituted yields elected in prior crop years will continue to apply unless the insured
notifies the AIP by the PRD.

(b) See Para. 1545 for instructions on selecting the method to calculate approved APH
yields.

(4) Elections are applicable to Category B and Category C APH crops, unless otherwise limited
by procedures in this section or Parts 17, 18, and 19.

1543 Cancelling APH Yield Adjustments

The insured may cancel the YA election either for all years or for any individual year(s) within
APH databases.

June 2015 FCIC 18180 252

1543 Cancelling APH Yield Adjustments (continued)

(1) Cancellations must be made no later than the crop’s PRD for the current crop year.

(2) If YA elections or individual yearly yield substitutions are cancelled, actual yields will be
used to calculate APH yields. However:

(a) cups do not apply when calculating the current year’s approved APH yields if yield
substitution(s) were applicable the previous APH crop year. See Part 14 Section 4
and Part 18 Section 7.

(b) yield floors are applicable, for Category B APH crops only, based on a percentage of
the applicable T-Yield for the P/T/TMA using the number of years of actual/assigned
yields provided for the crop and county.

(3) If the policy is transferred to another AIP (or cancelled and rewritten) the APH yield
adjustment election is cancelled.

1544 T-Yields Used for YA

A. T-Yields

T-Yields used for YA are those contained on the actuarial documents or, if applicable, other
T-Yields calculated under APH procedures such as:

(a) SA T-Yields for added land or new crop/P/T;

(b) Determined irrigated T-Yields;
(c) T-Yields assigned by ROs; and
(d) Perennial Crop T-Yields or weighted average T-Yields.

AIPs must identify and maintain such other T-Yields as long as they are needed for yield
adjustment purposes. When a policy is transferred to another AIP, this information must be
provided as part of the APH record. When these T-Yields are replaced by four
actual/assigned yields, yield substitutions will be calculated from the T-Yield as provided
by the applicable actuarial documents.

B. Applicable Crop Year T-Yields for Category B and C Crops

(1) Yield substitutions for new and carryover insureds are based on the T-Yield in place,
corresponding to the crop years contained in APH databases, as follows:

(a) substitute yields for the 2001 and prior APH crop years will be based on the
2001 crop year T-Yields.

June 2015 FCIC 18180 253

1544 T-Yields Used for YA (Continued)

B. Applicable Crop Year T-Yields for Category B and C Crops (continued)

Example: When actual yields are reported for the 1995-2001 APH crop
years, 60 percent of the 2001 T-Yield will be used to determine
substitute yields for the 1995-2001 APH crop years, unless the
insured is eligible for BFR benefits. If the insured is eligible
for BFR benefits, 80 percent of the 2001 T-Yield will be used
to determine substitute yields for the 1995-2001 APH crop
years.

(b) substitute yields for the 2002 and subsequent APH crop years will be based on
the 2002 and respective subsequent crop year T-Yields.

Example: Yield substitutions for the:

2006 APH crop year will be 60% of the 2006 T-Yield;

2014 APH crop year will be 60% of the 2014 T-Yield; and
2015 APH crop year will be 60% of the 2015 T-Yield.

If the insured is eligible for BFR benefits, yield substitutions

for the:

2006 APH crop year will be 80% of the 2006 T-Yield;

2014 APH crop year will be 80% of the 2014 T-Yield; and
2015 APH crop year will be 80% of the 2015 T-Yield.

(2) When coverage is initially established for a new P/T on the actuarial document, 60
percent of the T-Yield for the new P/T will be used to determine substitute yields for
that APH crop year and for prior APH crop years (e.g., a new practice was established
for 2016 therefore, 60 percent of the 2016 T-Yield is used for 2016 and prior APH
crop year yield substitutions). Substitute yields for subsequent APH crop years will
then be 60 percent of respective subsequent crop year T-Yield.

Exception: If the insured is eligible for BFR benefits, 80 percent of the T-Yield
for the new P/T will be used to determine substitute yields.

(3) For Category C APH Crops, when T-Yields or Weighted Average T-Yields are based
on age and density the following applies for YA:

(a) if T-Yields are applicable, use the applicable T-Yield for the age and density of
the crop for the applicable crop year being substituted. See Part 18 Section 3 for
Age/Leaf Year determinations.

(b) if weighted average T-yields are applicable, the weighted average T-yield is
used.

June 2015 FCIC 18180 254

1544 T-Yields Used for YA (Continued)

B. Applicable Crop Year T-Yields for Category B and C Crops (continued)

(4) If a T-Yield is not available for a crop year in which the producer seeks to substitute a
yield, contact the RO to obtain an assigned T-Yield for that crop year.

1545 Calculating Approved APH Yields When YA is Elected

A. Category B Crops

For Category B Crops the first crop year that yield substitution(s) are elected:

(1) make the following calculations for each APH database:

(a) calculate the average adjusted APH yield by substituting 60 percent of the
applicable T-Yield for eligible actual yields that are less than 60 percent of the
applicable T-Yield (YA) (80 percent for BFR);

(b) calculate the cupped yield, if applicable, see Part 17 Section 4; and

(c) calculate the yield floor; if applicable, see Part 17 Section 4.

(2) insureds may choose by the PRD the actual yields (crop year) within an APH database
to be substituted and the method, by unit/P/T/TMA and, to determine the approved
APH yield:

(a) for CAT coverage, the average adjusted APH yield or the cupped yield, if
applicable, as calculated under APH procedure.

(b) for additional coverage, the average adjusted APH yield or the higher of the
yield floor or cupped yield, if applicable, calculated under APH procedure.

(3) approved APH yields calculated when yield substitutions are used, are not eligible for
cups or yield floors.

(4) If MYs are applicable, apply yield substitutions after the individual APH data has
been summarized on the MY summary. Separate MYs are required for TMA,
designated homogeneous MY areas, and by P/T, see Part 17 Section 7 and Exh.17 for
APH MY summary instructions and requirements.

(a) AIPs must submit one MY summary record for each MY to RMA. The MY
summary record must contain the summarized data prior to APH adjustments.
RMA will validate MY summary records for which yield substitutions are
applicable.

(b) Yield substitutions, approved APH yields, and rates will be determined at the
MY level.

June 2015 FCIC 18180 255

1545 Calculating Approved APH Yields When YA is Elected (Continued)

A. Category B Crops (continued)

(5) For a SF practice using the special instructions in Part 11 Section 2, make yield
substitutions (if applicable) to both the SF and the (CC) practices using 60 percent (80
percent for BFR) of the respective practice’s applicable T-Yield prior to determining
the “higher” yield to be used for the SF practice.

B. Substitutable Yields with a Combination of Insured and Uninsured Causes of Loss

Low actual yields caused by a combination of insured causes of loss and uninsured causes
of loss may only be substituted if the weighted yield per acre on a weighted basis, including
any uninsured cause of loss appraisal, is below 60 percent of the applicable T-Yield.

Example: The APH database consists of 100.0 acres (the applicable T-Yield is 100
bu. per acre). The insured harvested 3,000 bu. and an uninsured cause of
loss of 20 bu. per acre was assessed on the entire acreage for failure to
follow good farming practices. 3,000 + 2,000 (20 bu. X 100.0 acres) =
5,000 /100.0 = 50 bu. per acre. The actual yield reported for APH is 30 bu.
per acre, but the acreage still qualifies for yield substitution because the
per acre yield (including the uninsured cause appraisal) was below 60
percent of the applicable T-Yield (60 bu.).

Example: The APH database consists of 110.0 acres (the applicable T-Yield is 50 bu.
per acre). A fire started by the insured’s combine destroyed 35.0 acres of a
55.0 acre field. The AIP assessed 48 bushels per acre uninsured cause of
loss on the acreage destroyed by fire. The insured harvested 800 bushels
from the remaining 20.0 acres of the field. A hail storm damaged 55 acres
of the same unit in another field which was released to be put to another
use with a 10 bushel appraisal. 1,680 (35.0 acres X 48 bu.) + 800 (20.0
acres X 40 bu.) + 550 (55.0 acres X 10 bu.) = 3030 /110 = 28.0 bu. per
acre. The actual yield reported for APH is 12.0 bu. per acre (800 +
550/110), but the acreage still qualifies for yield substitution because the
per acre yield (including the uninsured cause appraisal) was below 60
percent of the applicable T-Yield (30 bu.).

C. Category C Crops

(1) Sixty percent of the applicable T-Yield will be substituted for actual yields that are
less than 60 percent of the applicable T-Yield (80 percent for BFR) due to drought,
flood, or other natural disasters.

Some Category C T-Yields are established for specified ages, variety, densities, etc.
As the crop’s age changes, different T-Yields apply; therefore, substitute yields must
be based on 60 percent of the variable T-Yield (80 percent for BFR) for the age for
individual crop year being substituted, as indicated in Para. 1544B.

June 2015 FCIC 18180 256

1545 Calculating Approved APH Yields When YA is Elected (Continued)

C. Category C Crops (continued)

Weighted average T-Yields are the applicable T-Yields for YA purposes. They are
not “set” and may change from year to year. A weighted average T-Yield, see
Weighted Average Age/Density Worksheet, Exh. 18 Examples, for the current crop
year must be calculated for each APH database. YA is 60 percent of the T-yield (80
percent for BFR) provided in the actuarial documents for the weighted average age
and density for each individual crop year(s) within an APH database as indicated in
Para. 1544B.

(a) The first crop year YA(s) are elected or if all applicable YA(s) cancelled for at
least one APH crop year for each APH database:

(i) calculate the average adjusted APH yield (after YAs are made);

(ii) calculate the cupped yield if applicable (cups will not apply to prior year’s
approved APH yields calculated using YA);

(iii) calculate the weighted average APH yield using Weighted Average
Age/Density Worksheets, if applicable;

(iv) by the PRD, the insured must choose the method used to determine the
approved APH yield, by selecting the higher of the:

(A) cupped yield;

(B) average adjusted APH yield by substituting 60 percent of the

applicable T-yield for eligible actual yields (80 percent for BFR); or

(C) approved APH yield without YA or cups; and

(b) APH databases that do not contain YAs remain eligible for cups, when
authorized by procedure.

(2) YA is not applicable to the Category C APH database when:

(a) an approved APH yield cannot be determined by the AIP and a RO Determined
Yield is required.

Exception: YA may be authorized by the RO when providing the RO

Determined Yield.

(b) AIPs are authorized by the CIH to determine the approved APH yield when high
variability conditions (alternate bearing/downward trend) are triggered (Part 18
Section 4). High variability (Para. 1861) must be determined prior to
determining eligibility for YA.

June 2015 FCIC 18180 257

1545 Calculating Approved APH Yields When YA is Elected (Continued)

C. Category C Crops (continued)

(c) AIPs are delegated responsibility by RO UG to calculate the approved APH

yield in lieu of submitting a RO Determined Yield Request.

Exception: YA may be authorized by the RO through the UG.

(d) acreage not meeting the CP insurability minimums when uninsurable and
insurable acreage is commingled.

(e) production is commingled by practice, type or other characteristic (e.g. age) and
a weighted average T-Yield was not calculated.

(f) any actual yields in the APH database were adjusted.

(g) significant changes have occurred to Trees/Vines/Bushes/Bogs as identified on

the PAW and/or PAIR.

Exception: Contact the RO concerning appropriate T-Yields for yield

substitution purposes.

1546 Determining Premium Rates

If the approved APH yield calculation chosen by the insured includes at least one substituted
actual yield, an optional coverage rate may apply as provided in the actuarial document.

1547-1550 (Reserved)

June 2015 FCIC 18180 258

 Section 4 APH Yield Exclusion

1551 YE General Information

YE, when elected, allows the exclusion of actual yields for a certain crop year when RMA
determines the county per planted acre yield for a crop year was at least 50 percent below the
simple average of the per planted acre yield for the crop in the county for the previous 10
consecutive crop years. When a crop year is determined to be eligible for YE for a crop in a
county, insureds in contiguous counties will also be eligible to exclude actual yields for that crop
year under YE.

The YE option and eligible crop years for exclusion are identified in the actuarial documents.
When YE is elected, insureds may exclude actual yields in any eligible crop year(s) that are
identified in the actuarial documents.

1552 Eligibility for YE

A. Election

To be applicable for the current crop year, the insured must elect YE:

(1) By the applicable SCD;

Note: For crops with a two-year coverage module, YE must be elected by the SCD of
the first crop year of the two-year coverage module.

(2) On a crop/county basis; and

(3) On an Application or Policy Change form by including the “YE” option code.

AIPs are responsible for advising insureds who elect YE that all actual yields in an eligible
crop year are automatically excluded unless the insured opts out of excluding an actual
yield in an eligible crop by identifying the yield not to be excluded in the APH database.

B. Availability

The option must be provided in the actuarial documents for YE to be available for the crop
and county. YE is available for both CAT and additional coverage policies. Crop years
eligible for exclusion are identified in the actuarial documents.

C. Continuous Election

YE is a continuous election that remains in effect unless cancelled.

June 2015 FCIC 18180 259

1553 Cancellation

YE must be cancelled in writing on or before the cancellation date for the crop for the effective
crop year. (See Para. 1558 to change an actual yield exclusion of an eligible crop year within an
APH database.) When an insured cancels YE:

(1) Actual yield exclusions for eligible crop year(s) no longer apply for that crop year;

(2) The 10 percent yield limitation (cup) will not apply the year YE is cancelled for any APH
database that had a year excluded under the YE; and

(3) Yield substitution, when elected, and yield floors, as applicable, may apply.

1554 Transfers

When the policy is transferred to a different AIP, YE is considered cancelled, as is any other
option, endorsement, WA, etc. If the insured would like to continue the use of YE, the insured
must make that election with the assuming AIP on or before the SCD.

1555 Applicability of WAs

Generally, WAs are eligible for YE if the actuarial documents for the crop/county identify the
YE option and eligible crop years. The following exceptions apply.

(1) When a WA (e.g., TC and TP WA) makes an irrigation practice (either irrigated, non-
irrigated, or limited irrigation) insurable, YE is not available because the irrigation practice
is not an insurable practice listed on the actuarial documents for the crop/county.

(2) YE is not applicable for XC WA (crop is not insurable in the county).

(3) In accordance with the WAH, a WA cannot be used to add the YE option when the
crop/county does not contain the YE option in the actuarial documents.

1556 Applicability of Yield Limitations and Yield Reductions

A. Yield Floors and Cups

Approved APH yields using yield exclusion are not eligible for cups or yield floors. APH
databases without excluded actual yields remain eligible for cups and yield floors, when
authorized by Part 17, Section 4.

B. Yield Reductions

Procedures concerning yield reductions contained in Part 15, Section 5 are unaffected when
YE is elected.

Actual yields reduced due to being identified as an excessive yield cannot be excluded
under the YE option.

June 2015 FCIC 18180 260

1556 Applicability of Yield Limitations and Yield Reductions (continued)

B. Yield Reductions (continued)

While actual yields in an eligible crop year may be excluded in APH databases, reductions
of approved APH yields due to inconsistent approved APH yields or different production
methods continues to apply when Para. 1554 and 1555 applies to an APH database.

1557 Actual Yields Eligible for YE

Actual yields in an APH database identified with the following yield descriptors are eligible for
exclusion if they are in an eligible crop year for exclusion identified in the actuarial documents
see Exhibit 15 for list of yield descriptors and their meaning:

Practice Yield Descriptor

Conventional A, AY, NA, PA, DA, NW, PW, WY, R, PR, NR, RY, BF
Transitional G, GY, NG, PG, DG, GW, NU, UY
Certified Organic V, VY, NV, PV, DV, VW, NO, OY

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

When the insured has elected the YE option, an insured may choose, by APH database and by
eligible crop year, whether or not to exclude an actual yield for that specific crop year.

(1) Eligible crop years for exclusion are identified in the actuarial documents. There is no limit
to the number of actual yields in eligible crop years that can be excluded from an APH
database.

(2) When YE is elected, YE applies to all actual yields in eligible crop years eligible for
exclusion identified in the actuarial documents for all APH databases unless the insured
notifies the AIP in writing by the PRD of any actual yield(s) for an eligible crop year(s)
they choose to retain.

Example: Although a crop year is eligible for exclusion, the insured’s actual yield in
an APH database is above average for the crop year and the insured
chooses to not exclude the actual yield.

(3) Any actual yield in an eligible crop year the insured chooses to not exclude must be
identified in the APH database with a Yield Exclusion Opt Out flag.

(a) Use a “Y” in the Yield Exclusion Opt Out flag of the APH database to indicate the
insured is choosing to not exclude an actual yield in an eligible crop year for
exclusion (opting out of YE for that actual yield) and that the actual yield will remain
in the calculation of the approved APH yield.

(b) See DSSH for the APH database form standards for YE. When an insured has chosen
to opt out of YE for an actual yield(s) in an eligible crop year in an APH database, the
insured must sign the APH database form.

June 2015 FCIC 18180 261

1558 Exclusion of an Actual Yield for an Eligible Crop Year Within an APH Database (cont.)

Note: If there are multiple APH databases on the same form, only one signature
is required. An insured is not required to sign the APH database form if
they do not opt out of exclusion for any actual yields in an eligible crop
year.

(4) Actual yields in an eligible crop year that are excluded continue to be reported in an APH
database using the applicable yield descriptors identified in Exh. 15.

(5) Any exclusion or opt out of exclusion of an actual yield(s) in eligible crop years in an APH
database continues to apply in subsequent crop years unless the insured cancels the YE
option by the SCD for the crop or notifies the AIP in writing by the PRD to change which
actual yields are excluded or opted out of exclusion. If the insured chooses to no longer
exclude an eligible crop year in an APH database by the PRD, the previously excluded
actual yield(s) are used to calculate APH yields. However:

(a) cups do not apply when calculating the current year’s approved APH yields if yield
exclusion(s) were applicable the previous APH crop year. See Part 17, Section 4 and
Part 18, Section 7; and

(b) yield floors are applicable for Category B APH crops only based on a percentage of
the applicable T-Yield for the P/T/TMA using the number of years of actual/assigned
yields provided for the crop and county.

(6) If the exclusion of actual yields for eligible crop year(s) results in less than four years of
yields being used in the APH database, the applicable T-Yield is used to maintain a
minimum base period of four yields.

If the variable T-Yield applies to an APH database, the T-Yield used to complete the four-
year minimum base period uses the variable T-Yield percentage based on the number of
years of actual/assigned yield(s) for the crop in the county. Excluded yield years continue
to count as a year of producing the crop for variable T-Yield, percent of yield floor, new
producer and BFR purposes.

Note: The number of years of actual/assigned yields for the crop in the county must be
reported in the actual yield year count field in the PASS P15 record by the AIP
to ensure the correct percentage is applied to the variable T-Yield.

Example: An APH database consists of 2 SA T-Yields and 2 actual yields (the SA

T-Yield is the applicable T-Yield). The insured excludes one of the
actual yields in an eligible crop year for exclusion. The APH database is
completed with the SA T-Yield that applies to that APH database.

June 2015 FCIC 18180 262

1558 Exclusion of an Actual Yield for an Eligible Crop Year Within an APH Database (cont.)

Example: An insured only has one APH database for the crop and it consists of
three variable T-Yields (E yield descriptor for 80 percent of the county T-
Yield) and one actual yield in an eligible crop year for yield exclusion.
The insured elects to exclude the actual yield and the APH database is
completed with the variable T-Yield (80 percent of the county T-Yield
because variable percentage of T-Yield is based on number of years of
actual/assigned yields for the crop and excluded eligible crop years
continue to count for the purposes of determining variable T-yield
percentage).

(7) The most recent crop year will not be identified as eligible for yield exclusion in the
actuarial documents since the production data necessary for RMA to determine whether the
most recent crop year meets the criteria for exclusion is not available until after the PRD for
that crop year.

(8) Any crop year prior to 1995 will not be identified as eligible for yield exclusion.

(9) Actual yields in an eligible crop year that are excluded are still subject to APH reviews.

1559 YE Interaction with YA

(1) A producer may elect and apply both YA and YE options on a policy and within an APH
database.

(2) Only one option, either YE or YA, can be applied to an actual yield for an eligible crop year
within an APH database.

(3) If the insured has elected both YE and YA to apply to all eligible crop years and a crop year
qualifies for both elections, YE will apply to an actual yield in an eligible crop year unless
the insured chooses to not exclude that yield in the APH database.

(a) If the insured chooses to not apply yield exclusion for an eligible crop year, identify
such yield in the APH database in the Yield Exclusion Opt Out, see Para. 1558 (3).

(b) If YA has been elected, yield substitution will apply to the actual yield if it qualifies
and the insured chose to opt out of excluding the actual yield.

(c) If the insured chooses to opt out of excluding an actual yield in an eligible crop year
and not substitute an actual yield that qualifies for yield adjustment, use the yield
descriptor NA (NG or NV for transitional and certified organic) and identify such
yield in the APH database in the Yield Exclusion Opt Out, see Para. 1558 (3).

June 2015 FCIC 18180 263

1560 Impact of YE Specific to Category B Crops

A. Impact of YE on MY

If MYs are applicable, apply yield exclusions to eligible crop years after the annual yields
from APH databases have been summarized on the MY summary. See Part 17,
Section 7 and Exh.17 for APH MY summary requirements. Yield exclusions, adjusted
yields, approved APH yields, and rate yields are determined in the MY Summary.

B. Impact of YE on SF Practice

For a SF practice using the special procedures in Para. 1122, make yield exclusions, if
applicable, to both the SF and the CC practices prior to determining the “higher” approved
APH yield to be used for the SF practice in accordance with Para. 1122 B.

C. Impact of YE on SA T-Yields

While added land and new crop/P/T procedures (Part 17, Sections 9 and 10) are not affected
by the election of YE, the calculation for SA T-Yields is changed when an actual yield in an
eligible crop year is excluded.

SA T-Yields will continue to be determined based on the crop year the APH database is
established, by crop/P/T/TMA. However, instead of using the approved APH yield from
each of the insured’s existing APH databases for the policy that have at least one year of
actual/assigned yields, by crop/P/T/TMA to calculate the SA T-Yield, use:

(1) the adjusted yield, see Para. 1563 below for those APH databases with excluded
actual yields in an eligible crop year that have at least one actual/assigned yield prior
to any exclusions; and

(2) the approved APH yield for those APH databases where actual yields have not been
excluded that have at least one actual/assigned yield.

All other calculations and requirements for use of the SA T-Yield remain unchanged.

D. Impact of YE on North Dakota PTY

The PTY is a T-Yield calculated using the insured’s own actual yields and, if applicable,
assigned yields. For insureds who elect YE, the PTY is used in place of RMA’s published
T-Yields contained in the actuarial documents or other calculated T-Yields authorized by
the CIH, such as SA T-Yields for added land. As such, the total production and acres for
all actual/assigned yields for an applicable P/T/TMA for an insured must be used to
compute the insured’s PTY, similar to how a county T-Yield is based on an average yield
from all production in the county for that crop/P/T. Therefore, when an actual yield in an
eligible crop year is excluded in an APH database, that actual yield is not excluded for the
purposes of calculating the PTY.

June 2015 FCIC 18180 264

1560 Impact of YE Specific to Category B Crops (continued)

D. Impact of YE on North Dakota PTY (Continued)

When completing the PTY Summary, include the production and acreage associated with
an actual yield that has been excluded in an APH database in the total production and acres
for all actual/assigned yields for an applicable P/T/V/TMA used to complete the PTY
Summary in accordance with the procedures in Informational Memorandum PM-06-028.

E. Impact of YE on TA

When an actual yield in an eligible crop year is excluded, an excluded actual yield is not
considered for TA purposes when determining:

(1) whether an APH database qualifies for TA by having at least an actual yield in one of
the four most recent crop years, see FCIC-20220, Trend-Adjusted Actual Production
History Standards Handbook Para. 11;

(2) the applicable TA percentages, see FCIC-20220, Para. 21B; and

(3) the highest actual yield in the APH database with one year of trend adjustment applied
for the TA limitation of the approved APH yield for the APH database (see FCIC-
20220, Para. 21H).

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

(1) When an actual yield in an eligible crop year is excluded, the excluded actual yield is
considered when determining whether the crop meets production minimums or
age/production minimums for insurability. Exclusion of an actual yield in an eligible crop
year does not impact age requirements since the exclusion does not change the age of a
perennial crop, see Para. 1803.

(2) If an actual yield is reduced when a practice or production method (e.g., Removal,
Dehorning, Grafting, Transitioning to Organic) was performed that reduced the insured
crop’s production for a specific crop year, then the actual yield for that crop year is not
eligible for yield exclusion even if the crop year is an eligible crop year for exclusion in the
actuarial documents, see Para. 1823(2) and 1881C.

(3) If one of the actual yields in the most recent three crop years in the APH database is in a
crop year that is eligible for exclusion in the actuarial documents, the yield variance test in
Para. 1862C is not applicable and the APH database is not reduced for alternate bearing and
downward trending.

(4) If elected for crops with a two-year coverage module, YE must be elected by the SCD of
the first crop year of the two-year coverage module. Any actual yield in an eligible crop
year the insured chooses to not exclude must be identified in the APH database by the PRD
of the first crop year of the two-year module.

June 2015 FCIC 18180 265

1562 Impact of YE for RO Determined Yields

For the current crop year, any RO Determined Yield Request sent to the applicable RO must
identify the eligible crop years (as provided in the actuarial documents) the insured wants to
exclude. The RO will take any such excluded yields into consideration when determining the RO
Determined Yield and applicable rate. A RO Determined Yield Request cannot be used to make
a crop year eligible for yield exclusion.

1563 Adjusted Yield

When YE is applicable to an APH database, AIPs must calculate an adjusted yield, which is the
average of the annual yields in the APH database:

(1) without yield limitations (cups and yield floors);

(2) without any yield exclusions; and

(3) with yield substitutions, if YA is elected by the insured. If YA is not elected by the insured,
yield substitutions are not included and the adjusted yield is the average of the annual yields
in the APH database.

Exception: When yield reductions (see Section 5) apply to the APH database, the adjusted
yield must equal the approved APH yield.

The approved APH yield will not be less than the adjusted yield when YE applies to the APH
database.

The adjusted yield is not the same as the rate yield. The increase in coverage resulting from the
YE relative to the APH yield without YE is used to determine the appropriate premium rate for
the effective coverage.

Note: The adjusted yield for YE uses similar methodology as the adjusted yield for TA
purposes.

1564 Rate Yield Calculation

The rate yield is equal to the average yield when yield exclusions are used in an APH database
with the following exceptions:

(1) the approved APH yield is reduced for Inconsistent Approved APH Yields (see Para. 1574
for Inconsistent Approved APH Yield determination procedures). In these situations, the
rate yield is equal to the approved APH yield; and

(2) the approved APH yield is reduced for Different Production Methods being carried out for
the current crop year which results in lower actual yields (see Para. 1575 for Different
Production Method determination procedures). In these situations, the rate yield is equal to
the approved APH Yield.

June 2015 FCIC 18180 266

1565 Calculating the Yields for APH Databases When YE is Elected

When the insured has excluded at least one eligible crop year’s actual yield from an APH
database, the following yields must be calculated for that APH database.

A. Average Yield

Calculate the average yield by:

(1) summing the annual yields in the APH database, prior to yield exclusions, yield
substitutions, trend adjustments, cups and floors; and

(2) dividing that sum by the number of annual yields in the APH database.

B. Adjusted Yield

Calculate the adjusted yield by:

(1) Summing the annual yields:

(a) after substituting the applicable percentage of the applicable T-Yield for eligible
actual yields that are less than 60 percent of the applicable T-Yield (YA), if
elected (see Part 15, Section 3 for details on yield substitutions);

(b) prior to excluding and/or trending any actual yields in an eligible crop year; and

(c) without applying any yield limitations (cups and yield floors);

(2) dividing that sum by the number of annual yields in the APH database.

C. Approved APH Yield

Calculate the approved APH yield by:

(1) summing the remaining annual yields after:

(a) excluding actual yields for eligible crop years as elected by the insured;

Note: If less than four annual yields remain after excluding actual yields,
use the applicable T-Yield to meet the APH database four-year
minimum. If the applicable T-Yield for the APH database is the
variable T-Yield, use the variable T-Yield percentage based on the
number of years of actual/assigned yield(s) for the crop in the county
to determine the T-Yield. See Para. 1558(6).

(b) substituting YA, if elected;

June 2015 FCIC 18180 267

1565 Calculating the Yields for APH Databases When YE is Elected (continued)

C. Approved APH Yield (Continued)

(2) dividing that sum by the number of years of annual yields that remain in the APH
database (do not count the excluded annual yields) and applying any applicable yield
reductions (see Para. 1556B). The result is the approved APH yield when the insured
has chosen to determine the approved APH yield with YE and YA, if elected.

Exception: The approved APH yield will not be less than the adjusted yield (see
Para. 1563 above). If the yield calculated in C here is less than the
adjusted yield, the adjusted yield calculated in B becomes the
approved APH yield.

(a) The AIP must report to PASS the YE option code and the yield limitation flag of
15 on the P15 record if an APH database has actual yields in eligible crop years
excluded with no yield substitutions (trend adjustments may apply);

Note: This yield limitation flag is used for YE; YE and TA; plus any other
options. This flag is not used if YA applies to the APH database.

(b) The AIP must report to PASS the YE option code and the yield limitation flag of
9 on the P15 record if an APH database has:

(i) actual yields in eligible crop years excluded and has yield substitutions; or

(ii) actual yields in eligible crop years excluded, yield substitutions and trend
adjustments.

Note: This yield limitation flag is used whenever YA applies to an APH

database including when YA and YE; YA, YE and TA; plus any
other options apply.

D. Rate Yield

The Rate Yield is equal to the average yield unless yield reductions apply, see Para. 1576B
and 1564.

1566 Determining Premium Rates When YE Applies to an APH Database

If the approved APH yield calculation chosen by the insured excludes at least one actual yield in
an eligible crop year, the average yield is used as the rate yield and the effective coverage level
(based on the adjusted yield) is used for determining premium rate.

1567-1570 (Reserved)

June 2015 FCIC 18180 268

 Section 5 Yield Reductions

1571 General Information

This section addresses approved APH yield reductions required by Section 3(h) of the BP. If
insureds or anyone assisting them have intentionally concealed or misrepresented any material
fact relating to the policy, such insureds will be subject to concealment, or misrepresentation.
Approved APH yields calculated for a P/T/TMA of the insured crop must be reduced for the
following situations when discovered:

A. Excessive Actual Yields

Excessive actual yield is an actual yield that is identified as excessive for the
county/crop/P/T, see Para. 1573. If the insured:

(1) provides verifiable records that support the actual yield but cannot prove that there is
a valid basis for the excessive yield, the excessive actual yield must be reduced; or

(2) does not provide verifiable records to support any excessive actual yield and

(a) the insured is a new insured:

(i) production reports for the crop year are not acceptable;
(ii) production reports are not used to calculate the APH yield; and
(iii) variable T-Yields will apply.

(b) the insured is a carryover insured:

(i) production reports for the crop year are not acceptable; and
(ii) assigned yields and related procedures will apply.

B. Inconsistent Approved APH Yields

Inconsistent approved APH yields are approved APH yields greater than 115 percent of the
average of the approved APH yields of all applicable APH databases that have
actual/assigned yields for the same county/crop (by P/T/TMA); or the county T-Yield if no
applicable APH databases exist for comparison, see Para. 1574. Inconsistent approved
APH yields are reduced if:

(1) the current year’s insurable acreage (including applicable PP acreage) using the
inconsistent approved APH yield is greater than 400 percent of the average number of
acres in the APH database, or

(2) the acres contained in two or more individual crop years in the APH database are each
less than 10 percent of the current year’s insurable acres in the unit (including
applicable PP acreage); and

(3) the AIP determines there is no valid agronomic basis to support the approved APH
yield.

June 2015 FCIC 18180 269

1571 General Information (continued)

C. Different production methods

If an insured uses a different production method which is likely to result in a lower yield
than the production method upon which the APH is based, approved APH yields will be
reduced to reflect the different production method. See Para. 1575 and also Part 11 Section
4 for Organic Transitioning without a Plan.

1572 General Rules

When reductions to approved APH yields are required for: (1) excessive yields; (2) inconsistent
approved APH yields, if insured acreage limitations are exceeded; or (3) different production
methods are carried out that will likely result in lower actual yields, the following general rules
apply:

A. Actual Yields

Actual yields, for the purpose of identifying excessive actual yields and inconsistent
approved APH Yields, includes:

(1) actual yields identified by yield descriptors “A, BF, G, V, AY, NA, VX, VY, NV,
GX, GY and NG”;

(2) temporary yields identified by the yield descriptor “J”;

(3) actual/summarized yields identified by yield descriptors “R, RY and NR”;

(4) prorated yields identified by yield descriptors “PA, PR, PV and PG”;

(5) weighted average yields when PP payments are limited to 35 percent of the PP
coverage and the database contains both PP acreage and planted acreage of the first
insured crop identified by yield descriptors “GW, PW, NW, VW, WY, NO, OY, NU,
and UY”;

(6) simple average actual yields identified by the yield descriptor “AX” and applicable T-
yields identified by the yield descriptor “TX” that are used to replace excessive actual
yields; and

(7) duplicated yields identified by yield descriptors “DA, DG, DV”.

B. Assigned Yields

Assigned yields, for the purpose of identifying excessive actual yields and inconsistent
approved APH Yields, includes:

(1) only assigned yields used for failure to provide acceptable records identified by yield
descriptor “P”; and

June 2015 FCIC 18180 270

1572 General Rules (continued)

B. Assigned Yields (Continued)

(2) it does not include those yields assigned when PP payments are limited to 35 percent
of the PP coverage and the database contains only PP acreage of the first insured crop
identified by yield descriptor “PP”.

C. Yield Tolerances

Yield tolerances associated with APH field reviews, (see Part 15 Section 6) that indicate
whether the corrections must be made for the current or following crop year do not apply.
Reductions required by this section do not have to exceed the APH field review tolerances
indicated in (Part 15 Section 6) and must be made for the current crop year. However, for
other APH field review changes, the tolerances remain in effect.

D. Reductions Made after Initial Approved APH Yields

Reductions made after initial approved APH yields for the crop year have been mailed or
otherwise made available to insureds are not reductions to approved APH yields that would
qualify for a mutual consent cancellation of the affected crop’s policy. See GSH Part 7
Para. 233D for more information regarding mutual consent cancellation.

E. Reductions are Made Separately by APH Database

If separate APH databases have been established for OUs within a BU or for BUs and/or
OUs within an EU, the reductions are made separately for each APH database, regardless of
the unit structure selected for the current crop year.

Example: Separate APH databases are maintained for OUs within a BU, but the
acreage is insured as a BU for the current crop year. Any required
reduction is made on the OU-based separate APH databases. The APH
databases are not combined into a BU APH database prior to any reduction
being made.

F. Reductions for Not Accurately Reporting

Reductions are made in addition to other consequences for not accurately reporting all
information used to calculate approved APH yields such as, correcting the unit structure, if
necessary.

G. Reductions Based on the T-Yield

Reductions that are based on the applicable T-Yield, must use the T-Yield published in the
actuarial document for the county crop P/T/TMA. For pecan revenue, the lowest available
dollar span as shown on the actuarial document is used.

June 2015 FCIC 18180 271

1572 General Rules (continued)

H. Cups

Cups do not apply if yield reductions cause actual yields or approved APH yields to
decrease by 10 percent or more.

I. Actual Yields from Another Producer

Actual yields provided by another person (acreage and production records) and used by an
insured that shares in the insured crop (e.g., landlords and tenants) or actual yields
transferred to another person via APH production reports/APH databases are also subject to
the adjustments indicated by Para. 1573-1575.

J. Order of Precedence for Yield Reductions

If more than one method of yield reductions apply to an APH database, adjustments must
be made in the following order:

(1) excessive actual yields, if applicable;

(2) inconsistent approved APH yields when insured acreage limitations are also exceeded,
if applicable; and

(3) reduction for carrying out different production methods.

1573 Excessive Actual Yields

Primarily, APH reviews for excessive yields will be identified through requirements in Appendix
IV of the SRA. However, AIPs may also use this procedure to adjust any excessive yields they
identify. AIPs must review all APH databases identified as having an excessive actual yield.

Notwithstanding any other review requirements, AIPs are required to complete APH record
reviews for each crop year that excessive actual yields are reported. Production evidence for
ALL APH databases that comprise the BU that contain at least one excessive actual yield must be
reviewed (e.g., a BU consisting of three OUs, one of which contains an excessive actual yield,
must have an APH record review conducted on all three OUs).

A. Verifiable Records

Provide verifiable records, see Part 14 Section 2 for verifiable records requirements], to
support excessive actual yields that are significantly different than other producers’ actual
yields in the county or other actual yields reported for the insured’s farming operation and
the insured:

(1) can prove there is a valid basis to support the differences in the yields, subsequent to
the AIP’s review and acceptance, the AIP may accept the excessive yield.

June 2015 FCIC 18180 272

1573 Excessive Actual Yields (continued)

A. Verifiable Records (Continued)

(2) cannot prove there is a valid basis to support the differences in the yields, the
approved APH yield will be reduced by replacing excessive actual yield(s) with the:

(a) simple average of all actual yields (including excessive actual yields prior to
being adjusted) and assigned yields for the same crop year for the same P/T and
TMA (if applicable) for the crop in the county.

Use the applicable actual yield descriptor “AX, GX, or VX”, see Exh. 15 to
identify the simple average actual yield used instead of excessive actual yields;
or

(b) applicable T-yield, if the insured has no other applicable actual yields. Use a
“TX” yield descriptor to identify when the applicable T-Yield replaces the
excessive actual yield.

B. Do Not Provide Verifiable Records to Support Excessive Actual Yields

(1) For carryover insureds:

(a) approved APH yields will be reduced by replacing each excessive actual yield
with:

(i) an assigned yield (0.75 X the previous year’s approved APH yield) see
Part 21 for Pecan Revenue or,

(ii) 75 percent of the applicable T-yield if an approved APH yield was not
calculated for the previous crop year.

(b) such assigned yields will be identified with the “P” yield descriptor see Exh. 15.

(c) production report(s) for such crop years (for the crop for the county) without
supporting verifiable records are not acceptable. All production records for all
units except for loss records for the crop for the crop year within the county are
unacceptable and assigned yields and related procedures apply. Loss records
(excluding appraisals for uninsured causes of loss) must be used for APH.

(2) For new insureds:

(a) approved APH yields will be recalculated without using the actual yields.

June 2015 FCIC 18180 273

1573 Excessive Actual Yields (continued)

B. Do Not Provide Verifiable Records to Support Excessive Actual Yields (continued)

(b) production report(s) for such crop years (for the crop for the county) without
supporting verifiable records are not acceptable. Approved APH yields will
continue to be calculated as indicated in Part 17 and 18 following standard APH
procedures. Assigned yields do not apply to new insureds because there is no
prior approved APH yield.

C. Valid Basis to Support the Excessive Actual Yield

If an actual yield is identified as excessive and the insured provides verifiable records to
support the excessive actual yields, the excessive actual yield is replaced unless the AIP
determines there is a valid basis to support the excessive yield.

To determine whether a valid basis supports an excessive yield, AIPs must further review
situations meeting the criteria triggering yield reductions.

(1) A valid basis to support the excessive actual yield may be determined if the AIP
determines that the reported actual yield(s) for the acreage are not artificially high:

(a) production methods of the acreage with the high yield(s) are comparable to that
of other acreage of the insured crop/P/T; and

(b) the high yield(s) does not appear to be the result of shifting production from
another unit/APH database.

(2) A valid basis to support the excessive yield does not include factors such as intensely
farmed acreage and acreage being moved from one APH database to another APH
database.

(3) AIPs may request supporting information and records in addition to the insured’s
production report and APH databases upon which to base their decision on whether a
valid basis exists to support the excessive actual yield.

Additional production evidence and information would include, but is not limited to
the following:

(a) production evidence of acreage and production;

(b) documentation of why such acreage and yield patterns occurred;

(c) the production method that was carried out; and

(d) soil survey maps if differences in soil productivity within the unit are a concern
should be requested.

June 2015 FCIC 18180 274

1573 Excessive Actual Yields (continued)

C. Valid Basis to Support the Excessive Actual Yield (continued)

(4) AIPs must maintain the documentation used to justify their decision and if requested,
provide a copy to RMA. Once the AIP has determined that the reported actual yields
are not artificially high, additional supporting information obtained from the insured
is not required.

1574 Inconsistent Approved APH Yields and Insured Acreage Limitations

A. Applicability

This procedure applies to Category B APH crops (new and carryover insureds) using
standard APH procedures.

(1) It does not apply to Category B crops for which the insured elects MYs, Category C
APH crops or pecan revenue.

(2) AIPs are not required to review all APH databases to determine whether reductions
apply for inconsistent approved APH yields when insured acreage limitations are
exceeded see C and D below.

(3) Such reductions must be made anytime the circumstances requiring them are
discovered (e.g., when calculating approved APH yields, processing acreage reports,
during APH reviews, or completing/processing claims) unless it is determined there is
a valid agronomic basis to support the inconsistent approved APH yield.

(4) Reductions for excessive actual yields, if applicable, must be made prior to reductions
for inconsistent approved APH yields when insured acreage exceeds limitations.

(5) Inconsistent approved APH yields must be reviewed by the AIP if the insurable
acreage for the current crop year (including applicable PP acreage) compared to
acreage reported for APH purposes exceeds one or both of the insured acreage
limitations, see C below.

B. Inconsistent Approved APH Yield Calculations

(1) If more than one APH database contains actual/assigned yields for the same P/T/TMA
for the policy/crop/county, determine the simple average of the approved APH yields
of all such databases.

High-risk land insured under a CAT policy is not included with an insured’s
additional coverage policy when calculating the simple average of the approved APH
yields for the additional coverage policy (separate simple average yields are
calculated for each policy). Round the simple average according to the crop’s APH
per acre rounding rules; and

June 2015 FCIC 18180 275

1574 Inconsistent Approved APH Yields and Insured Acreage Limitations (continued)

B. Inconsistent Approved APH Yield Calculations (Continued)

(a) multiply the result times 1.15.

(i) Compare each individual approved APH yield to the result.

(ii) Approved APH yields that exceed this result are considered inconsistent
approved APH yields and will be reduced only if one or both of the
insured acreage limitations are exceeded and there is no valid agronomic
basis to support the inconsistent approved APH Yield, (see C and D
below).

(b) if the insurable acreage limitation is also exceeded (see C below), exclude APH
database(s) with inconsistent approved APH yields that must be reduced and
then calculate the average of the approved APH yields for the remaining APH
databases containing actual/assigned yields.

(i) Round the average of the approved APH yields according to the crop’s
APH yield per acre rounding rules.

(ii) The resulting average yield is used as the approved APH yield for APH
databases with inconsistent approved APH yields that must be reduced.

(2) If no other existing APH databases containing actual/assigned yields for the same
P/T/TMA for the policy/crop/county are present for comparison, multiply the county
T-yield by 1.15.

(a) If the approved APH yield exceeds the result, it is considered inconsistent and if
one or both insured acreage limitations are exceeded, (see C below) and there is
no valid agronomic basis to support the inconsistent yield, (see D below), it is
reduced to the applicable T-yield.

(b) When added land as a separate APH database or new crop/P/T/TMA applies and
there is only one existing APH database on which the SA T-Yield is based, the
approved APH yield for the existing APH database is compared to the county T-
Yield multiplied by 1.15 prior to calculation and use of the SA T-Yield for the
new APH database(s).

If the approved yield for the existing APH database exceeds the result of
multiplying the county T-Yield by 1.15, the county T-Yield is used to determine
the approved APH yield for all of the current year’s insurable acreage of the
same crop/P/T that will use the inconsistent yield, i.e., the approved APH yields
for the new APH database and the existing APH database must be reduced to the
county T-Yield.

June 2015 FCIC 18180 276

1574 Inconsistent Approved APH Yields and Insured Acreage Limitations (continued)

B. Inconsistent Approved APH Yield Calculations (continued)

Example: An insured has one existing OU APH database for corn and
adds land as a separate OU. Compare the approved APH yield
for the existing APH database to the county T-Yield multiplied
by 1.15 prior to establishment of the added land APH database
to determine whether the yield is inconsistent.

The approved APH yield for the added land APH database, as
well as the approved APH yield for the existing OU APH
database, will be the county T-Yield if the current year’s
acreage (considering acreage on the existing OU and added
land OU) exceeds one or both of the insured acreage
limitations, unless it is determined there is a valid agronomic
basis to support the inconsistent approved APH yield.

(3) Reduced approved APH yields apply to all insurable acreage (using the approved
APH yield calculated for the APH database), not just the insurable acreage that
exceeds the limitation. For example, the acreage limitation was 320 acres and 400
acres were reported for the current year, in this case the reduced yield applies to all
400 acres).

(4) Use yield limitation flag “10” to identify reduced approved APH yields calculated
when inconsistent approved APH yields apply and insurable acreage limitations have
been exceeded.

C. Insured Acreage Limitations

(1) Acreage with excessive actual yields that have been replaced and acreage with
assigned yields will be used when calculating the average acreage.

(2) Insured acreage exceeds the limitations permitted by the policy if (a) or (b) apply.

(a) The current year’s insurable acreage (including applicable PP acreage) using the
inconsistent approved APH yield is greater than 400 percent of the average
number of acres with actual/assigned yields reported for APH purposes in the
APH database.

(b) The acres contained in two or more individual APH crop years with
actual/assigned yields reported in the APH database are each less than 10
percent of the current year’s insurable acreage in the unit. To determine:

(i) divide the acres reported for each APH crop year by the insured acreage
for the current crop year.
(ii) round to the hundredths place.

If two or more crop years are less than .10, the limitation is exceeded.

June 2015 FCIC 18180 277

1574 Inconsistent Approved APH Yields and Insured Acreage Limitations (continued)

D. Examples

See Exh. 15 for an example of when inconsistent approved APH yields and insured acreage
limitations criteria are met and an example of when that criteria is not met.

(1) To determine if the 400 percent acreage limitation has been exceeded:

(a) total the acres for years that have actual/assigned yields reported;

(b) divide the total acres by the number of years for which actual/assigned yields
have been reported and round the result according to the crop’s acreage
rounding rules. The result is the average acres; and

(c) multiply the average acreage by 4.00. If the insurable acreage for the current
crop year using the inconsistent yield is greater than the result, the acreage
limitation is exceeded.

(2) When there is only one existing APH database, all of the current year's acreage for the
same P/T/TMA would be included in the comparison, regardless of whether the
current year’s insurable acreage is contained in one or more APH databases.

Example: The approved APH yield is 40 bushels and the T-yield is 22 bushels. An
average of 3 acres per year was used to establish the 40 bushel approved
APH yield.

In 2016, the insured plants 400 acres in the same unit. Since there are no
other APH databases with approved APH yields with actual/assigned yield
to compare, the approved APH yield of 40 bushels is compared to the T-
yield of 22 bushels which is greater than 115 percent.

Additionally, the insured planted 400 acres in the same unit where the
average number of acres used to establish the yield was 3 acres. The 400
percent acreage limitation is exceeded and the approved APH yield is
reduced to the county T-Yield, unless it is determined there is a valid
agronomic basis to support the inconsistent approved APH yield.

Example: The approved APH yield for the existing unit is 40 bushels and the T-Yield
is 22 bushels. An average of 3 acres per year was used to establish the 40
bushel approved APH yield for the existing OU APH database. In 2016,
the insured plants a total of 400 acres in three separate added land OUs.

The approved APH yield of 40 bushels is compared to the county T-Yield.

Therefore, all of the current year's insurable acreage for the crop/P/T
would be included in the comparison, in this example, all 400 acres.

June 2015 FCIC 18180 278

1574 Inconsistent Approved APH Yields and Insured Acreage Limitations (continued)

D. Examples (continued)

The 400 percent acreage limitation is exceeded and the approved APH
yield for the added land OUs and the existing OU is the county T-yield
unless it is determined there is a valid agronomic basis to support the
inconsistent approved APH yield.

E. Valid Agronomic Basis to Support the Inconsistent Approved APH Yield

If an approved APH yield is identified as inconsistent and the insured acreage limitation is
met, the approved APH yield must be reduced unless the AIP determines there is a valid
agronomic basis to support the approved APH yield. To determine whether a valid
agronomic basis supports an inconsistent yield, AIPs must further review situations meeting
the criteria triggering yield reductions.

(1) A valid agronomic basis to support the inconsistent approved APH yield may be
determined if each of the following three criteria is met:

(a) the AIP determines that the reported production for the small amounts of
acreage is comparable to the reported production of the rest of the acreage
insured on the unit/APH database for the current or prior crop years;

(b) the high yields do not appear to be the result of shifting production from another
unit/APH database, and

(c) the insured acreage limitation was met due to a reasonable expansion of the
farming operation or, a change in the insured’s unit structure (e.g., an insured
switches from OUs to an EU causing acreage within an OU APH database to
exceed the less than 10 percent acreage limitation based on the acreage
contained within the EU), crop rotation, or other situation that inappropriately
triggers the acreage limitation.

(2) A valid agronomic basis to support the inconsistent approved APH yield does not
include factors such as intensely farmed acreage and acreage being moved from one
APH database to another APH database.

(3) If an AIP determines that a valid agronomic basis exists to support the inconsistent
approved APH yield under (1) above, the AIP is not required to request additional
documentation from the insured.

(4) If AIPs are unable to determine if a valid agronomic basis exists under (1) above,
AIPs may request supporting information and records in addition to the insureds
production report and APH databases upon which to base their decision on whether a
valid agronomic basis exists to support the inconsistent approved APH yield.

June 2015 FCIC 18180 279

1574 Inconsistent Approved APH Yields and Insured Acreage Limitations (continued)

E. Valid Agronomic Basis to Support the Inconsistent Approved APH Yield (continued)

If such documentation is requested and supplied by the insured, AIPs must maintain
the documentation used to justify their decision and, if requested, provide a copy to
RMA. Additional production evidence and information would include, but is not
limited to the following:

(a) production evidence of acreage and production;

(b) documentation of why such acreage and yield patterns occurred;

(c) the production method that was carried out on small amounts of acreage with
high yields; and

(d) soil survey maps if differences in soil productivity within the unit are a concern
should be requested.

1575 Different Production Methods

Approved APH yields are reduced if different production method(s) are carried out for the
current crop year that will likely result in lower actual yield(s) than the average of the actual
yields for the production method previously reported.

Example: IRR and NI practices are applicable and an APH database for the NI practice
contains actual yields from acreage where water was applied prior to planting
(pre-watered) in previous crop years. For the current crop year, the acreage was
not pre-watered prior to planting. This example is used throughout this topic.

A. Requirements

(1) An insured must notify the AIP by the ARD of changes in production methods that
may result in lower actual yields than previously reported. Insureds utilizing CC
yields instead of SF yields according to procedures in see Part 11 Section 2 are not
affected by this provision, since the CC practice is a lower yielding practice than SF.

(2) AIPs are not required to review all APH databases to determine whether reductions
apply when different production methods are carried out that will likely result in
lower actual yields.

However, such reductions must be made anytime the circumstances requiring them
are discovered (e.g., when calculating approved APH yields, processing acreage
reports, during APH reviews, or completing/processing claims).

June 2015 FCIC 18180 280

1575 Different Production Methods (continued)

B. Lower Yielding Production Method

When a lower yielding production method than was reported to calculate the approved APH
yield is carried out, the approved APH yield for the current crop year will be the lower of
the approved APH yield for the yield method upon which the APH is based, or the
applicable of the following methods:

(1) the simple average of the approved APH yields for all other APH databases for the
same production method as carried out for the current crop year (within the same
P/T/TMA, if applicable).

(a) Any applicable reductions for excessive actual yields and for inconsistent
approved APH yields when acreage limitations are exceeded must be made prior
to calculating the simple average of the approved APH yields for the other units.

(b) In the example above, the approved APH yield would be reduced to the simple
average of all NI approved APH yields containing actual yields that do not
contain acreage that had been pre-watered prior to planting;

(2) the applicable T-yield if other APH database(s) do not exist for the same production
methods carried out for the current crop year; or

(3) a weighted average approved APH yield if more than one production method is
carried out for the current crop year on acreage of the crop to which the approved
APH yield applies.

(a) Using the pre-watered NI example, 50 acres were pre-watered (the production
method for which actual yields were reported) but 40 acres were not pre-watered
(a lower yielding production method).

(b) The approved APH yield for the production method utilizing pre-watering is 65
bu. per acre, and the simple average of the approved APH yields (containing
actual yields) for NI acreage not utilizing pre-watering is 50 bu. per acre.

(c) The weighted average reduced approved APH yield for the 90 acres is 58 bu. per
acre (50.0 X 65.0 = 3,250) + (40 X 50 = 2,000) / 90.0.

C. Separate APH Databases are Not Established for Different Production Methods

Separate APH databases are not established for different production methods, the acres and
production for various production methods must be reported according to the applicable
P/T. Using the previous example, the total acres (90.0) and total production from the 90
acres would be reported as a NI practice. In subsequent crop years if the higher yielding
production method is:

June 2015 FCIC 18180 281

1575 Different Production Methods (continued)

C. Separate APH Databases are Not Established for Different Production Methods
(continued)

(1) carried out, the APH database containing the production data will be used (no
reduction necessary).

(2) not carried out, (in the example, not pre-watered) the approved APH yield is adjusted
as indicated in B above, as long as any actual yield from the higher yielding
production method remains in the database.

D. AIP Not Notified

If the AIP is not notified and it is discovered that a different production method has been
carried out that likely results in lower actual yields than for the production method
previously reported, the yield will be reduced as indicated by B above.

E. Applicable Yield Flag

Use yield limitation flag “11” to identify reduced approved APH yields when different
production methods have been carried out.

1576-1580 (Reserved)

June 2015 FCIC 18180 282

 Section 6 Reviewing and Correcting APH Yields

1581 Review Requirements

All required APH reviews must be conducted in accordance with Appendix IV of the Standard
Reinsurance Agreement (SRA).

(1) AIPs are required to review those Category B and C eligible crop insurance contracts
identified by the criteria as provided in Appendix IV or as otherwise specified by RMA.
This does not limit the ability of an AIP to select a policy for review based upon its internal
established criteria.

(2) The AIP must obtain the production records from the insured for the unit and compare it to
the yield certified by the insured. See Parts 13 and 14 for acceptable production report and
production evidence requirements.

(3) If AIP believes the amount of production on any acceptable record(s) is not reasonable or
has reason to question any of the records provided, the AIP may do either or both of the
following:

(a) verify the physical existence of the production.

(b) require additional acceptable verifiable records (e.g., settlement sheets, etc.).

1582 Correcting APH Yields

At any time it is discovered that an insured has misreported any material information used to
determine the approved APH yield or the approved APH yield is not correct, the following
actions must be taken:

(1) correct the approved APH yield for the crop year such information is not correct and all
subsequent years;

(2) correct the unit structure, if necessary;

(3) any overpaid or underpaid indemnity or premium must be repaid or refunded; and

(4) the insured will be subject to misreporting provisions contained in the policy unless the
incorrect information was the result of an error by the AIP or someone from USDA.

To correct the approved APH yield, a revised production report and an APH database is required
if there is a difference between the yield certified and the yield verified.

June 2015 FCIC 18180 283

1582 Correcting APH Yields (continued)

A. Non-loss unit(s)

(1) If the approved APH yield determined to be correct by the reviewer and the approved
APH yield for the current crop year indicates a difference greater than the established
tolerance; the approved APH yield is revised for the current crop year using the yield
determined to be correct based on the production records by the reviewer;

(2) If the approved APH yield determined to be correct by the reviewer and the approved
APH yield for the current crop year indicates a difference less than the established
tolerance, the correction to the approved APH yield may be made the current crop
year; however, the approved APH yield must be corrected the following crop year, if
not corrected in the current year.

B. Claim Situation

In a claim situation, an APH database for the loss unit is reviewed for accuracy, without
tolerance, and any discrepancies between reported and determined yields are corrected and
any policy provisions regarding misreporting will apply.

However, when the corrected yield results in a change in liability, the liability for claim
purposes will not be increased; but will be decreased, if applicable. See LAM for
calculating liability for claim for indemnity.

C. Actual Yields Determined Incorrect

When actual yields, other than those certified for the current year, are determined incorrect:

(1) a review of prior years’ reported actual yield(s) must be completed before the review
for the current year can be completed.

(2) if the prior years’ reported actual yield(s) are incorrect, then:

(a) prior year(s) approved APH yield(s) must be corrected; and

(b) prior year’(s) associated premium and/or indemnity must be corrected, unless
prior years were not insured. If incorrect prior year(s) were insured with a
different AIP, then that AIP must be notified of the review findings. The
previous AIP must make the applicable corrections.

1583 Tolerances

Tolerances are stated in terms of percent difference of the approved APH yield.

June 2015 FCIC 18180 284

1583 Tolerances (continued)

A. Percentile Difference Calculation

The percentile difference is calculated by dividing the yield certified by the insured by unit
by practice/type requiring separate APH yields and the actual yield calculated by the
reviewer. Calculate the percentile differences according to the following:

(1) to determine whether a corrected APH database is required for the current year or
following crop year, calculate the percentile difference as follows:

(Actual Yield Certified for an APH Database

Percentile
= 1-
Difference Actual Yield Calculated by Reviewer for an APH
Database)

(2) to determine whether the correct approved APH yield is made effective for the current
of for the following crop year, calculated the percentile difference as follows:

(Approved APH Yield Originally Calculated for an

APH Database
Percentile
= 1- ‘
Difference
Approved APH Yield Calculated by Reviewer for an
APH Database (using corrected APH database))

B. Tolerance by Crop Categories

(1) Categories D and G have a tolerance of zero. Any discrepancy discovered will be
corrected for the current crop year. See Part 20 for eligible crops in Categories “D”
and “G”.

(2) The following Category B crops have a 5 percent tolerance:

 Barley  Dry Beans (except Contract Seed Beans)

 Buckwheat  Dry Peas (except Contract Seed Peas)
 Flax  Canola/Rapeseed
 Corn  Forage Production
 Cotton  Grain Sorghum
 ELS Cotton  Oats
 Peanuts  Popcorn
 Rice  Rye
 Safflower  Sunflower Seed
 Soybeans  Wheat

June 2015 FCIC 18180 285

1583 Tolerances (continued)

B. Tolerance by Crop Categories (continued)

(3) The following Category B and C crops have a 2 percent tolerance:

 Citrus (Arizona California and Texas Citrus

 Almonds
Fruit)
 Apples  Cultivated Wild Rice
 Avocados (Florida)  Dry Beans (Contract Seed Beans)
 Blueberries  Dry Peas (Contract Seed Peas)
 Cranberries  Macadamia Nuts
 Figs  Green Peas
 Grapes  Pecan Revenue
 Millet  Potatoes (Northern, Central and Southern)
 Mint  Processing Beans
 Mustard  Prunes
 Stonefruit (Apricots, Nectarines, Peaches,
 Onions
and Plums)
 Peaches  Sugar Beets
 Pears  Sugarcane
 Table Grapes  Processing Sweet Corn
 Walnuts  Tobacco
 Tomatoes (Processing and Fresh Market
Guaranteed Production Plan)

1584-1600 (Reserved)

June 2015 FCIC 18180 286

 PART 16
1601-1700 (Reserved)

June 2015 FCIC 18180 287

1601-1700 (Reserved)

June 2015 FCIC 18180 288

 PART 17 CATEGORY B CROP PROCEDURES
Section 1 APH Database

1701 General Information

APH yield determination methods provide flexibility the initial year of insurance for insureds that
do not furnish acceptable records. For insureds that provide less than four years of actual yields,
variable T-Yields are used to complete four-year APH databases see Para. 1702A-B. When four
or more years of actual yields are available in an APH database, T-Yields are not used. Insureds
must provide production reports for subsequent crop years in accordance with the policy.

A minimum of four years of yields are required in each APH database to calculate approved APH
yields. The following paragraphs contain instructions for establishing APH databases.

1702 Methods to Establish an APH Database

A. No Actual or Assigned Yields

(1) New insureds who have not produced the crop may qualify as a New Producer. See
Section 5.

(2) New insureds who have produced the insured crop and do not provide acceptable
production reports for the land in the insured’s current operation by the PRD or
provide production reports containing only zero-planted acres, approved APH yields
are calculated by multiplying the applicable T-Yield(s) by 65 percent. If the insured
crop was produced on entirely different land than contained in the current farming
operation and the new insured does not provide acceptable production reports due to
lack of acceptable supporting production evidence for such land, the new insured may
request a RO determined yield. See Section 6 and Part 22.

(3) New insureds must request approved APH yields by completing and signing a
Production Report. Separate four-year APH databases are required for each unit (by
P/T and for each TMA). Each APH database must contain four 65 percent T-Yields.
AIPs must quote the applicable 65 percent T-Yield as the preliminary yield. The
verifier must approve all approved APH yields.

(4) APH databases must be updated each year with any actual or assigned yields and
appropriate percentage of the variable T-Yield. The 65 percent variable T-Yield
applies only one year, unless zero acreage of the crop is planted.

(5) OUs are not authorized see Para. 1024 for exceptions.

B. Actual and/or Assigned Yields Provided

When acceptable production reports containing actual yields are filed and/or assigned
yields apply for a crop year, the crop year is counted for variable T-Yields purposes. APH
databases with actual and/or assigned yields are established as follows:

June 2015 FCIC 18180 289

1702 Methods to Establish an APH Database (Continued)

B. Actual and/or Assigned Yields Provided (continued)

(1) Less than four years of actual/assigned yields. When less than four years of
actual/assigned yields are available for an APH database, the average APH yield is
determined by a simple average of the insured’s actual/assigned yields and applicable
variable T-Yields used to complete the four-year minimum APH database divided by
four.

(2) Four or more years of actual/assigned yields. When four or more years of
actual/assigned yields are available for an APH database the average APH yield is
determined by a simple average of the insured's actual/assigned yields divided by the
number of years of actual/assigned yields contained in the APH database.

C. New Producer

A new producer is a person who has not been actively engaged in farming for a share of the
production of the insured crop (producing the crop) in the county for more than two APH
crop years. Insureds who have produced the insured crop for more than two APH crop
years in other county(ies) qualify as a new producer of the insured crop if they have not
produced the insured crop in the county for more than two crop years. See Section 5 for
instructions to calculate an approved APH yield for persons qualified as a new producer.

D. RO Determined Yields

In certain situations, a RO determined yield may be requested by the insured through their
AIP by the PRD, see Section 6 and Part 22.

E. Added Land/New Crop/P/T

Variable T-Yields will be used for added land or new crop/P/T based on the years of
actual/assigned yields for the insured crop and county unless the added land or new
crop/P/T qualifies for use of the SA T-Yield or the insured qualifies to use another
producer’s production history to establish the APH database. See Part 17, Sections 9 and
10. SA T-Yields are not applicable for organic or transitional practices see Part 11, Section
4. Refer to SF APH database instructions in Part 11, Section 2 when a SF practice is
carried out for the first time for Wheat, Barley, and Oats on the same unit as the CC
practice has been carried out.

F. Determined Irrigated Yields

In lieu of the variable T-Yield, an AIP may approve a determined yield for an IRR practice
the first time the IRR practice is carried out on a unit, if certain conditions are met. See
Para. 1107 for instructions of when determined irrigated yields are available and all
applicable calculations.

June 2015 FCIC 18180 290

1702 Methods to Establish an APH Database (Continued)

G. High-Risk Land

Variable T-Yields do not apply to acreage with less than four years of actual/assigned
yields that is located on high-risk or unrated land with high-risk T-Yields. One hundred
percent of the high-risk T-Yield assigned applies. Use yield descriptor "F”.

H. Master Yields

A MY is an optional yield calculation method in addition to standard APH databases.

Insureds that qualify for MY must request initial MY and provide the required
documentation no later than the PRD. MY are available for select crops, practices, and
locations. See Section 7 for MY procedures, crops and applicable locations (states).

I. Acreage Emerging from an USDA Program, New Breaking, or Native Sod

See Section 8 for procedure to calculate an approved APH yield for acreage emerging from
CRP, new breaking, and/or native sod acreage.

J. Switching from an ARPI to a CCIP Policy

See Section 11 for procedure to calculate an approved APH yield when an insured switches
from an ARPI policy to a CCIP policy.

K. APH Database Requirements for PP Acreage when PP Payments are Limited

A yield will be assigned for APH database purposes, when the PP payment for the first
insured crop for the previous crop year is limited to 35 percent of the PP coverage by the
crop’s policy. See PP LASH for situations when PP acreage is not eligible for double
cropping and limited to 35 percent of the PP payment. Separate yields must be assigned for
each P/T/TMA requiring separate approved APH yields, see Para. 1714.

(1) Only the first insured crop’s yield is affected when PP payments are limited, even if
PP payments are based on another crop when sufficient eligible PP acres of the first
insured crop are not available. For example, 200 acres PP corn claimed (first insured
crop); however, corn had 150 eligible PP acres and 50 acres of the PP payment was
based on soybeans. In this example, a yield for APH database purposes will be
assigned for 200 acres of PP corn.

(2) If the unit contained only PP acreage on which the PP payment was limited, 60
percent of the applicable approved APH yield (for the unit/P/T/TMA) for the first
insured crop on which PP was claimed will be assigned. Use the “PP” yield
descriptor to identify the yield assigned for PP acreage. Such yields are not eligible
for yield substitutions under the Yield Adjustment Election and they do not count as a
year of actual yields for variable T-Yield and yield floor percentage determinations.

June 2015 FCIC 18180 291

1702 Methods to Establish an APH Database (Continued)

K. APH Database Requirements for PP Acreage when PP Payments are Limited

(continued)

(3) If the unit contains both PP acreage on which the PP payment was limited and planted
acreage of the first insured crop, the yield for the unit will be determined by:

(a) Multiplying the number of insured PP acres for the first insured crop by 60
percent of the applicable approved APH yield for the first insured crop;

(b) Adding the production assigned in (a) above to the amount of harvested and/or
appraised production for planted acreage of the first insured crop; and

(c) Dividing the total production determined in (3) above by the total number of
acres.

Example: 10 acres PP was planted to a second crop. The approved APH

yield for the first insured crop was 100 bu./acre.

15 Acres 10 x (0.60 x 100 bu./acre) 600 bu.=

10 acres First Insured 15 acres harvested 825 bu.=
PP first Crop Planted
Insured Crop and Total bu. =
1425 bu.
Harvested 1425 bu. ÷ 25acres =
57 bu./acre

(d) The total acres (PP on which the PP payment was limited and planted first crop
acreage) and the weighted average yield (identified by PW yield descriptor)
determined using the procedure above must be shown on the insured’s
Production Report and included in the APH database used to calculate the APH
yield for the unit for the applicable P/T/TMA. APH entries for the example
above are as follows:

Acres = 25.0; weighted average yield = PW 57.

(e) Such yields are eligible for yield substitutions under YA and exclusions under
YE, and count as a year of actual yields for variable T-Yield and yield floor
percentage determinations.

(4) If the PP payment is not limited to 35 percent of the PP coverage there is no effect on
the APH database (PP acreage is not shown on the insured’s production report and is
not entered in the APH database used to calculate the approved APH yield).

June 2015 FCIC 18180 292

1702 Methods to Establish an APH Database (Continued)

L. Approved APH Yield Reductions

See Part 15 Section 5 for APH yield reduction instructions. Approved APH yields
calculated for a practice (including transitional and certified organic acreage), or type (P/T)
of the insured crop, are required to be reduced for the following situations when they are
discovered:

(1) Any reported actual yield identified as excessive requires an APH review by the AIP.
Excessive actual yields are adjusted if the insured provides verifiable records that
support the actual yield but cannot prove that there is a valid basis for the excessive
yield.

If an insured does not provide verifiable records to support the excessive actual yield,
the production reports for the crop year are not acceptable and are not used to
calculate the approved APH yield. For carryover insureds, assigned yields will apply.

(2) Inconsistent approved APH yield when acreage limitations are exceeded.

(3) When a different production method likely to result in a lower yield than the
production method upon which the approved APH yield is based are carried out for
the crop year.

M. Yield Limitations

Cups and yield floors are yield limitations designed to mitigate the effect of catastrophic
years on approved APH yields. See Section 4 of this part.

N. APH Database Yield Adjustment

For APH database calculation purposes, insureds may substitute 60 percent of the
applicable T-Yield (80 percent for BRF) for actual yields that are less than 60 percent of the
applicable T-Yield to mitigate the effect of catastrophic years for low actual yields caused
by drought, flood, or other natural disasters. See Part 15 Section 3.

O. APH Yield Exclusion

For APH database calculation purposes, YE, allows the exclusion of actual yields for a
certain crop year when RMA determines the county per planted acre yield for a crop year
was at least 50 percent below the simple average of the per planted acre yield for the crop in
the county for the previous 10 consecutive crop years. See Part 15 Section 4.

1703-1706 (Reserved)

June 2015 FCIC 18180 293

 Section 2 T-Yields

1707 General Information

If less than four years of actual and/or assigned yields are available in an APH database
(unit/P/T/TMA), the APH database is completed with a variable T-Yield based on the number of
years of actual and/or assigned yields available for the crop in the county see Para. 1503. T-
Yields contained in carryover insureds' APH databases must be replaced with the current crop
year’s T-Yields.

1708 T-Yield Methods

T-Yields are published in the actuarial documents. The T-Yields will be used to calculate
variable T-Yields by crop and county, when necessary to calculate approved APH yields. T-
Yields are established by the following.

A. Insurable P/Ts

Separate approved APH yields are required for each P/T in the actuarial documents.
Separate APH databases must be established for each P/T. See Part 19 for individual crop
instructions.

Exception: Refer to Part 11 Section 3 for establishing APH databases for corn, cotton,
and grain sorghum when skip-row practice is applicable.

B. Map Areas

In addition to P/T, T-Yields may be assigned for certain areas within a county TMA.
Acreage located in TMA with different T-Yields or having a different T-Yield requires
separate APH databases.

For units located in more than one TMA (except for land assigned a High-Risk T-Yield),
the variable T-Yield is determined by the number of years of actual and/or assigned yields
provided for the crop and county. Separate APH databases are not required for maps used
only to assign rates (including areas with high-risk rate adjustment factors that have not
been assigned separate (different) T-Yields).

June 2015 FCIC 18180 294

1708 T-Yield Methods (Continued)

C. High-Risk Land

The actuarial documents may indicate high-risk rate adjustment factors and assign high-risk
T-Yields to high-risk land (generally identified as AAA, BBB, or CCC on the actuarial
documents) via a T-Yield Map. RMA may also assign high-risk T-Yields to unrated land
by WA.

When high-risk T-Yields are used to complete a four-year database, they are not reduced by
the variable T-Yield percentage if less than three years of actual and/or assigned yields are
available for the crop. Separate APH databases are required and must be maintained for
land with high-risk T-Yields. High-risk T-Yields are preceded by the yield descriptor "F"
when used to calculate the approved APH yield.

1709-1712 (Reserved)

June 2015 FCIC 18180 295

 Section 3 Reporting Production for P/T/TMAs

1713 Applicability

Production must be reported by P/T/TMAs, including land with different high risk T-Yields,
indicated by the actuarial documents.

1714 Separate Production

A yield must be determined for each P/T/TMA by establishing a separate APH database using the
separated acres and production. An APH database established for one P/T/TMA may not be
duplicated to establish an APH database for a different P/T/TMA.

1715 Separating Commingled Production

When production for P/T/TMAs has been commingled, separate production must be determined
for each P/T/TMA by the following.

A. Recertification

The insured provides a yield by P/T/TMA from past production records, accounts for total
disposition, and the verifier considers resulting yields reasonable.

B. Apportionment

The production is apportioned using the Multi-Purpose Production and Yield Report
Worksheet by following the Multi-Purpose Production and Yield Worksheet instructions,
see Exh. 17.

C. Proration

The production is prorated when the T-Yields for the P/Ts are the same and the insured is
unable to provide a yield estimate and the acreage of the P/Ts is known. Production is
prorated by:

(1) dividing the total commingled production by the total planted acres from which the
commingled production was harvested; and

(2) then multiplying the resulting average yield times the acres of each P/T.

The prorated production, planted acres and average yield, is entered in the APH database.

Identify prorated production with the “P” yield descriptor prior to the applicable actual
yield descriptor (“A”, “G” or “V”).

June 2015 FCIC 18180 296

1715 Separating Commingled Production (Continued)

D. Attribution

When production has been commingled between P/T/TMAs and the production cannot be
separated using one of the methods above, the total acreage and production will be
attributed to the P/T/TMA with the highest published T-Yield.

If the published T-Yields are the same, attribute the total acres and production to the highest
yielding practice as designated by RMA (e.g., irrigated if irrigated and non-irrigated
practices; SF, if SF and CC practices; spring wheat, if spring and durum wheat types;
winter wheat, if spring and winter types production was commingled).

For each APH crop year reported (2015, 2014 etc.) that acreage and production must be
attributed to the highest yielding P/T/TMA, determine the annual yields for P/T/TMAs with
lower T-Yields as follows:

Step 1: Divide the lower T-Yield published for the P/T/TMA by the highest P/T/TMAs
published T-Yield, whichever is applicable, to determine a percentage factor
(round to two places).

Example: The production for 2015 for the irrigated and non-irrigated
practices was commingled. The non-irrigated T-Yield is 90
and the irrigated T-Yield is 160: 90/160 = 0.56.

If the T-Yields are the same, the factor will be 1.0.

Step 2: Multiply the percentage factor determined in Step 1, times the approved APH
yield determined for the P/T/TMA to which the acreage and production was
attributed. The determined yield will not exceed the T-Yield published for the
lower applicable P/T/TMA.

Example: If the approved APH yield using the acres and production
attributed to the practice with the highest T-Yield (irrigated) is
140, using the factor determined in Step 1, the determined yield
for the non-irrigated practice would be 78 (140 X .56).

If the T-Yields are the same, the determined yield will be the
approved APH yield for the highest yielding P/T if lower than
the lower yielding P/T’s variable T-Yield.

Step 3: Enter the determined yield in the yield column of the APH database, identified
by the yield descriptor “F” and calculate the approved APH yield following the
applicable crop procedure. If the T-Yield changes in a subsequent crop year,
determined yields calculated correctly for a previous crop year are not
recalculated.

1716-1720 (Reserved)

June 2015 FCIC 18180 297

 Section 4 Yield Limitations

1721 General Information

Cups and yield floors are yield limitations designed to mitigate the effect of catastrophic years on
approved APH yields. Apply cups and yield floors by APH database, and only APH databases
with at least one actual or assigned yield are eligible.

1722 Cups

The cup prevents approved the APH yield from decreasing by more than 10 percent compared to
the prior year's approved APH yield for carryover insureds only. Cups do not apply to APH
databases if:

(1) there is no prior year’s approved yield for the APH database (e.g., new insureds or new
APH database due to added land, P/T, new producer, etc.);

(2) yield substitution(s) under the YA election are used to calculate the current or prior year’s
approved APH yield, see Part 15 Section 3;

(3) yield(s) are excluded under the YE election in calculating the current or prior year’s
approved APH yield, see Part 15 Section 4;

(4) the prior year’s approved APH yield was a yield floor;

(5) more than one year’s production history (including zero planted) is added to the APH
database;

(6) an approved APH yield cannot be determined by the AIP and a special case for a yield
determination is sent to the RO (RO determined yields and RO master yield determinations)
unless otherwise authorized by the RO;

(7) non-actual yields are replaced with adjusted T-Yields for high-risk or unrated land the first
effective crop year; or

(8) previously approved APH yields are corrected/changed. These include:

(a) revision of a previously reported actual yield based on acceptable, more accurate
production records submitted by the insured (e.g., grade adjustments for onions).

(b) revision of approved APH yields are required for the current crop year according to
APH review procedure when discrepancies in production and/or acreage information
are found during APH field reviews that cause changes in APH yields to exceed
established tolerances, see Para. 1581.

Exception: If the approved APH yield does NOT require correction for the
current crop year, cup procedures apply (for current and subsequent
crop year when the yield is corrected). Revised APH yields must be
reported to RMA.

June 2015 FCIC 18180 298

 1722 Cups (Continued)

(c) additional actual yields are submitted and accepted for year(s) other than the most
recent APH crop year in the APH database (e.g., assigned yields or T-Yields are
replaced with actual yields).

(d) when units/P/Ts with established APH databases containing actual and/or assigned
yields are combined or further divided. This does not include change in unit
numbering only when the actual production history is not combined or divided.

(e) the initial year the CC approved APH yield is used in place of the SF approved APH
yield for the SF practice.

(f) the T-Yield decreases 10 percent or more and the T-Yield is required to calculate the
approved APH yield when T-Yield(s) are used to complete the 4-year APH database.

(g) AIP errors. Incorrect application of procedure by AIP.

(h) corrected or revised claims lower the actual yield used for APH purposes (by
P/T/TMA) by 10 percent or more.

1723 Yield Floors

Yield floors are applicable to additional coverage policies for new and carryover insureds. When
applicable, the approved APH yield will not fall below the yield floor. The yield floor is a
percentage of the applicable T-Yield based on the number of years of records the insured has
provided for the crop and county, as provided in the following chart.

MAXIMUM YIELD
YEARS OF RECORDS
FLOOR
PERCENTAGE OF
APPLICABLE T- 1 YEAR 2 - 4 YEARS 5 OR MORE YEARS
YIELD
80% 70% OF T-YIELD 75% OF T-YIELD 80% OF T-YIELD

90% OPTION 80% OF T-YIELD 85% OF T-YIELD 90% OF T-YIELD

100% OPTION* 90% OF T-YIELD 95% OF T-YIELD 100% OF T-YIELD


Pilot available for some crops only in Minnesota, North Dakota and South Dakota (must be elected on a crop/county basis
by the applicable SCD and is continuous until canceled). Applicable option surcharge applies only to those APH databases
where the yield floor is the approved APH yield.
June 2015 FCIC 18180 299
1724 Yield Limitation Calculations

For qualifying APH databases, approved APH yields are calculated using cups and/or yield floors
as follows Exh. 17.

(1) Calculate the average APH yield using current APH procedures.

(2) Apply the cup, if applicable, to the prior approved APH yield see Exh. 17. If zero planted
and the prior year's approved APH yield was cupped, calculate the cupped yield, if
applicable, by multiplying the prior approved APH yield by 0.90.

(3) Calculate the yield floor.

(4) Determine the preliminary yield (and subsequent approved APH yield):

(a) If a cup is not applicable, use the higher of the average APH yield or the yield floor.
(b) If cup applies, use the higher of the cupped yield or the yield floor.

1725 Determining Premium Rates

Premium rates are determined differently when the approved APH yields are based on cupped
yields or yield floors. Rates are determined as follows when the approved APH yield is subject
to:

A. Cup

The rate is determined from the Cupped Yield and a 5 percent surcharge is applied. The
AIPs must identify the APH database with the appropriate yield limitation flag when
transmitting to RMA. See Appendix III.

B. Yield floor

The rate is determined from the average yield; however, guarantees are based on the yield
floor. The AIPs must identify the APH database with the appropriate yield limitation flag
when transmitting to RMA. See Appendix III.

1726-1730 (Reserved)

June 2015 FCIC 18180 300

 Section 5 New Producer

1731 New Producer Qualifications

To be a new producer, the insured must not have produced the insured crop in the county for
more than two APH crop years.

A. Producing the Insured Crop

Producing the insured crop means actively engaged in farming for a share of the insured
crop’s production in the county or being a SBI holder to a person who is actively engaged
in farming for a share of the insured crop’s production in the county.

If a crop is planted and insurable, then it is considered producing the insured crop for new
producer purposes. For example, it is considered a year of producing the insured crop when
an insured plants corn for grain and subsequently harvests corn for silage, or an insured
plants wheat for grain and then short-rates the acreage.

Producing the insured crop does not include when the crop is planted in such a way that it
would not be an insurable crop. However, acceptable production reports for the
uninsurable production must be provided for the insured to be determined a new producer,
even if the uninsurable production was from a prior crop year(s) when the insured did not
have insurance on the crop. For example, it is not considered a year of producing the
insured crop when wheat is planted with the intent of haying or grazing or a silage-only
type of corn is planted for silage in a grain-only county.

B. Produced the Insured Crop in Other Counties

Insureds who have produced the insured crop for more than two APH crop years in other
county(ies) may qualify as a new producer of the insured crop when they have not produced
the insured crop in the county for more than two APH crop years.

C. New Person Type Formation

Formation of a new person (business entity such as a corporation, partnership, trust, etc.)
comprised of one or more persons does not automatically qualify the person as a new
producer. Although the person may not have produced the insured crop, SBI holders
comprising the person may have produced the insured crop in the county.

(1) When the SBI holders and the new person have produced the insured crop for two
APH crop years or less, the new person may qualify as a new producer if:

(a) the insured crop was produced on land currently operated by the new person and
production reports are filed for those APH crop year(s).

The approved APH yield is calculated using the actual yields from the
production reports and 100 percent of the applicable T-Yield, identified with the
yield descriptor “I”.

June 2015 FCIC 18180 301

1731 New Producer Qualifications (Continued)

C. New Person Type Formation (continued)

(b) the insured crop was produced on land that is NOT operated by the new person
and production reports are filed for those APH crop year(s).

The approved APH yield is calculated using 100 percent of the applicable T-
Yield, identified with the yield descriptor “I”.

However, if production reports are not filed for all of those APH crop year(s) for
the insured crop, regardless of whether that land is operated by the new person,
the approved APH yield is calculated using the variable percentage of the
applicable T-Yield based on the number of years of production reports filed, if
any.

(2) When the SBI(s) of the new person and the new person has produced the crop more
than two APH crop years, the new person does not qualify as a new producer.

(a) If the insured crop was produced on land currently operated by the new person
and the insured files production reports for those APH crop year(s), the
approved APH yield is calculated using the actual yields and 100 percent of the
applicable T-Yield, identified with the yield descriptor “T”, to complete the 4-
year APH database.

(b) If the insured crop was produced on land that is not operated by the new person
and the insured files production reports for those APH crop year(s), the
approved APH yield is calculated using 100 percent of the applicable T-Yield,
identified with the yield descriptor “T”, to complete the 4-year APH database.

The number of years for which production reports are filed must be included in
the Actual Yield Year Count on the yield record transmitted to RMA.

(c) If production reports are not filed for all of those APH crop year(s) for the
insured crop, regardless of whether that land is operated by the new person, the
approved APH yield is calculated using the variable percentage of the applicable
T-Yield based on the number of years of production reports filed, if any.

D. Dissolution of Persons

Dissolution of a business entity, such as a corporation, partnership, trust, etc., comprised of

one or more persons does not automatically qualify the person(s) previously involved in the
business entity as new producers. If:

(1) when the SBI holders and the new person have produced the insured crop for two
APH crop years or less, the new person may qualify as a new producer if:

(a) the insured crop was produced on land currently operated by the new person and
production reports are filed for those APH crop year(s).

June 2015 FCIC 18180 302

1731 New Producer Qualifications (Continued)

D. Dissolution of Persons (continued)

The approved APH yield is calculated using the actual yields and 100 percent of
the applicable T-Yield, identified with the yield descriptor “I”.

(b) the insured crop was produced on land that is NOT operated by the new person
and production reports are filed for those APH crop year(s).

The approved APH yield is calculated using 100 percent of the applicable T-
Yield, identified with the yield descriptor “I”.

However, if production reports are not filed for all of those APH crop year(s) for
the insured crop, regardless of whether that land is operated by the new person,
the approved APH yield is calculated using the variable percentage of the
applicable T-Yield based on the number of years of production reports filed, if
any.

(2) when the SBI(s) of the new person and the new person have produced the crop more
than two APH crop years, the new person does not qualify as a new producer.

(a) If the insured crop was produced on land currently operated by the new person
and the insured files production reports for those APH crop year(s), the
approved APH yield is calculated using the actual yields and 100 percent of the
applicable T-Yield, identified with the yield descriptor “T”, to complete the 4-
year APH database.

(b) If the insured crop was produced on land that is not operated by the new person
and the insured files production reports for those APH crop year(s), the
approved APH yield is calculated using 100 percent of the applicable T-Yield,
identified with the yield descriptor “T”, to complete the 4-year APH database.

The number of years for which production reports are filed must be included in
the Actual Yield Year Count on the yield record transmitted to RMA.

(c) If production reports are not filed for all of those APH crop year(s) for the
insured crop, regardless of whether that land is operated by the new person, the
approved APH yield is calculated using the variable percentage of the applicable
T-Yield based on the number of years of production reports filed, if any.

E. Existing Persons

Although an existing business entity may not have produced the insured crop previously in
the county, SBI holders comprising the entity may have produced the insured crop in the
county previously, which may affect the new producer status of the existing business entity.

(1) When the SBI holders and the new person have produced the insured crop for two
APH crop years or less, the new person may qualify as a new producer if:

June 2015 FCIC 18180 303

1731 New Producer Qualifications (Continued)

E. Existing Persons (Continued)

(a) the insured crop was produced on land currently operated by the new person and
production reports are filed for those APH crop year(s).

The approved APH yield is calculated using the actual yields and 100 percent of
the applicable T-Yield, identified with the yield descriptor “I”.

(b) the insured crop was produced on land that is NOT operated by the new person
and production reports are filed for those APH crop year(s).

The approved APH yield is calculated using 100 percent of the applicable T-
Yield, identified with the yield descriptor “I”.

However, if production reports are not filed for all of those APH crop year(s) for
the insured crop, regardless of whether that land is operated by the new person,
the approved APH yield is calculated using the variable percentage of the
applicable T- Yield based on the number of years of production reports filed, if
any.

(2) When the SBI(s) of the new person and the new person has produced the crop more
than two APH crop years, the new person does not qualify as a new producer.

(a) If the insured crop was produced on land currently operated by the new person
and the insured files production reports for those APH crop year(s), the
approved APH yield is calculated using the actual yields and 100 percent of the
applicable T-Yield, identified with the yield descriptor “T”, to complete the 4-
year APH database.

(b) If the insured crop was produced on land that is not operated by the new person
and the insured files production reports for those APH crop year(s), the
approved APH yield is calculated using 100 percent of the applicable T-Yield,
identified with the yield descriptor “T”, to complete the 4-year APH database.

The number of years for which production reports are filed must be included in
the Actual Yield Year Count on the yield record transmitted to RMA.

(c) If production reports are not filed for all of those APH crop year(s) for the
insured crop, regardless of whether that land is operated by the new person, the
approved APH yield is calculated using the variable percentage of the applicable
T-Yield based on the number of years of production reports filed, if any.

June 2015 FCIC 18180 304

1731 New Producer Qualifications (Continued)

F. A Previous or Current SBI Holder of a Business Entity

(1) If a person previously held or continues to hold an SBI in a business entity that
produced the insured crop in the county for two APH crop years or less, the person
may qualify as a new producer if:

(a) production reports are filed for those APH crop year(s) for the insured crop on
land that is operated by the business entity, the approved APH yield is calculated
using the actual yields and 100 percent of the applicable T-Yield, identified with
a yield descriptor of “I”.

(b) production reports are filed for those APH crop year(s) for the insured crop on
land that is NOT operated by the new person, the approved APH yield is
calculated using 100 percent of the applicable T-Yield, identified with a yield
descriptor of “I”.

(2) When the business entity of which a person is a current or previous SBI holder has
produced the insured crop more than two years, the person does not qualify as a New
Producer if:

(a) the insured crop was produced on land currently operated by the person, the
insured must file production reports for those APH crop year(s). The approved
APH yield is calculated using the actual yields and 100 percent of the applicable
T-Yield, identified with the yield descriptor “T”, refer to Para. 1509.

(b) the insured crop was produced on land that is not operated by the person and
production reports are filed for those APH crop year(s). The approved APH
yield is calculated using 100 percent of the applicable T-Yield, identified with
the yield descriptor “T”. The number of years for which production reports are
filed must be included in the Actual Yield Year Count on the yield record
transmitted to RMA to ensure the appropriate percentage of the variable T-Yield
is used in calculation of the approved APH yield.

(c) production reports are not filed for all of those APH crop year(s) for the insured
crop, regardless of whether that land is operated by the new person, the
approved APH yield is calculated using the variable percentage of the applicable
T-Yield based on the number of years of production reports filed, if any.

G. Insuring a Landlord/Tenant’s Share

If either the landlord or tenant has new producer status for a crop prior to establishing the
landlord/tenant arrangement and the other party, either the tenant or landlord, does not
qualify as a new producer, the new producer status is not retained.

June 2015 FCIC 18180 305

1731 New Producer Qualifications (Continued)

G. Insuring a Landlord/Tenant’s Share (Continued)

Example: Tenant A and Landlord B – Tenant A has 200 acres of cotton and qualifies
as a new producer. Landlord B has been growing cotton in the county for
10 years. In 2016, Tenant A insures Landlord B’s share on 50 acres of
cotton. Since Landlord B does not qualify as a new producer of cotton,
Tenant A can no longer retain his new producer status for cotton.

1732 Deadline

The deadline for documenting new producer status is the PRD.

Exception: If the agent fails to correctly identify a new insured as a new producer, the error,
subject to the AIP’s approval, may be corrected up until the ARD.

1733 Verification

AIPs must verify new producer status no later than APH database establishment. Use of RMA-
provided systems, PHTS and CIMS, are sufficient for underwriting purposes to provide
reasonable assurance of the accuracy of an insured’s certification of new producer status.

Although there is no time limit as to when the crop was produced, AIPs are not responsible for
searching for years outside of those contained within RMA systems. AIPs may use additional
means to verify new producer status when warranted.

1734 Documentation

AIPs must:

(1) maintain documentation substantiating the determination of new producer status in the
insured’s file. Supporting documentation may include underwriting verification from
available RMA-provided systems, documents or phone logs of conversations from county
FSA offices, etc.

(2) obtain new producer certification from the insured, only the initial year new producer status
is requested by the insured.

1735 Approved APH Yield Determination

If the insured qualifies as a new producer, the approved APH yield must be determined using the
method below for which the insured qualifies.

A. New Producers Who Have Not Produced the Crop Previously in the County

(1) If no production records are available due to not planting the insured crop, the
applicable T-Yield (100 percent) is the approved APH yield.

June 2015 FCIC 18180 306

1735 Approved APH Yield Determination (Continued)

A. New Producers Who Have Not Produced the Crop Previously in the County (Cont.)

(a) APH databases must be established that contain four 100 percent applicable T-
Yields identified with the yield descriptor code "I".

(b) OUs are allowed, provided they are requested by the ARD and the insured keeps
separate records of acreage and production for each proposed OU for the current
crop year.

(2) If sharing in the insured crop for the current crop year with another person(s), new
producers may file acceptable production reports by the PRD based on acreage and
production records obtained from the other person(s). If so, standard APH database
procedures apply.

B. New Producers Who Have Produced the Crop for One or Two Crop Years

Production reports are required for new producers who produced the insured crop for one or
two APH crop years for such crop years.

(1) Production reports must be provided for such crop years to qualify for use of the
applicable T-Yield(s) (100 percent). If provided, the approved APH yield is
calculated by dividing the sum of the actual yield(s) and the 100 percent T-Yields by
four. If the required production reports are not filed the initial year the APH database
is established, the approved APH yield is calculated using:

(a) 65 percent of the applicable T-Yield, if no production reports are provided. See
Section 1.

(b) One actual yield and three 80 percent applicable T-Yields if only the most recent
crop year is provided and the insured has produced the insured crop two years.
See Para. 1503.

(2) OUs are determined according to the production reports filed for the previous APH
crop year.

Example: The insured started farming in 2014 and produced the insured crop in
2014 and 2015. In this instance, the insured qualifies as a New
Producer but must provide production reports for the insured crop for
the 2014 and 2015 crop years to use the 100 percent of the applicable
T-Yield in the APH database calculation.

If the insured had also produced the insured crop prior to the 2014
crop year, the insured would not qualify as a new producer.

June 2015 FCIC 18180 307

1736 Added Land and New Crop P/T APH Database

If added land or a new crop/P/T is added and the insured still qualifies as a new producer for the
crop/county, set up the new APH database(s) according to:

(1) new producer procedures; or

(2) added land and new crop/P/T APH database procedures, see Sections 9 and 10.

1737 For Subsequent Crop Years

Production reports must be provided by the PRD. If acceptable production reports are not
provided by the PRD:

(1) assigned yield provisions apply;

(2) T-Yields are then determined using variable T-Yields based on the number of
actual/assigned yield(s) for the crop/county; and

(3) OUs are not allowed.

Yield limitation provisions, cups and yield floors, apply as appropriate. Once three years of
actual, assigned, and/or temporary yields have been provided for the crop/county, the “I” yield
descriptor code is discontinued. “I” yield descriptor codes must then be removed and replaced
with T-Yield descriptor codes, even if the three years of annual yields are not applicable on an
APH database.

Example: Unit 0001-0000 planted in crop years 2013, 2014, 2015, with three actual yields.
Unit 0002-0000 has never been planted. In crop year 2016 the “I” are removed
from unit 0002-0000 and replaced with 100 percent T-Yield “T”.

Example: The insured is a new producer in 2012, unit 0001-0001 has only short-rated
wheat in crop years 2013, 2014, 2015 and unit 0001-0002 is never planted.
Because short-rated wheat is considered producing the crop, even though
production is not harvested, each year all of the wheat acreage is short-rated, a
“Q” is added to the APH database since there is no actual production on the
short-rated acreage. In 2016, the “I”s are removed from the APH databases for
both unit 0001-0001 and 0001-0002 and replaced with 100 percent T-yield “T”.

June 2015 FCIC 18180 308

 Section 6 RO Determined Yields

1738 General Information

RO Determined Yield Requests may be submitted for the following situations:

(1) variable T-Yield exceptions, when the insured does not provide acceptable production
reports due to lack of acceptable supporting production evidence and the insured (or SBI of
the insured):

(a) produced the crop on a farming operation for more than two crop years, stopped
farming ALL land in that farming operation, and has produced the crop on entirely
different land for two APH crop years or less in the county;

(b) has NOT produced or shared in the crop for more than two APH crop years in the
county in the last 10 calendar years preceding the current crop year (11 calendar years
for crops with a lag year); or

(c) has produced the crop for more than two APH crop years but not within the most
recent 10 calendar years (11 calendar years for crop with a lag year).

A person may qualify for OUs based on intent to maintain separate acreage and production
records according to OU provisions.

(2) MYs, as provided in Section 7; or

(3) Other situations authorized by RMA in policy or procedure.

See Part 22 for additional procedures for RO Determined Yields.

1739 Verifier Responsibilities

Verifiers must provide approved APH yields timely. For RO Determined Yields:

(1) AIPs must notify each affected insured of the approved APH yield(s) no later than 25
calendar days after issuance of the approved APH yield by the RO;

(2) the AIP will notify the insured of the approved APH yield(s) by:

(a) certified mail (return receipt requested); or

(b) an alternative method where the date the insured was notified and the method used is
clearly documented; and

(3) documentation of the date the insured was notified of the approved APH yield must be
available to verify timely notification of approved APH yields.

1740-1746(Reserved)

June 2015 FCIC 18180 309

 Section 7 Master Yields

1747 General Information

MYs are available for some crops and locations authorized by RMA where crop rotation and land
leasing practices limit the APH crop years of yield history available on individual units and APH
databases, see Exh. 17. MYs are not applicable for CAT policies.

To establish the approved APH MY for all acreage of the crop planted in the designated MY
area(s), data from all acreage of the crop the operator has in the county (identified by unit and by
P/T, and TMA, as shown on the actuarial documents) are used. The same policy (crop and
county) shall not contain a combination of MY(s) and approved APH yields (calculated by using
standard APH database procedures).

Exception: MYs do not apply to any acreage emerging from a USDA program (such as
CRP, etc.), new breaking acreage the initial year of planting, or native sod
acreage during the first four crop years of planting. Establish this acreage with
an APH database as provided in section 8; however, MYs will continue to apply
to all other APH databases for the crop in the county. In subsequent crop years,
the emerging USDA program acreage, new breaking acreage, or native sod
acreage must be combined with the MY for the crop/county.

Exception: MYs do not apply to an APH database utilizing a different production method
requiring the approved APH yield to be adjusted according to Para. 1575C. The
MYs will continue to apply to all other APH databases for the crop in the
county.

The approved MY (by P/T) applies to all individual units within the MY area at a minimum on a
policy basis unless otherwise authorized by a RO. Units with four or more years of records also
use the MY (by P/T) as the approved APH yield. In addition, SA T-Yield procedure for added
land or new crop/P/T APH Databases is not applicable where MYs are available.

1748 Initial MY Approval Authorities

Initial training is mandatory for an AIP to approve MYs. A minimum of one representative per
AIP must attend initial training from any RO to approve MYs for any region. RMA may also
require additional update training in some instances.

A. Referral of the MY Request

Referral of the MY request to the RO for approval is required when:

(1) RMA withdraws an AIP's authority to calculate initial MYs based upon an inordinate
number of MYs calculated incorrectly;

(2) AIPs elect not to be responsible for the approval of initial MYs; and

June 2015 FCIC 18180 310

1748 Initial MY Approval Authorities (continued)

A. Referral of the MY Request (continued)

(3) the request is to transfer a MY:

(a) to an adjacent county; or

(b) to person(s) who participated in the creation of a MY credited to another person.

B. AIP Approval of Initial MYs

AIPs may approve initial MYs for the crops and locations listed below following successful
completion of RMA approved training.

Crop Location Approval

Canola/Rapeseed all locations approved for MYs
Dry Beans and Contract Seed Beans all locations approved for MYs
Dry Peas all locations approved for MYs
Green Peas all locations approved for MYs
approved for MYs, except
Onions all locations
Colorado
Potatoes all locations approved for MYs, except Texas
Processing Beans all locations approved for MYs
Safflower Idaho approved for MYs
Sugar Beets all locations approved for MYs
Sweet Corn - Processing all locations approved for MYs
limited to
Tomatoes - Fresh Market approved for MYs
California
Tomatoes - Processing all locations approved for MYs

1749 Deadlines

The insured must sign a request for MYs by the PRD.

(1) For AIP approved Initial MYs, the AIP verifier must receive the RO Determined Yield
Request and supporting documentation no later than 20 calendar days after the PRD. If
received after the deadline, the AIP will reject the request and determine the approved APH
yield using standard APH database procedures.

June 2015 FCIC 18180 311

1749 Deadlines (continued)

(2) For RO approved Initial MYs, the RO Determined Yield Request and supporting
documentation must be received by the RO no later than 30 calendar days after the PRD.

(a) If the RO receives the request after the deadline, the RO will not accept the request
and the AIP must establish the approved APH yield using standard APH database
procedures.

(b) The RO will document late requests for subsequent review to assure that the AIP
established approved APH yields using standard APH database procedures.

1750 General Information

If the approved initial MY is at least 95 percent of the preliminary MY, the initial MY is binding.
If the approved initial MY is less than 95 percent of the preliminary MY, mutual consent
cancellation or reconsideration provisions are applicable, see GSH Part 7.

If a preliminary MY was not quoted by the agent, or if the insured's intentions are not clearly
documented, the RO/AIP will return the MY request unapproved. Approved APH yields
calculated under standard APH database procedures will then apply.

1751 Cancelling MYs

Once MYs are approved, insureds may not switch to standard APH databases, unless the insured
cancels the MY in writing on or before the cancellation date for the insured crop.

When cancelling MYs, all years of the production history contained in the MY that can be
attributed to the insured's farming operation under standard APH database procedures must be
used (landlord may have to recertify actual yields for his or her own farming operation if the MY
was established on an operator basis). Cups will not apply.

When switching back to standard APH databases, any APH database with fewer than four years
of actual/assigned yields will use variable T-Yield procedures to complete the APH databases,
SA T-Yields will not apply.

Previously approved MYs are retained if the policy is transferred and a break in continuity of
insurance does not occur, the operator remains the same, and the MY is not canceled.

1752 Requirements for Establishing Initial MY(s)

A. Operator

MYs are established on an operator basis.

(1) Operator is described as the individual with the largest insurable interest in the crop.

June 2015 FCIC 18180 312

1752 Requirements for Establishing Initial MY(s) (Continued)

A. Operator (continued)

(a) If the operator shares in other persons, the same MY must be used for all
persons in which he or she is the operator and insures under separate policies.
For example, an operator who has a majority share in multiple policies cannot
choose to insure some policies under MY and some policies under standard
APH databases.

(b) If two or more equal interests are involved, the operator is the individual who
makes the daily farm management decisions regarding the crop. If two or more
individuals have equal interests and make daily farm management decisions
equally, they will be considered to be operating jointly and will have one
combined MY. Farm management decisions begin with land selection and
continue through harvest.

(c) If the policy covers land farmed by more than one operator, a separate MY must
be established for each operator (such as the insured is a landlord on some land
and an operator on other land, or is a landowner with multiple operators).

(d) The operator for each MY must be denoted on the APH database (in the block
indicating the insured's name and address) to indicate the MY has been
established on an operator basis.

(e) The MY determined for the operator also applies to insured landlord(s) involved
in that farming operation except for a landlord that has CAT coverage or other
acreage on which a MY is not applicable. A copy of the operator's MY or a MY
with the operator's history must be placed in the landlord's file.

(2) All initial MYs for insureds sharing in the crop (companion contracts) must be
reconciled using the following guidelines prior to issuing approved MYs.

(a) An insured sharing in the crop with an operator who has an approved MY will
have his or her production guarantee(s) based on the operator’s MY if the
insured timely requested a MY. Landlords that share rent land to multiple
operators for the same crop must have MYs by operator on all land for the crop
or it must remain a standard APH database.

(b) An insured sharing in the crop with an operator who has an approved MY will
have his or her production guarantee(s) based on standard APH database
procedures unless a timely request for a MY was made.

(c) A person sharing in the crop with an operator who does not have an approved
MY may request an initial MY from the verifier by the PRD. However, AIPs
must forward the required information to the RO for approval.

June 2015 FCIC 18180 313

1752 Requirements for Establishing Initial MY(s) (Continued)

A. Operator (continued)

(d) If the operator’s (whose records were used to calculate the approved APH yield)
status as an operator changes after the PRD, the approved MY may be used for
that crop year; however, it must be recalculated for the following crop year. An
operator’s status changes if the operator rents/leases land to another person who
qualifies as the operator. Persons who may continue to use the MY include:

(i) a landlord with an approved MY based on an operator's records whose

status changed; or

(ii) an operator whose status changed but continues to have an insurable

interest in the crop. (A processor that has 100 percent interest in the crop
may not use the landowner’s or laborer’s records.)

(e) Transfer of APH database history for MYs see CSH for MYs in another county;
a Request for Actuarial Change if a WA is required for coverage and RO
criteria.

B. Previous Crop Years

MYs approved for previous crop year(s) that were not established on an operator basis, may
be converted to an operator basis if requested timely by the insured.

C. Approved By Verifier

The verifier must establish and approve MYs for each:

(1) P/T/TMA, as indicated in the actuarial documents; and

(2) RO Designated Homogeneous MY areas.

1753 Production Reporting Requirements

Individuals requesting initial MYs must furnish at least the four most recent APH crop years of
continuous production reports (that contain actual and/or assigned yields for each crop year) for
the crop, by county, within the base period. Insureds under standard APH database the previous
year who request initial MYs must use all previously certified yield history that is still within the
base period, see Part 15 Section 1.

Insureds with an approved MY for a crop who begin farming the crop in an adjoining county may
request a MY for the crop in that county from the RO. Records from other entities sharing in the
crop on the same land with the operator may be used to meet the four-year record requirement
with RO approval. However, APH history transferred from another producer (not currently
sharing in the crop) cannot be used in the establishment of a MY.

June 2015 FCIC 18180 314

1753 Production Reporting Requirements (continued)

A. Production Report

For the most recent APH crop year in the APH database, the insured must complete and
sign a production report for each unit (by BU or OU) and by TMA (when applicable) on
which the crop was grown. For such locations (legal descriptions), report acreage and
production separately by P/T when indicated on the actuarial documents. Production
reported for the most recent APH crop year determines whether the insured qualifies for BU
or OU.

B. Land Variance

Different parcels of land are often leased from year to year; therefore, units may not
correspond for all reported years in the APH database. However, the insured must report
all planted acres and production for each APH crop year.

(a) For APH crop year(s) previous to the most recent APH crop year, acreage and
production must be reported separately by P/T (when indicated in the actuarial
documents) and by location (legal description) when TMAs are involved.

If production is commingled between multiple TMAs, but the acreage within the
TMA can be identified, the production must be apportioned to the respective acreage
(by P/T) using the Multi-Purpose Production and Yield Worksheet, see Exh. 17, and
the applicable T-Yields.

(b) If for APH crop year(s) previous to the most recent APH crop year, production is
commingled between multiple TMAs and the acreage for the respective TMA (by
P/T) cannot be identified, all production and acreage shall be attributed to the highest
yielding map area (by P/T).

(c) MY Summary(ies) are compiled using the above acreage and production history, see
Exh. 17.

1754 Establishing a MY

A. Agent Responsibilities

Agents must complete a MY Summary APH database(s) that summarizes for each APH
crop year the planted acres and production for each P/T and by location when TMAs are
involved.

If it is an initial MY request, agents must quote Preliminary MYs from the MY Summary
APH Database(s). Agents must also quote a preliminary APH yield using standard APH
database procedures for comparison purposes.

June 2015 FCIC 18180 315

1754 Establishing a MY (continued)

A. Agent Responsibilities (continued)

(1) Agents must review the preliminary APH yield calculated using standard APH
database procedures and the preliminary MY with the insured. The insured must
select the method (either standard APH database or the MY APH database) to be used
to calculate the approved APH yield.

(2) The agent must obtain the insured's signature on the MY Summary APH Database in
the Insured's Signature Block. The summary must indicate either acceptance of the
preliminary MY, or voidance of the request. If the insured wishes to void the request
a statement must be added that indicates, “The MY is declined and the approved APH
yield will be based on Standard APH databases”.

(3) The agent forwards the MY Summary APH database(s), all individual unit APH
database(s) and supporting documentation to the AIP.

B. Verifier Responsibilities

(1) The verifier, for all MYs, must review the data submitted and complete or correct the
APH databases if necessary, using the following guidelines.

(a) At least four APH crop years of actual/assigned yields are required to qualify for
a MY on the crop; however, four APH crop years of actual/assigned are not
required to establish a MY for each unit, P/T, or TMA.

If a MY (P/T or TMA) has less than four years of actual/assigned yields

available, an IDY will be used to complete the APH database. IDYs are
calculated the same as variable T-Yields; therefore, IDYs will be 100 percent of
the applicable T-Yield.

(b) Previous crop year IDYs (such as previous MYs or IDYs) used to create the
minimum four-year APH database are not “set” in the MY Summary APH
database.

They must be recalculated for the 2016 policy crop year and removed in
subsequent crop years as actual yields are reported or assigned yields are
applicable. Once four years of actual or assigned yields are applicable for the
MY Summary APH Database, non-actual yields must not remain in that APH
database.

(c) Examine all actual yields certified on an APH database basis by P/T to
determine if they are reasonable. Consider actual yields exceeding the
applicable crop year T-Yield published in the actuarial documents multiplied by
the factor indicated below (unless the RO publishes different actual yield
verification factors) as questionable.

June 2015 FCIC 18180 316

1754 Establishing a MY (continued)

B. Verifier Responsibilities (continued)

Use yield flags to identify high yields on which desk audits and/or APH record
reviews are required.

(i) IRR practice: 150 percent of the applicable T-Yields.

(ii) NIRR practice: 160 percent of the applicable T-Yields.

(iii) IRR and NIRR T-Yields not identified separately on the actuarial
documents: 160 percent of the applicable T-Yield.

(iv) Actual yield verification factors published by the RO. For example, the
RO may publish different factors if T-Yields are based on less than 100
percent of the county average yield or exceptionally high actual yields
have been produced for a given crop year(s).

(d) The AIP must review all questionable crop year actual yields.

(i) The verifier corrects the actual yield if an error can be identified and
resolved (such as transposed numbers, data entry errors, incorrect decimal
placement, etc., these may often be identified without a review of
production evidence).

(ii) If an error is not identified, or the actual yield after correction still exceeds
the guidelines, verification of the actual yield as compared to production
evidence is required (APH record review).

(iii) Review of supporting production evidence to verify its acceptability and

the accuracy of actual yields. If the supporting production evidence is
acceptable:

(A) and the actual yield(s) in question is correct, no further action is

needed; or

(B) if errors are found, they are corrected by the AIP verifier to agree
with the supporting production evidence.

(iv) The AIP reviews the questionable actual yields submitted and approves,
adjusts, or rejects them.

(v) Once the RO or AIP audits and approves a questionable actual yield, it is
not subject to further desk audits (APH record reviews), unless the data is
revised in subsequent crop years.

June 2015 FCIC 18180 317

1754 Establishing a MY (continued)

B. Verifier Responsibilities (continued)

(e) All preliminary MYs (required when initial MYs have been requested) must also
be examined to determine if they are reasonable as compared to the applicable
T-Yield. Consider MYs exceeding the applicable T-Yield published in the
actuarial documents multiplied by the factor indicated below as questionable.
Use yield flags to identify high Preliminary MYs on which desk audits are
required.

(i) IRR practice: 130 percent of the T-Yield.

(ii) NIRR practice: 140 percent of the T-Yield.

(iii) IRR and NIRR practices not identified separately on the actuarial
documents: 140 percent of the T-Yield.

(iv) If error(s) can be identified and resolved, the preliminary MY is

recalculated by the verifier (such as transposed numbers, data entry errors,
incorrect decimal placement, incorrect calculations, etc., may often be
identified without a review of production evidence).

(v) If an error is not identified, or the preliminary MY after correction still

exceeds the applicable guideline, verification of all actual yields reported
as compared to production evidence is required. (Carryover insureds
previously under standard APH databases who are requesting an initial
MY are not required to retain production evidence beyond the APH record
retention requirements.)

(vi) Review of production evidence to verify reported actual yields. If the

production evidence is acceptable:

(A) and the actual yield(s) in question are correct, no further action is
needed; or

(B) if error(s) are found, they are corrected by the AIP verifier to agree
with the production evidence.

(vii) Once a questionable preliminary MY has been reviewed, actual yields

verified correct, and the MY approved, it is not subject to further desk
audits in subsequent crop years unless the data is revised.

(2) For crops which AIPs are not authorized to approve initial MYs and for crops the
AIPs elect not to approve initial MYs for crops listed in Para. 1748B, all individual
unit APH database(s), MY Summary(ies) APH Databases [requests for MY(s)], and
supporting documentation must be forwarded to the RO for approval of the initial
MY(s).

June 2015 FCIC 18180 318

1755 MY Summary APH Database Unit Number

Identify the MY Summary APH Database with the unit number of 0000-0000, with the unit
structure code blank and a yield indicator of “M”.

1756 Updating Established MY(s)

(1) Once initial MYs are approved by the RO or AIP for crops listed in Para. 1748B, the AIP
verifier updates, calculates, and approves MY(s) for subsequent crop years.

(2) Update individual APH databases and MY Summary APH Database(s) each succeeding
crop year.

(3) If the crop was not grown the previous calendar year, update all MY Summary APH
databases with zero acres (if sufficient space exists in the APH database).

(4) The RO/AIP underwriter reviews the data submitted, completes or corrects the updated MY
Summary APH database(s) when applicable, and issues the approved updated MY
Summary APH database by completing the Approved APH Yield block of the APH
database. Review actual Yields reported for each subsequent APH crop year for
reasonableness as previously indicated in Para. 1754 B(1)(d) and (e) above.

(a) Insureds must request another initial MY for a new P/T or added land (outside of an
initial MY TMA) for which an approved MY has not been previously established.
Such requests must be received in the applicable verifier's office no later than 20
calendar days after the PRD. Refer to B above for yield calculation instructions. If
the insured does not request another MY, or the request is not timely, the added land
or new crop/P/T will receive 100 percent of the applicable T-Yield. The added land
or new crop/P/T must have a MY established the subsequent crop year.

(b) For MYs established on an operator basis, the operator is responsible for providing
annual production reports to update the MY on all land he or she operates. The
verifier must provide a copy of the approved MY to each insured to whom it applies.

(c) For carryover insureds whose previously established MYs were NOT
established/converted to an operator basis, each insured is responsible for providing
annual production reports to update the MY.

June 2015 FCIC 18180 319

1757 Yield Limitation Provisions (Cup Only)

If the previous year’s approved APH yield for the P/T or TMA was:

(1) determined under the same conditions (MY both the previous and current crop year), and
yield substitutions were not used to calculate the previous year’s approved MY, the
approved APH yield will not decrease by more than the applicable cup (yield floors do not
apply to MYs); or

(2) not determined under the same conditions (standard APH database last year, MY the
current crop year, or individual MY that was converted to an operator), there is no limit to
the percent change in the yield.

1758 Yield Adjustment

Yield substitution is applicable to the MY Summary APH database, see Para. 1545A for yield
substitution procedure.

1759 Yield Exclusion

YE is applicable to the MY Summary APH database, see Para. 1560 for YE procedure related to
MY.

1760-1762 (Reserved)

June 2015 FCIC 18180 320

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

1763 Acreage Emerging From a USDA Program

A. General Information

Acreage emerging from a USDA program (such as CRP, etc.) within the two most recent
crop years that is being planted to a crop for the first time since being in the USDA program
is insurable under the terms of the policy. In accordance with the BP, acreage that is not
planted within two crop years of emergence from a USDA program may be insurable
through a WA (see the WAH) or by SP statement, if applicable.

B. Initial Year of Planting after Emergence from a USDA Program

(1) Production reports must include applicable FN/Tract/Field(s).

(a) If available, the insured must provide acceptable production history for the
year(s) the crop was grown prior to the acreage's enrollment in a USDA program
to establish an APH database(s).

(b) Production history from another producer may be used if the requirements in
Para. 1508-1509 are met.

(c) If the crop was grown prior to enrollment in the USDA program and acceptable
production history is not provided, or not enough production history exists to
complete an APH database, see (2) below.

(2) Separate APH databases are required for acreage emerging from a USDA program the
first year it is planted to a crop. See Para. 1505E for APH database exception codes,
if applicable.

(a) Establish APH databases as follows:

(i) use production history from APH crop years prior to USDA program
enrollment from the acceptable production report;

(ii) use 100 percent of the applicable T-Yield identified with a “C” yield
descriptor for each applicable P/T to establish the required separate APH
database unless the insured provides acceptable production history to
complete an APH database; or

(iii) if the insured provides less than 4 years of acceptable production history,
use the production history for those years provided that meet the
requirements for an acceptable production report and complete the APH
database using 100 percent of the applicable T-Yield identified with a “C”
yield descriptor for each applicable P/T to establish the required separate
APH database.

June 2015 FCIC 18180 321

1763 Acreage Emerging From a USDA Program (Continued)

B. Initial Year of Planting after Emergence from a USDA Program (continued)

(b) Use yield indicator “CR” to identify APH databases containing acreage
emerging from a USDA program the initial year.

(c) Added land and new crop/P/T/TMA (SA T-Yields) do not apply.

(d) An existing or new MY does not apply to emerging USDA program acreage. If
an insured has an existing or new MY, the insured may use the MY for all other
acres of the crop, except for the acreage emerging from a USDA program.

Submit the APH database for the acreage emerging from a USDA program with
the yield indicator “CR” to allow it to be accepted when other APH databases
have an M yield indicator.

(e) A new producer who has not produced the crop in the county will have an
approved APH yield based on 100 percent of the T-Yield, see Section 5 for new
producer requirements.

C. Subsequent Years of Planting after Emergence from a USDA Program

(1) The required separate APH database established the initial year of planting must be
combined with an existing APH database the following year in accordance with Part
15 Section 2, unless it meets the requirements for a separate APH database contained
in Para. 1505. If a different crop(s) is planted in subsequent years of planting,
standard APH procedures apply when establishing an APH database.

If the insured qualifies as a New Producer, the combined APH databases will qualify
for New Producer T-Yields as well. If the APH database established for initial
planting qualifies as a separate APH database in the subsequent year, New Producer
T-Yields may also apply.

(2) If the entire farm was previously enrolled in a USDA Program and is planted in a
subsequent year to a crop grown prior to enrollment in the USDA Program, establish
APH databases as follows:

(a) use production history from APH crop years prior to USDA program enrollment
from an acceptable production report;

(b) use 100 percent of the applicable T-Yield identified with a “C” yield descriptor
for each applicable P/T to establish the APH database unless the insured
provides acceptable production history to complete an APH database; or

June 2015 FCIC 18180 322

1763 Acreage Emerging From a USDA Program (Continued)

C. Subsequent Years of Planting after Emergence from a USDA Program (continued)

(c) if the insured provides less than 4 years of acceptable production history, use the
production history for those years provided that meet the requirements for an
acceptable production report and complete the APH database using 100 percent
of the applicable T-Yield identified with a “C” yield descriptor for each
applicable P/T to establish the required separate APH database.

(3) MYs may apply if the requirements in Section 7 are met.

(4) SA T-Yields may apply. If the required APH database established for the initial year
of planting must be combined with an existing APH database that qualifies for use of
the SA T-Yield, the combined APH database will qualify for SA T-Yields as well.
See Para 1774A for instructions for recalculating SA T-Yields. If the APH database
established for initial planting qualifies as a separate APH database in the subsequent
year, SA T-Yields may apply, even if the crop/P/T has been planted.

(5) The FN/Tract/Field for the unit containing the acreage that has emerged from a USDA
program must continue to be reported on the acreage report, production report, and
APH database(s) in subsequent years, regardless of whether it is a different crop or
not. However, the initial year requirement to report acreage as a separate line item
does not apply in subsequent years.

1764 New Breaking Acreage

A. Acreage Planted the Initial Year of New Breaking

(1) Production reports must include applicable FN/Tract/Field(s).

(2) Separate APH databases are required for new breaking acreage the first year it is
planted to a crop. See Para. 1505E for APH database exception codes, if applicable.

(a) Establish APH databases as follows:

(i) for acreage insurable by WA, establish the APH database in accordance
with the terms of the WA (for example, if 65 percent of the T-Yield is
provided, the AIP must use this to establish the initial year guarantee on
the new breaking acreage);

(ii) for acreage that is five percent or less of the insured planted acreage in the
unit, the BP provides it is insurable. This acreage may be included in the
APH database of an existing unit if a separate APH database is not
required; however, identification of this acreage by FN/Tract/Field is still
required. If a separate APH database is required, variable T-yields apply;
or

June 2015 FCIC 18180 323

1764 New Breaking Acreage (continued)

A. Acreage Planted the Initial Year of New Breaking (continued)

(iii) for certain crops in certain counties, new breaking acreage is insurable if
the acreage meets the requirements contained in the SP. Establish the
APH database using the appropriate percentage (identified in the SP) of the
applicable published county T-Yield in the actuarial documents.

(b) Use yield indicator “NB” to identify APH databases containing new breaking
acreage planted the initial year.

(c) Added land and new crop/P/T/TMA (SA T-Yield) does not apply.

(d) An existing or new MY does not apply to new breaking acreage unless it is 5
percent or less of the insured planted acreage in the unit.

For all other new breaking acreage, if an insured has an existing or new MY, the
insured may continue to use the MY for all other acres of the crop except for the
new breaking acreage.

The APH database for the new breaking acreage must be submitted with the
yield indicator “NB” to allow it to be accepted when other APH databases have
an “M” yield indicator.

B. Acreage Planted Subsequent Years after Initial Year of New Breaking

The required separate APH database established the initial year of planting must be
combined with an existing APH database the following year in accordance with Part 15
Section 2, unless it meets the requirements for a separate APH database contained in Para.
1505.

If the SP or a WA assigned a new breaking yield the initial year, replace that yield with the
actual production and complete the APH database (for example, using variable T-Yields).
If a different crop(s) is planted in subsequent years of planting, standard APH procedures
apply.

MY may apply if requirements in Section 7 of this Part are met.

If the insured qualifies as a new producer, the combined APH databases will qualify for
new producer T-Yields as well. If the APH database established for initial planting
qualifies as a separate APH database in the subsequent year, New Producer T-Yields may
also apply.

If the required APH database established for the initial year of planting must be combined
with existing APH databases that qualify for use of the SA T-Yield, the combined APH
databases will qualify for SA T-Yields as well. See Para. 1774A for instructions for
calculating SA T-Yields.

June 2015 FCIC 18180 324

1764 New Breaking Acreage (continued)

B. Acreage Planted Subsequent Years after Initial Year of New Breaking (continued)

If the APH database established for initial planting qualifies as a separate APH database in
the subsequent year, SA T-Yields may apply, even if the crop/P/T has been planted. See
Para. 1774A for instructions for calculating SA T-Yields.

The FN/Tract/Field for a unit containing the new breaking acreage must continue to be
reported on the acreage report, production report, and APH database(s) in subsequent years,
regardless of whether it is a different crop or not. However, the initial year requirement to
report acreage as a separate line item does not apply in subsequent years.

1765 Native Sod Acreage

A. General Information

An APH database is required to be maintained separately for any native sod acreage and
will contain the actual yields reported by the insured on the production report. Even though
the actual yields from the production reports are maintained in the APH database, these
yields are not used to determine the approved APH yield and yield substitution does not
apply during the first four crop years of planting. The approved APH yield and rate yield
will be equal to 65 percent of the T-Yield contained in the actuarial documents or 65
percent of the PTY, if elected [any applicable prevented planting is determined using the
production guarantee (per acre) for timely planted acreage, based on 65 percent of the T-
Yield contained in the actuarial documents or 65 percent of the PTY, if elected, for native
sod acreage until the first four crop years of planting are complete].

These native sod acreage procedures:

(1) The procedure in this paragraph are in addition to procedures in Para. 1764;

(2) Refer to WAH Para. 73 for acceptable documentation that may be used, but is not
limited to, substantiate the acreage does not qualify as native sod acreage.

(3) Acreage that does not qualify as native sod acreage may still be subject to the new
breaking acreage procedures.

(4) See GSH Part 7 for additional information regarding native sod acreage.

B. Establishing APH Databases for Native Sod Acreage

(1) Within a unit, native sod acreage that was initially tilled and planted in a given crop
year will have its own separate APH database(s).

(a) The approved APH yield and rate yield are equal to 65 percent of the T-Yield in
the actuarial documents, or 65 percent of the PTY, if elected. The yield
limitation flag of “4” must be submitted for native sod APH databases.

June 2015 FCIC 18180 325

1765 Native Sod Acreage (continued)

B. Establishing APH Database for Native Sod Acreage (continued)

(b) Use yield indicator “SB” to identify native sod APH databases for the first four
crop years of planting.

(c) SA T-Yields for added land and new crop/P/T/TMA do not apply to APH
databases established for native sod acreage. Additionally, the native sod APH
databases are not used in the calculation of the SA T-Yield until the first four
crop years of planting has been completed.

(d) YA does not apply.

(e) An existing or new MY does not apply to APH databases established for native
sod acreage.

(i) If an insured has an existing or new MY, the insured may continue to use
the MY for all other acres of the crop except for the native sod acreage.

(ii) The APH database for the native sod acreage must be identified with yield
indicator “SB”, all other APH databases must have an “M” yield indicator.

(iii) The actual yields in the native sod APH database must be used in the
calculation of the MY for the first four crop years the native sod acreage is
planted. MYs will apply to the native sod acreage only after the native sod
acreage has met the requirement of having been planted for four crop
years.

(f) The actual yields in the native sod APH database must be used in the calculation
of the PTY, if elected.

(2) Establish native sod acreage APH databases for the initial year that native sod acreage
is tilled and planted, when the acreage is:

(a) insurable by WA, establish the APH database using the yield assigned by the
WA (65 percent of the T-Yield contained in the actuarial documents or 65
percent of the PTY, if elected) for each crop that the insured intends to plant on
the acreage in the next four years (if the crops are insured on the policy);

(b) insurable by SP or under the BP (five percent or less of the insured planted
acreage in the unit), establish the APH database using 65 percent of the T-Yield
contained in the actuarial documents; or

(c) uninsurable for the initial year of crop production, establish the APH database
using 65 percent of the T-Yield contained in the actuarial documents. The crop
planted must be reported on the Acreage Report as uninsurable acreage.

June 2015 FCIC 18180 326

1765 Native Sod Acreage (continued)

C. Subsequent Years

After a native sod APH database is established, that APH database must remain separate for
the first four crop years of planting after the native sod acreage was initially tilled and
planted. See Para. 1505E for APH database exception codes. After the native sod acreage
has been planted for four crop years, the separate APH databases for those native sod acres
may be combined with other APH databases or continue to remain separate, as allowed by
APH database procedures.

(1) In the second and subsequent crop years after native sod acreage is tilled and planted,
when the acreage is:

(a) the same crop/P/T/TMA that was insurable by WA, insurable by SP, or
insurable under the BP:

(i) replace the 65 percent T-Yield with actual yields and complete the APH
database using the applicable variable T-Yield(s); and

(ii) although the APH database is updated with actual yields and applicable
variable T-Yield(s), the approved APH yield is limited to 65 percent of the
T-Yield contained in the actuarial documents, or 65 percent of the PTY,
when applicable and if elected;

(b) a different crop(s) planted in subsequent years, those crops are also limited to an
approved APH yield equal to 65 percent of the T-Yield contained in the
actuarial documents, or 65 percent of the PTY, if elected; or

(c) uninsurable the initial year and is insurable under the terms of the policy in
subsequent years, update the APH database using variable T-Yields. The actual
yield from the initial year the acreage was uninsurable cannot be added to the
APH, but must be reported on the production report. The approved APH yield
will be equal to 65 percent of the T-Yield contained in the actuarial documents,
or 65 percent of the PTY, if elected.

The initial year that was uninsurable and was planted to an annual crop is
counted towards meeting the first four crop years of planting to a crop.

(2) Native sod APH databases must be combined with an existing APH database after the
acreage has been separated for the first four crop years of planting to a crop in
accordance with Part 15, Section 2, unless it meets the requirements for a separate
APH database contained in Para. 1505.

(a) MY may apply if requirements in Part 17, Section 7 are met.

June 2015 FCIC 18180 327

1765 Native Sod Acreage (continued)

C. Subsequent Years (Continued)

(b) If the insured qualifies as a new producer, the combined APH databases will
qualify for new producer T-Yields. If the native sod APH database established
for the first four crop years of planting to a crop qualifies as a separate APH
database beginning with the fifth crop year of planting, new producer T-Yields
may also apply.

(c) If the required native sod APH database established for the first four crop years
of planting to a crop must be combined with an existing APH database that
qualifies for the use of the SA T-Yield, the combined APH database will qualify
for SA T-Yields. See CIH Paragraph 1774A for instructions for calculating SA
T-Yields.

(d) If the APH database established for the first four crop years of planting to a crop
qualifies as a separate APH database in the subsequent years, SA T-Yields may
apply, even if the crop/P/T has been planted. See Para. 1774A for instructions
for calculating SA T-Yields.

1766-1770 (Reserved)

June 2015 FCIC 18180 328

 Section 9 Added Land

1771 General Information

The added land procedures in this section are applicable for all Category B APH crops when
cropland is added to an insured’s farming operation in a county in the current crop year.

Exception: Insureds cannot elect to use SA T-Yields for added land in counties where MYs
are available for the crop, regardless of whether the insured qualifies to use
MYs. See Section 7 for procedures regarding MYs.

Example: Insured cash leases 1,200 cropland acres to add to his farming operation for the
current crop year. The added land procedures in this section are applicable to
the 1,200 cropland acres.

Example: An insured purchased 1,000 cropland acres five years prior to the current crop
year. In the current year, the insured wishes to plant the 1,000 acres to a crop
that has never been planted on the 1,000 acres.

The added land procedures in this section are not applicable to the 1,000
cropland acres because the acres were added to the farming operation five years
prior to the current year. However, new crop/P/T procedures would be
applicable see Para. 1788 for new crop/P/T procedures.

1772 AIP Responsibilities

The AIP representative must:

(1) determine the correct unit structure for added land. If additional cropland is purchased or
rented after the PRD, it may be added as a separate unit (provided it meets BU/OU
requirements and production reporting requirements) or added as part of an existing unit, if
applicable; and

(2) notify insureds of added land and cropland acreage limitations prior to the PRD. If the
information on the acreage report indicates there is acreage that may qualify as added land,
the AIP should contact the insured to explain added land and cropland acreage limitations
procedures.

1773 APH Databases for Added Land

When cropland is added to a farming operation under the added land procedures and such
cropland will:

(1) comprise new BU(s) or separate OU(s), a new APH database must be established for each
of the new BU(s) or separate OU(s) (even if such BU or OU is an underlying APH database
for an EU/WU); or

(2) be added to an existing unit, a new APH database is not established unless the added land
does not qualify for use of the existing unit’s approved APH yield.

June 2015 FCIC 18180 329

1774 Methods for Determining Approved APH Yields for Added Land

A. Use of SA T-Yields

(1) When an insured requests the use of SA T-Yields by the PRD, but no later than the
ARD, SA T-Yields may only be approved and used to establish:

(a) an APH database for added land established as a new BU or separate OU (even
if such BU or OU is an underlying APH database for an EU/WU); or

(b) a separate APH database within an existing unit.

(2) SA T-Yields shall not be used to establish an APH yield for an added land APH
database when:

(a) the total land being added to the farming operation is:

(i) 2,000 cropland acres or greater; or

(ii) greater than or equal to 640 cropland acres and less than 2,000 cropland
acres, and the RMA RO has not approved the use of SA T-Yields for such
acres.

(b) an insured provides a production report supported by the production records of

another person sharing in the production of the crop/P/T on any land added for
that applicable crop year, and all the requirements of Para. 1508 are met; or

(c) if the insured previously participated in the production of the crop/P/T on the
added land.

(3) SA T-Yields are determined based on the crop year the APH database is established,
by crop/P/T/TMA.

(a) SA T-Yields are calculated using the approved APH yield from each of the
insured’s existing APH databases in the county that have at least one year of
actual/assigned yields, by crop/P/T/TMA, excluding high-risk land APH
databases insured under a separate CAT policy.

(b) Calculate SA T-Yields separately by crop/P/T/TMA, including TMAs identified

as high-risk.

Exception: SA T-Yields may be calculated using approved APH yields for

acreage located in TMAs with T-Yields equal to or lower than
the T-Yield of the cropland being added if APH database(s)
with actual yields from the same TMA as the added land is not
available.

June 2015 FCIC 18180 330

1774 Methods for Determining Approved APH Yields for Added Land (continued)

A. Use of SA T-Yields (continued)

(c) When the added land is physically located in a TMA identified as high-risk,
calculate a SA T-Yield for such land using only APH databases that meet both
of the following requirements (if both of the requirements are not met, use 100
percent of the high-risk T-Yield for the added land):

(i) contain at least one year of actual/assigned yields; and

(ii) are for existing units physically located in a TMA identified as high-risk
that have the same high-risk T-Yield as the added land.

(4) Make all applicable yield reductions prior to using the approved APH yield of an
existing APH database in calculating a SA T-Yield. Yield reductions include the
following (see Part 15 Section 5):

(a) excessive actual yields;

(b) inconsistent approved APH yields when insured acreage limitations are
exceeded; and

(c) different production methods likely to result in lower yields.

(5) To calculate a SA T-Yield for a new APH database (new BU or separate OU, or
separate APH database within an existing unit) for added land, use the following steps
in order. An “L” yield descriptor is used to identify SA T-Yields for added land see
Exh. 17. When calculating SA T-Yields, use the rounding rules for yields provided in
the GSH.

(a) Sum the approved APH yields from all of the insured’s existing APH databases
in the county that have at least one year of actual/assigned yields, by
crop/P/T/TMA, excluding APH databases with high-risk land insured under a
separate policy.

Exception: When YE applies to a policy, the SA T-Yield is calculated

using the current crop year’s simple average of:

(1) the adjusted yield for those APH databases with excluded
actual yields in an eligible crop year that have at least one
actual/assigned yield prior to any exclusions; and

(2) the approved APH yield for those APH databases where
actual yields have not been excluded that have at least one
actual/assigned yield.

(b) Sum the number of existing APH databases used in (a).

June 2015 FCIC 18180 331

1774 Methods for Determining Approved APH Yields for Added Land (continued)

A. Use of SA T-Yields (continued)

(c) Divide the result of (a) by the result of (b) to obtain the SA T-Yield by
crop/P/T/TMA.

Example 1: Insured A has three existing OU APH databases and one BU APH
database in the farming operation in the county. Each existing APH
database has at least one year of actual/assigned yields. Insured A
adds 600 acres of cropland in the current crop year, and wishes to
establish a separate OU for the added land using a SA T-Yield.
Neither the added land nor the existing APH databases are physically
located in a TMA.

Insured A’s four existing APH databases have an approved APH

yield of 36, 32, 37, and 39. To calculate the SA T-Yield for the new
separate OU for the 600 acres of added land:

(1) sum the approved APH yields from the existing units of the
crop/P/T (36 + 32 + 37 + 39 = 144);

(2) sum the number of existing units used (4); and

(3) divide the result from (1) by the result of (2) above (144 ÷ 4 =
36). The SA T-Yield is 36.

Example 2: Insured A has five existing OU APH databases and two BU APH
databases in his farming operation. Each existing APH database has
at least one year of actual/assigned yields. Two of the existing OUs
are physically located in a TMA, the other three OUs and the two
BUs are not.

Insured A adds 400 acres of cropland in the current crop year, and
wishes to establish a separate OU for the added land using a SA T-
Yield. The added land is not physically located in a TMA.

Insured A’s five existing unit APH databases not physically located
in a TMA have an approved APH yield of 142, 149, 154, 130, and
150. Insured A’s two existing units physically located in a TMA
have approved APH yields of 122 and 125.

Because the added land is not physically located in a TMA, only use
Insured A’s APH databases for existing units that are not physically
located in a TMA to calculate the SA T-Yield for the new OU for the
400 acres of added land. To calculate the SA T-Yield:

June 2015 FCIC 18180 332

1774 Methods for Determining Approved APH Yields for Added Land (continued)

A. Use of SA T-Yields (continued)

(1) sum the approved APH yields from the existing APH databases
not physically located in a TMA (142 + 149 + 154 + 130 + 150
= 725);

(2) sum the number of existing APH databases used (5); and

(3) divide the result from (1) by the result of (2) above (725 ÷ 5 =
145). The SA T-Yield is 145.

(6) Once a SA T-Yield has been calculated and approved, the AIP shall enter the SA T-
Yield in the APH database for the four most recent crop years. Submit yield
indicators to RMA as long as SA T-Yield(s) are contained in the APH database. See
Para. 1780 for added land yield descriptors and yield indicators.

(a) AIP will update the APH database with actual/assigned yields, as applicable, in
subsequent years, and remove one SA T-Yield for each year an actual/assigned
yield is entered.

(b) Do not recalculate SA T-Yields when the APH database with actual/assigned
yields is updated in subsequent years, see Para. A(7) for correcting SA T-Yields.

(c) See Exh. 15 for examples of recording and maintaining SA T-Yields.

(7) Do not update SA T-yields in subsequent years once calculated and recorded in an
APH database. However, correct SA T-Yields if one or more of the following
applies:

(a) SA T-Yield recorded in APH database was calculated incorrectly, including

when a SA T-Yield is calculated using an existing unit’s approved APH yield
before reductions were made to the approved APH yield; or

(b) approved APH yield or adjusted yield of one or more of the existing APH
databases used to calculate the SA T-Yield was incorrect.

(8) When a unit structure change or a combination/division of units causes an APH

database with a SA T-Yield for one or more years to be combined or divided, replace
the SA T-Yields with the applicable variable T-Yield, see Part 15 Section 2 for
combining and dividing APH databases.

Exception: When RMA combines or divides a P/T/TMA which causes an APH

database with a SA T-Yield for one or more years to be combined or
divided, recalculate the SA T-Yields using the simple average of the
approved APH yields and adjusted yields, as applicable, for the new
P/T/TMA APH databases.

June 2015 FCIC 18180 333

1774 Methods for Determining Approved APH Yields for Added Land (continued)

A. Use of SA T-Yields (continued)

(9) When the APH database established for the initial planting of land emerging from a
USDA program, the initial year of new breaking, or the first four crop years native
sod acreage is planted:

(a) must be combined with an existing APH database in a subsequent year of

planting the same crop/P/T/TMA, the combined APH database qualifies for use
of the SA T-Yield if the existing APH database qualified for use of the SA T-
Yield, even if the crop/P/T/TMA has been planted; or

(b) qualifies as a separate APH database in the subsequent year of planting the same
crop/P/T/TMA and would have qualified as added land, SA T-Yields apply,
even if the crop/P/T has been planted.

In both instances, the SA T-Yield is calculated in accordance with (3)-(6) with the
exception that the SA T-Yield is based on the current year instead of the crop year the
APH database is established.

B. Use of an Existing Unit’s Approved APH Yield

Added land may be added to an existing BU or OU, and use the existing unit’s approved
APH yield if the added land is within cropland acreage limitations provided in Para. 1775
and requirements in Para. 1773 and 1774 below are met.

(1) Requirements for adding to an existing BU or OU:

(a) the added land must be physically located in:

(i) the same or higher TMA as the existing unit (by crop/P/T), if T-Yield
maps are applicable; or

(ii) a high-risk TMA (including high-risk T-Yields assigned by WA) and has
the same high-risk T-Yield as the existing unit (by crop, P/T);

(b) the added land does not qualify as a separate OU and is added to the existing BU
or OU; and

(c) the added land qualifies as a separate OU and the insured agrees to the
requirements to combine OUs in Para. 1085. If the insured does not adhere to
these requirements, a separate APH database must be established and
maintained. Complete the added land APH database using variable T-Yields or
SA T-Yields, if eligible.

(2) If eligible to use the existing unit’s approved APH yield and:

June 2015 FCIC 18180 334

1774 Methods for Determining Approved APH Yields for Added Land (continued)

B. Use of an Existing Unit’s Approved APH Yield (continued)

(a) there is only one APH database within the existing unit, use the existing unit’s
APH database yield (a separate APH database is not established for the added
land); or

(b) there are multiple APH databases within the existing unit, use the simple
average of those APH databases’ approved APH yields as the SA T-Yield to
complete the added land APH database.

(3) If ineligible to use the existing unit’s approved APH yield due to exceeding cropland
acreage limitations or use of SA T-Yield not approved or requested, use variable T-
Yields to complete the added land APH database. The added land APH database will
remain separate until it has four years of actual/assigned yield and then will be
combined with the existing unit’s APH database.

C. Use of Another Person’s Acreage and Production History

(1) When an insured files an acceptable production report by the PRD, the insured may
use:

(a) the actual yields of another person sharing in the crop/P/T for the current crop
year if the requirements in Para. 1508 are met; or

(b) transferred APH data if the requirements in Para.1508 have been met.

(2) Actual yields from another person sharing must account for all units shared with that
person for the year(s) certified. SA T-Yields may not be used to establish a yield for
other added land rented (share or cash lease) with the same person for the same
crop/P/T. If records are unavailable for other added land shared with the same person
for the same crop/P/T, variable T-Yields apply.

(3) When less than four years of actual yields of the other person are provided, the APH
database is completed using variable T-Yields see Section 2.

(4) Added land that could qualify as separate OUs may be established as one APH
database only by an Agreement to Combine OUs, see Para. 1085.

(5) Make all applicable APH yield reductions prior to using another person’s acreage and
production history. Yield reductions include the following (see Part 15 Section 5):

(a) excessive actual yields;

(b) inconsistent approved APH yields when insured acreage limitations are
exceeded; and

(c) different production methods likely to result in lower yields.

June 2015 FCIC 18180 335

1774 Methods for Determining Approved APH Yields for Added Land (continued)

D. Use of Variable T-Yields

(1) Use variable T-Yields for the added land when acceptable production reports have not
been filed and/or assigned yields are not applicable, and the added land is:

(a) a separate BU or OU and does not qualify for use of the SA T-Yield;

(b) a separate BU or OU and the SA T-Yield is less than the variable T-Yield;

(c) added to an existing unit and does not qualify for the existing unit’s yield;

(d) partially or entirely located in a TMA with a lower T-Yield than the existing
unit, if TMAs are applicable; or

(e) subject to a lower T-Yield for any reason.

(2) Variable T-Yields are determined based on a percentage of the T-Yield for the
crop/P/T. See Para. 1503 for applicable percentages to determine variable T-Yields.

Exception: When added land is physically located in a TMA identified as high-

risk, use 100 percent of the high-risk T-Yield in lieu of the variable
T-Yield.

(3) Once the applicable variable T-Yield has been determined, enter it in the APH
database for the four most recent crop years. See Para. 1780 for added land yield
descriptors and yield indicators. Submit yield indicators to RMA as long as variable
T-Yield(s) are contained in the APH database.

In subsequent years, the AIP will update the APH database:

(a) with actual/assigned yields, as applicable;

(b) by removing one variable T-Yield for each year an actual/assigned yield is
entered; and

(c) with new applicable variable T-Yields when the number of years of
actual/assigned yields used to determine the variable T-Yield percentage
changes. See Exh. 15 for examples of establishing and updating APH databases
containing variable T-Yields with actual/assigned yields.

June 2015 FCIC 18180 336

1775 Cropland Acreage Limitations

A. Applicability

Use cropland acreage limitations to determine whether a RMA RO underwriting review is

required to determine the appropriate yield method for added land. Cropland acreage
limitations:

(1) apply only to cropland added to a farming operation in a county in a crop year; and

(2) do not apply to cropland that has production history for the applicable crop/P/T, and
the requirements for use of another insured’s production history are met, see Para.
1774C and 1508 for requirements for use of another insured’s production history for
added land.

However, such cropland will be included in the calculation of amount of cropland

acres being added to determine whether cropland acreage limitations are met or
exceeded.

B. Determining Cropland Acres

All acres that meet the definition of cropland shall be included when determining the total
number of acres for added land and cropland acreage limitation purposes.

(1) Determine cropland acreage limitations based on the crop year the cropland acreage is
obtained (purchased or leased) by the insured. Do not add cropland acreage obtained
over multiple crop years together when determining the total number of acres for
cropland acreage limitation purposes.

(2) The following do not affect the determination of the total number of cropland acres
for added land and cropland acreage limitation purposes:

(a) the crop, if any, on the added land;

(b) cropping history, if any, of the added land;

(c) yield history, if any, of the added land;

(d) number of acres (cropland or otherwise) in the insured’s farming operation prior
to adding the added land;

(e) whether the added land will be added to an existing unit(s) or constitute a
separate unit(s);

(f) whether the added land acreage is cash leased, share leased, purchased or
otherwise obtained; or

(g) whether a production report based on another insured’s production records

applies to any of the added land acreage.

June 2015 FCIC 18180 337

1775 Cropland Acreage Limitations (continued)

B. Determining Cropland Acres (continued)

Example 1: An insured has a farming operation comprised of 1,500 acres. In the 2015
crop year, the insured purchased 160 cropland acres. The insured did not
plant on the 160 additional cropland acres in 2015. In the 2016 crop year,
the insured cash leases an additional 1,200 cropland acres.

To determine cropland acreage limitation purposes, consider land added in

different years separately. In this example, the 160 acres and 1,200 acres
are not added together to determine whether cropland acreage limitation
were met, but are considered separately.

Example 2: An insured currently has a farming operation comprised of 350 acres. In

the 2016 crop year, the insured purchased 1,000 acres of land consisting of
200 cropland acres and 800 acres of non-cropland.

Although the insured purchased a total of 1,000 acres of land, only 200
acres meet the definition of cropland. Accordingly, for cropland acreage
limitation purposes the total number of cropland acres is 200 acres.

Example 3: An insured currently has a farming operation comprised of 3,250 acres. In

the 2016 crop year, the insured cash leased two additional tracts of land.
One of the additional tracts of land contains 300 cropland acres, and the
other contains 400 cropland acres.

One tract of land has production history. The other tract of land has been
continuously cropped for several years, but there is no production history
available for the acres. The insured wishes to add each additional tract of
land as a separate OU to his farming operation.

The total number of cropland acres for cropland acreage limitation

purposes is 700 acres (300 + 400 = 700). The cropping/yield history of the
land, the request that the land be added as separate units, and the number
of acres in the insured’s current operation has no impact when determining
the total number of added land acres for cropland acreage limitation
purposes.

C. Cropland Acreage Limitation Categories

The amount of added land added to an insured’s operation within the county will impact the
options available to the insured regarding the yield method that may be used for the added
land. The following three categories have been established for cropland acreage limitation
purposes.

(1) Total added land less than 640 cropland acres.

June 2015 FCIC 18180 338

1775 Cropland Acreage Limitations (Continued)

C. Cropland Acreage Limitation Categories (Continued)

(2) Total added land greater than or equal to 640 cropland acres, but less than 2,000
cropland acres.

(3) Total added land is 2,000 cropland acres or greater.

D. Impact of Cropland Acreage Limitation for Added Land

(1) Do not consider cropland acreage limitations when determining whether an insured
may use another producer’s production history to establish an approved APH yield for
added land. However, such cropland will be included in the calculation of the amount
of cropland acres being added to determine whether cropland acreage limitations are
met or exceeded.

(2) The following table provides instructions for determining the APH yield for added
land added as a new BU or separate OU(s).

IF the added land being added as a THEN establish the approved APH yield for the
new BU or separate OU(s) is… APH database using…

the higher of the following:

less than 640 acres (1) applicable variable T-Yield; or
(2) SA T-Yield.

the following:
greater than or equal to 640 acres and (1) applicable variable T-Yield; or
less than 2,000 acres
(2) SA T-Yield, if use of SA T-Yield is requested
and is approved by the RMA RO.

greater than or equal to 2,000 acres applicable variable T-Yield.

Example 1: Insured A purchases 600 cropland acres in the current crop year and
is adding it to his operation as a separate OU, planting all 600
cropland acres to corn in the current crop year.

Insured A has three existing OUs in his farming operation, with each
unit having five years of actual corn production. Since less than 640
cropland acres are being added, the approved APH yield for the
added land is established using the higher of the following:

(1) SA T-Yield calculated according to 1774A; or

(2) applicable variable T-Yield.

June 2015 FCIC 18180 339

1775 Cropland Acreage Limitations (Continued)

D. Impact of Cropland Acreage Limitation for Added Land (continued)

Example 2: Insured A purchases 800 cropland acres in the current crop year and
adds it to his operation as two separate OUs. Insured A has three
OUs in his farming operation, with each unit having five years of
actual wheat production.

Since the added cropland acreage is between 640 and 2,000 acres,
establish the approved APH yield for the separate OUs using the
higher of the following:

(1) SA T-Yield, provided the RMA RO performs an underwriting

review and approves the use of SA T-Yields according to Para.
1774; or

(2) applicable variable T-Yield (if a RMA RO underwriting review

is not requested, or if the RMA RO underwriting review
determines that use of the SA T-Yield is not appropriate, the
applicable variable T-Yield applies).

Example 3: Insured A purchases 2,100 cropland acres in the current crop year
and adds the acreage to his operation as four separate OUs. Insured A
has three OUs in his farming operation, with each unit having three
years of actual soybean production.

Since more than 2,000 cropland acres were added, the approved APH
yield for each of the four new OUs is established using the applicable
variable T-Yield. SA T-Yields cannot be used to establish an APH
yield for a unit when the total added land being added to the
operation is 2,000 cropland acres or greater.

(3) The following tables provide instructions for determining the approved APH yield for
land added to an existing unit.

June 2015 FCIC 18180 340

1775 Cropland Acreage Limitations (Continued)

D. Impact of Cropland Acreage Limitation for Added Land (continued)

IF the added land

being added to an AND… THEN…
existing unit is…
neither the added land nor the existing unit are
physically located in a TMA, including a TMA
identified as high-risk the added land will be added to the
APH database of the existing unit,
the added land is physically located in the same
and the production history of that
TMA as the existing unit
unit, by crop/P/T, will apply to the
the added land is physically located in a TMA added land.
identified as high-risk, and has the same high-
risk T-Yield as the existing unit
a separate APH database, by
less than 640 acres crop/P/T, within the existing unit
the added land is not physically located in the must be established for the added
same TMA as the existing unit land using variable T-Yield of the
TMA where the added land is
physically located.
a separate APH database, by
crop/P/T, within the existing unit
the added land is physically located in a TMA
must be established for the added
identified as high-risk with a different high-risk
land using 100% of the high-risk
T-Yield than the existing unit
T-Yield where the added land is
physically located.

IF the added land being

added to an existing AND… AND… THEN…
unit is…
RMA RO approved the the production history of the
use of the production existing unit, by crop/P/T/TMA,
history of the existing including TMA identified as high-
unit risk, will apply to the added land.
the added land is not
a separate APH database within the
physically located in
existing unit will be established for
a TMA, including a
RMA RO did not the added land using applicable
TMA identified as
approve the use of the variable T-Yield.
high-risk
production history of the
greater than or equal to
existing unit (such as no a separate APH database within the
640 acres and less than
request for RMA RO existing unit will be established for
2,000 acres the added land is
underwriting review was the added land using applicable
physically located in
submitted, or RMA RO variable T-Yield for the TMA in
a TMA
performed an which the added land is physically
underwriting review but located.
did not approve the use
of the production history a separate APH database within the
the added land is
of the existing unit) existing unit will be established for
physically located in
the added land using 100% of the
a TMA identified as
T-Yield of the TMA in which the
high-risk
added land is physically located.

June 2015 FCIC 18180 341

1775 Cropland Acreage Limitations (Continued)

D. Impact of Cropland Acreage Limitation for Added Land (continued)

IF the added land

being added to an AND… THEN…
existing unit is…
the added land does not qualify as a new BU or
separate OU(s) a separate APH database, by
the added land qualifies as a separate OU crop/P/T, within the existing unit
according to the CP; however, the insured meets must be established for the added
and agrees to all requirements to combine the land using the applicable variable
added land unit and the existing unit according T-Yield.
to Part 10 Section 7
the insured must elect one of the
greater than or equal to following:
2,000 acres
the added land qualifies to be a separate OU, (1) separate OU, according to Part
and the insured does not meet and agree to all 10 Section 2; or
the requirements to combine the added land unit
with the existing unit according to Part 10 (2) separate APH database, by
Section 7 crop/P/T, within the existing unit
must be established for the added
land using the applicable variable
T-Yield.

Example 1: Insured A purchases 300 cropland acres in the current crop year.
Insured A has three existing OUs in his farming operation, with each
unit having five years of actual corn production. Insured A is going
to add the 300 cropland acres of added land to one of his existing
OUs, and plant all 300 cropland acres to corn in the current crop
year.

The added land is physically located in a TMA identified as high-risk

with a different high-risk T-Yield as the existing unit. Therefore,
establish a separate APH database, by crop/P/T, within the existing
unit for the added land using 100 percent of the high-risk T-Yield
where the added land is physically located.

Because the added land is physically located in a TMA identified as

high-risk, and the existing unit is not, the added land cannot be added
to the APH database of the existing unit.

Example 2: Insured A purchases 800 cropland acres in the current crop year.
Insured A has three OUs in his farming operation, with each unit
having five years of actual wheat production. Insured A is going to
add the 800 cropland acres of added land to two of his existing units
(400 acres to each), and plant wheat on all 800 cropland acres in the
current crop year.

June 2015 FCIC 18180 342

1775 Cropland Acreage Limitations (Continued)

D. Impact of Cropland Acreage Limitation for Added Land (continued)

The added land qualifies as a separate OU according to the CP;

however, insured A meets and agrees to all requirements to combine
the added land unit with the existing unit according to Para. 1085.

Neither the added land nor the existing units are physically located in
a TMA, including a TMA identified as high-risk.

A RMA RO underwriting review is requested, and the RMA RO

does not approve the use of the production history of the existing
unit. Therefore, establish a separate APH database within the
existing unit for the added land using applicable variable T-Yield.

The added land cannot be added to the APH database of the existing
unit because RMA RO did not approve the use of the production
history of the existing unit.

Example 3: Insured A purchases 2,100 cropland acres in the current crop year.
Insured A has six OUs in his farming operation, with each unit
having three years of actual soybean production. Insured A is going
to add the 2,100 cropland acres of added land to his existing OUs,
and plant soybeans on all 2,100 acres in the current crop year.

The added land does not qualify as a new BU or separate OUs. Since
more than 2,000 cropland acres were added, establish a separate APH
database, by crop/P/T, within the existing unit for the added land
using the applicable variable T-Yield.

1776 Submission of Added Land/New Crop/P/T Request for RO Underwriting Review

A request for RMA RO underwriting review for added land that is greater than or equal to 640
acres and is less than 2,000 acres for land added as a new BU(s) or separate OU(s), or use of
existing unit’s approved APH yield, for added land that does not qualify as a separate BU(s) or
OU(s), must be signed and submitted on an Added Land/New Crop/P/T Request by the ARD of
the crop year the land is added to the farming operation.

Exception: A request to use the SA T-Yield for a new crop/P/T database may be submitted
in a subsequent year, for an APH database where the crop has not been produced
by the insured. Base cropland acreage limitations on the crop year the cropland
acreage is added to the farming operation. However, SA T-Yields are calculated
based on the year the APH database is established.

June 2015 FCIC 18180 343

1777 Added Land/New Crop/P/T Request and Supporting Documentation

AIPs must develop an Added Land/New Crop/P/T Request to use for requesting a RMA RO
underwriting review for use of an SA T-Yield that contains all required information according to
the DSSH. Supporting documentation includes all of the following:

(1) APH database for the insured crop(s) for the current crop year (the APH database is not
signed by the insured);

(2) total added land acres (acres that meet the definition of cropland) being added to the
farming operation;

(3) total cropland acres in the existing unit(s) of the farming operation for the current crop year.
A copy of the applicable FSA-578s or FSA-156EZ for the applicable year(s) may be used
as documentation for determining total cropland acres on the farm if required by the RO. In
the absence of FSA-578 or FSA-156EZ, use other documents that provide the required
information, such as lease agreements, insurance records, or tax records;

(4) APH databases from the previous producer for the previous crop years, showing the
production history and approved APH yield(s) for the applicable acreage, if the insured
wishes such records to be considered for productivity comparisons;

(5) copies of aerial photos of both the added land and the existing unit(s) if required by the RO.
RO may require tract and field numbers on aerial photos;

(6) copies of complete legal descriptions of the added land and the existing unit(s), as well as
the applicable FSA Farm/Tract/Field numbers, if available. If section, township, and range
are not available, a highway map showing the location of the land must be included;

(7) Agreement to Combine OUs, if applicable;

(8) copy of the page(s) of the county soil survey, with the exact locations of the field(s) clearly
marked, if required by the RO; and

(9) other information requested by the RO.

1778 AIP Review and Submission of Added Land/New Crop/P/T Request

When the total land being added to an insured’s farming operation is greater than or equal to 640
cropland acres, but less than 2,000 cropland acres, and the insured timely submits a written
request for RMA RO underwriting review, including all required documentation, the AIP will:

(1) review the request to determine whether all requirements are met;

(2) ensure all required supporting documentation is provided;

(3) calculate SA T-Yield, as applicable;

(4) sign the request, provided all requirements are met; and

June 2015 FCIC 18180 344

1778 AIP Review and Submission of Added Land/New Crop/P/T Request (Continued)

(5) forward the request, including all required documentation, to RMA RO provided all
requirements are met (if the request does not contain all required information, or all
required supporting documentation is not included, AIP shall not forward the request to
RMA RO).

1779 AIP Review and Verification Prior to Payment of Indemnity

A. APH Review

If a policy is selected for APH review the year in which the APH database was initially
established for added land using SA T-Yields, the AIP must verify the insured did not
participate in the production of any crop on any of the added land.

B. Verification

Prior to the payment of a claim for indemnity for an APH database established under the
added land provisions, the AIP must verify the insured did not participate in the production
of any crop on any of the added land. If the added land requirements were not met, the AIP
must:

(1) recalculate the approved APH yield for the APH database using the applicable
variable T-Yield; and

(2) correct APH database according to APH review tolerances according to Para. 1563.

June 2015 FCIC 18180 345

1780 Added Land Yield Descriptors and Indicators

Yield indicators apply only to added land APH databases, not to new crop/P/T or added P/T APH
databases.

ADDED LAND YIELD YIELD

INSURED ADDED LAND
APH DESCRIPTOR INDICATOR
New Producer:
No history see Separate BU or OU 100% T-Yield IL
Section 5
Separate unit eligible for SA T-Yield SA T-Yield IL A
Separate unit not eligible for SA T-Yield 100% T-Yield IL B
Separate unit SA T-Yield lower than
100% T-Yield IL C
New Producer: variable T-Yield
1-2 years of history Added to existing unit and eligible to use
Existing APH Existing APH
see Section 5 existing APH (no separate APH database)
Added to existing unit but not eligible to
use existing APH (separate APH database 100% T-Yield IL B
required)
Separate unit eligible for SA T-Yield SA T-Yield L A
Separate unit not eligible for SA T-Yield Variable T-Yield S, E, N, T B
Separate unit eligible for SA T-Yield but
Variable T-Yield S, E, N, T C
lower than variable T-Yield
Not a New Producer Added to existing unit but not eligible to
use existing APH (separate APH database Variable T-Yield S, E, N, T B
required)
Added to existing unit and eligible to use
Existing APH Existing APH
existing APH (no separate APH database)

1781-1786 (Reserved)

June 2015 FCIC 18180 346

 Section 10 Yield Determinations That Do Not Qualify as Added Land

1787 Added Crop/P/T/ APH Databases

When an insured grows a crop/P/T for the first time within the farming operation (SA T-Yields
are not applicable due to no existing units), determine the approved APH yield based on the
following.

(1) For insureds who submit acceptable production reports (by the PRD for the current crop
year) from another person who has produced the crop/P/T and continues to share in the
crop, establish approved APH yields based on the acceptable production report submitted
using standard APH procedures.

The approved APH yields for added crop/P/T are subject to reductions for:

(a) excessive actual yields;

(b) inconsistent approved yields when insured acreage limitations are also exceeded; and
(c) different production methods likely to result in lower yields.

(2) For insureds who do not submit acceptable production reports from another person,
establish approved APH yields using variable T-Yields. Enter variable T-Yields in the four
most recent crop years in the APH database and precede the variable T-Yields by the
appropriate yield descriptor (“S”, “E”, “N” or “T”).

Exception: If an IRR practice is being carried out and the qualifications in Part 11
Section 1 regarding determined IRR yields are met, AIP will calculate a
determined IRR yield.

Exception: If a SF practice is being carried out, use the special procedures for
determining yields for SF practices see Part 11 Section 1.

Exception: The insured qualifies as a new producer see Section 5.

1788 New Crop/P/T APH Databases

When an insured grows a crop/P/T for the first time within a unit or APH database and the
crop/P/T has been produced within the farming operation, determine the approved APH yield
based on the following.

(1) For cropland that was part of the farming operation six or more crop years prior to the
current crop year, use the SA T-Yield calculated in accordance with Para.1774A to
establish the approved APH yield.

(2) For cropland added to the farming operation in five or fewer crop years (i.e., current crop
year - 5), cropland acreage limitations for added land apply. Cropland acreage limitations
are determined based on the year the cropland acreage was added, not the crop year in
which the APH database is established.

June 2015 FCIC 18180 347

1788 New Crop/P/T APH Databases (Continued)

(a) If cropland limitations are not exceeded and any review requirements are met and
approved (see Para. 1774 to determine cropland limitations and any required review
requirements based on the amount of acreage), use the SA T-Yield calculated in
accordance with Para. 1774A above to establish the approved APH yield.

(b) If cropland acreage limitations are exceeded, establish the APH database and calculate
approved APH yields using variable T-Yield procedures.

(3) Use the “C” yield descriptor to identify SA T-Yields used to establish new APH databases
for a new crop/P/T see Exh. 15.

Exception: Insureds cannot elect to use SA T-Yields for new crop/P/T APH databases
in counties where MYs are available for the crop, regardless of whether the
insured qualifies to use MYs see Section 7 for procedures regarding MYs.

Exception: When the APH database established for the initial planting of land
emerging from a USDA program, the initial year of new breaking, or the
first four crop years native sod acreage is planted must be combined with
the existing APH databases in the subsequent year of planting the same
crop, if that existing APH database qualifies for use of the SA T-Yield, the
combined APH databases would as well. Calculate the SA T-Yield for the
current year according to 1774A(5).

If the APH database established for initial planting qualifies as a separate

APH database in a subsequent year and would have qualified as new
crop/P/T, SA T-Yields apply, even if the crop/P/T has been planted.
Calculate the SA T-Yield for the current year according to 1774A(5).

1789-1790 (Reserved)

June 2015 FCIC 18180 348

 Section 11 Switching from an ARPI Policy to a CCIP Policy

1791 APH Database Impacts

A. Production Report Provided While Insured Under ARPI

(1) If an ARPI insured switches to a CCIP policy, the production reported while insured
under ARPI is used to:

(a) establish APH databases, when an insured did not previously have a CCIP
policy or when the acreage insured under ARPI was not previously a part of the
insured’s farming operation while insured under a CCIP policy; and

(b) maintain continuity of production records and update APH databases when an
insured previously had a CCIP policy and those APH databases remain in the
insured’s farming operation.

The prior APH databases and production reports for those APH databases that remain
in the insured’s farming operation are not re-certified, but are used automatically and
updated with any applicable production reports while insured under ARPI.

If the AIP does not have APH databases and/or ARPI production reports for the
policy, that information may be available from RMA systems or a transferring AIP.

If the insured did not provide OU-based production reports under ARPI, the insured
must use the production report provided while insured under ARPI the initial crop
year of switching to a CCIP policy. In a subsequent crop year, the insured can report
by OU or recertify prior year’s production report by OU.

(2) When the production report while insured under ARPI includes unharvested insurable
acreage, that information must be included when establishing and/or updating APH
databases. See Para. 1305F for information regarding production reporting
requirements for unharvested acreage. Although there is not any production from the
unharvested acreage, it is considered a year of producing the crop.

(a) If the entire acreage for the APH database was unharvested and destroyed or put
to another use (without appraisal):

(i) include the planted acreage with zero (0) production, identified with the
yield descriptor of UG; and

(ii) do not include the yield identified by a UG descriptor in the summation

(total yield values and total number of crop years in the APH database)
used to calculate the average, rate or approved APH yields.

June 2015 FCIC 18180 349

1791 APH Database Impacts (continued)

A. Production Report Provided While Insured Under ARPI (continued)

(b) If a portion of the acreage was harvested and a portion of the acreage was
unharvested (no appraisal), include only the production and the acreage from the
harvested acres in the APH database.

(c) If production was appraised on representative samples, the amount determined

by the appraisal is included in the APH database as insurable production. If an
appraisal is for only a portion of the acreage in a field that remains unharvested
after the remainder of the crop within the field has been destroyed or put to
another use, the appraised production is considered uninsured production and is
not included in the APH database, unless the appraisal was taken from
representative samples.

B. Production Report Not Provided in Accordance with the Prior Year’s ARPI Policy

Insureds who switch from ARPI to a CCIP policy are carryover insureds. Therefore, the
use of assigned yields maintains continuity of production reports when an acceptable
production report is not provided by the PRD.

If the insured does not provide an acceptable production report by the prior crop year’s
ARPI PRD, assigned yields and related procedures will apply. Since approved APH yields
do not apply to ARPI plans of insurance, there is not a prior crop year’s approved APH
yield available; therefore, the assigned yield will be 65 percent of the applicable T-Yield.

If the insured did not provide acceptable and timely production reports for multiple crop
years, the assigned yield will apply for each missing crop year. However, insureds may
provide an amended production report on or before a subsequent crop year’s CCIP policy’s
PRD in accordance with Para. 1303D to be used in that crop year and subsequent crop
years.

If there are no previous crop years of production history available due to:

(1) the insured not reporting production while previously insured under ARPI, assigned
yields (65 percent of the applicable T-Yield) will be used to complete the APH
database; or

(2) the insured not being insured prior to most recent crop year, 80 percent of the variable
T-Yield is used to complete the APH databases due to assigned yields counting as a
crop year for variable T-Yield purposes.

1792 Applicability of Yield Limitations

Yield limitations do not apply when switching from an ARPI to a CCIP policy the initial crop
year. Yield floors will apply, if applicable.

June 2015 FCIC 18180 350

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

When adequate documentation is maintained for land added to the farming operation or an
insured grows a new crop/P/T within a unit or APH database while the acreage was insured under
ARPI, a request for use of SA T-Yields may be made the initial crop year when switching from
ARPI to a CCIP policy for the crop, even if the acreage has been planted, if all other
requirements and cropland limitations for added land are met.

Calculate the SA T-Yield using the current crop year’s simple average of approved APH yields
from all APH databases for the crop/P/T/TMA that contain at least one actual/assigned yield in
accordance with Para. 1774 (3)-(6).

Exception: When YE applies to a policy, the SA T-Yield is calculated using the current
crop year’s simple average of:

(1) the adjusted yield for those APH databases with excluded actual yields in
an eligible crop year that have at least one actual/assigned yield prior to
any exclusions; and

(2) the approved APH yield for those APH databases where actual yields have
not been excluded that have at least one actual/assigned yield.

1794-1800 (Reserved)

June 2015 FCIC 18180 351

June 2015 FCIC 18180 352
 Part 18 Category C Crops
Section 1 General Information

1801 Background

A perennial crop is a plant, bush, tree, or vine crop that has a life span of more than one year.
The productivity of most perennial crops follows a similar pattern: Establishment, productive
capability is zero as the plant is established and growth begins; Development, once a certain
stage of growth is reached (maturity of the perennial crop), production begins and productive
capability increases until some maximum level is achieved; Maintenance – maximum productive
capability remains relatively constant for a period of years; and Decline – productivity begins to
decline as age, disease, etc. reduce the plant’s productive capacity.

In commercial situations the plant is often kept in production for some period of time after the
onset of decline because the cost of replacement, e.g., costs of new stock and replanting, no
production during the establishment stage, etc., exceeds the value of the lost production.

Eventually, the decline in production becomes so great that it is more profitable to replace the
aged tree, vine or bush. Additionally, some perennial crop productivity varies by crop and
region, P/T/TMA/Other Characteristics and density and may remain fairly constant after
maturity.

The productivity of perennial crops may also be influenced by the insured’s production choices.
Examples may include variables such as location; climate; soil; practices or production methods
such as rootstock selection, planting pattern, density, pruning, which includes method and
pattern, fertilization, weed control, crop thinning, pest control, insecticide, pollinators, use of
bees, disease control, fungicide and frost control, grafting, dehorning/ buckhorning/ stumping,
acreage thinning, and interplanting new similar or different varieties of the same or other crops.

There is often significant inter-relatedness among the factors (i.e., the efficacy of any one factor
is a function of other factors), and many are influenced by timing and frequency. Thus, the
procedure for the underwriting of perennial crops must consider these factors when determining
coverage.

Other parts of the CIH apply unless a Category C exception is provided (e.g., Category B only
applies to Category B crops, thus does not apply to Category C).

1802 Insured Crop

See the policy provisions and actuarial documents for insurability requirements by crop. In
addition to requirements for good farming practices, adaptability, insurable, and uninsurable
acreage, interplanting and inspecting, many of the Category C APH crops have minimum
insurability requirements for age; production; age or production; age and production; and/or
percent stand.

Insurability requirements are verified by the AIP though reviews of the insured’s certification on
the PAW(s); PAIRs performed by the AIP or by the RO; or through other AIP reviews such as an
APH review.

June 2015 FCIC 18180 353

1803 Crops with Minimum Age and/or Production Requirements

The CP provides age, production, age and production, or age or production minimums that must
be met prior to insurance attaching for a perennial crop. The AIP must refer to the specific CP
for insurability requirements. After assessing the CP requirements, these procedures should be
followed regarding how to establish the insured’s guarantee, maintaining production, etc.

Exception: Some CP provide exceptions to the insurability requirements by SP, WA, or by

the AIP otherwise agreeing in writing to accept insurability of the crop acreage.
If insurance is otherwise provided by SP or by WA, etc., treat the crop as having
met production and/or age requirements in the policy in administering the
following procedures.

When an actual yield in an eligible crop year is excluded using YE, the excluded actual yield is
considered when determining whether the crop meets production minimums or age/production
minimums for insurability. Exclusion of an actual yield in an eligible crop year does not impact
age requirements since the exclusion does not change the age of a perennial crop.

When acreage becomes insurable the initial crop year that age and/or production requirements are
met, see Para. 1859 for procedures to establish the APH databases for added insurable acreage
and added insurable acreage for specific crops in AZ, CA, HI and UT only.

A. Age Requirements

The AIP determination of whether age requirements are met is based upon the insured’s
certification on the PAW, and any subsequent verification by the AIP during a PAIR or
other review.

Acreage not meeting minimum age requirements must be reported as uninsurable on the
acreage report and the PAW, for the block or unit.

(1) Production from acreage not meeting minimum age requirements must be reported by
the insured on the production report.

(2) Production from uninsurable acreage is not included in the APH database.

(3) The insured may elect to include prior production from acreage that had not met age
requirements in the APH database once the age requirements have been met.

(4) Failure to report uninsurable acreage separately will result in such acreage being
shown and production considered to be commingled in the block or unit for APH
purposes.

June 2015 FCIC 18180 354

1803 Crops with Minimum Age and/or Production Requirements (Continued)

B. Commingled Production for Acreage Not Meeting Minimum Age Requirements

When production from uninsurable acreage not meeting the minimum age requirements is
commingled with production from insurable acreage, total production divided by total
acreage is used for all crop years that were commingled.

The commingled production and all acreage are entered in the APH database. The insured
must report the insurable and uninsurable acres on the Acreage Report and PAW.
Production from the uninsurable acreage is included in the APH database; however the
acreage is not considered insurable on the Acreage Report or PAW.

See Para. 1853 for procedures to separate commingled production for insurable and
uninsurable acreage.

When there is commingled production for insurable and uninsurable acreage, YA does not
apply and the “AY” descriptor must be used unless Para. 1853 applies.

Example: For the same block/unit/P/T, the insured commingled production from 90
acres that met the minimum age requirement and 10 acres that did not meet
the minimum age requirement.

The production report indicates 100 acres and production from 100 acres.
The APH database shows: 100 acres and production from 100 acres. The
Acreage Report & PAW show: 90 acres insurable and 10 acres
uninsurable.

Acreage that is combined to meet insurability requirements that are not addressed by the
above commingled procedures may require additional yield adjustment by the AIP or may
be submitted as a RO Determined Yield Request, unless otherwise provided in this
procedure, the policy, or RO UG.

C. Production Minimum Requirements

The CP or SP may require a production minimum for insurability and may specify a time
period when production requirements must be met. For example, the Apple CP provides
that in one of the most recent four years, an orchard in Area A must have produced 10 bins
of apples per acre.

To meet minimum production requirements:

(1) acceptable production reports must be filed that indicate at least one crop year has met
the minimum production requirements as specified in the CP or SP; and

(2) all actual yields must be reported and certified by the insured whether or not the
production minimum was met.

June 2015 FCIC 18180 355

1803 Crops with Minimum Age and/or Production Requirements (Continued)

C. Production Minimum Requirements (Continued)

Acreage not meeting minimum, must be reported as uninsurable on the acreage report and
the PAW for the block or unit.

(1) Production from uninsurable acreage not meeting production minimums must be
reported by the insured in the production report.

(2) Production from uninsurable acreage must be kept separate and must not be included
in the insured acreage APH database.

(3) Failure to report separately will result in acreage being shown and production
considered to be commingled in the APH database for the applicable block or unit.

If production minimums are not met on the commingled acreage’s production, then the
entire acreage is uninsurable.

D. Commingled Production for Acreage Not Meeting the Minimum Production

Requirements

When production from uninsurable acreage not meeting the minimum production
requirements is commingled with production from insurable acreage, the entire
commingled acreage must meet the production minimum requirements for insurability.

If the production from uninsurable acreage is commingled with production from insurable
acreage; total production divided by total acreage is used for all crop years that were
commingled. The commingled production and all acreage are entered in the APH database.

Procedures to separate commingled production do not apply when there is prior

commingled production from insurable and uninsurable acreage. When there is
commingled production for insurable and uninsurable acreage, YA does not apply and the
yield descriptor “AY” must be shown, unless Para.1853 applies.

E. Age or Production Requirement

If age or production requirements must be met, then follow the guidelines in Para.1803A
for age or Para. 1803C for production, as applicable.

June 2015 FCIC 18180 356

1803 Crops with Minimum Age and/or Production Requirements (Continued)

F. Cannot Verify Age and/or Production Requirements

The acreage must be reported as uninsurable when insurability is based upon production
and/or age:

(1) if production evidence is not provided; and/or

(2) if age cannot be determined, e.g., other documentation does not exist to substantiate
the age of the tree for CP with age requirements.

1804-1806 (Reserved)

June 2015 FCIC 18180 357

 Section 2 Acreage

1807 General Information

Acreage must be certified by the insured or determined by the AIP. The acreage must include
deductions for non-crop acreage including drainage ditches and/or canals within the planting
pattern and applicable acreage reductions. See Para. 1810.

For added insurable acreage now meeting policy minimums, see Para. 1859.

For added land recently purchased or leased meeting insurability requirements, see Para. 1860.

1808 Acceptable Forms of Acreage Measurement

The acreage must be measured using on one of the following forms of measurement.

(1) Planimeter

(2) Wheel, chain or tape

(3) Survey devices

(4) GPS, used in conjunction with aerial photos or satellite imagery

(5) For cranberries, bog maps developed by marketing organizations may be used for AIP
acreage determination in lieu of (1) through (4) above.

(6) In conjunction with (1) through (4) above, an AIP may elect to determine acreage using the
Tree/Vine/Bush method, if:

(a) a particular tract of measured acreage, contains different planting densities, age,
types/varieties or other characteristics that have different T-Yields, or where crops are
interplanted;

(b) the fields are irregularly shaped;

(c) the terrain is irregular;

(d) non-crop acreage exist; or

(e) acreage adjustments are required, see Para. 1810.

(7) When an AIP elects to use the method in (6) above, any acreage determined using the
tree/vine/bush method (e.g., separate blocks) must not exceed the total measured acreage
(e.g., a unit) using a method specified in (1) through (5) above.

June 2015 FCIC 18180 358

1809 Acreage Measurement Methods

Acreage measurement must be conducted as follows:

(1) For acreage measurement using Para. 1808(1)-(4) above:

(a) measurements are made around the outside of each block based on the spacing within
row and between rows;

(b) for the length, measurements should extend beyond the end of the rows, by ½ the
within-row spacing, from the center of the outside plants on the end of the rows;

(c) for the width, measurements should extend past the outside row of each block/plot by
½ the distance between rows; and

(d) where a road forms an orchard boundary, the measuring point will be ½ the spacing
between tree rows not to extend past the center of the road.

Example: An orchard has 15’ x 25’ spacing, or an average of 15 feet between trees
(center of tree to center of tree) within row and 25 feet between rows
(center of tree to center of tree).

Measurements would begin ½ of 15' (7.5’) from the middle of the trunk of
the end tree in an outside row and extend ½ of 25' (12.5’) from the other
outside row, using the same spacing around the entire block (7.5 feet
beyond the ends of the rows and 12.5 feet beyond the outside rows,
referred to as the drip line).

(2) For Acreage Measurement using Para. 1808(6), the tree/vine/bush spacing(s) and number of
trees/vines/bushes must be determined. See also Exh. 18.

See LAM for additional information on non-crop acreage deductions and acreage
measurement.

1810 Acreage Adjustments

A. Insurable Acreage Reduction

Insurable acreage must be reduced:

(1) when a significant decrease in original plant stand results due to damaged or removed
trees/vines/bushes (e.g., plants are severely diseased, removed, buckhorned, dehorned,
stumped, or grafted within the acreage). If the reduction in stand was caused by an
insurable cause of loss during the current insurance period, the reduction must be
considered in the subsequent crop year.

Exception: In lieu of acreage reductions, RO UG may provide procedures for

acreage that has been grafted, buckhorned, dehorned, or stumped.

June 2015 FCIC 18180 359

1810 Acreage Adjustments (Continued)

A. Insurable Acreage Reduction (continued)

A significant decrease in stand occurs when:

(a) The reduction affects the production potential of the insured crop; and

(b) The decrease in the percent of stand is equal to or greater than 20 percent (or the
percentage specified in the applicable SP) based on the original planting pattern
for an APH database.

Example: If a single APH database represents three blocks, two blocks

having 99 percent stand (one block with 10 acres and one block
with 15 acres) and one 45 acre block having 79 percent stand,
while the overall percentage stand for the total acreage of the
APH database is 86 percent, based on an acre weighted basis;
the percentage stand change is less than the 20 percent
threshold.

However, if there are three separate APH databases for three

blocks within a single unit and two blocks have 99 percent and
one block has 79 percent, then the acreage associated with the
one APH block database having a 79 percent stand exceeds the
20 percent threshold and would require adjustments.

The formula and acres used to determine the percent stand are
as follows (with the acres underlined):

(1) First, determine the percent stand for each block, i.e., two
blocks having 99 percent stand and one block having 79
percent;

(2) Next, determine the weighted percent stand of the blocks,

i.e., (99 percent × 10 acres) + (99 percent× 15 acres) +
(79 percent × 45 acres) = 60.3

(3) Once the weighted percent stand of the blocks is

determined, add the acres (shown in the underlined
above) together. Then divide the weighted percent stand
by the total number of acres to determine the acre
weighted average, i.e., 15 acres + 10 acres + 45 acres = 70
acres. 60.3 ÷ 70 acres = 86 percent.

Exception: As specified in the CP, SP, or RO UG, some crops may require
the T-Yield and applicable YA be reduced when there is a
reduction in stand. For example, some SP specify that the
percent stand reduction percentage is applied to the applicable
T-Yield in lieu of acreage reduction.

June 2015 FCIC 18180 360

1810 Acreage Adjustments (Continued)

A. Insurable Acreage Reduction (continued)

(2) for uninsurable acreage as provided in the CP or SP, e.g., underage trees.

(3) only for the current and subsequent crop years, unless sufficient documentation exists
to adjust the prior year’s acreage or a new APH database is being established (e.g.,
new insured with acreage reduction in previous crop years which is included in the
current year’s production report).

B. Acreage Adjustment Decrease

To decrease acres, the AIP must work with the insured to determine the following.

(1) Identify the percent stand from the initial planting pattern and planted acres. Base all
percent stand reductions in subsequent years on initially planted acres until the
initially planted acreage is no longer contained in the APH database.

(2) Calculate the percent stand by dividing the number of bearing/insurable

trees/vines/bushes by the product of density multiplied by measured acres.

Example: 10 acres were initially planted in an 18 x 20 planting pattern with 121 trees
per acre. The insured reports 968 trees; the percent stand would be 80
percent [968 trees / (121 trees/acre x 10 acres)].

The percent stand column on the PAW, see Para. 1821 would display 80
percent stand and 10 acres in the acre column. The Acreage Report would
reflect 8.0 insurable acres due to the removal of 2.0 acres of trees.

Additionally, for the next crop year the APH database would reflect 8.0
insurable acres for the prior year’s production, the PAW would continue to
reflect 10 acres at 80 percent stand, and the Acreage Report would reflect
8.0 insurable acres.

C. Acreage Adjustment Increases

Once acreage reductions are made, acres can only be increased when authorized by the RO.

(1) The RO may issue UG which specify the procedure to be used by the AIP to increase
prior acreage reductions; or

(2) The insured, through the AIP, may request a RO Determined Yield if the RO has not
issued UG. The AIP should select the “other” category on the RO Determined Yield
request.

Exception: RO authorization is not needed when replanted acreage meets minimum

insurability requirements specified in the CP or SP.

June 2015 FCIC 18180 361

1811 Prior Acreage Removed

It is the insured’s responsibility to account for all prior acreage reported on the PAW. For
removed blocks, the insured must line through the applicable acreage and indicate the removal
date. The insured must continue to report the removed acreage on subsequent PAW(s) until the
related production information no longer remains in the APH database(s) unless such acreage is
accounted for otherwise by RO adjustment.

A. Entire APH Database Removed

If the removed block represents an entire APH database, annotate the removal on the PAW
the initial crop year, and in subsequent crop years no further reporting of the removed APH
database is required.

B. Part of an Existing APH Database

If the removed acreage is part of an existing APH database, the insured, through the AIP,
may request removal of the acreage from the APH database by submitting a RO
Determined Yield request.

The AIP should select the “Other” category on the RO Determined Yield Request. The RO
Determined Yield request must be submitted with an APH Block Production worksheet,
(see Exh.18 and DSSH) indicating the production from the requested acres being removed
from the APH database.

If a RO Determined Yield for the removed acreage is not requested, the insured must
continue to report the removed acreage on subsequent PAW(s) until related yields from the
removed acreage no longer remain in the APH database.

1812-1816 (Reserved)

June 2015 FCIC 18180 362

 Section 3 Age/Leaf Year Determinations

1817 All Crops, except Citrus and Macadamia

Age/Leaf year is required to determine the T-Yield, when T-Yields are provided by age, or for
insurability requirements in accordance with the policy provisions.

To determine Age/Leaf Year use the following formula.

X = Policy Crop Year

Y = Set Out/Graft Year
Formula: (X-Y) + 1 = Age/Leaf Year

The set out/graft year for APH reporting purposes is the actual calendar year for acreage
planted/grafted before July 1. For acreage planted/grafted on or after July 1, the set out/graft year
(Y in the formula above) is the year following the calendar year in which set out/graft actually
occurred.

Exception: For Blueberries in Mississippi, the set out year for APH reporting purposes is
the actual calendar year for acreage planted before March 15.

For acreage planted on or after March 15, the set out year is the year following
the calendar year in which set out actually occurred.

Example 1: If the policy crop year is 2016 and the trees were set out/grafted in February of
2009 (prior to July 1, the set out/grafting year is 2009), the age/leaf year is:

(2016 – 2009) +1 = 8 Age/Leaf Year

Example 2: If the policy crop year is 2016 and the trees were set out/grafted in November of
2009 (after July 1), the set out/grafted year is 2010, and the age/leaf year is:

(2016 – 2010) +1 = 7 Age/Leaf Year

1818 Arizona-California Citrus and Texas Citrus Fruit

Age/Leaf year is required to determine the T-Yield, when T-Yields are provided by age, or for
insurability requirements in accordance with the policy provisions.

The following formula is used to determine the Age/Leaf Year.

X = Policy Crop Year

Y = Set Out/Graft Year
Formula: X–Y = Age/Leaf Year

The policy crop year is designated by the calendar year following the year in which bloom is
normally set.

June 2015 FCIC 18180 363

1818 Arizona-California Citrus and Texas Citrus Fruit (Continued)

The set out/graft year is the actual calendar year for blocks planted/grafted before July 1. For
blocks planted/grafted on or after July 1, the set out/graft year is the year following the calendar
year in which set out/graft actually occurred.

Example: An insured insures a grove planted in April 2010 for the 2016 crop year. Crop
year is 2016 and set out year is 2010.

2016 - 2010 = 6 Age/Leaf Year

1819 Macadamia Nuts

Age/Leaf year is required to determine the T-Yield, when T-Yields are provided by age, or for
insurability requirements in accordance with the policy provisions.

To determine Age/Leaf Year use the following formula.

X = Policy Crop Year

Y = Set Out/Graft Year
Formula: (X – Y) - 2 = Age/Leaf Years

Policy Crop year is defined as a period beginning with the date insurance attaches extending
through the normal harvest time and designated by the calendar year in which the insurance
period ends.

Age is defined as the number of complete 12-month periods that have elapsed since the month
the trees were set out or were recently grafted, whichever is later. An age determination will be
made for each unit, or portion thereof, as of January 1 of each crop year.

Example: For crop year 2016, January 1, 2015, is used when determining age. Age in crop
year 2016 on Macadamia Nuts for trees set out in April of 2009 is 5 leaf years.

(2016 – 2009) – 2 = 5 Age/Leaf Years

The 12- month period is the twelve months that have passed since the crop was
set out/grafted. The 12-month period is determined for the 2016 crop year as
follows.

SET OUT/GRAFTED 12 MO. PERIOD CROP YEAR AGE

April 2009 Jan. 1, 2010 2011 0
Jan. 1, 2011 2012 1
Jan. 1, 2012 2013 2
Jan. 1, 2013 2014 3
Jan. 1, 2014 2015 4
Jan. 1, 2015 2016 5

June 2015 FCIC 18180 364

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

1820 General Information

The PAW is an insured’s self-certification of the planting and other conditions of the perennial
crop. The PAW is used by the AIP to determine insurability and other policy requirements.

A. PAW Submission

The insured must complete and submit the PAW by the PRD each year.

Exception: For Texas Citrus Fruit, a PAW is not required for new insureds because a
PAIR is required. In subsequent years, a carryover insured must complete
a PAW.

B. Failure to Submit a PAW

If the insured fails to complete and submit a PAW by the PRD, the AIP must either:

(1) obtain the required information from the insured;

(2) conduct a PAIR to determine the required information; or
(3) deny coverage for the crop year.

The AIP representative may assist the insured with the PAW completion.

1821 PAW Elements

ELEMENT REQUIRED INFORMATION

Enter block number, if applicable.

When reporting by block, show the block numbers to the third place (i.e., 001).

Multiple parcels being reported together as one block for APH purposes, must be
associated with a unique block number on the PAW and must match the block
number shown on the APH database. However, if separate information is available
by individual block, separate line entries may be made on the PAW.

Block Number Separate APH database/reporting by block (plot) number is required:

For each P/T/TMA/other characteristics provided in the actuarial document(s),

include variety whether specified on the actuarial document(s) or not, age, and
density within the insured crop; and

Prepare a sketch map or provide an aerial map demonstrating the location of each
block, designate unique number for each block reported. Enter these numbers
along with the block number in the block number column. Complete the items
applicable to the crop for each block.

June 2015 FCIC 18180 365

1821 PAW Elements (Continued)

ELEMENT REQUIRED INFORMATION

Month/Year Planted Enter the month and year trees/vines/bushes/bogs were planted.

Month and year of grafting to the current variety, if applicable; otherwise,

enter N/A.

For Texas Citrus Fruit, if trees were dehorned within the last 8 policy crop
years, enter “dehorned” and the month and year dehorned.
Month/Year Grafted
For Florida Avocados, enter the year the trees were grafted to the current
variety or stumped (trees were reduced to 4-6 foot height by removing all
branches and foliage), or buckhorned (to prune any limb at a diameter of at
least four inches.

Name(s) of the variety(ies) contained in this block whether specified in the

Variety
actuarial document(s) or not.

Type Type applicable (e.g. blueberry: Highbush or Rabbiteye) or other

characteristic in actuarial document(s) (e.g., peaches Early, Mid or Late).

Number of Plants For all crops, except cranberries and lowbush blueberries: Enter the number
of bearing plants (trees/vines/bushes), which make up the block.

For all crops, except cranberries and lowbush blueberries: Average

Plant Spacing tree/vine/bush spacing and/or pattern observed within this block (example
18.5 X 20). See Exh. 18 for other patterns.

For all crops, except cranberries and lowbush blueberries:

Completed for tree/vine/bush perennial crops:

Enter:

Planting Pattern “S” for Square Planting Pattern

“B” for Hedgerow or Border Planting Pattern
“Q” for Quincunx Planting Pattern
“H” for Hexagonal Planting Pattern
“D” for Double Row Planting Pattern
“O” for Other Planting Pattern

June 2015 FCIC 18180 366

1821 PAW Elements (Continued)

ELEMENT REQUIRED INFORMATION

For all crops, except cranberries and lowbush blueberries:

Calculate the plant density (number of trees/vines/bushes per acre) as follows:

number of square feet ÷ number of square feet per tree (based on

per acre the current planting pattern)

There are 43,560 square feet per acre.

Density
Example: Based on a tree spacing of 20 X 20 = 400 square ft., the number of trees per
acre is calculated as 43,560 square ft. per acre ÷ 400 square ft. per tree = 109
trees per acre.

Or, if trees are being interplanted as a part of a tree replacement program and
the spacing changes to 10 X 20 = 200 sq. ft., per tree, the correct density
becomes 43,560 sq. ft. per acre ÷ 200 sq. ft. = 218 trees per acre.

For Cranberries and low bush blueberries, not applicable.

Number of original planted acres to tenths (0.10).

It is the carryover insured’s responsibility to account for all prior acreage

Acres
reported. Removed blocks, shown on the APH, should continue to be shown
on the PAW until they roll out and no longer remain on the APH database,
(e.g., line through block entries and show removal date, see Para.1511).

For all crops except cranberries and lowbush blueberries, the insured must
identify the percent stand from the initial planting pattern and planted acres.

Calculate the percent stand by dividing the number of insurable

trees/vines/bushes by the product of density multiplied by original acres.

Example: 10 acres were initially planted in an 18 x 20 planting pattern with

121 trees per acre. The insured reports 968 trees; the percent stand would be
Percent Stand 80 percent [968 trees / (121 trees/acre x 10 acres)]. The percent stand column
would display 80% stand and in the acres column there would be 10 acres.
The Acreage Report would reflect 8.0 insurable acres due to the removal of
2.0 acres of trees.

For cranberries: Not applicable.

For low bush blueberries: Enter the estimated percent plant cover (less 5
percent for shrinkage).

June 2015 FCIC 18180 367

1821 PAW Elements (Continued)

ELEMENT REQUIRED INFORMATION

Designate if the block is:

Practice Irrigated or non-irrigated; and/or
Certified organic or acreage transitioning to organic.

Designate whether this block has met insurability requirements. Refer to

the policy provisions, the actuarial document(s), and this procedure for
determining insurable and uninsurable acreage.

Example: Acreage must be reported as uninsurable when minimum

requirements are not met for:

(a) Age;
(b) Yield per acre; and/or
Insurable or Uninsurable
(c) Age and yield per acre.

When minimum production requirements, age, or a combination of

production and/or age are not met, acreage must be reported as
uninsurable. When prior production or acreage is commingled, the entire
commingled acreage must meet the production minimum requirements for
insurability. Acreage combined to meet insurability requirements may
require additional yield adjustment by the AIP or should be submitted as a
RO Determined Yield Request.

Spur Or Nonspur (Apples Designate as Spur or Nonspur for Apples when the actuarial documents
Only) contain these designations.

Totals (For Acres and This is the last row in the table on the form used to enter the summation of
Number of Plants) the total acres and total number of plants.

IMPORTANT: Prior to answering these questions, the average yield from the preliminary APH database
must be calculated.
Has Damage (E.G.,
Disease, Hail, Freeze)
Occurred to
Trees/Vines/Bushes/Bog If the insured answers “YES”, hard copy records of acreage and production
that Will Reduce the are required.
Insured Crop’s Production
from Previous Crop
Years?

June 2015 FCIC 18180 368

1821 PAW Elements (Continued)

ELEMENT REQUIRED INFORMATION

If the insured answers “YES”, hard copy records of acreage and production
are required.
Have Practices or
Production Methods (e.g.,
Additionally for Texas Citrus Fruit, if trees have been dehorned within the
Removal, Dehorning,
last 8 policy crop years, insureds must answer “YES”.
Grafting, Transitioning to
Organic) been Performed
If the acreage was dehorned prior to the current crop year and the dehorned
that Will Reduce the Insured
acreage has been inspected and accepted it will not be necessary to re-
Crop’s Production from
inspect the acreage and require hard copy records of acreage and
Previous Crop Years?
production (unless productivity is reduced compared to the year it was last
inspected).
Is the Current Water Supply
(Surface Allotment/Well)
If the insured answers “NO”, hard copy records of acreage and production
Adequate to Produce a
are required.
Normal Crop For the Crop
Year Being Certified Above?
For Florida Avocados Only:
If the insured answers “NO” to this question, a PAIR and hardcopy records
Do the trees have sufficient
of acreage and production are required.
vigor to produce the average
yield computed for this unit?
For Florida Avocados Only:

Is the Operator Using If the insured uses organic farming practices or other unconventional
Organic or Other practices and answers “YES” to this question, indicate the number of years
Unconventional Farming farmed under this practice. A PAIR and hardcopy record of acreage and
Practice(s)? production are required.

If Yes, How long?

1822 AIP PAW Review

The AIP must use the information provided by the insured annually on the PAW to determine:

(1) the insurable acreage for the current crop year;

(2) whether a PAIR must be conducted by the AIP;

(3) whether the approved APH yield should be adjusted; or

(4) whether the crop meets the policy insurability requirements in accordance with these
procedures, the policy or any applicable RO UG.

June 2015 FCIC 18180 369

1823 PAW Triggers a PAIR

A PAW triggers the need for a PAIR and a RO Determined Yield for insurability when the
insured answers:

(1) Yes to whether “… damage (e.g., disease, hail, freeze) occurred to Trees/Vines/Bushes/Bog
that will reduce the insured crop’s production from previous crop years?”

(2) Yes to whether “…practices or production methods (e.g. removal, dehorning, grafting,
transitioning to organic) been performed that will reduce the insured crop’s production from
previous crop years?”

Exception: In lieu of acreage reductions, RO UG may provide procedures for acreage

that has been grafted, buckhorned, dehorned, or stumped.

(3) No to if “… the current water supply (surface allotment/well) adequate to produce a normal
crop for the crop year being certified above?”

Exception: Unless otherwise provided in this procedure, the policy, or RO UG.

(4) For Florida Avocados only:

(a) No to whether “…the trees have sufficient vigor to produce the average yield
computed for this unit?”

(b) Yes to whether “… the operator using organic or other unconventional farming
practices?”

1824-1836 (Reserved)

June 2015 FCIC 18180 370

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

1837 General Information

A PAIR is an underwriting tool used by the AIP to:

(1) establish insurability of the crop;

(2) evaluate the risk to be assumed by the AIP; and
(3) verify information provided by the insured on the PAW.

If the PAIR discloses that information provided on the PAW was incorrect or incomplete, the
PAW must be corrected. The PAIR must include the applicable CAW(s).

1838 PAIR Requirement

A PAIR is required for the current crop year when:

(1) required by the policy, SP, or for WA to determine insurability;

(2) the person is a new insured under the Texas Citrus Crop Provisions;

(3) triggered by the PAW;

(4) an insured either does not complete a PAW or does not complete a PAW in an acceptable
manner;

(5) requested in writing by RMA PM for county crop program;

(6) the AIP is mandated by the policy provisions and agree in writing as a condition of
insurance attachment, see Para. 76 of the WAH;

(7) requested by the RO if a new PAIR is necessary for the RO to approve a RO Determined
Yield;

(8) damage has occurred to trees, vines, bushes, bogs; and

(9) cultural practices have been performed that will reduce the insured crop’s production from
previous levels.

A PAIR is required within the most recent five years for:

(1) RO Determined Yield Request unless triggered by the PAW; and

(2) an APH database identified with high variability of actual yields, see Para. 1861.

Exception: An assuming AIP may use a ceding AIP’s PAIR when provided by the
ceding AIP.

June 2015 FCIC 18180 371

1839 PAIR Waivers

PAIRs may be waived by RMA, in writing, when an excessive number of policies require PAIRs
that cannot be feasibly accomplished. The RO may provide written approval to the AIP
authorizing PAIR waivers, if the AIP provides:

(1) a written request to the RO;

(2) the reason for the waiver;
(3) documentation supporting an excessive number of PAIRs; and
(4) alternative means to reasonably assess the impact to the perennial crop.

1840 PAIR Deadline

The PAIR must be completed within 30 calendar days after the PRD. When a PAIR is required
for a RO Determined Yield Request, it must be received in the RO no later than 30 calendar days
after the PRD.

When an AIP expects that PAIRs (or RO Determined Yield requirements, see Para. 2012) cannot
be completed within the established deadline, the AIP must notify the RO in writing to request an
extension and include the reason for the extension. Based upon the information provided by the
AIP, the RO may establish a revised deadline. The RO will not extend the deadline more than 60
calendar days after the PRD.

If the deadline for the RO Determined Yield Request is extended in accordance with Para. 2212,
the PAIR deadline will be extended. The PAIR must be completed and submitted with the
request.

PAIRs not completed by the deadline for RO Determined Yield Request results in a RO
Determined Yield not being issued.

Exception: A RO Determined Yield Request will be accepted at any time when the request
is based on a situation that requires a reduced APH Yield for the current crop
year.

1841 PAIR Completion Requirements

A. Inspector

The AIP will conduct the PAIR/CAW. The person completing the inspection must possess
training equivalent to that of a loss adjuster.

B. Supporting Documentation

The AIP may request that the insured provide acceptable supporting acreage and production
evidence to assist with the completion of the PAIR.

June 2015 FCIC 18180 372

1841 PAIR Completion Requirements (Continued)

C. Insurable and Uninsurable Acreage

Complete a separate CAW by crop for insurable and uninsurable acreage. Each CAW must
identify whether it is for insurable or uninsurable acreage.

D. Acreage Damage

For new insureds, once the acreage is inspected and the application accepted, subsequent
damage from insured cause(s) is covered.

(1) If the entire crop is damaged prior to application or the date insurance should have
attached, the application is not accepted and insurance does not attach.

(2) If part of the crop is damaged, the application may be accepted; however, units with
damaged acreage must be rejected and insurance does not attach to the damaged units.

For carryover insureds, if insurance is requested on added acreage that is damaged prior to
the PAIR, the request is rejected on a unit basis and insurance does not attach.

1842 PAIR Elements

ELEMENT REQUIRED INFORMATION

Obtain this information from the insured.

Number of Year’s Insured has Operated this
This information will assist the inspector in determining
Unit.
the accuracy and completeness of the APH databases
and production reports.
If Less than Three Years, Include Previous
Owner Name and Address, If Known.
If less than three years, include previous owner name
and address, if known.

Enter “No” if the acreage in this unit has not previously

been insured by the current insured or another producer.

Enter “Yes” if the acreage in this unit has previously

been insured by the current insured or another producer.
Has this Unit Been Insured in Previous Years?
If the unit was previously insured and when
If Yes, Include The Number of Years Insured
appropriate, review any previous PAIRs, PAWs and
and Prior Policy Number(s).
other policy information (e.g., APH databases) to assist
in the PAIR completion to understand any insurability
concerns, whether changes have occurred in production
practices or methods, etc. that may impact the
insurability of the unit.

June 2015 FCIC 18180 373

1842 PAIR Elements (Continued)

ELEMENT REQUIRED INFORMATION

Review with the insured and explain in detail the

Describe Weed Control Measures Used for The
cultivation and/or spray program used to control
Unit.
weeds.
Include a Description of The
Include a description of the current orchard/
Orchard/Vineyard/Plantation/Field/Bog Floor
vineyard/ plantation/field/bog and floor management
Management, i.e., Sterile/Sod/Cover Crop.
(e.g., sterile/sod/cover crop, etc.).

Describe The Fertilization Program Used For

The Unit.
Describe in detail the fertilization program being
Include the Insured’s Method of Monitoring Soil used for the unit.
Fertility, e.g., Soil Analysis, Foliar Analysis, or
both.

Describe In Detail The Insect Control Measures

Used (I.E., Integrated Pest Management/ Describe in detail the insect and disease control
Calendar Spray Program) measures used by the insured (e.g., integrated pest
management, a calendar spray program, methods
Evidence Of Disease/Insects (Check One): used for organic practices, etc.).

□ Rare Identify current evidence of disease/insects as: rare,

□ Moderate moderate or severe.
□ Severe

Determine whether the insured replaces dead or

Is Tree/Vine/Bush/Plant Replacement Program
diseased plants.
Being Carried Out?
If the insured has a replacement program, identify to
If Applicable, Is Fumigation Used In The
what extent, if any, the insured is using a fumigation
Replacement Program?
or crop rotation program.

Crops Grown Primarily For:

Describe the primary use of the crop, and/or if
□ Fresh Market
different varieties have different uses.
□ Processor
□ Juice Market

What Date Is Harvest Completed For The Unit Determine the normal harvest completion date from
Under Normal Conditions? the insured.

June 2015 FCIC 18180 374

1842 PAIR Elements (Continued)

ELEMENT REQUIRED INFORMATION

Describe in detail the use and placement of bees for

pollination.

Describe In Detail The Use and Placement Of For all crops, except grapes, include type, quality,
Bees for Pollination. quantity and location.

Include Type, Quality, Quantity And Location. For grapes: Not applicable.

Review resources for proper use of bees for

pollinations, e.g., CES.

Describe In Detail The Irrigation Water Source.

Surface:

 Percentage of Total Supply

Describe in detail the irrigation source(s).
 Irrigation District Name
 Allocation Last Year Percentage of Normal
Obtain from the insured, water source(s) and
 Expected Allocation This Year’s Percentage of
irrigation district(s) from which water is allocated,
Normal
allocation percentage, and irrigation well information.
Irrigation:
Include any information regarding water obtained
through water transfers and any potential curtailment
 Wells: Percentage of Normal;
of current and future water supplies.
 How Many Wells?
 Total Gallons per Minute?

Water Obtained Through Water Transfer:

 Acre Feet Per Acre

Is The Unit Subject To Above Normal Flood

Determine whether any abnormal flood hazards exist.
Hazard?
Explain in detail.
If So, Explain.

Discuss with the insured (and perform an assessment)

to determine any potential soil limitations (e.g., slope,
depth, drainage, pH, saline, or alkaline toxicity, etc.).
Are There Soil Limitations (E.G., Slope, Depth,
Drainage, pH, Saline/Alkali, Toxicity)? Other resources should also be considered when
appropriate, such as soil maps.
If So, Explain.
Areas of frequent replanting or stunted growth may
indicate that soil limitations exist.
Explain in detail.

June 2015 FCIC 18180 375

1842 PAIR Elements (Continued)

ELEMENT REQUIRED INFORMATION

Describe in Detail: Describe in detail the pruning practices used, date

normally completed, and whether pruning is annual,
 the Pruning Practices Used biennial, etc.
 the Date Normally Completed
Indicate if there is excessive pruning or top working
Indicate Whether Pruning Is Annual Or Biennial. which affect production of the crop to be insured.

Describe in detail the varieties used as a pollinator

Describe in Detail the Varieties Being Used as
when applicable.
Pollinator(s).
Include variety, location, quantity, density, and
Include:
configuration (e.g., Golden Delicious pollinizers
every 4th row = 25%).
 Variety
 Location
For all crops except grapes: See addendums for
 Quantity
additional pollinator requirements.
 Density
 Configuration.
For grapes: Not applicable.

Measured or Determined Acres of Unit

Enter the total unit acreage (insurable and

Total Unit Acreage Insurable and Uninsurable uninsurable) and the methods of measurement.

Method(s) of Measurement

Measured or Determined Acres of Unit

Enter the total unit insurable acreage (e.g., if
adjusted for percent stand).
Total Unit Acreage Insurable

Review the APH database for prior production and

acreage (by variety) as compared to the current
acreage and varieties based upon the PAIR.

Note any inconsistencies and reconcile tree

Determine Whether Current Observed
removals, replacements, grafting, production or
Conditions Reconcile To Prior Records
practice changes, etc.

This review will assist in determining acceptability

of prior production records and insurability
determinations for the current crop year.

June 2015 FCIC 18180 376

1842 PAIR Elements (Continued)

ELEMENT REQUIRED INFORMATION

Identify the percent stand by checking the appropriate

column on the form.

Based on the original planting pattern, identify the

Percent Stand percent stand.

 Less Than 50% (1) Identify spaces occupied by live trees/vines/

 50-60% bushes/plants
 61-70% (2) Identify bearing trees/vines/bogs/bushes/plant
 71-80% (only include the acreage harvested by the
 81-90% insured)
 91-100% (3) Assess the insurable stand

The inspector must walk through the unit to identify

the percent stand.

Determine The Current Unit Potential:

Evaluate and describe the unit's current crop potential
□ Stable
as stable, declining or increasing.
□ Declining
□ Increasing

These are subjective questions requiring evaluation of

Do Trees/Vines/Bushes/Plants have Sufficient
the unit's vigor relative to the preliminary APH yield.
Vigor to Produce the Preliminary APH Yield
Computed for this Unit?
Note the amount of tree/vine/bush growth,
limb/cane/bush size, and color, and other factors
Note Overall Plant Vigor as:
which indicate the unit's ability to produce the
preliminary APH yield.
□ Good
□ Average
Note the overall plant vigor as: good, average or
□ Poor
poor.

When complete verifiable first handler or third party

records are not provided by the insured that
If Applicable, Provide Inside Bin Measurements substantiate bin size, the bins must be measured.
Provide inside bin measurements to substantiate
reported production.

Complete an appropriate CAW(s) for the crop being

inspected.
Insurable Acreage And Tree/Vine/Bush/Bog
Information, Complete Check Boxes
Verify PAW(s) entries, making any corrections
needed, and initial the PAW.

June 2015 FCIC 18180 377

1842 PAIR Elements (Continued)

ELEMENT REQUIRED INFORMATION

Complete an appropriate CAW(s) for the crop being

inspected.
Uninsurable Acreage And Tree/Vine/Bush/Bog
Information, Complete Check Boxes
Verify entries on PAW(s), making any corrections
needed, and initial the PAW.

Obtain aerial photo(s) and/or maps (e.g., GPS) with

blocks, units, legal description, FSN/Tract and Field
(when applicable) must be clearly identified.

When the aerial photo(s) and/or map(s) (e.g., GPS)

are not available, include a hand sketch map with the
following information:

(a) Identify the location of separate units for the

same insured. The unit location must identify roads,
Obtain And Attach Aerial Photo(s)/Map(s).
the nearest intersection, landmarks along with
cardinal directions (e.g., a north arrow);

(b) Identify the location of blocks within one unit.

Sketch out the blocks, showing the exact location of
each block in relation to other blocks in the unit.
Label each block with a Block Number and any other
applicable identification (e.g., home farm); and

(c) Include an overall sketch map of all units.

Additional notes and observations, which will assist

the verifier in relating unit information to actual
Additional Information And Comments (Attach yields contained within the APH database.
Additional Sheets As Necessary)
Include additional sheets, as necessary, referencing
appropriate items.
Your Evaluation Of The Management Of This
Operation: (Above Average; Average Or Below
Average) These are subjective questions requiring
consideration for overall evaluation of management
Your Evaluation Of The Orchard/Vineyard/Bog/ and conditions of the unit.
Grove/Field Condition: (Above Average;
Average Or Below Average)
Provide recommended action.

Action Recommended: Sign and date the report.

Acceptance, RO Determined Yield Request,
Rejection Forward to the Supervisor with any applicable
CAW(s), APH database(s), PAW, production
records, acreage determinations, to the RO/AIP.

June 2015 FCIC 18180 378

 Section 6 Crop Addendum Worksheet(s) (CAW)

1843 General Information

A CAW(s) is an underwriting tool used by the AIP to:

(1) establish insurability of the crop;

(2) evaluate the risk to be assumed by the AIP; and
(3) verify information provided by the insured on the PAW.

The CAW(s) is a part of the PAIR(s), and is used to collect specific information for the crop
being inspected and is completed while completing the PAIR by the AIP. Because the CAW
must be completed in conjunction with the PAIR, it is due by the PRD, or the date established by
the RO.

See Exh. 18 for the CAW completion requirements.

A. Crops with CAWs

All Category C crops have a CAW.

Apples, Blueberries, Cranberries, Grapes and Table Grapes, Peaches, Pears and FL
Avocado have an individual CAW for each crop.

Almonds, Citrus, Figs, Fresh Plums, Pecans, Prunes, Stonefruit, Macadamia Nuts and
Walnuts collectively utilize a combined CAW.

B. Insurability

Refer to the applicable crop provisions and/or actuarial document(s) for determining
insurable and uninsurable acreage. A separate CAW must be completed for insurable and
uninsurable acreage.

1844-1849 (Reserved)

June 2015 FCIC 18180 379

 Section 7 APH Database

1850 APH Database Establishment

APH databases must be established by unit by each unique combination of P/T/TMA and Other
Characteristics identified in the actuarial documents and specified in the CPs or SPs. See Para.
1505 for exception and Exh. 18.

Other characteristics include, but are not limited to:

(1) T-Yields by age/leaf year;

(2) density;
(3) early, mid and late season; and/or
(4) spur/non-spur; etc.

1851 Block Reporting

Block reporting allows the insured to report and maintain separate production and acreage by
block. An insured may report production and an AIP may establish an APH database by block.

The APH database is established using the APH Block Production worksheet. Reporting by
block allows production from underage trees or acreage not meeting production minimums to be
maintained separately. See Exh. 18 and DSSH.

AIPs may establish APH databases within a unit by each unique combination of P/T/TMA/Other
Characteristics. Reporting by block is the insured’s option, when P/T/TMA/Other Characteristics
are the same, and production records are maintained separately.

Example: Unit 0001-0001 has 2 blocks of land each containing 10 acres of the same
crop/P/T/TMA/Other Characteristics with blocks of different age and density, an
APH database may be established for each block provided the insured maintains
production records by block.

1852 Separate P/T/TMA/Other Characteristics

If a different T-Yield by age and/or density is specified in the actuarial documents and there are
different age and/or density blocks in the APH database, then the Weighted Average Age/Density
Worksheet may be completed to calculate the T-Yield when a T-Yield is applicable to the APH
database.

The APH database calculated using a weighted average age and/or density to arrive at a T-Yield
must be reported by the AIP to RMA with yield indicator “W”. If T-Yields are not required in
the APH database (e.g., more than four years of actual/assigned yields are available and YA is
not applicable), then the Weighted Average Age/Density Worksheet is not required.

June 2015 FCIC 18180 380

1853 Commingled Production

The following applies to Category C crops with commingled production.

(1) If the insured commingled production for acreage that does not meet policy minimums, see
Para. 1803B and D.

(2) If RMA establishes new P/T/TMA/Other Characteristics, see Para. 1521, yield descriptors
“AC”, “GC”, or “VC” apply when databases are divided. Generally, the insured should
know the acres by type, TMA and Other Characteristics.

(3) When the insured divides units with the same P/T/TMA/Other Characteristics for acreage
that has met age and/or production requirements, see Para. 1088.

(4) If the insured commingles production between units, assigned yield procedures apply, see
Para. 1856C.

(5) If the insured commingled production between APH databases within the same unit
containing different P/T/TMA/Other Characteristics for acreage that has met age and/or
production requirements acreage, [use the Multi-Purpose Production and Yield Worksheet,
Exh. 17 and also see Para. 1715 for Reporting Production for P/T/TMAs, to separate
production.

Exception: The Multi-purpose Production and Yield Worksheet cannot be used to

separate production commingled between conventional and certified
organic acreage or transitional and certified organic acreage. See Para.
1167D.

(6) If the insured commingled production within the same unit containing the same P/T/TMA
which includes some immature acreage, commingled production procedure, Para. 1088B
and 1715 does not apply, the APH database is not eligible for YA and yield descriptor
“AY” applies to the actual/assigned yield(s), unless:

(a) Production and Acreage Separate by Block. When the insured certifies separate
production and acreage by block for all years certified for insurable acreage (as
provided in the CPs) the insured will receive an approved APH yield based on
actual/assigned yields and T-Yields based on the current age and density by
P/T/TMA/Other Characteristic of each block. The block may be eligible for YA if T-
Yields are available for the age and density. See the APH Block Production Para.
1851 and Weighted Average Age/Density Worksheet Para.1852, and respective
worksheet instructions for each crop in Exh. 18;

June 2015 FCIC 18180 381

1853 Commingled Production (Continued)

(b) Production for Most Recent Year Separate by Block. When the insured certifies
separate production and acreage by block for at least the most recent year, for
insurable acreage (as provided in the CPs) the insured will receive an approved APH
yield based on actual/assigned yields and T-Yields based on the current age and
density of each block as described above; however the total commingled production
and acreage (insurable and uninsurable ) from the previous crop years will be
attributed only to the blocks that are of the age specified and older for the applicable
crop. YA may be applicable to the most recent year separated by block, see the APH
Block Production Para.1851; or

(c) Weighted Average Age and Density is Determined. The APH database may be
eligible for YA if the Weighted Average Age and Density can be determined. See the
Weighted Average Age/Density Worksheet Para. 1852.

1854 Organic Perennials

For perennial acreage see Part 11, Sec. 4.

1855 Acreage Less than a Tenth of an Acre

An APH database cannot be established for acreage that is less than 0.1 acre. If acreage has been
identified that is less than 0.1 acre, the acreage must be combined with another APH database to
be insurable. If no other APH database is available, the acreage is not insurable.

1856 APH Database Establishment Methods

A minimum of four years of yields are required in each APH database to calculate approved APH
yields. Average APH yields are based on the simple average of the yields for each APH crop
year contained within the APH database with additional considerations to arrive at the approved
APH yield.

These procedures provide additional requirements to establish the APH Database for Category C
crop. Also refer to Parts 13 and 15 for Production Reports and APH Databases, and Part 15,
Sections 3, 4, and 5 for APH Yield Adjustments, Yield Exclusions, and Yield Reductions for
additional procedure regarding the APH database.

A. No Actual or Assigned Yields

For new insureds who have produced the insured crop and do not provide acceptable
production reports for the acreage in the insured’s current operation by the PRD, approved
APH yields are calculated by multiplying the applicable T-Yield(s) by 65 percent for the
entire crop policy.

Exception: Not authorized when the CP contains minimum production requirements

for insurability. The insured must provide records substantiating that the
production minimums were met and us the records to complete APH.

June 2015 FCIC 18180 382

1856 APH Database Establishment Methods (Continued)

A. No Actual or Assigned Yields (Continued)

(1) New insureds must request approved APH yields by completing and signing a
production report. Separate four year APH databases are required for each block or
unit (by P/T/TMA/Other Characteristics). Each APH database must contain four 65
percent T-Yields. AIPs must quote the applicable 65 percent T-Yield as the
preliminary APH yield. The verifier must approve all approved APH yields.

(2) Cups do not apply the initial year insured; however, in subsequent crop years, APH
databases with at least one actual or assigned yield may be eligible for cups.

(3) OUs are not authorized.

(4) For Subsequent Crop Years.

(a) Production reports are required and assigned yield provisions apply if acceptable
production reports are not filed by the PRD.

(b) The T-Yield is not set in the APH database. It is updated with T-yield changes
in subsequent years, variable percentage changes based on number of certified
yields; current age/density if T-Yields are by age in the actuarial documents; or
new T-Yields are provided in the actuarial documents for the current crop year.
The APH database must be updated each year and the approved/average and rate
APH yield recalculated.

B. Actual and/or Assigned Yields

When acceptable production reports containing actual yields are filed and/or assigned
yields apply for a crop year, the crop year is counted for variable T-Yield purposes.

(1) When one to three years of actual/assigned yields are available for an APH database,
the average APH yield is determined by a simple average of the insured’s
actual/assigned yields and applicable variable T-Yields used to complete the four year
minimum APH database divided by four. See Para. 1503.

(2) When four or more years of actual and/or assigned yields are available for an APH
database, the average APH yield is determined by a simple average of the insured's
actual and/or assigned yields divided by the number of years of actual and/or assigned
yields contained in the APH database.

June 2015 FCIC 18180 383

1856 APH Database Establishment Methods (Continued)

C. Assigned Yield Instructions

Assigned yields apply on a crop year basis to all APH databases that had insurable acres
(except units with claims for indemnities or if the producer qualifies for a temporary yield)
if acceptable production reports for the most recent crop year in the base period are not
provided by the PRD. Production from claims for indemnity is considered production
reports and must be reflected in the APH database used. When assigned yields apply in the
current crop year, the insured does not qualify for OU. See Para. 1026.

Exception: Assigned yields are not applicable for Florida Avocados and if in
subsequent crop years the required production reports are not provided, the
policy will be referred to the RO for a RO Determined Yield. See Para.
1881.

If production in the APH database contains assigned yields in previous years and the APH
database is being recertified at a lower level, (e.g., APH database established as unit/P/T/
was divided into blocks based upon age) the insured must:

(1) Recertify by APH database using actual production records;

(2) Use the acres associated with the new APH databases (e.g., by block) and the
previously assigned yield if the original APH database was composed of acreages
with the same T-Yield; or

(3) Recalculate prior assigned yields if the original APH database was composed of
acreages with different T-Yields using the Multi-Purpose Production and Yield
Worksheet instructions in Para. 1857. Yield descriptor “AC”, “GC” or “VC” apply to
the APH database. These yields are not eligible for yield adjustments.

1857 Multi-Purpose Production and Yield Worksheet

Use the Multi-Purpose Production and Yield Worksheet to reconstruct the previously assigned
yield into separate assigned yields when the contributing acreages had different T-Yields.

COLUMN REQUIRED INFORMATION

1 Acres for the new APH database
2 T-Yield for the new APH database (weighted average if yield indicator “W”)
3 New APH database total (Col. 1 X Col. 2)
4 Acres for the original APH database
5 T-Yield for the original APH database (weighted average)
6 Original APH database total (Col. 4 X Col. 5)
7 Factor (New APH database total Col. 3 ÷ Original APH database total Col. 6)
8 Assigned yield for Original APH database
9 Assigned production for the Original APH database (Assigned yield Col. 8 X acres Col. 4)
Reassigned yield for new APH database (assigned production Col. 9 X factor Col 7 ÷ acres for the new
10
APH database Col. 1)

June 2015 FCIC 18180 384

1858 T-Yield Instructions

In addition to the procedures in Para. 1503, the following applies to Category C crops.

A. Grafting/Dehorning

For crop acreage modified by grafting (or dehorning), the month and year it was completed
must be used to determine the applicable leaf-year (age) and T-Yield (unless an alternative
T-Yield and procedures are provided in the actuarial documents or RO UG).

B. Added Land

Variable T-Yield exceptions for added land and use of prior producer records, see Para.
1860.

C. Percent Stand

When variable T-Yields are used in the APH database, they are reduced for percent stand
adjustments as required by the CP or SP (the APH database would only report the T-Yield
(no acres), thus the T-Yield which is provided on a per acre basis is reduced).

(1) When Variable T-Yields are reduced for percent stand, the yield must be identified
with yield descriptors, “SK”, “EK”, “NK” or “TK” (first character is variable yield
descriptor, second character indicates further reduction for percent stand “K”).

Example: If the percent stand for the block being reported is 75 percent; the
applicable T-Yield (“E” 80 percent T-Yield) would be multiplied by
0.75 and reported as “EK”.

(2) When YA is elected, the percent stand reduction percentage applies to the YA. For
example, the insured qualifies for YA, the applicable T-Yield is 100; the percent stand
is 75 percent; multiply the percent stand percentage of 0.75 times the YA of 60
percent for a substituted value of 45.

1859 Weighted Average Age/Density

A T-Yield based upon the weighted average age and density is required when different T-Yields
apply to an APH database with mixed age and densities and a T-Yield is necessary to complete
the APH database.

A. Weighted Average Age/Density Worksheet

A Weighted Average Age/Density Worksheet is used to calculate weighted average age and
density in order to determine the T-Yield when the APH database contains multiple blocks
with different set out years (age) and/or density see Exh. 18.

June 2015 FCIC 18180 385

1859 Weighted Average Age/Density (Continued)

A. Weighted Average Age/Density Worksheet (continued)

The AIP must complete the Weighted Average Age/Density Worksheet and report APH
databases established using weighted average age/densities T-Yields to RMA with the
applicable yield indicator “W”.

(1) If the actuarial documents do not contain different T-Yields by age/density, the
Weighted Average Age/Density Worksheet does not apply.

(2) If T-Yields are not required in the APH database because there are four or more years
of actual/assigned yields and YA is not applicable, then the Weighted Average
Age/Density Worksheet is not required.

(3) If the Weighted Average Age/Density Worksheet includes acreage that does not meet
age requirements, YA when applicable, is determined using the Weighted Average
Age/Density Worksheet see Exh. 18.

(4) If acreage contained in the Weighted Average Age/Density Worksheet meets age
requirements, YA is available when applicable.

B. Variable T-Yield Percentages

Variable T-Yield percentages apply to T-Yields determined based upon the weighted
average age/density and any applicable adjustments for percent stand.

C. Multiple Plantings and Unknown Tree Counts

When there are multiple plantings and the tree counts are not known use either the most
recent year in the range or the most distant year that results in the lowest applicable T-
Yield.

1860 Added Insurable Acreage

Added insurable acreage is acreage that becomes insurable in the current policy crop year
because policy requirements for minimum production and/or age are met.

A. Acreage Added to an Existing APH Database for certain crops in AZ, CA, HI, and UT
Only

Procedure is applicable for: Almonds, Arizona and California Citrus, Figs, Plums, Grapes,
Macadamia Nuts, Prunes, Stonefruit, Table Grapes and Walnuts in Arizona, California,
Hawaii and Utah.

June 2015 FCIC 18180 386

1860 Added Insurable Acreage (Continued)

A. Acreage Added to an Existing APH Database…(continued)

If the insured provided an acceptable production report by block for the uninsurable
acreage, when the acreage becomes insurable it may be added to an existing APH database
containing the same unit/P/T/TMA/Other Characteristics. To add acreage to an existing
APH database, AIPs must:

(1) verify the existing APH database has a prior year approved APH yield; and

(2) calculate the percentage increase in acreage by dividing the previously uninsurable
acres by the existing APH database acres. Use a simple average of the acres in the
existing APH database.

If the calculated percentage increase in acreage is:

(a) Less than 70 percent of the existing APH database's insurable acreage, the
production from the previously uninsured acreage is excluded from the
combined database and the approved APH yield of the previously insured APH
database is used, i.e., the previously insured APH database approved APH yield
is used for both the added and existing acreage. Once the previously uninsured
acreage is combined with the existing APH database, it cannot be removed.

An APH database for the previously uninsurable acreage must be maintained by

the AIP for the initial year of insurance to substantiate that the insured kept the
uninsurable acreage production records separate and to substantiate that
production minimums were attained prior to being added as insurable acreage.
This APH database is not transmitted to RMA.

(b) 70 percent or greater than the existing APH database’s insurable acreage, an
APH database must be established for the previously uninsurable acreage using
variable T-Yields to complete the four year APH database.

The insured must maintain separate APH databases until the added insurable
acreage block contains four years of actual/assigned yields, acres and
production.

After four years, the added insurable acreage block may be combined with the
other APH database with the same unit/P/T/TMA/Other Characteristics.

If acceptable production report(s) are not provided for the uninsurable acreage, see
procedure in Para. 1803.

June 2015 FCIC 18180 387

1860 Added Insurable Acreage (Continued)

B. Acreage Added to an Existing APH Database for All Other Crops and States

When insurability of the crop acreage is based on age or production minimums being
attained, and acreage is added to an existing APH database, the production is considered
commingled between insurable and uninsurable acreage.

Production and acres from prior years for previously uninsurable acreage is combined with
the insurable acreage; total production divided by total acreage for both insured and
previously uninsurable acreage is used for all crop years in the APH database. The
commingled production and all acreage are entered in the APH database.

Cups do not apply the initial year acreage is added. YA does not apply for any crop year
within the resulting APH database where production from acreage not meeting the
insurability minimums and insurable acreage is commingled, unless a weighted average T-
Yield applies.

Crops with minimum production requirements may require a RO determined yield.

C. Acreage Added as a Separate APH Database

(1) When insurability of the crop acreage is based on age and the crop attained the
required age, the following apply.

(a) The insured has the option to establish the APH database using the previous
year(s) continuous acceptable production report from underage acreage. An
insured may elect this option when actual yields are higher than the T-Yield
when the acreage was under the policy age requirements. Production reports
must be for consecutive crop years with no break in continuity.

This acreage and yield must remain in the APH database until excluded by the
base period.

(b) The applicable variable T-Yield may be used in place of the actual yield from
the underage crop. The approved APH yield is calculated using four variable T-
Yields with yield descriptors “SX”, “EX”, “NX” and “IX” for the annual yield
by crop year in lieu of the variable T-Yield descriptors “S”, “E”, “N”, and “T”.

If separate acreage and production from the previously uninsurable crop year(s)
are provided, such production and acreage is entered in the APH database but
does not have the annual actual yield calculated for applicable crop year(s)
shown unless the insured elects to use the prior uninsurable annual actual
yield(s).

(c) Any prior commingled production and acreage remains with the prior
commingled block or unit; however, for at least the most recent year, separate
production and acreage must be provided.

June 2015 FCIC 18180 388

1860 Added Insurable Acreage (Continued)

C. Acreage Added as a Separate APH Database (continued)

(2) When the insurability of the crop acreage is based on production minimums, and
acceptable records for such acreage are provided, the actual annual yields submitted
for the crop year that the minimum production requirement was met and up to three
variable T-Yields are used to calculate the approved APH yield. The qualifying
acreage and production must be entered on the APH database.

(a) Any prior production and acreage shown on the APH database, before meeting
the production minimum, will not have an actual annual yield for applicable
crop year(s)’ shown.

(b) Once qualifying actual yields have been submitted which meet production
minimums, continuous production reports must be submitted for each
subsequent crop year and variable T-Yields will be replaced with actual or
assigned yields in subsequent crop years.

(c) Any prior commingled production and acreage remains with the prior
commingled block or unit; however, for at least the most recent year, separate
production and acreage must be provided.

(3) For crops with age and production minimums, follow the procedure in (1) above. For
crops with age or production minimums, follow the procedure in (1) or (2),
respectively.

1861 Added Land/New Producers

A. New Producers or Carryover Insureds

New producers or carryover insureds who have recently added land by recently purchasing
or leasing perennial crop acreage which meets policy requirements may use the prior
producer's records, whether or not that producer continues to share in the crop, when
acceptable hard copy records of acreage and production, or claim records are submitted to
the AIP by the PRD.

B. Production Report Submitted with at least Four Crop Years

When a production report containing at least four years of acceptable production evidence
is submitted which meets insurability requirements, establish the APH database using the
production reports.

June 2015 FCIC 18180 389

1861 Added Land/New Producers (continued)

C. Production Report Submitted with less than Four Crop Years

When acceptable production reports for less than four years are provided, the APH database
must be completed as follows.

(1) Variable T-Yields are used to complete the APH database and are determined on an
APH Database basis, not a crop/county basis.

(2) The approved APH yield is calculated using four variable T-Yields with yield
descriptors “SX”, “EX”, “NX” and “IX” for the annual yield by crop year in lieu of
the variable T-Yield descriptors “S”, “E”, “N”, and “T”.

(a) The yield descriptors are used to identify that acceptable production evidence
was not provided for the perennial crop, even though a perennial crop would
typically have production evidence in previous crop years.

(b) The yields descriptors remain in the database unadjusted and roll out as the most
recent four years of actual/assigned yields are provided in subsequent crop
years.

(c) The perennial yield descriptors take precedence over any other applicable yield
descriptor.

If insurance is requested on added land acreage that is damaged, insurance does

not attach. Also, for insureds sharing in the crop with another producer, see
Para. 1508.

1862 APH Database Tests for High Variability of Actual Yields

A. Testing Requirement

To determine whether any adjustments to the APH database are warranted, high variability
tests are to be performed by the AIP. High variability includes alternate bearing and
downward trending patterns.

Exception: No review for high variability is required by the AIP when the APH
database contains less than four years of actual yields, a break in continuity
or a yield descriptor “U”.

Exception: If one of the actual yields in the most recent three crop years in the APH
database is in a crop year that is eligible for yield exclusion in the actuarial
documents, the yield variance test in Para. 1862C is not applicable and the
APH database is not reduced for alternate bearing and downward trending.

June 2015 FCIC 18180 390

1862 APH Database Tests for High Variability of Actual Yields (continued)

A. Testing Requirement (continued)

Exception: Effective for Peaches (crop code 0034) in the 2015 and subsequent crop
years, AIPs will test APH databases for high variability as required in
Para. 1862C, D and E.

However, the approved APH yield will not be adjusted by formula for
alternate bearing as provided in Para. 1862D(1) and (3)(e); or Para.
1862E(2) for downward trending (see Para. 1862G).

B. APH Database Review

If the APH database:

(1) meets the following tests in C, D or E then the high variability adjustments as
specified in those respective sections applies; the APH database is not qualified for
YA or Cups; and the AIP must conduct a PAIR.

(2) does not meet the following tests C, D or E then the high variability adjustment to the
APH database does not apply.

In conducting the high variability testing, the rounding is according to APH yield per-acre
rounding rules for the crop, to the nearest bushel, box, pound, etc.; multiplied by any
applicable factor and then rounded again to the nearest bushel, box, pound, etc.; at each
applicable step.

C. Yield Variance Test

STEP ACTION
1 Calculate the average APH yield.
Determine the number of actual yields that are less than 75 percent of the average
2
APH yield.
Compare the number of actual yields that are less than 75 percent of the average
3 APH yield to the number of actual yields contained in the APH database.
Determine whether the comparison meets the requirements in the following chart.
Determine whether one of the actual yields, that were less than 75 percent of the
4
average APH yield, occurred during the most recent three crop years.

NUMBER OF TIMES THE ANNUAL ACTUAL

NUMBER OF YEARS OF ACTUAL YIELDS
YIELD IS LESS THAN 75 PERCENT OF THE
CONTAINED IN THE APH DATABASE
AVERAGE APH YIELD
2 or more 4-5
3 or more 6-7
4 or more 8 - 10

June 2015 FCIC 18180 391

1862 APH Database Tests for High Variability of Actual Yields (continued)

C. Yield Variance Test (continued)

If the APH database does:

(1) not meet the requirements in step 3 and 4, no further APH database tests are
conducted and no adjustment for high variability is required.

(2) meets the requirements in step 3 and 4, AIPs must conduct the Alternate Bearing and
Downward Trending tests to determine whether the APH database should be adjusted.
The AIP must conduct a PAIR if one has not been performed or if the most recent
PAIR is more than five years old.

Exception: An assuming AIP may use a ceding AIP’s PAIR when provided by
the ceding AIP.

D. Alternate Bearing Tests

If the requirements in C (step 3 and 4) were met, AIPs must review the APH database to
determine if the APH database meets the following tests for alternate bearing.

Calculate an average APH yield using the most recent five years in the APH database.
AIPs may use the most recent four years when five years are not available. Use this
calculated average APH yield to determine if the APH database meets the following
alternate bearing tests for adjustment of the approved APH yield.

(1) Test 1a, for crops without a lag year:

PERCENTAGE OF THE CALCULATED AVERAGE APH

ACTUAL YIELD FOR:
YIELD
most recent crop year Equal to or greater than 125 percent of the calculated
(yield year 1) average APH yield
the year prior to the most
Less than or equal to 75 percent of the calculated average
recent year
APH yield
(yield year 2)
two years prior to the
Equal to or greater than 125 percent of the calculated
most recent year
average APH yield
(yield year 3)
three years prior to the
Less than or equal to 75 percent of the calculated average
most recent year
APH yield
(yield year 4)

Example: The calculated average APH yield using the most recent five years in
the APH database is 800.

June 2015 FCIC 18180 392

1862 APH Database Tests for High Variability of Actual Yields (continued)

D. Alternate Bearing Tests (continued)

CROP YEAR YIELD

2015 (Most Recent) 1200 (≥ 125% of average)
2014 200 (≤ 75% of average)
2013 1200 (≥ 125% of average)
2012 200 (≤ 75% of average)
2011 1200

When the APH database meets these requirements, the AIP must adjust the APH
database as follows:

STEP ACTION
Multiply the average yield for the most recent four years in the database by
1
0.5
Multiply the average yield of the two lowest yearly yields in the most
2
recent four years of the database by 0.5
Sum the results of steps 1 and 2 for the approved APH yield, the AIP must
3
use special case yield indicator “AF”

(2) Test 1b, for crops with a lag year, Citrus, Avocado, and Macadamia Nuts.

PERCENTAGE OF THE CALCULATED AVERAGE APH

ACTUAL YIELD YEAR FOR:
YIELD
most recent crop year’s
Equal to or less than 75 percent of the calculated average
actual yield
APH yield
(yield year 1)
the year prior to the most
Greater than or equal to 125 percent of the calculated
recent year
average APH yield
(yield year 2)
two years prior to the most
Less than or equal to 75 percent of the calculated average
recent year
APH yield
(yield year 3)
three years prior to the
Greater than or equal to 125 percent of the calculated
most recent year
average APH yield
(yield year 4)

When the APH database meets these requirements, the AIP must adjust the APH
database as follows:

June 2015 FCIC 18180 393

1862 APH Database Tests for High Variability of Actual Yields (continued)

D. Alternate Bearing Tests (continued)

STEP ACTION
Multiply the average yield for the most recent four years in the database by
1
0.5
Multiply the average yield of the two lowest yearly yields in the most
2
recent four years of the database by 0.5
Sum the results of steps 1 and 2 for the approved APH yield, the AIP must
3
use special case yield indicator “AF”

(3) Test 2a, for crops without a lag year.

PERCENTAGE OF THE CALCULATED AVERAGE APH

ACTUAL YIELD YEAR FOR:
YIELD
most recent crop year’s
Less than or equal to 75 percent of the calculated average
actual yield
APH yield
(yield year 1)
the year prior to the most
Greater than or equal to 125 percent of the calculated
recent year
average APH yield
(yield year 2)
two years prior to the most
Equal to or less than 75 percent of the calculated average
recent year
APH yield
(yield year 3)
three years prior to the most
Greater than or equal to 125 percent of the calculated
recent year
average APH yield
(yield year 4)

Example: The calculated average APH yield using the most recent five years in
the APH database is 600.

CROP YEAR YIELD

2015 (Most Recent) 200 (≤ 75% of average)
2014 1200 (≥ 125% of average)
2013 200 (≤ 75% of average)
2012 1200 (≥ 125% of average)
2011 200

When the APH database meets these requirements, the higher of the APH database
average APH yield or the most recent four-year per-acre average will be used for the
approved APH yield. AIPs must submit the APH database with special case yield
indicator “AF”.

(4) Test 2b, for crops with a lag year, Citrus, Avocado, and Macadamia Nuts.

June 2015 FCIC 18180 394

1862 APH Database Tests for High Variability of Actual Yields (continued)

D. Alternate Bearing Tests (continued)

ACTUAL YIELD YEAR FOR: PERCENTAGE OF THE CALCULATED AVERAGE APH YIELD
most recent crop year’s
Equal to or greater than 125 percent of the calculated
actual yield
average APH yield
(yield year 1)
the year prior to the most
recent year Less than or equal to 75 percent of the average APH yield
(yield year 2)
two years prior to the most
Greater than or equal to 125 percent of the calculated
recent year
average APH yield
(yield year 3)
three years prior to the most
Less than or equal to 75 percent of the calculated average
recent year
APH yield
(yield year 4)

When the APH database meets these requirements, the higher of the APH database
average APH yield or the most recent four-year per-acre average will be used for the
approved APH yield. AIPs must submit the APH database with special case yield
indicator “AF”.

APH databases that meet the requirements in (1), (2), (3), or (4) above must be submitted to
DAS with special case yield indicator “AF” to show they are adjusted by the alternate
bearing formula. YA or cups are not applicable. Do not apply additional downward
trending test in E below.

In lieu of the procedures in (1), (2), (3), or (4) above, the RO may issue RO UG that waive
the alternate bearing adjustments. AIPs must identify APH databases that met the Alternate
Bearing testing but adjustments were waived by RO Underwriting Guidelines with special
case yield indicator “D” to show that alternate bearing criteria were met but that no
adjustment by formula was applicable.

Alternatively, the RO may issue RO UG that modify the alternate bearing adjustment. AIPs
must identify APH databases that met the Alternate Bearing test but adjustment was
modified by RO UG with special case yield indicator “F”.

E. Downward Trending Test

If the requirements in (C) above were met and the requirements in (D) above were not met,
AIPs must review the APH database to determine whether it meets the following test for
downward trending.

Calculate the average yield of the three most recent actual yields in the APH database, then
divide the average yield of the three most recent actual yields in the APH database by the
average yield of all actual yields in the APH database.

June 2015 FCIC 18180 395

1862 APH Database Tests for High Variability of Actual Yields (continued)

E. Downward Trending Test (Continued)

(1) If the result of this calculation is greater than 0.75, then no adjustment to the APH
database is applicable; or

(2) If the result of this calculation is less than or equal to 0.75, then multiply the average
APH yield for the entire APH database by 0.80 to determine the approved APH yield.
The AIP must submit these APH databases with special case yield indicator “DF” to
show they are adjusted by the downward trend formula. YA or cups are not
applicable.

The RO may issue RO UG that waives the downward trending adjustment. AIPs must
identify APH databases that met the Downward Trending test but adjustments were waived
by RO UG with special case yield indicator “D” to show that downward trend criteria were
met but that no adjustment by formula was applicable.

Alternatively, the RO may issue RO UG that modify the downward trending adjustment.
AIPs must identify APH databases that met the Downward Trending test but adjustment
was modified by RO UG with special case yield indicator “F”.

F. Inappropriate Adjustments

If within 30 days of notification from the AIP, an insured can show that high variability
yield adjustment for alternate bearing or downward trending by the formulas in C, D, E
above, or as otherwise provided in the RO UG was not appropriate, a request for a RO
Determined Yield may be submitted through the AIP to the RO see Para. 2212 for RO
Determined Yield Request. Request must be in writing and signed by the insured within 30
days of written notification from the AIP of the yield adjustment.

G. High Variability Adjustments for Peaches

Approved yields for Peach APH databases are not adjusted automatically by high
variability testing formulas Para. 1862 A and are eligible for YA.

However, if a Peach APH database meets the high variability testing requirements and at
least or greater than 50 percent of the trees in the APH database are 11 years of age or older
(12th leaf +), a PAIR Para. 1838 must be completed by the AIP in the current crop year. If
the PAIR identifies situations that may affect the crop’s production potential, requests for
Regional Office Determined Yields are required Para. 1838.

June 2015 FCIC 18180 396

1863 Approved APH Yield

AIPs are required to calculate, approve, and verify APH yields for all Category C APH crops.

The approved APH yield may be different from the simple average due to one or more of the
following reasons.

(1) RO Determined Yield. See Part 18, Sec.9.

(2) Yield Substitutions (YA) or cups are applied. See Part 15, Sec. 3.
(3) Yield Exclusions (YE). See Part 15, Sec. 4.
(4) Yield Reductions. See Part 15, Sec. 5.
(5) AIP Adjustments by formula contained in this Section or RO UG.

1864-1870 (Reserved)

June 2015 FCIC 18180 397

 Section 8 Yield Information

1871 Yield Indicators

Yield Indicators and Special Yield Indicators are used to identify the APH database approved
APH yield.

1872 Yield Adjustments

If the RO determined yield contains substitutions applied by the RO or AIP approved yield with
adjustment for percent stand according to procedures, AIPs must transmit yield limitation flag
“12” to RMA, see Appendix III for instructions regarding data transmission.

1873 Yield Limitations

A. Yield Floors and Cups

Yield floors are not authorized; however, cups may be authorized. The cup prevents the
approved APH yield from decreasing by more than 10 percent compared to the prior year's
approved APH yield. Cups are administered by APH database.

B. Cups Do Not Apply

Cups do not apply to APH databases if:

(1) the APH database does not contain at least one actual yield or assigned yield;

(2) there is not a prior year’s approved APH yield for the APH database;

(3) yield substitutions and/or yield exclusions are used to calculate the current or prior
year’s approved APH yield;

(4) more than one year’s production history is added to the database in the current year;

(5) an approved APH yield cannot be determined by the AIP and a RO does not authorize
a cup in the RO UG or in a Determined Yield.

(6) an APH database is converted from units to blocks or reporting by blocks is

discontinued. Procedures for calculating cups do not apply for the current crop year:

(a) if the previous year’s approved APH yield was calculated for a unit and the
current crop year is using APH block production;

(b) if the previous year’s approved APH yield was calculated using block
production with approved yields issued by blocks and use of the block
production is discontinued for the current crop year;

June 2015 FCIC 18180 398

1873 Yield Limitations (Continued)

B. Cups Do Not Apply (continued)

(7) previously approved APH yields are corrected/changed. These include:

(a) revision of a previously reported actual yield submitted by the insured.

(b) revision of approved APH yields are required for the current crop year according
to APH review procedure when discrepancies in production and/or acreage
information are found during APH field reviews that cause changes in approved
APH yields to exceed established tolerances.

Exception: If the approved APH yield does not require correction for the
current crop year, cup procedures apply (for current and
subsequent crop year whenever the yield is corrected).

(c) additional actual yields are submitted and accepted for year(s) other than the
most recent APH crop year in the APH database, e.g., assigned yields or T-
Yields are replaced with actual yields.

(d) when units/P/T with established APH databases containing actual and/or
assigned yields are combined or further divided. This does not include change
only in unit numbering and the actual production history is not combined or
divided.

(e) the T-Yield decreases 10 percent or more and the T-Yield is required to
calculate the approved APH yield when T-Yield(s) are used to complete the 4-
year APH database.

(f) incorrect application of procedure by AIP if the approved APH yield changes.

(g) corrected or revised claims lower the actual yield used for APH database
purposes (by P/T/TMA) by 10 percent or more; or

(8) high variability conditions are triggered and AIPs are authorized to determine the
approved APH yield.

C. Yield Limitation Calculations

For qualifying APH databases, approved APH yields are calculated using cups by
calculating the average APH yield using current APH database procedures; then
multiplying the prior year’s approved APH yield times the cup (0.90).

June 2015 FCIC 18180 399

1873 Yield Limitations (Continued)

D. Determining Premium Rates

Premium rates are determined differently when the approved APH yields are based on
cupped yields. The rate is determined from the cupped yield and a five percent surcharge is
applied. The AIPs must identify the APH database with yield limitation flag “03” when
transmitting to RMA. See Appendix III.

If the RO determined yield or RO UG contains a cup applied by the RO, AIPs must
transmit yield limitation flag “13” to RMA. See Appendix III.

1874-1880 (Reserved)

June 2015 FCIC 18180 400

 Section 9 RO Determined Yields

1881 Situations for a RO Determined Yield Request

A RO Determined Yield may be requested for the following situations.

A. Higher Yield Requests

A greater yield than the average APH yield is requested by the insured with reasonable
cause (e.g., acreage in production not meeting the crop minimums, almonds in production
that are less than six years after set out, or added land), see Para. 1860. The request must
be in writing and signed by the insured.

Use special case indicator “H” for APH databases identified by this criteria.

B. Productivity is Reduced

PAW triggers for reduced production, see Para. 1823. Identify the RO determined yield for
APH databases identified as meeting these criteria with the special case yield indicator “R”.

C. Change in Practice or Production Methods

PAW triggers for change in practice or production methods, see Para. 1823. Use special
case yield indicator “N”, for APH databases identified by these criteria. If the non-
conventional farming practice is determined to be sustainable, use “S” in conjunction with
“N”, special case yield indicator “NS”.

D. Irrigation Supply is Not Adequate

PAW triggers for irrigation supply, see Para. 1823. Identify APH databases meeting this
criteria with special case yield indicator “I”.

E. Unusual Cases

Unusual cases submitted to the RO must mark the “other” box on the RO Determined Yield
Request form. Unusual cases include:

(1) Questionable records for a determination of acceptability;

(2) Requests to use records prior to a break in continuity of records;

(3) Requests for the RO to determine and approve an APH yield for perennial crop
acreage that have not reached the specified age, produced the required amount, or
have an insufficient stand if expressly allowed by the CP (e.g., figs, walnuts, almonds,
plums, etc.) when the AIP agrees in writing, see WAH Para. 76G;

June 2015 FCIC 18180 401

1881 Situations for a RO Determined Yield Request (Continued)

E. Unusual Cases (continued)

(4) Request for additional yield adjustment or insurability determination where

uninsurable acreage has been commingled to meet insurability requirements;

(5) Change in practice where prior history for the practice is not available to meet
insurability requirements (e.g., blueberries from non-irrigated to irrigated);

(6) Florida Avocados Only: when production reports are not provided, assigned yields do
not apply and requests must be submitted to the RO; or

(7) Other situations authorized by RMA in policy or procedure.

F. High Variability Yield Adjustment

A RO Determined Yield request can be submitted to the RO if an insured can show that
high variability yield adjustments for alternate bearing or downward trending are not
appropriate.

A RO Determined Yield is required for Peach (crop code 0034) APH database(s) that meet
the high variability testing requirements and at least, or greater than, 50 percent of the trees
in the APH database are 11 years of age or older when the PAIR identifies situations that
may affect the crop’s production potential.

G. Revised or Corrected APH/Request to Increase Acreages

H. Underage Crop

1882 Verifier Responsibilities

AIPs must notify each affected insured of the approved APH yield(s) no later than 25 calendar
days after issuance of the approved APH yield by the RO. AIPs must document the date the
insured was notified of the approved APH yield to verify timely notification of approved APH
yields.

1883-1900 (Reserved)

June 2015 FCIC 18180 402

 PART 19 ADDITIONAL PROVISIONS BY CROP
Section 1 Category B Crops

1901 General Information

The following procedures provide additional information and exceptions for determining
insurability, determining production for APH purposes, acceptable supporting documentation,
and special procedures for specific crops/P/T. For crops with quality adjustment provisions, refer
to LAM and applicable LASHs when determining production for APH purposes. Production for
APH purposes is reported with applicable adjustments according to Para. 1411C.

1902 Cabbage (Fresh Market and Processing)

A. Insurability Requirements

(1) The insured must provide a copy of all processor contracts to the AIP on or before the
ARD for processing cabbage.

(2) See the applicable SP statement that limits liability if the insured plants more than 125
percent of the highest acreage planted in any one of the most recent three crop years.
This limitation will not apply to an acreage increase of five or less acres or to any
acreage of processing cabbage under contract.

(3) Insureds are responsible for providing written documentation of acreage data to the
agent/AIP representative. Use this acreage data to calculate the yield conversion
factor, which is in the SP, to determine the production guarantee. The documentation
must be submitted at the time of application for new insureds, or by the SCD for
carryover insureds, and must include one of the following:

(a) copies of cabbage acreage reports previously recorded for crop insurance
purposes;

(b) copies of acreage reports previously recorded at FSA (such as a Form FSA-578);
or

(c) letters on official letterhead signed and dated by the CES Office’s Extension
Agent for each county where cabbage was grown. The letter must contain the
insured’s name, address, county name where the cabbage was grown, and
acreage of cabbage grown by crop year. Examples of acceptable documentation
of acreage evidence for these letters include planting/transplanting records (such
as seed or transplant receipts, fertilizer and pesticide receipts).

June 2015 FCIC 18180 403

1902 Cabbage (Fresh Market and Processing) (continued)

A. Insurability Requirements (continued)

(4) The AIP must notify the insured of any reduction in the production guarantee no later
than 30 calendar days after the ARD. The AIP’s calculations of the yield conversion
factor must be in writing and dated. The AIP must place copies of the prior years’
acreage and the calculation of the yield conversion factor documentation in the
insured’s official file. The AIP must enter the appropriate yield conversion factor on
the acreage report in the remarks section (to three decimal places). If the yield
conversion factor is 1.000 or above, use 1.000 in the calculation of the approved
production guarantee and report 1.000 as the yield conversion factor on the acreage
report.

B. Determining APH Production

(1) BUs may be further divided by planting period. OUs may be established by type
when separate types are provided in the SP. Convert prior APHs to the applicable
unit structure.

(2) In addition to the New Producer requirements in Part 17 Sec. 5, the applicable New
Producer statement in the SP will apply.

C. Acceptable Production Evidence

(1) Sold or delivered production at the time of harvest must include cabbage sold for
fresh market and/or processing cabbage.

(a) Fresh Market Cabbage acceptable production evidence must include settlement
sheets that show the pack-out weight (weight of packed cabbage for which the
insured is paid).

(b) Processing Cabbage acceptable production evidence must include settlement

sheets that show the weight for which the insured is paid.

(2) Acceptable production evidence for cabbage when farm management records are used
to support production reports must be substantiated by records from a marketing
outlet, processor, packer, first handler, etc. Third party verification of farm
management records may be required by the AIP and/or RMA. Convert boxes, bags,
cartons, tons, or other measures of production to hundredweight (one hundred pounds
avoirdupois).

Example: Settlement sheet shows 100 boxes, bags, cartons or crates at 50

pounds: 100 X 50 lbs. = 5,000 lbs. ÷ 100 = 50 cwt.

Example: Settlement sheet shows 15.8 Tons: 15.8 X 2,000 lbs. = 31,600 lbs. ÷
100 = 316 cwt.

June 2015 FCIC 18180 404

1902 Cabbage (Fresh Market and Processing) (continued)

C. Acceptable Production Evidence (continued)

(3) Farm stored production records are required that show the gross weight of stored
cabbage if an inspection is not made prior to cabbage being placed in storage. Provide
a copy of the weight slips and production measurements. See LAM for acceptable
records/weight tickets.

(4) For direct-marketed production as provided by the SP, follow acceptable production
evidence guidelines in Para. 1421.

(5) For unharvested acreage of Processing Cabbage, follow the procedure for processing
beans in Para. 1916.

1903 Coarse Grains: Corn, Soybeans, and Grain Sorghum

A. Insurability Requirements

(1) For corn, the following corn varieties are insurable under the coarse grains policy
using rates published in the actuarial documents: white, yellow, or mixed
yellow/white corn, including waxy and high-lysine corn, predominate mixtures of
high yielding yellow dent female plants with high-oil pollinators (at least 90 percent
female and 10 percent male pollinators), and commercial varieties of high-protein
hybrids. Separate APH databases by variety are not required.

WAs are required, available only for additional coverage policies, to insure all other
special purpose corn including: high-amylose, high-oil or high-protein varieties not
meeting the above requirements, flint, flour, Indian, blue, varieties genetically adapted
for wildlife purposes, and other open pollinated corn.

(2) For grain sorghum, the crop insured will be all of the grain sorghum in the county that
is:

(a) planted for harvest as grain;

(b) a combine-type hybrid grain sorghum (grown from hybrid seed); and

(c) not a dual-purpose type of grain sorghum (a type used for both grain and
forage). WAs are required, available only for additional coverage policies, to
insure dual-purpose types of grain sorghum.

(3) For soybeans, the crop insured will be all of the soybeans in the county that are
planted for harvest as beans. If provided on the SP, specialty type soybeans may be
insured based on a contract price. The insured must provide a copy of the specialty
type soybean contract to the AIP by the ARD.

June 2015 FCIC 18180 405

1903 Coarse Grains: Corn, Soybeans, and Grain Sorghum (continued)

B. Determining APH Production

(1) For corn APH purposes, harvested production will be determined in bushels for
acreage harvested as grain and in tons (to the nearest tenth) for acreage harvested as
silage; however, the harvested production may require conversion to the type that is
insured.

Harvested corn production with acceptable records may be converted from tons to
bushels and vice versa using the bushels/tonnage conversion factor when necessary to
provide records that are consistent with the type insured. To convert bushels to tons,
multiply bushels times .15 and round to the nearest one-tenth ton (for example, 5,000
bushels X .15 =750.0 tons). To convert tons to bushels, divide tons by .15 and round
to the nearest whole bushel (for example, 750 tons / .15 = 5,000 bushels).

The appraisal instructions that follow in (3), (4) and (5) are for APH purposes only. If
an appraisal is required to document the production to count for a claim for indemnity,
including losses due solely to a revenue component, AIP must follow the appraisal
instructions contained in the Corn LASH.

Insureds must obtain appraisals from their AIP or another qualified person by unit for
APH record purposes when insured acreage:

(a) will be harvested and the insured will not be able to maintain/provide acceptable
records of the production, such as high moisture grain chopped for silage or
forage production stored in an airtight structure;

(b) of corn in a grain-only or silage-only county will be harvested as either grain or

silage and less than 50 percent of the acreage will be harvested as the type
insured (such as grain in grain-only counties) and acceptable records will not be
maintained for the harvested production of the other type (such as silage in a
grain-only county); or

Example: 100 acres of corn are reported in a grain-only county on the

unit. The insured will harvest 40 acres as grain,
maintain/provide the grain records, and harvest 60 acres as
silage.

However, if the insured will not be able to maintain/provide

acceptable silage production records, an appraisal is required
for APH purposes for the acreage that will be harvested as
silage. Otherwise, the insured will not have acceptable records
for the unit and assigned yields will apply see (2) and (3) for
APH instructions.

June 2015 FCIC 18180 406

1903 Coarse Grains: Corn, Soybeans, and Grain Sorghum (continued)

B. Determining APH Production (continued)

(i) If 50 percent or more of the acreage is harvested as the type insured (grain
in grain only counties or silage in silage only counties) and acceptable
production records are maintained/provided for the insured type, then an
appraisal is not required for APH purposes for the acreage harvested as the
other type (such as silage in a grain-only county).

Enter the harvested actual average yield for the type insured (grain in a
grain-only county) in the unit’s database and use to calculate the APH
yield.

(ii) Exception to the 50 percent rule. If the harvested production for the type
for which records will be maintained (such as grain/IRR) is for a different
practice than the acreage for which acceptable records will not be
maintained/provided (such as silage/NIRR), then an appraisal is required
for the acreage for which acceptable records will not be maintained.

Example: The unit contains 130 acres of IRR acreage and 28 acres
of NIRR acreage and is insured in a grain-only county.
The insured will maintain/provide records for grain
harvested from the IRR acreage.

However, the 28 acres of NIRR corn will be harvested as

silage. To have acceptable records for the unit, the
insured will have to either maintain/provide acceptable
records for the NIRR acreage or have the acreage
appraised and use the appraisal for the NIRR practice.

(c) of corn in grain and silage counties and acreage will be harvested as either grain
or silage and acceptable records will not be maintained/provided for the type(s)
insured (grain and/or silage).

(2) For corn, grain-only counties are counties for which the actuarial documents only
provide a grain type. Unless a valid WA authorized by the RMA RO provides silage
coverage, insure and report all insurable corn acreage as grain on the acreage report.
A variety of corn adapted for silage use only is not insurable as grain. Do not use the
acres and production from such acreage for APH purposes unless such silage
production is commingled with production from insurable acreage harvested as silage.

(a) Approved APH Yields/APH appraisals are on a bushel (grain) basis. Use
provided acceptable production reports on a grain or silage basis for APH yield
calculation purposes. Convert silage production (tons) to bushels of grain.

June 2015 FCIC 18180 407

1903 Coarse Grains: Corn, Soybeans, and Grain Sorghum (continued)

B. Determining APH Production (continued)

(b) Appraisals which indicate potential production in bushels are required for APH
purposes when less than 50 percent of the acreage on the unit will be harvested
as grain and acceptable records will not be maintained/provided for the acreage
harvested as silage; or, if at least 50 percent of the acreage will be harvested as
grain and acceptable records will not be maintained/provided for the acreage
harvested as grain. See B(1)(b)(ii) for additional instructions.

(c) If an indemnity is claimed, the production (except for uninsured cause of loss
appraisals) from the claim (in bushels) must also be used for APH.

(d) When at least 50 percent of the acreage is harvested as grain and acceptable
production reports are provided for the acreage harvested as grain, if acceptable
records were not maintained/provided for the acreage harvested as silage, use
the harvested grain actual yield and acreage to calculate the unit's approved APH
yield. See B(1)(b)(ii) for exceptions to the 50 percent rule.

(e) If a WA provides silage coverage and all acreage is insured as silage, see
B(3)(a) and (b). If some of the acreage is insured as grain and some is insured
as silage, see B(4)(c) below.

(3) For corn, silage-only counties are counties, for which the actuarial documents only
provide a silage type. Unless a valid WA authorized by the RMA RO provides grain
coverage, insure and report all insurable corn acreage as silage on the acreage report.

(a) Approved APH Yields and APH potential production appraisals are on a
tonnage basis. Use provided acceptable production reports on a grain or silage
basis for APH yield calculation purposes. Convert grain production to tons.

(b) Appraisals which indicate potential production in tons are required for APH
purposes when less than 50 percent of acreage on the unit will be harvested as
silage and acceptable records will not be maintained/provided for the acreage
harvested as grain; or, at least 50 percent of the acreage will be harvested as
silage and acceptable records will not be maintained/provided for the acreage
harvested as silage. See B(1)(i) for instructions.

(c) If an indemnity is to be claimed and the acreage will be harvested as grain, the
SP requires tonnage appraisals. Use the production from the claim (except for
uninsured cause of loss appraisals) for APH.

(d) When at least 50 percent of the acreage is harvested as silage and acceptable
production reports are provided for the acreage harvested as silage, and if
acceptable records were not maintained/provided for the acreage harvested as
grain, use the harvested silage actual yield and acreage to calculate the unit's
approved APH Yield. See B(1)(ii) for exceptions to the 50 percent rule.

June 2015 FCIC 18180 408

1903 Coarse Grains: Corn, Soybeans, and Grain Sorghum (continued)

B. Determining APH Production (continued)

(e) If a WA provides grain coverage and all acreage is insured as grain, see B(3)(a)
and (b) above. If some of the acreage is to be insured as grain and some as
silage, see B(4)(c) below.

(4) For corn, grain and silage counties are counties for which the actuarial documents
provide both grain and silage types. Both types are insurable. Insureds must report
insurable acreage by unit and by type (grain or silage) according to the intended
method of harvest; however, a variety of corn adapted for use as silage only is not
insurable as grain and must be insured as silage.

(a) If all insurable acreage is insured as grain, see B(2)(a) and (b) above for
approved APH yield and APH appraisal instructions.

(b) If all insurable acreage is insured as silage, see B(3)(a) and (b) above for
approved APH yield and APH appraisal instructions. See B(1)(b)(i) which is
applicable in counties for which the SP requires tonnage appraisals for claim
purposes if NIRR acreage insured as silage is to be harvested as grain.

(c) Establish a separate APH database for grain and for silage when some of the
acreage on the unit will be insured as grain and some will be insured as silage.

For each crop year that separate acceptable production records are available for
grain and/or for silage, use the grain actual yields to calculate the approved APH
yield for grain and the silage actual yields to calculate the approved APH yield
for silage (by unit and IRR and NIRR practices).

For a crop year with only one type of production (silage or grain), complete the
other type's APH database using zero planted acreage procedures. The
production for the type harvested is not converted and entered in the other type's
APH database.

(i) An appraisal is required if acceptable production records of either type will

not be maintained.

(ii) In counties for which the actuarial documents contains premium rates for
NIRR silage but does not provide premium rates for NIRR grain unless a
WA has been approved to insure such acreage as grain, all insurable NIRR
acreage will be insured as NIRR silage. If a loss is to be claimed on
acreage insured as NIRR silage which will be harvested as grain, such
acreage must be appraised in tons (as silage).

(iii) For carryover insureds with established APH databases:

June 2015 FCIC 18180 409

1903 Coarse Grains: Corn, Soybeans, and Grain Sorghum (continued)

B. Determining APH Production (continued)

(A) if the type for which the APH databases were established, on a unit
basis, is the same type as insured for the current crop year, update the
APH database with the most recent APH crop year’s production
history using applicable procedures. It is not necessary to make
adjustments/conversions to prior production history;

(B) if a different or additional type (applicable in grain and silage

counties), on a unit basis, is insured for the current crop year than the
type for which the APH database was established:

1 if the entire unit is insured as grain for the current crop year,
and the previous year's APH database was established on a
silage basis, convert any actual and/or assigned yields to
bushels and establish an APH database for grain; or

2 if the entire unit is insured as silage for the current crop year,
and the previous year's APH database was established on a
grain basis, convert any actual and/or assigned yields to tons
and establish an APH database for silage.

(C) if both grain and silage is insured on the same unit, and the previous
production history indicates type, use the grain actual yield(s) to
calculate the approved APH yield for grain and the silage actual
yield(s) for silage. If records are for one type, convert any actual
and/or assigned yields to the other type and establish an APH
database for the other type.

(5) For grain sorghum, separate production reports and APH databases are required for
practices specified in the actuarial documents and skip-row planting patterns when
applicable.

(6) For skip-row corn and grain sorghum, see Part 11 Section 3 for special production
reporting instructions for skip row planted crops.

1904 Cotton and ELS Cotton

A. Production Lost to Fire Before Being Ginned

If a claim for indemnity was not filed, harvested production in modules that was lost due to
fire before it was ginned (such as modules burned in the field or after delivery to the gin)
may be reported for APH purposes if the insured certifies the production and gin/fire
insurance records/other measurements and the lost production can be accurately
documented.

June 2015 FCIC 18180 410

1904 Cotton and ELS Cotton (Continued)

A. Production Lost to Fire Before Being Ginned (Continued)

(1) Gin/fire insurance records indicating the net pounds of production lost (by unit), may
be used as production evidence to document the production and number of modules
lost.

(2) If the modules were burned prior to weighing or tagging and the gin/fire insurance
records are not applicable, module measurements taken prior to the destruction of the
modules may be used. The size and number of modules lost must be documented in a
manner that is acceptable to the AIP.

Specifications provided by the insured of the module maker(s) used to make the
modules that were lost may be used to verify the size of modules reported. If module
or trailer measurements are used to document such production, the net pounds of
cotton production must be determined according to the instructions contained in the
Cotton LASH.

B. Establish or Update an APH Yield

Separate production reports are required to establish or update an APH yield for cotton and
ELS cotton.

C. Skip-Row Cotton

Convert cotton planted in a skip-row pattern to a solid planted basis to provide an APH
yield to use for solid planted or any skip-row pattern the insured may carry out. See Para.
1148 for production reporting and conversion instructions for NIRR skip-row cotton or ELS
cotton.

1905 Cultivated Wild Rice

A. Insurability Requirements

Cultivated wild rice is insured only under a flood irrigated practice.

B. Determining APH Production

(1) Adjust mature green cultivated wild rice by percent recovery from green weight to
finished weight.

(a) Convert green weight production to finished weight by multiplying it by the

percent recovery determined by an independent laboratory.

(b) In the absence of percent recovery determined by an independent laboratory, use

the percent recovery published in the SP.

June 2015 FCIC 18180 411

1905 Cultivated Wild Rice (Continued)

B. Determining APH Production (Continued)

(2) Count harvested production for seed as production for APH yield purposes. Adjust
production as described in B(1). Cold storage records or scale receipts showing the
number of pounds of seed is acceptable. In converting volume measurements to
pounds of seed use a factor of 20.0 for Minnesota and 23.2 for California.

C. Acceptable Supporting Documentation

To be acceptable, settlement, ledger, and assembly sheets must show green weight
production in pounds and percent recovery. Storage records must show pounds or if stored
in bins number of bins and pounds per bin.

1906 Dry Beans

A. Insurability Requirements

(1) A dry bean policyholder must insure all insurable dry bean types and contract seed
beans in the county.

(2) One level of coverage applies to all types of dry beans and contract seed beans on a
policy/county.

(3) Price elections for dry beans may vary by type when the actuarial documents provides
different price elections by type. For contract seed beans, the insured may select one
price election ranging from 60 percent through 100 percent of the contract price.

(4) "Type" is synonymous with "class" as used in the U.S. Standards for Beans; however,
there may be more than one variety within a class. Refer to the actuarial documents to
determine insurable types.

(5) For contract seed beans (includes Bush varieties for garden seed), a copy of the seed
company contract must be on file to show the contract price for each variety grown
for the current crop year.

B. Unit Structure for Dry Beans and Contract Seed Beans

(1) Acreage planted to dry beans and contract seed beans are separate BUs. For dry
beans and contract seed beans, a BU is all insurable acreage of dry beans or contract
seed beans in the county in which the insured has:

(a) 100 percent share; or

(b) is owned by one person and operated by another specific person on a share
basis.

June 2015 FCIC 18180 412

1906 Dry Beans (Continued)

B. Unit Structure for Dry Beans and Contract Seed Beans (Continued)

(2) BUs may be divided into OUs for additional coverage level policies by:

(a) type shown on the actuarial documents;

(b) section, section equivalent, or FSA FN;
(c) IRR and NIRR practices; or
(d) WUA.

(3) OUs are not available for contract seed beans grown under a seed bean processor
contract that specifies only an amount of production.

(4) Refer to the examples in Exh. 10D and Part 10, Sections 1 and 2 for additional unit
determination instructions.

C. Determining APH Production

Production reports must be filed timely for all types of insurable dry and contract seed
beans.

(1) Separate yields are required to establish or update an approved APH yield for the
following:

(a) insurable dry bean types indicated on the actuarial documents for the current
crop year;

(b) TMA;

(c) units; and

(d) IRR and NIRR insurable practices.

(2) All insureds are required to file production reports separately for each insurable type
that was grown by unit.

It is not necessary to create an APH database and calculate an approved APH yield for
all possible insurable types. However, if a new insurable type is grown which an
approved APH yield has not been calculated, see Para. 1787, then the applicable T-
Yield(s) for an added type will apply.

(3) For contract seed beans:

June 2015 FCIC 18180 413

1906 Dry Beans (Continued)

C. Determining APH Production (continued)

(a) separate APH databases and approved APH yields are required for contract seed
types of dry beans, units, different TMAs, and different RYAF areas. The RMA
RO furnishes separate RYAF annually. These factors are specific for the
contract seed types of dry beans by area and crop year. Annual factors and
accompanying memo containing information and directions are mailed to AIP
underwriting offices and are also posted on the Spokane RO’s website at
[Link] ;

(b) refer to Exh. 17, which includes instructions and examples for converting the
APH unit of measure (dollars) into the CP unit of measure (pounds); and

(c) production to count for actual yields will be determined by final settlement
sheets specifying pounds of merchantable clean seed, any cull or mill tare
poundage, and the price paid or value of the respective production. Refer to the
LAM or Crop LASH for more information.

D. Acceptable Supporting Documentation

(1) For contract seed beans, acceptable production evidence is final settlement sheets
specifying pounds of merchantable clean seed, any cull or mill tare poundage, and the
price paid or value of the respective production.

(2) For dry edible beans, acceptable production evidence is settlement, ledger, and
assembly sheets that show gross production of dry beans in pounds.

1907 Dry Peas

A. Insurability Requirements

(1) For contract seed peas, a copy of the seed company contract must be on file to show
the contract price for each variety grown for the current crop year.

(2) Levels of coverage for dry peas may vary by type. However, if CAT coverage is
elected for any dry pea type, CAT coverage will apply to all types of dry peas on a
policy/county.

(3) Price elections for dry peas may vary by type when the actuarial documents provides
different price elections by type. The price elections for each type are not required to
have the same percentage relationship to the maximum price for each type. For
example, the insured may choose 100 percent of the maximum price election for one
type and 75 percent of the maximum price election for another type.

June 2015 FCIC 18180 414

1907 Dry Peas (continued)

A. Insurability Requirements (Continued)

(4) For winter pea types in counties for which there is only a spring FPD, a replanting
payment is not applicable. When requested on or before the spring SCD and agreed
to by the AIP, insurance attaches to fall planted acreage that had an adequate stand to
produce a normal crop on the earlier of the spring FPD or the date the AIP agreed to
accept coverage for the crop. The fall planted dry pea crop will be insured as a spring
planted type.

B. Unit Structure for Dry Peas and Contract Seed Peas

In addition to, or instead of, the requirements of establishing separate OUs in Part 10
Section 2, separate OUs may be established for each dry pea type shown on the actuarial
documents.

Contract seed peas and dry pea types not grown under a processor/seed company contract
may qualify for separate OUs, even if they share a common variety, provided each dry pea
type is grown on separate acreage and the production is kept separate.

C. Determining APH Production

(1) For contract seed peas, refer to Exh. 17, which includes instructions and examples for
converting the APH unit of measure (dollars) into the CP unit of measure (pounds).

(2) For Smooth Green and Yellow, Lentil, and Chickpeas, determine dockage by the
applicable loss adjustment methods in effect. Refer to the SPs.

(3) For Austrian Winter Peas, determine dockage by the applicable loss adjustment
methods in effect. Refer to the SPs.

(4) For non-contract seed peas and Non-Chick Pea types, in addition to foreign material
and thresher run dockage, exclude other damage and defects caused by insurable
perils from the gross production, according to the SP. Refer to the SPs.

(5) Dry Pea WCO is available in counties that have both a fall and spring planting date
and the actuarial documents provides a premium rate for this coverage. If the WCO is
not selected and winter pea types are damaged after the FPD to the extent that
producers in the area would not normally further care for it, the acreage must be
seeded to an appropriate winter pea type in order for insurance to continue. The
production from such acreage will count for the winter pea type.

June 2015 FCIC 18180 415

1907 Dry Peas (continued)

C. Determining APH Production (continued)

(a) If the WCO is elected, an appraisal reflecting the crop's potential production is
required to determine production for APH purposes prior to destroying winter
pea types or putting it to another use. Use the acres and the appraised potential
production to calculate the winter pea type APH yield. See Exh. 9 for a flow
chart outlining acres and production used for APH when the WCO has been
selected.

(b) Under the WCO, once an appraisal is made and the winter pea type acreage is
released, the insured may destroy the winter pea type and plant the acreage to:

(i) another crop; or

(ii) the appropriate spring pea type, and:

(A) insure the spring pea type(s) as separate OU(s). In this case, use the
lower of the appraised potential production or winter pea type
approved yield for the winter pea APH. Use the acres and
production from the spring pea type for the spring type APH, unless
the production is commingled with winter pea production (if the
production is commingled see C below;

(B) not insure the spring pea type. In this case, use the lower of the
appraised potential production or winter pea type approved yield for
the winter pea APH. The spring pea type is uninsured and the acres
and production are not used for the APH, unless the production is
commingled with production from an insured unit (either winter pea
types or spring pea types); or

(C) if the spring type production from insured spring pea unit is
commingled with winter pea production, consider the spring pea
acreage to be a part of the original winter pea unit. Use the acreage
originally planted to a winter pea type, the acreage planted to a
spring pea type, the lower of the appraised potential production or the
winter pea type approved yield for the released acreage, and the
spring/winter pea type production for the winter pea type APH.

(c) The late planting period does not apply under the WCO.

D. Acceptable Supporting Documentation

(1) For contract seed peas, production to count for yield determination will be final
settlement sheets specifying pounds of merchantable clean seed, any cull or mill tare
poundage, and the price paid or value of the respective production. See Exh. 19 for
additional procedures that:

June 2015 FCIC 18180 416

1907 Dry Peas (continued)

D. Acceptable Supporting Documentation (Continued)

(a) address the Production Computation Statement located on the dry pea SP; and

(b) include examples of how to calculate the approved APH yield and entries
required on the acreage report.

(2) For Smooth Green and Yellow, Lentil, and Chickpeas, settlement sheets must show
gross production, dockage and net production which grades #1 or better (or adjusted
to #1 according to policy provisions).

(3) For Austrian Winter Peas, settlement sheets must show gross production, dockage and
net production.

1908 Forage Production

A. Determining APH Production

(1) When forage is harvested as other than air-dry hay, production to count must be
adjusted to the equivalent of air-dry hay.

(2) Separate APH databases are required for different types as indicated in the actuarial
documents, such as alfalfa and alfalfa grass mixture.

(3) Separate APH databases are not required for spring and winter planted acreage of the
same forage production types.

(4) Forage Production insureds with less than four years of actual records must use the
current year’s variable T-Yield see Para. 1702.

(5) Yield limitation provisions are applicable, if in effect.

(6) For an added type, calculate the approved APH Yield for the added type using the
added P/T procedures see Para. 1702E.

(a) Forage Production initially insured as alfalfa qualifies as an alfalfa grass mixture
when:

(i) the percent stand falls below 60 percent alfalfa, see the actuarial
documents for percent and additional types; or

(ii) does not meet the age of stand limitations and/or the alfalfa plant count
required for alfalfa, see the Adequate Stand/Minimum Required on the SP,
but meets the age of stand limitations and alfalfa plant counts required for
an alfalfa grass mixture.

June 2015 FCIC 18180 417

1908 Forage Production (continued)

A. Determining APH Production (continued)

(b) Forage Production initially insured as alfalfa or an alfalfa grass mixture qualifies
as:

(i) a grass alfalfa mixture, if available, when the percent of stand falls below
25 percent alfalfa; or

(ii) does not meet the age of stand limitations, or alfalfa plant count required
for an alfalfa grass mixture Adequate Stand/Minimum Required, but meets
the age of stand limitations and alfalfa plant counts required for a grass
alfalfa mixture.

(c) If the insured has not produced the alfalfa grass mixture or grass alfalfa mixture
for more than two APH crop years on the unit, added P/T provisions apply.

(i) Determine the number of years of actual/assigned yields for the

crop/county for the previously insured type and identify the applicable
variable T-Yield percentage.

(ii) Multiply the T-Yield for the new type by the applicable variable T-Yield
percentage.

(iii) Establish a four-year APH database for the new type with the resulting
variable T-Yield percentage preceded by the yield descriptor code "C”.

(iv) Cups do not apply the first year this procedure is applicable.

(7) Refer to the example in Exh. 17 to complete the Forage Production Underwriting
Report.

B. Acceptable Supporting Documentation

To be acceptable, supporting documentation must show total production (harvested and

unharvested) from planted and established acres.

(1) For farm stored production, in addition to the requirements listed in Part 14 regarding
acceptable production evidence, the following requirements must be met:

(a) base determinations of harvested production to be counted on weights or

measurements and conversion factors consistent with the applicable loss
adjustment methods currently in effect;

(b) report and maintain records on a unit/type basis and contain the following:

(i) dates of cutting/harvesting of forage;

June 2015 FCIC 18180 418

1908 Forage Production (continued)

B. Acceptable Supporting Documentation (continued)

(ii) number of bales harvested; and

(iii) contemporaneous weight of bales from each cutting/harvest. Base bale

weight on average of at least 2 bales per cutting/type/unit weighed, dated
and signed by a disinterested third party. If weight is unavailable, may use
Alternate Method described in Forage LASH.

(c) if contemporaneous records will not be maintained or the production is not

measured after being placed in a storage structure, the insured may request an
appraisal or inspection/measurement service from the AIP, or other disinterested
third party (such as FSA), at the insured’s cost prior to harvest or if all
production for each cutting/harvest is still available for verification.

(2) In addition to the requirements listed in Part 14, fed records are only acceptable for
current year’s production (for example, insured cannot provide fed records from 2009
in crop year 2016) for establishing an APH database unless those records can be
verified (such as commercial feeder with billing receipts verifying amount of fed
production, etc.).

1909 Green Peas

A. Determining APH Production

(1) For bypassed/unharvested acreage, follow the instructions provided under processing
beans see Para. 1916.

(2) For harvested delivered production, the production for APH purposes is determined
by:

(dollar amount received from the processor) ÷ (the contract price per pound for the
tenderometer or sieve size designated by the applicable actuarial documents).

(3) Include all dry pea production harvested from green pea acreage, provided the insured
retains ownership of the dry peas see Exh. 19.

(a) Multiply dry pea production by 1.667 for shell types, 3.000 for pod types, and
add to the total green pea production.

(b) Divide the total production (both dry pea and green pea) by the acreage
originally planted to green peas.

June 2015 FCIC 18180 419

1909 Green Peas (Continued)

B. Acceptable Supporting Documentation

To be acceptable supporting documentation, the contract and/or settlement sheet must

show:

(1) planted acres;

(2) contract price for the tenderometer reading, sieve size, or grade factor shown on the
SP for that type of pea;

(3) dollars received for peas delivered (exclusive of bonuses for acres, high production,
split payment, late planting payment, etc., or deductions for seed, pesticides and their
application, planting or harvesting);

(4) variety (specific name from the seed company); and

(5) acres harvested.

1910 Mint

A. Determining APH Production

Acreage for which a WCO payment has been made is no longer insurable under the CP for
the current crop year. For APH purposes:

(1) any mint production subsequently harvested from uninsured acreage for the crop year
and not kept separate from production from insured acreage will be considered
production to count; and

(2) acreage for which a WCO payment has been made will receive an amount of
production of zero when computing subsequent year’s approved APH yield.

B. Acceptable Supporting Documentation

Acceptable supporting documentation consists of still records, ledgers, assembly sheets, or

farm management records that show mint oil production in pounds, and storage records that
show pounds or number of barrels with corresponding weight per barrel.

1911 Mustard

A. Determining APH Production

Count harvested production for seed as production for APH yield purposes.

June 2015 FCIC 18180 420

1911 Mustard (Continued)

B. Acceptable Supporting Documentation

To be acceptable supporting documentation, settlement, ledger, and assembly sheets must

show production in pounds. If the settlement sheets are in bushels or hundredweight,
convert the production to pounds. Refer to FCIC-25010 LAM Exh. 21.

1912 Onions

A. Determining APH Production

Adjust field-run production to reflect the applicable grade standards specified in the policy
to use as production for APH purposes.

B. Acceptable Supporting Documentation

(1) For sold or delivered production at time of harvest, settlement sheets must indicate
gross weight (onion production minus dirt and foreign material) and net sorted weight
or graded weight with percent of pack based on applicable grade standards.

(2) Farm stored production should be graded or adjusted for APH purposes (using
applicable grade factor) according to applicable grade standards prior to being placed
in the storage structure. Gross weight (onion production minus dirt and foreign
material) or structure measurements indicating deductions for obstructions are
acceptable.

(3) Measurements must be verifiable and definitive for sold, delivered, and farm stored
records. For example:

(a) Unacceptable: 16 bins or 34 loads; and

(b) Acceptable: bin = 1,500 lbs., 16 bins at 1,500 lbs. = 24,000 lbs., and 34 loads at
24,000 lbs. = 816,000 lbs.

(4) If records certified by the PRD do not include the required grade information, use
applicable grade factors (.85 or as specified on the SP) to convert any remaining field-
run production to policy grade standards. This is applicable only for any of the
production that does not contain grade information by the PRD (production remaining
in storage that has not been graded and/or sold), and any such yields certified act as
temporary yields. Update the temporary yields the following crop year using grade
information certified. If the yield was not properly certified, or is not replaced the
following crop year using required grade information, assigned yield provisions
apply.

June 2015 FCIC 18180 421

1913 Peanuts

A. Insurability Requirements

(1) Effective beginning with the 2007 crop year, the peanut policy provides insurance
coverage based on the price contained in the Sheller contract, not to exceed 120
percent of the FCIC issued price election. Each Sheller contract must have a Peanut
Sheller Warehouse code (AIPs should assure their agents have the most recent Peanut
Sheller Warehouse Codes for properly coding acreage records by unit).

(2) For insureds choosing to insure peanuts grown under a Sheller Contract, the insured
must provide a copy of the Sheller Contract to their AIP by the ARD. When contract
price(s) are used for insurance purposes:

(a) the insured must allocate the contracted pounds to each applicable unit(s);

(b) record the contract price(s) on the acreage report by the applicable unit(s) and
correspond to the Peanut Sheller Warehouse Code;

(c) such information is required to report and calculate the liability by price for the
unit; and

(d) if conditions occur within the unit that requires additional records (such as late
planting, PP, P/T, or share), report the total guarantee and liability/premium
record. See Appendix III.

B. Determining APH Production

Effective for the 2003 crop year, peanuts were converted to a Category B APH crop
(insurance plan code 90). Except as otherwise provided in this paragraph, standard APH
procedures, including added land, for Category B crops will apply to APH yield
determinations for peanuts.

(1) APH databases still containing classification “F” yields after filing the most recent
year’s production report will continue to retain such yields until a minimum of 4
actual/assigned yields have been accumulated in that APH database. Adding an actual
or assigned yield will result in removal of a classification yield from the affected APH
database until all classification yields in the APH database are replaced by actual or
assigned yields. When the addition of an actual or assigned yield leaves no further
classification yields in an APH database (for example, there are at least four actual or
assigned yields), standard APH procedures will apply fully to that APH database.

(a) For submission of prior production records, in lieu of Para. 1303E, carryover
insureds with classification yields in any APH database may not recertify
acreage and production for such APH databases for crop years prior to the 2002
crop year.

June 2015 FCIC 18180 422

1913 Peanuts (Continued)

B. Determining APH Production (continued)

(b) For entity changes for insureds with classification “F” yields, if an insured with
classification yields in the APH database(s) changes to a different entity (for
example, an individual insured incorporates the operation, two or more insureds
with different classification yields in their respective APH databases merge their
operations into one entity), standard APH procedures will be used to establish
APH databases for the new entity.

(2) APH procedures regarding yield adjustments/substitutions and limitations (cup and
floor) will apply to peanuts with the following clarifications:

(a) insureds with APH databases containing classification yields or that contained
classification yields the prior year are considered to have at least five years of
actual yields and qualify for the 80 percent yield floor; and

(b) yield substitutions will not be applied to any actual yields for crop years prior to
the 2002 crop year or to any classification yields in the APH database.

C. Acceptable Production Evidence

Using another person’s records to establish APH databases will follow standard procedures
contained in Para. 1508. RO Determined Yields identified as “F” yields (such as
classification yields) will not qualify as actual yields for these purposes.

1914 Popcorn

A. Determining APH Production

For quality adjustment, the processor records must indicate that the processor has rejected
the production because it was not of merchantable popcorn quality.

B. Acceptable Supporting Documentation

A copy of the contract must show planted acres and the contract price. Processor records
must be settlement sheets showing pounds of shelled popcorn.

(1) Convert any ear popcorn production to shelled popcorn.

(2) Count production from yellow or white dent corn as popcorn on a weight basis.

June 2015 FCIC 18180 423

1915 Potatoes

A. Determining APH Production

(1) For the “Central” and "Southern" Potato states and counties (Alabama; Arizona; all
California counties except Humboldt, Modoc, and Siskiyou; Delaware; Florida;
Georgia; Maryland; Missouri; New Jersey; New Mexico; North Carolina; Oklahoma;
Texas; and Virginia) marketable mature potatoes (except for production with external
defects) will be considered production for APH, See Exh. 19. If a claim is filed for
indemnity:

(a) claims for indemnities are used for APH; and

(b) in the settlement of a claim, for potatoes harvested prior to full maturity, see
Para. B(2) below.

(2) For the “Northern” Potato states and counties (Alaska; Humboldt, Modoc, and
Siskiyou Counties, California; Colorado; Connecticut; Idaho; Indiana; Iowa; Kansas;
Maine; Massachusetts; Michigan; Minnesota; Montana; Nebraska; Nevada; San Juan
County New Mexico; New York; North Dakota; Ohio; Oregon; Pennsylvania; Rhode
Island; South Dakota; Utah; Washington; Wisconsin; and Wyoming):

(a) if the insured files a claim for indemnity, only production to count as determined
under the terms of the Northern Potato CP and the Storage Coverage
Endorsement, if applicable, is used for APH (for example, freeze and loss of
bulking are covered under the Northern Potato CP, and causes resulting in tuber
rot are covered under the Northern Potato CP and the Storage Coverage
Endorsement); and

(b) quality adjustment for these causes made under the terms of the Northern Potato
CP and Storage Coverage Endorsement will be reflected in the APH production.
However, any reductions in production to count under the terms of the Northern
Potato Crop Insurance Quality Endorsement or Northern Potato Crop Insurance
Processing Quality Endorsement are not included in determining APH
production see Para. B(2) below for potatoes harvested prior to full maturity.

B. Acceptable Production Evidence

(1) If no claim is filed, use the following acceptable production evidence:

(a) processed potatoes are settlement sheets that show first net weight (gross weight
of potatoes minus dirt and foreign material);

(b) fresh market and table stock potatoes are settlement sheets that show total pack-
out weight (including overweight, over-pack, etc., if applicable), including culls;
and

(c) seed potato records must show total weight sold or as specified below.

June 2015 FCIC 18180 424

1915 Potatoes (continued)

B. Acceptable Production Evidence (Continued)

(2) Potatoes harvested prior to full maturity may be increased by two percent per day for
each day harvested prior to full maturity. Consider the date the potatoes would have
reached full maturity to be 45 days prior to the calendar date for the end of the
insurance period, unless otherwise stated in the SP. This adjustment will not be made
if potatoes are damaged by an insurable cause of loss, and leaving them in the field
would reduce production or decrease quality. Retain delivery records for early
harvested potatoes by the insured.

(3) For farm stored production, stored production records must show the gross weight of
stored potatoes (by unit) prior to being placed in storage. A copy of the weight slips
must be provided.

(a) If at the time of placement into storage the potatoes are not weighed or
measured, determine the production based upon subsequent volume
measurements. Prior to placing the potatoes in the structure, interior
measurements of the structure must be made or available, and current crop year
deductions accounted for (see Para. 1420).

(b) If acceptable volume measurements are not made, disposition records of the
farm stored production from the marketing outlet, processor, packer, etc., are
acceptable.

1916 Processing Beans

A. Insurability Requirements

The insured must provide a copy of all processor contracts to the AIP on or before the
ARD.

B. Determining APH Production

(1) For bypassed/unharvested acreage, if an indemnity is to be claimed, AIPs must

inspect the acreage and determine whether or not timely harvest was prevented
directly due to adverse weather and make appraisals that accurately reflect the crop's
potential production remaining in the field. If a notice of damage or loss is not filed,
and insured acreage will not be harvested, the insured should notify the AIP and
request an inspection for APH purposes. Use planted insurable acreage for APH
purposes when acreage is bypassed/not harvested.

(2) Production for APH purposes is determined as follows:

June 2015 FCIC 18180 425

1916 Processing Beans (Continued)

B. Determining APH Production (Continued)

(a) if bypassed by the processor, records may indicate amounts of bypass payments,
acres bypassed, reason for bypass and the basis for the bypass payment(s). Do
not convert compensation received from the processor (bypass payment) to
production for APH purposes;

(b) appraisals made for potential production (if any) remaining in the field on
bypassed/unharvested acreage are used for APH. If the acreage was bypassed
due to an insured cause, generally there will be no potential production
remaining in the field (same production as would be used on a claim for
indemnity). If unharvested (not bypassed due to an insured cause), the potential
production should be appraised; however, it should not be identified as due to an
uninsured cause of loss, see Para. 1419; and

(c) if a claim for indemnity was completed and no potential production was
determined (zero appraisal), then no production from the bypassed/unharvested
acreage will be used for APH purposes (such as the acreage was bypassed due to
an insured cause of loss and an uninsured cause of loss appraisal was not made).

1917 Processing Sweet Corn

A. Determining APH Production

For bypassed/unharvested acreage, follow the instructions provided under processing beans,
see Para. 1916.

B. Acceptable Supporting Documentation

A copy of the contract must show planted acres and the contract price. Processor records
must be settlement sheets showing tons delivered for payment (gross tons if there was no
quality adjustment), grades (where specified on the actuarial documents), and harvested
acres.

1918 Rice

A. Insurability Requirements

Rice is only insured under a flood-irrigated practice.

B. Determining APH Production

Count harvested production from re-growth as production for APH yield purposes.

June 2015 FCIC 18180 426

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

A. Additional Insurability Requirements

(1) For fall-planted wheat or barley in counties for which there is only a spring FPD, a
replanting payment is not applicable. Insurance attaches to fall planted acreage that
had an adequate stand to produce a normal crop on the earlier of the spring FPD or the
date the AIP agreed to accept coverage for the crop. However, if the AIP fails to
inspect the acreage by the spring FPD, insurance will attach. Insureds must report all
planted acreage on which insurance attached for APH purposes. See also the SP for
coverage exceptions.

(2) Production from hay-type barley is not insurable and is not acceptable for APH
purposes.

(3) Barley or oat small grain mixtures planted for harvest as grain are insurable as the
crop which is predominant on a weight basis in the mixture, if the predominant crop is
insured. Indicate the applicable crop designation (barley or oats) on the acreage
report.

(4) LP period is applicable to small grains, except to any barley or wheat acreage covered
under the terms of the barley or wheat WCE.

(5) Insure buckwheat only if it is produced under a contract with a business enterprise
equipped with facilities appropriate to handle and store buckwheat production. The
contract must be executed by the insured and the business enterprise, in effect for the
crop year, and a copy provided to the AIP no later than the ARD. For consideration
as a contract, the executed document must contain:

(a) a requirement that the insured plant, grow, and deliver buckwheat to the
business enterprise;

(b) the amount of production that will be accepted, or a statement that all production
from a specified number of acres will be accepted;

(c) the price to be paid for the contracted production, or a method to determine such
price; and

(d) other such terms that establish the obligations of each party to the contract.

Note: If the settlement sheets are in pounds or hundredweight, convert the

production to bushels, refer to FCIC-25010 LAM Exh. 21.

June 2015 FCIC 18180 427

1919 Small Grains: Wheat, Barley, Oats, Rye, Buckwheat, and Flax (Continued)

B. Determining APH Production

(1) The barley or wheat WCE is available in counties that have both a fall and spring
planting date and the actuarial documents provides a premium rate for this coverage.
If the barley or wheat WCE is not selected and winter barley or wheat is damaged
after the FPD to the extent that producers in the area would not normally further care
for it, the acreage must be seeded to an appropriate type of the crop in order for
insurance to continue. The production from such acreage will count for the winter
type of the crop.

(a) If the WCE is elected, an appraisal reflecting the crop's potential production is
required to determine production for APH purposes prior to destroying winter
barley or wheat, or putting it to another use. Use the acres and the appraised
potential production to calculate the winter type APH yield. See Exh. 9 for a
flow chart outlining acres and production used for APH when the WCE has been
selected.

(b) Under the WCE, once an appraisal is made and the winter barley or wheat
acreage is released, the insured may destroy the winter barley or wheat and plant
the acreage to:

(i) another crop; or

(ii) spring barley or wheat and:

(A) insure the spring barley or wheat as a separate OU. In this case, use
the lower of the appraised potential production or winter type
approved yield for the winter barley or wheat APH. Use the acres
and production from the spring barley or wheat for the spring barley
or wheat APH unless the production is commingled with winter
barley or wheat production (if the production is commingled, see (C)
below);

(B) not insure the spring barley or wheat. In this case, use the lower of
the appraised potential production or winter type approved yield for
the winter barley or wheat APH. The spring barley or wheat is
uninsured and do not use the acres and production for the APH
unless the production is commingled with production from an
insured unit (either winter barley/wheat or spring barley/wheat); or

June 2015 FCIC 18180 428

1919 Small Grains: Wheat, Barley, Oats, Rye, Buckwheat, and Flax (Continued)

B. Determining APH Production (continued)

(C) if the spring barley or wheat production from insured spring barley or
wheat unit is commingled with winter barley or wheat production,
the spring barley or wheat acreage will be considered to be a part of
the original winter barley or wheat unit. The acreage originally
planted to winter barley or wheat and the acreage planted to spring
barley or wheat and the lower of the appraised potential production
or the winter barley or wheat approved APH yield for the released
acreage and the spring/winter barley or wheat production will be
used for the winter barley or wheat APH.

(c) The LP period does not apply under the WCE.

(2) Acreage initially insured that qualifies for the short rate (applies to Additional
Coverage and CAT policies) and was removed from insurance coverage (acreage
report revised to indicate the short rate) is not used for APH purposes unless the
acreage is harvested and the harvested production is commingled with production
from insured acreage. However, it will count as a year of producing the crop for
determining New Producer status and variable T-Yield percentages.

(3) Special production reporting/APH requirements:

(a) in counties where Durum wheat is shown as a separate type:

(i) Durum wheat must be reported separately from spring wheat types; and

(ii) if Durum and other types are planted (such as both Durum and spring
wheat in Durum and spring wheat counties, or both Durum and winter
wheat in counties with only Durum and winter wheat), separate line entries
by P/T are required on the acreage report.

(b) this procedure is applicable in counties with separate published T-Yields for SF
and CC practices. See special production reporting requirements in Part 11
Section 2 for CC and SF practices.

1920 Sugar Beets

A. Insurability Requirements

Pre acceptance inspections are required for California sugar beets, except Imperial County,
when the application was signed after insurable acreage was planted.

June 2015 FCIC 18180 429

1920 Sugar Beets (Continued)

B. Determining APH Production

Adjust sugar beet production for APH by taking net paid tons times percent sugar divided
by county percent sugar factor found in the SP. Also use the APH certification process for
sugar beets (verifiers are not authorized to use additional years' history which may be
available from the processor).

C. Acceptable Supporting Documentation

To consider sugar company delivery records or settlement sheets as acceptable records,

they must show net paid tons of beets delivered and percent of sugar.

1921 Sugarcane

A. Insurability Requirements

Sugarcane acreage that exceeds the applicable age limitations shown in the SP is insurable
only if the AIP performs an inspection, makes an appraisal that indicates the acreage is
capable of producing at least the yield used to determine the production guarantee for the
unit for the current crop year, and then agrees to insure it in writing.

B. Determining APH Production

(1) The insured must notify the AIP at least 15 days before cutting any sugarcane for
seed. The notice must include the unit number and the number of acres the insured
intends to cut for seed.

(a) If proper notice is given, use the applicable approved APH yield for the current
crop year as appraised potential production for the acreage cut for seed unless a
field appraisal was made. Insureds may request a field appraisal if they feel the
approved APH yield does not accurately reflect the acreage's potential
production. If a field appraisal is made, use the appraised potential production
(either for APH or claim purposes) for acreage cut for seed.

(b) If the proper 15-day notice is not given, consider insurable acreage cut for seed
as put to another use without consent. Apply the applicable production
guarantee per acre for the current crop year as an uninsured cause of loss and
use for claims purposes only. Use the insurable acreage cut for seed for APH
purposes; however, the uninsured cause of loss appraisal is not.

June 2015 FCIC 18180 430

1921 Sugarcane (Continued)

B. Determining APH Production (continued)

(2) Sugarcane records are generally not available by the cancellation date for the most
recent crop year. Therefore, there is a one-year lag in the APH database; for example,
for the 2016 crop year, the base period will begin with the 2014 crop year and may
contain up to ten APH consecutive crop years (begin with 2014 and work backwards).
Because of the lag year, adjustments are necessary to advance the percentage of the
variable T-Yields when sugarcane was produced in 2014 to assure equitable APH
yields compared to other Category B APH crops.

(a) Added land/new crop/P/T provisions apply to units on which the insured have
not actively engaged in farming for a share of the crop's production prior to the
2015 crop year. See Part 17 Section 9.

(b) New Producer procedures apply if a person was not actively engaged in farming
for a share of the sugarcane production for more than two crop years prior to the
2015 calendar year. See Part 17 Section 5.

(c) For units (by practice) on which sugarcane was produced for the 2015 crop year,
2015 is recognized as a crop year with actual yields available, even though they
cannot be reported until the 2016 crop year. For new insureds that elected to
provide production reports and for carryover insureds who do not qualify as a
"New Producer" or the acreage does not qualify as added land, determine the
applicable percentage of the T-Yield as follows:

(i) if no production history prior to the 2015 crop year can be provided and
assigned yield provisions do not apply, the APH Yield is 80 percent of the
applicable T-Yield. The APH database is completed using four 80 percent
T-Yields;

(ii) if one actual/assigned yield (example: 2014) is applicable, the APH

database is completed using one actual/assigned yield and three 90 percent
T-Yields;

(iii) if two actual/assigned yields (example: 2014 and 2013) are applicable, the
APH yield is calculated using two actual/assigned yields and two 100
percent T-Yields. Two actual/assigned and two 100 percent T-Yields are
entered in the APH database;

(iv) if three actual/assigned yields (example: 2014, 2013 and 2012) are
applicable, the APH yield is calculated using three actual/assigned yields
and one 100 percent T-Yield. The three actual/assigned yields and one
100 percent T-Yield are entered in the APH database;

(v) for carryover insureds, yield limitations apply on a unit basis (by practice)
when using the special lag year procedures; and

June 2015 FCIC 18180 431

1921 Sugarcane (Continued)

B. Determining APH Production (continued)

(vi) use the yield descriptors as indicated to identify each yield entered in the
APH databases.

C. Acceptable Supporting Documentation

Boiling house (mill) records must show net tons, net tons per acre, or net pounds of raw
sugar. Unit of measure is whole pounds of raw sugar.

(1) Multiply raw sugar production indicated in net tons by 2,000 to determine pounds of
raw sugar. Enter pounds of raw sugar as total production in the production report.

(2) Determine appraised potential production used for APH purposes in net pounds of
raw sugar.

(a) To determine potential production in pounds of raw sugar use the following
formula:

Appraised tons per acre X 2,000 X percent-of-sugar factor = potential

production in pounds of raw sugar.

(b) The percent-of-sugar (sucrose) must be determined from:

(i) field samples from the same field made by the mill;

(ii) acreage harvested from the same field; or

(iii) the percent-of-sugar as indicated by a factor on the actuarial documents, if

the percent-of-sugar from (1) or (2) is not available.

(c) Enter the percent-of-sugar used to adjust the production for the most recent crop
year in the base period, in the total of the production report.

1922 Tobacco

A. Insurability Requirements

Effective for the 2006 crop year, all tobacco types were converted to a Category B APH
crop (insurance plan code 90). Except as otherwise provided in this paragraph, apply
standard APH procedures (including added land) for Category B crops to APH yield
determinations for the tobacco types shown below.

June 2015 FCIC 18180 432

1922 Tobacco (Continued)

A. Insurability Requirements (Continued)

CROP CODE CROP NAME CROP TYPE STATE

111 NC, VA
012, 112 NC
0229**** Flue Cured Tobacco
013 NC, SC
014 AL, GA, FL
021 VA
0230**** Fire Cured Tobacco
022, 023 KY, TN
IN, KY, MA, NC, OH, TN, VA,
0231 Burley 031
WV
0232 Maryland Tobacco 032 MD, PA
035 KY, TN
0233 Dark Air Tobacco 036 KY
037 VA
0234 Cigar Filler Tobacco 041 PA
0235**** Cigar Binder Tobacco 054, 055 WI
051 CT, MA
0235 Cigar Binder Tobacco
052 MA
0236 Cigar Wrapper Tobacco 061 CT, MA

B. Determining APH Production

(1) Establishing APH Databases (new producer, new insured, added land, and new
crop/P/T APH database). All new APH databases initially established for the 2014
and subsequent crop years will be based on standard APH procedures. Such
determinations apply regardless of whether the insured (or FSA FN) was previously
classified on an FCI-32 or has other APH databases containing classification yields,
see C below for acceptable production records. For the purposes of calculating SA T-
Yields for added land/new crop P/T APH databases, approved APH yields for APH
databases containing F-Yields (such as classification yields) should be included in the
SA T-Yield calculation, see Part 17 Section 9, added land/new crop P/T APH
databases.

(2) APH procedures regarding yield adjustments (yield substitution), yield limitations
(yield cups and floors), and yield reductions (reductions due to excessive yields,
inconsistent yields or different production methods) will apply to tobacco with the
following clarifications:

(a) do not apply yield substitutions to any classification yields. Substitute yields
applied to actual yields are determined using 60 percent of the T-yield; and

(b) insureds with APH databases containing classification yields are considered to
have at least five years of actual yields and qualify for the 80 percent yield floor.


In lieu of Para. 1303E, carryover insureds with classification yields in a APH database may not recertify
acreage and production for that APH database for crop years prior to the 2005 crop year.
June 2015 FCIC 18180 433
1922 Tobacco (Continued)

C. Acceptable Supporting Documentation

(1) Acceptable production records must be provided by unit/P/T/V as shown on the

actuarial documents, according to standard APH procedures. Production data may be
obtained from grading sheets, settlement sheets, ledger sheets, weight tickets, or other
verifiable documentation from a buyer, broker, processor, or storage facility. Such
records must show net pounds (minus tare) after grading.

(2) Using another person’s records to establish APH databases will follow standard
procedures contained in Para. 1508.

(3) Other acceptable production records as specified in Para. 1508 may be used to
establish an APH yield.

(4) Use harvested production unsold in the crop year produced for APH purposes;
however, the AIP must verify unsold tobacco production for use for APH purposes.

1923 Tomatoes, Fresh Market Guaranteed Production

Convert bin count, cartons, crates, bushels or pounds to the equivalent of 25 pound cartons
rounded to the nearest whole carton unless otherwise specified in the SP.

(1) The AIP must determine, through the insured, whether all acreage within the field is planted
or if there are any areas of the field that are not planted such as unplanted headlands, field
roads, and/or other areas not part of the planting pattern used for spraying and care of the
crop, because unplanted acreage is not insurable.

(2) Based on the applicable CP, when the insured reports row widths greater than six feet, the
AIP must determine the insurable acreage using the following method:

(a) divide six by the reported row width (for example, reported eight foot row width) 6 ÷
8 = 0.750 factor; and

(b) multiply the reported field acres by the factor to establish the insurable acreage that
will be entered on the acreage report (for example, reported 20.0 acres within the field
multiplied by the factor .750 = 15.0 insurable acres).

1924 Tomatoes Processing

Only one approved APH yield is required for Hand Harvest and Machine Harvest practices see
Para. 1923 for acreage determinations.

1925-1940 (Reserved)

June 2015 FCIC 18180 434

 Section 2 Category C Crops

1941 General Information

The following procedure is crop specific production evidence that is required in conjunction with
the requirements provided in Part 14. Any production evidence, which does not meet the
requirements specified for the crop, may be forwarded to the RO to determine its acceptability.

1942 Almonds

Delivery statements, pool closing statements or production recaps must show all harvested
(whole, chipped and broken in-shell meats) meat pounds (including meat pounds damaged due to
uninsured causes of loss) by variety. Pounds of in shell Almonds must be shown separately, by
variety and must be converted to meat pounds. See Exh. 19 for conversion factors by variety.

1943 Apples

A. Acceptable Production Evidence for APH

Acceptable production evidence including printouts or receipts from each first handler of
the fruit for that crop year must show total marketable (as defined in the policy) production
(in bushels, bin count, or weight delivered) by variety.

A printout or receipt from a packing shed, processor, auction, marketing cooperative,

jobber, commission merchant, sales broker, pick records, see Para. 1421 for acceptable pick
records, or a warehouse receipt which shows total production and date of transaction is
acceptable. Bin count, cartons, crates or weight must be converted to the appropriate unit
of measure.

If insured under the Optional Coverage for Quality Adjustment and a claim for indemnity
has been completed, total marketable production from the claim prior to adjustment for
quality is used for APH purposes (i.e., U.S. No.1 Processing or better).

B. OUs by Fresh and/or Processing Types

OUs are available for Apples by Fresh and/or Processing types as specified in the SPs. In
order to establish OUs for the Fresh type, the insured must certify and, if requested by the
AIP, provide verifiable records to support that at least 50 percent of the production from
acreage reported as Fresh apple acreage from each unit, was sold as Fresh apples in one or
more of the four most recent crop years. These records must indicate the crop, name of the
insured, name of the buyer, the minimum production sold as fresh, date the production was
sold, the amount of production sold in the applicable unit of measure, and the price.
Verifiable records may include: packer or buyer records, daily sales records, and records
from a State Marketing Program.

If only a portion of the total apple acreage is reported as fresh, the total amount of
production sold must reflect at least 50 percent of the production being sold as fresh. Such
records may be used as verifiable records attributable to that portion of the acreage as fresh.

June 2015 FCIC 18180 435

1943 Apples (Continued)

B. OUs by Fresh and/or Processing Types (Continued)

(1) An insured may obtain verifiable sales records from the previous producer of the
acreage, regardless of whether the previous producer has a share in the current crop
year’s acreage. The prior producer’s verifiable sales records may be used by a
carryover insured for any added acreage or by a new insured for insured acreage to
meet the fresh apple requirements.

Example: Insured H is a carryover insured who has certified 5 years of acreage and
production for 10 acres of apples. Insured H has added an additional 10
acres of neighboring farm land from Producer I to his operation with
existing mature apple trees to this same unit for the current crop year.
Because the acres insured for Insured H has changed from 10 acres to 20
acres for the current year, the insured must be able to show that 50 percent
of production from 20 acres was sold as fresh apples in 1 or more of the 4
most recent crop years.

Since the fresh option is based on records of sold production, as long as

Insured H provides the AIP with verifiable sales records indicating that 50
percent of the production from the 20 acres was sold as fresh apples in 1 or
more of the 4 most recent crop years it is insurable. This may require
Insured H to obtain verifiable sales records from Producer I demonstrating
that apples from Producer I’s 10 acres have been sold as fresh apples in 1
or more of the 4 most recent crop years.

(2) While insureds can and do maintain records of production by unit, once apples are
delivered to a warehouse (which is often a third party) for later sales and distribution,
it may be impractical to track apples by unit. Therefore, insureds who do not have
separate records by unit of fresh apple production in one or more of the last four years
but do have records of total fresh apple production, may use these records to qualify
for the fresh apple price. AIPs may consider records of total production (rather than
by unit) from one of the four most recent crop years that reflect fresh apple sales.

Example: In 2016, an insured reports two OUs of processing apple acreage and one
OU of Fresh apple acreage for the 2015 crop year. Records of Fresh apple
production sold from all apple units can be used as a verifiable record
provided the AIP can determine the records of Fresh apple production sold
in one of the four most recent years from all units would account for at
least 50 percent of the total production from the OU insured as Fresh apple
acreage for the 2015 crop year.

Example: In 2016, an insured reports Fresh apple acreage on three BUs for the 2015
crop year. The insured is able to provide verifiable records proving at least
50 percent of the total production sold, from all three BUs, were sold as
fresh in one or more of the four most recent crop years.

June 2015 FCIC 18180 436

1943 Apples (Continued)

C. Insuring Both Fresh and Varietal Group Types

Effective beginning with the 2015 CY, an insured may either insure “Fresh 111” type or
another varietal group type as identified within the actuarial documents, but an insured may
not insure both within the same BU or OU. “Fresh 111” type and a varietal group type can
only be insured under the same policy if the types qualify for separate BU as provided by
the BP Section 34.

Example: An Apple policy could not contain Fresh Type Unit 0001-0001OU and
Varietal Group A Unit 0001-0002OU. If the Fresh Type was crop shared
with Producer X and the Varietal Group A was crop shared with Producer
Z, both types could be insured on the same policy since they qualify for
separate BU: i.e., Fresh Type Unit 0001-0001OU and Varietal Group A
Unit 0002-0001OU.

1944 Avocados, Florida

Acceptable marketing records include pool statements, pool summary statements, pack
statements, or year-end settlement sheets. These statements must show paid pounds of Avocados
by type, if applicable. Production must be converted to the appropriate unit of measure. The SP
may authorize coverage level and price election by type.

1945 Blueberries

Printouts or receipts from a handler must indicate the date, insured's name, and total production
in pounds. Printouts or receipts from a packing operation, processor, auction, marketing
cooperative, jobber, commission merchant, sales broker, and pick records (see Para. 1421),
warehouse, certified scale receipt (with third party verification), inventory stock sheet, receiving
report, grower pay report, grower summary reports must indicate the date of the transaction,
insured's name, and total production.

Total production must indicate unmarketable and marketable production separately. Marketable
production must indicate grade and type of production: fresh, processing, or juice. Production
indicated as trays, flats, cartons, containers, or quarts must be converted to pounds. The method
of conversion must be explained and included with the records. Fresh Blueberry package
determinations approved by U.S. Highbush Blueberry Council:

PACKAGE SIZE NUMBER OF PACKAGES PER FLAT WEIGHT PER FLAT

3.5 oz. (100 g.) 12 2.6 lbs.
4.4 oz. (125 g.) 12 3.3 lbs.
6.0 oz. or ½ dry pint (170 g.) 12 4.5 lbs.
1 dry pint (12 oz.) 6 4.5 lbs.
1 dry pint (12 oz.) 12 9.0 lbs.
1 dry quart (24 oz.) 6 9.0 lbs.
2 dry quarts (48 oz.) 4 12.0 lbs.

June 2015 FCIC 18180 437

1945 Blueberries (Continued)

PACKAGE SIZE NUMBER OF PACKAGES PER FLAT WEIGHT PER FLAT

2 lbs. 4 8.0 lbs.
2.3 lbs. (Bulk Pack) 4 9.2 lbs.
2.5 lbs. 4 10.0 lbs.
2.75 lbs. 4 11.0 lbs.
2.75 lbs. 8 22.0 lbs.
5 lbs. 1 carton 5.0 lbs.
10 lbs. 1 carton 10.0 lbs.

1946 Citrus

A. Arizona and California Citrus Acceptable Marketing Records

Acceptable marketing records are pool statements, pool summary statements, pack
statements or year-end settlement sheets that indicate by crop/type, the number of standard
size cartons packed or the net weight of the packed fruit.

(1) Except for fresh citrus fruit “over packed” for export markets, cartons are used when
fresh citrus fruit is packed into standard size containers (as indicated in the CP) and
the marketing records indicate the number of cartons (no adjustments required).

Example: Packing records show that 8,120 boxes of the standard container size
for the crop/type were packed. 8,120 boxes packed = 8,120 cartons
of production for APH and loss adjustment purposes. Disregard the
pounds per box (e.g., 40 lbs.) that the processor packed if different
than the average net pounds of packed fruit in a standard packed
carton for the crop/type (i.e., 38 lbs.).

(2) Citrus production without marketing records on a carton basis must be converted to
cartons on the basis of average net pounds of packed fruit for the standard packed
carton.

Example: Packing records show 90,820 total pounds were packed. The number
of boxes of the standard container size packed is not available from
the packer. The number of cartons is determined by dividing the
total pounds by the average net pounds for the standard container
size for the crop/type as indicated in the CP (i.e., 38 lbs.).

90,820 lbs. ÷ 38 lbs. = 2,390 cartons

In order to convert bins to cartons when marketing records are not provided for
Navels/Valencia Oranges production on a carton basis, the average net pounds of
packed fruit for the standard packed carton is based on the number of field bins
multiplied by 925 pounds per field bin, and the results divided by 38 pounds per
carton.

June 2015 FCIC 18180 438

1946 Citrus (Continued)

A. Arizona and California Citrus Acceptable Marketing Records (continued)

Example: 16 field bins of Navel/Valencia Oranges x 925 lbs. = 14,800/38 lbs. =

389 cartons

In order to convert bins to cartons when marketing records are not provided for
Mandarin production on a carton basis, the average net pounds of packed fruit for the
standard packed carton is based on the number of field bins multiplied by 825 pounds
per field bin, and the results divided by 25 pounds per carton.

Example: 16 field bins of Mandarins x 825 lbs. = 13,200/25 lbs. = 528 cartons

(3) Fresh citrus fruit packed in different size containers than indicated in the CP (1/2 ctns,
holiday packs, 20 lb. bags, etc.) must be converted to standard cartons on the basis of
average net pounds of packed fruit for the standard packed carton.

(4) Fresh citrus fruit “over packed” for export markets. Some foreign buyers require
packers to pack additional fruit into standard size containers (e.g., as much as 50 lbs.
of Navel Oranges may be packed in a #58, 38 lb. container ) prior to shipment
overseas. In these situations, the containers are “over packed” and the fruit is slightly
compressed.

“Over packed” production must be converted to equivalent standard packed cartons.

If the marketing record clearly indicates that the fruit was packed for an export market
and the cartons are “over packed,” the total packed weight must be divided by the
average net pounds of fruit specified for the standard packed carton for the crop/type.

B. Arizona and California Lemons

The weight of packed fruit (marketable or marketed as fresh fruit) can be determined from
sample-grade report or a pack-out report, whichever is available immediately after harvest
(or delivery to a processor). To determine the amount of production in a standard shipping
container, multiply the number of containers given on the report by the weight of the
containers and divide by 40 pounds to determine the number of Standard Packed Cartons.

Pack-out statements or settlement sheets must show pooled tons of citrus by types. Cartons,
bins, mesh sacks, net weight receipts, or other units of measurements must be converted to
ton equivalents by citrus type.

In order to convert bins to cartons when marketing records are not provided on a carton
basis, the average net pounds of packed fruit for the standard packed carton is based on the
number of field bins multiplied by 936 pounds per field bin, and the result divided by 40
pounds per carton.

Example: 16 Field bins of Lemons x 936 lbs. = 14,976/40lbs = 374 cartons

June 2015 FCIC 18180 439

1946 Citrus (Continued)

C. Texas Citrus Fruit

Records are generally not available by the cancellation date for the most recent crop year.
Therefore, there is a one-year lag in the database; for example, for the 2016 crop year, the
base period will begin with the 2014 crop year and may contain up to 10 APH consecutive
crop years (begin with 2014 and work backwards).

1947 Cranberries

Truckload weight receipts, berry slips, settlement weight sheets, sales receipts, final or year-end
statements from a handler, processor or packing house must indicate net paid barrels of
cranberries delivered or stored for each unit.

1948 Figs

Packer or California Advisory Board Summary Sheet must show net paid pounds of marketable
figs (including manufacturing grades). Marketed fresh-fruit production is converted to a dried-
fruit basis by dividing the total pounds of fresh fruit by 3.0.

For new insureds and policies, which are being transferred, production evidence of acreage and
production must be provided to the verifier.

1949 Grapes

Settlement sheets, sales receipts, machine harvest records, certified scale records, pick records
and final or year-end statements from a winery, cannery or processor must indicate net paid tons
of Grapes delivered by variety. Converting gallons of wine to tons of grapes does not qualify as
acceptable records.

(1) Remittance or final statement sheets from Raisin packers or the Raisin Administrative
Committee must show the net paid tons of clean, dry Raisins; or, the number of insured tons
of raisins established on a claim for indemnity. Each pound of Raisins converts to 4.5
pounds of green Grapes.

(2) Production for Grapes harvested before normal maturity or for special uses (i.e., sparkling,
botrytis affected, ice-wine, etc.) are used for APH purposes when adequate records are
available. The production of such Grapes will be adjusted by the factor calculated by
dividing the price per ton for such Grapes by the price per ton for fully mature Grapes of
the same type and normal use.

Reduced grape production under tonnage policies also requires reduction in the RO
determined yields. The insured shall timely report cultural practices that will reduce the
insured crop’s production from previous levels on the PAW. Reductions in the approved
APH yield will be made based upon the terms of the tonnage policy provided.

June 2015 FCIC 18180 440

1949 Grapes (Continued)

(3) Grapes insured in AZ/CA with type 095 in the actuarial documents that receive a WA for
price are not considered separate policies for the different types under the 095 type in
administering the terms of the CP (e.g. even though a WA may provide different prices for
3 types of grapes insured under type 095, there is only one administrative fee and all types
are still considered insured under 095).

1950 Table Grapes

Packing house records must be settlement sheets, receiving statements, final sales statements
from broker or Table Grape Commission records. Records must show the number of packed lugs
by variety. If the fruit is packed in other than standard weight lugs (as stated in the CP), the net
weight of the lugs must be noted.

Production of Table Grapes damaged by insured causes that could be marketed for any use other
than Table Grapes is determined by multiplying the number of tons that could be marketed by the
total value per ton of the damaged Table Grapes or $50.00 per ton, whichever is greater, and
dividing that result by the highest price election available on the actuarial documents for the type.

1951 Macadamia Nuts

Delivery records, production recaps or sales receipts from processors must indicate weight of
sound wet-in-shell nuts by variety, which excludes immature, unsound nuts (floaters and
peewees), and foreign material.

Sound wet-in-shell is defined as the weight of the macadamia nuts as they are removed from the
orchard with the nutmeats in the shells after removal of the husk and before being dried.

(1) Pick records which indicate total acres and production by crop, crop year and unit (see Para.
1421 for acceptable pick records) are acceptable if supported by records indicated above
and show the information required.

(2) Records are generally not available by the cancellation date for the most recent crop year.
Therefore, there is a one-year lag in the database; for example, for the 2016 crop year, the
base period will begin with the 2014 crop year and may contain up to 10 APH consecutive
crop years (begin with 2014 and work backwards).

1952 Peaches

A. Production Evidence for APH

Production evidence may include a printout or receipt from each first handler of the fruit for
that crop year. A printout or receipt from a packing shed, processor, auction, marketing
cooperative, jobber, commission merchant, sales broker, pick records (see Para. 1421) or a
warehouse receipt which shows total production and date of transaction is acceptable. Bin
count, cartons, crates or weight must be converted to the appropriate unit of measure.

June 2015 FCIC 18180 441

1952 Peaches (Continued)

A. Production Evidence for APH (Continued)

If a claim for indemnity has been completed, total marketable production from the claim
prior to adjustment for quality is used for APH purposes.

B. OUs by Fresh and/or Processing Types

OUs are available for Peaches by Fresh Peach Production and/or Processing Peach
Production as specified in the SPs. In order to establish OUs for Fresh peach production,
the insured must certify and, if requested by the AIP, provide verifiable records to support
that at least 50 percent of the production from acreage reported as Fresh peach acreage, was
sold as Fresh peaches in one or more of the four most recent crop years.

These records must indicate the crop, name of the insured, name of the buyer, the minimum
production sold as fresh, date the production was sold, the amount of production sold in the
applicable unit of measure, and the price. Verifiable records may include: packer or buyer
records, daily sales records, and records from a State Marketing Program.

Exception: If there are no processing peach outlets in the area [i.e., other similarly
situated producers in the area (e.g., same crop/practice)] and there is no
question that peaches are direct marketed or sold to retailers as fresh
peaches, there should be no prerequisite requirement to request such
records.

1953 Pears

Certified records including printouts or receipts from each first handler of the fruit for that crop
year must show total production in tons by type. A printout or receipt from a packing shed,
processor, auction, marketing cooperative, jobber, commission merchant, sales broker, pick
records, see Para. 1421 or a warehouse receipt which shows total production and date of
transaction is acceptable. Bin count, cartons, crates or weight must be converted to the
appropriate unit of measure.

A. California Only

Production for APH purposes must be reported for the applicable grade: first grade canning,
U.S. #1 (Summer, Fall, or Processing Pears), Extra #1 or U.S #1 (Winter Pears). If records
certified by the production reporting date do not include production by grade, use the
following grade factors to convert field run production to production to count for APH
purposes: Type I = 85percent, and Type II = 80percent.

If the grade is certified after the production reporting date, it will be included in the next
year's update.

(1) Actual grade and price record. If an insured provides actual grade and price records
by the production reporting date that result in a higher APH yield than using the above
factors, the higher yield must be used.

June 2015 FCIC 18180 442

1953 Pears (continued)

A. California Only (Continued)

(2) A production level of at least 6.25 tons per acre of field run production in at least one
of the four previous crop years is sufficient to satisfy the requirement of 5.0 tons per
acre at the applicable grade.

B. All States except California

Regardless of whether acreage is insured under the Fresh Pear Quality Adjustment
Endorsement or not, field-run marketable production is applicable. However, beginning
with the 2015 CY all pear trees in the unit insured under the Fresh Pear Quality Adjustment
Endorsement are required to be managed for the production of fresh market pears.

If a claim for indemnity has been completed, total marketable production from the claim
prior to adjustment for the pear quality endorsement is used for APH purposes.

1954 Prunes

The unit of measure is tons (to the nearest tenth) of natural condition (dried) Prunes. Advance
payment summary sheets must show, by variety, net paid weight, which grades standard or
better. Marketed fresh-fruit production is converted to a dried-fruit basis by dividing the total
tons of fresh fruit by 3.0.

1955 Stonefruit

A. Processing Cling Peaches

Must meet minimum standards as specified in the SP and include all production accepted
(marketed by processor). Damaged production from alternative uses (i.e., juice) can be
converted to a processing ton equivalent using the procedures outlined in D below. Fresh
records may be used for the processing type elected.

B. Processing Apricots and Freestone Peaches

Must meet minimum standards as specified in the SP and include all production accepted
(marketed by processor). Damaged production from alternative uses (i.e., puree or juice)
can be converted to a processing ton equivalent using the procedures outlined in D below.

Fresh records may be used for the processing crop elected.

C. Fresh Freestone Peaches, Fresh Apricots, Fresh Nectarines, and Fresh Plums

Certified records may include a printout or receipt from each first handler of the fruit for the
crop year. A printout or receipt from a packing shed, processor, auction, marketing
cooperative, jobber, commission merchant, sales broker, pick records see Para. 1421 or a
warehouse receipts are acceptable.

June 2015 FCIC 18180 443

1955 Stonefruit (Continued)

C. Fresh Freestone Peaches, Fresh Apricots, Fresh Nectarines, and Fresh Plums (cont.)

Bin count, cartons, crates, lugs or irregular sizes or weight must be converted to the
appropriate unit of measure. Must meet minimum standards as specified in the SP and
include all production accepted (marketed by packer).

Damaged production from alternative uses other than fresh can be converted to a fresh lug
equivalent using the procedures outlined in D below. Processing production where the
primary intent was processing may not be converted to fresh production. If the insured
intends to harvest the fresh crop policy as processing, the AIP must be notified so that a
fresh equivalent may be determined. AIPs should advise insureds appropriately regarding
the terms and production reporting requirements of the policy to deter a producer from
receiving assigned yields for unacceptable production reports.

D. Damaged Production

Damaged production from alternative uses is used for APH purposes when adequate
records are available.

Production of fresh or processing Stonefruit damaged by insured causes that could be

marketed for any use other than fresh or processing Stonefruit is determined by dividing the
value per lug or ton of marketable production minus the harvest cost value from the SP by
the highest price election multiply the result by the quantity of such production.

Note: If this value is less than 75 percent of the marketable value of undamaged
production.

Note: Production and value must be converted into the proper unit measurement for
calculation.

1956 Walnuts

Delivery records, production recaps or sales receipts from processors must indicate the net
weight of in shell Walnuts by variety.

1957-2000 (Reserved)

June 2015 FCIC 18180 444

 PART 20 CATEGORY D CROPS
Section 1 Insurability

2001 General Information

Dollar Plans of insurance provide for certain crops, protection against declining value due to
damage that causes a yield shortfall. The amount of insurance is based on the cost of growing a
crop in a specific area. A loss occurs when an annual crop value is less than the amount of
insurance due to a production loss.

This plan offers the insured the opportunity to select one of several dollar amounts of insurance.
Maps, included in the actuarial documents, may be used to determine the coverage options and
premium rates.

Category D crops include: Florida Citrus, Forage Seeding, Hybrid Seed Corn, Hybrid Sorghum
Seed, Macadamia Trees, Peppers, Raisins, Sweet Corn (Fresh Market), and Tomatoes (Fresh
Market - Dollar Plan).

2002 Production Reports

The Dollar Plan of Insurance guarantee is established by using the insureds election percentage
of the maximum dollar amount provided in the actuarial document. There are no underwriting
requirements for production reports to qualify for OUs.

Although production records are not required to establish the insurance guarantee, they may be
necessary for loss purposes. Refer to the applicable loss adjustment directives.

2003 OU for Raisins

Raisins may be divided into more than one OU if, for each proposed OU:

(1) the insured maintains written, verifiable records (tray counts are acceptable) of raisin
production for at least the previous crop year; and

(2) the acreage of insured raisins is located on non-contiguous land.

2004-2006 (Reserved)

June 2015 FCIC 18180 445

 Section 2 Dollar Plans of Insurance

2007 PAW

The PAW is an insured’s self-certification of the planting and other conditions of the perennial
crop used by the AIP to determine insurability and other requirements in accordance with the
policy.

Florida Citrus Fruit is the only Dollar Plan crop which requires a PAW.

A. PAW Requirements

A PAW is required for each unit. The insured must complete and submit a PAW every year
by the ARD. If not, the AIP must:

(1) Obtain the required information from the insured;

(2) Conduct a PAIR to determine the required information; or
(3) Deny coverage for the applicable crop year.

The AIP representative may assist the insured with completion of the PAW.

B. PAW Completion Instructions

ELEMENT REQUIRED INFORMATION

Policy No. Policy number to which the acreage pertains.
Insured’s Name,
Address Name, address, and phone number of the insured.
Telephone No.
Enter the section, township and range, or other descriptions for land if rectangular survey
is not applicable. This may include GPS coordinates or other land identification.
Legal
If additional space is needed, attach a supplemental sheet.
Description
FSA Farm/Tract/Field number is optional unless units are based on FSA FN, then the
FSA FN is required.
Crop Year Enter the appropriate year for the production.
County Enter the county for which the acreage pertains.
Enter the block number. To the third place (i.e., 001).

If separate information is available by individual block, separate line entries may be

made on the PAW.

Reporting by block number is required for each homogenous planting pattern of the citrus
Block Number
fruit group.

Prepare a sketch map or provide an aerial map identifying the location of each block.
Designate a unique number for each block reported. Enter these numbers along with the
block number in the block number column. Complete the items applicable to the crop for
each block.

June 2015 FCIC 18180 446

2007 PAW Information (Continued)

B. PAW Completion Instructions (continued)

ELEMENT REQUIRED INFORMATION

Enter the appropriate unit number. BUs and OUs are allowable as provided
Unit Number
by the Florida Citrus Fruit CP.

Date Set Out/Grafted Enter the date the trees were set out/grafted.
Number of Trees Enter the number of trees topworked or buckhorned within the last five
Topworked/Buckhorned policy years, if applicable.
Month/Year Topworked or Enter the month and year of topworking or buckhorning that occurred
Buckhorned within the last five policy years, if applicable; otherwise, enter N/A.
Identify commodity type, group, subclass, and/or intended use as listed in
Citrus Fruit Group
the actuarial document(s). Separate line entries may be made, if applicable.
Enter the number of insurable trees that make up the block. See Section 6b
Number of Trees
of the CPs.
Average tree spacing (in feet) and/or pattern within this block (example 25
X 20).
Tree Spacing
Example: If trees are being interplanted as a part of a tree replacement
program and the in-row spacing changes to 12.5, update the tree spacing to
12.5 ft. X 20 ft.

Designate the applicable planting pattern by entering one of the following:

“S” for Square Planting Pattern;

“B” for Hedgerow or Border Planting Pattern;
Planting Pattern
“Q” for Quincunx Planting Pattern;
“H” for Hexagonal Planting Pattern;
“D” for Double Row Planting Pattern; or
“O” for Other Planting Pattern

Calculate the number of trees per acre as follows:

Number of square feet per acre ÷ number of square feet per tree (based on
the current planting pattern).

*There are 43,560 square feet per acre.

Number of Trees per Acre Example: Based on a tree spacing of 20 X 20, the number of square feet per
tree = 400 square ft., the number of trees per acre is calculated as 43,560
square ft. per acre ÷ 400 square ft. per tree = 109 trees per acre.

Or, if trees are being interplanted as a part of a tree replacement program

and the spacing changes to 10 X 20 = 200 sq. ft., per tree, the correct
number of trees per acres becomes 43,560 sq. ft. per acre ÷ 200 sq. ft. = 218
trees per acre.

June 2015 FCIC 18180 447

2007 PAW Information (Continued)

B. PAW Completion Instructions (continued)

ELEMENT REQUIRED INFORMATION

Acres in Block Number of insurable acres, rounded to tenths.

The insured must calculate the percent stand from the most recent planting
pattern and planted acres (not to exceed 100% of field acres).

Calculate the percent stand by dividing the number of insurable trees by

the product of the number of trees per acre multiplied by the acres in the
block.

Example: 10 acres were initially planted in an 18 x 20 planting pattern

Percent Stand with 121 trees per acre. The insured reports 975 trees; the
percent stand would be 80 percent [968 trees / (121 trees/acre
x 10 acres)].

The percent stand column would display 80% stand and in the
acres column there would be 10 acres. The Acreage Report
would reflect 8.0 insurable acres due to the removal of 2.0
acres of trees.

Designate if the block is:

Organic Practice
(a) Certified organic; or
(b) Acreage transitioning to organic.
Designate whether the block has met the insurability requirements. Refer
to the policy provisions, the actuarial document(s), and this procedure for
determining insurable and uninsurable acreage. Uninsurable trees are to
be excluded before determination. Acreage must be reported as
uninsurable when minimum age requirements are not met.

Each homogenous planting pattern is reported as a plot. A homogenous

planting pattern of a citrus fruit group may consist of different tree age
Insurable Or Uninsurable classes (i.e., 5 years, 6 to 8 years, or 9 years and above).

(a) For age classes within the plot that cannot be separately plotted
(subplots), use the age class with the greatest percentage of insurable
trees in the plot to determine the amount of insurance.

(b) If the age classes within the plot can be separately plotted, the
insurable acreage and amount of insurance are determined for each
age class and reported on that basis.
Totals for Acres in Block, This is the last row in the table on the form, used to enter the summation
Number of Trees, and of the total acres in block, total number of trees, and number of trees per
Number of Trees per Acre acre.

June 2015 FCIC 18180 448

2007 PAW Information (Continued)

B. PAW Completion Instructions (continued)

The following questions are to be completed by the insured with the assistance of the AIP representative.
ELEMENT REQUIRED INFORMATION

Date of Last Inspection Provide the date when the last inspection of the unit was performed, if applicable.

If an AIP or RMA has previously adjusted the dollar amount of insurance for the
Has the dollar amount
insured crop due to a reduction of the crop’s production potential which resulted
of insurance for the
in a comparable loss in yield in one or more of the last five years, the insured
insured crop been
must identify the year and answer “YES”, and provide all applicable Acreage
previously adjusted
Reports reflecting these reductions and/or adjustments.
due to a reduction of
the crop’s production
Note: AIPs may use PHTS for prior year Acreage Reports.
potential?
If an adjustment has been applied to the crop’s insurable acres by an AIP and/or
Has an adjustment
RMA resulted in a comparable reduction in yield in one or more of the last five
been applied to the
years, the insured must identify the year and answer “YES”, and provide all
crop’s insurable acres
applicable Acreage Reports reflecting these reductions and/or adjustments.
resulted in a
comparable reduction
Note: AIPs may use PHTS for prior year Acreage Reports.
in yield?
If any damage (i.e., disease, hail, freeze) has occurred, including canopy damage,
Has damage (e.g.,
that will reduce the crop’s production by more than 10 percent relative to when
disease, hail, freeze)
the last PAIR was performed, or when the last liability reduction was made (e.g.,
occurred to the trees
loss of canopy which was previously reduced at the time of loss and/or by RO
that will reduce the
Determination) the insured must answer “YES”. If requested by the AIP and/or
insured crop’s
the RO, hard copy records of acreage and production are required. These records
production?
may be necessary to assess the productive capability of the grove.
Have cultural
practices or If changes in cultural practices or production methods (e.g., heavy pruning,
production methods transitioning to organic, etc.) have been performed that will reduce the crop’s
(e.g., heavy pruning, production by more than 10 percent relative to when the last PAIR was
transitioning to performed or when the last liability reduction was made (e.g., loss
organic) been determination), the insured must answer “YES”. If requested by the AIP and/or
performed that will the RO, hard copy records of acreage and production are required. These records
reduce the insured may be necessary to assess the productive capability of the grove.
crop’s production?
Have trees been
If trees have been removed, buckhorned, topworked or replaced with uninsurable
removed, buckhorned,
trees resulting in a change of more than 10 percent of the original plant stand for
topworked or replaced
any reported insurable acreage or relative to when the last PAIR was performed
with uninsurable trees
or when the last liability reduction was made (e.g. loss determination), the
resulting in a change
insured must answer “YES”. If requested by the AIP or the RO, hard copy
of the original plant
records of acreage and production are required. These records are sometimes
stand for any reported
necessary to assess the productive capability of the grove.
insurable acreage?

June 2015 FCIC 18180 449

2007 PAW Information (Continued)

B. PAW Completion Instructions (continued)

By Block, Enter An Estimate Of The Expected Production For The Acreage.

Acreage With A Potential Of Less Than 100 Boxes May Be Excluded From
Insurance.
Estimated Production
Boxes
If The Land Is Excluded, It Is Considered Not Insured; If It Is Insured, It Is
Considered To Have Produced 100 Boxes Per Acre see Sec. 6(C) & (D) of the
Florida Citrus Fruit CP.

2008 Block Map

A block map of the acreage must be prepared by the insured in addition to the PAW.

(1) A block map is required from all new insureds.

(2) Carryover insureds must update the block map in subsequent crop years when changes
occur to the grove, such as significant interplantings, tree removal/replacement,
topworking, etc.

(3) Significant interplantings, uninsurable trees, and trees of differing ages and tree spacing
must be recorded in order to determine the appropriate amount of insurance and insurable
acreage.

(4) The insured may use GPS technology in conjunction with satellite imagery or aerial photos
which clearly identify roads and field boundaries. The information contained on the block
map may be overlaid on a digital photo, where the insured may identify roads, field
boundaries, plot locations and plot numbers.

2009 PAIR Information

Florida Citrus Fruit and Macadamia Tree may require a PAIR. The PAIR must be completed
within 60 calendar days after the ARD.

Exception: For Macadamia Tree applications filed after January 1 (of the initial crop year),
see Para. 2010.

When an AIP expects that PAIRs cannot be completed within the established deadline, they must
notify the RO in writing to request an extension of the PAIR deadline. The request must include
the reason for the extension. The RO may establish a revised deadline based upon the
information provided with the AIP’s request.

June 2015 FCIC 18180 450

2009 PAIR Information (Continued)

A. Florida Citrus Fruit PAIR Triggers

(1) The AIP must complete a PAIR and request a RO Determined Yield when any of the
following triggers are met:

(a) When any damage (i.e., disease, hail, freeze) has occurred that will reduce the
insured crop’s production by 15 percent or more (after accounting for acreage
reduction, see Para. 2031, relative to when the last PAIR was performed or when
the last liability reduction was made (e.g., loss determination).

Example: A 100-acre grove was established in 1996. In 2012, a claim

for tree loss due to freeze resulted in a reduction of 20 acres,
leaving 80 insurable acres. On the 2016 PAW, the insured
acknowledged damage to those 80 acres of trees as a result of
tree disease.

The damage resulted in a reduction of crop production

potential by 15 percent or more of the 2012 tree stand (the last
time a PAIR was performed); therefore a new PAIR is
required and a RO Determined Yield must be requested.

If a reduction of more than 10 percent in crop production

potential (see Para. 2031D) is due to tree removal alone, the
AIP will reduce the acreage based on the original planting
pattern following the acreage determination procedure (see
Para. 2031) without the requirement for a RO Determined
Yield request.

(b) When production methods or cultural practices have reduced production by 15

percent or more relative to when the last PAIR was performed or when the last
liability reduction was made, e.g., loss determination.

Example: To assess the reduction in production determine if the average

canopy damage across the grove is either: 1) 15 percent or
greater or 2) greater than or equal to one-sixth of the canopy
volume.

Exception: If an acreage reduction is required as a result of procedure

performed in A(1)(a) and (b) above, AIPs must adjust the
insureds acreage to determine if the adjustment, see Para. 2031
C and D, constitutes a RO Determined Yield request.

If after the acreage reduction the AIP determines the crop

production will be reduced by 9 percent or less, the PAW
should be corrected by the AIP, see Para. 2009, and no
adjustment should be made;

June 2015 FCIC 18180 451

2009 PAIR Information (Continued)

A. Florida Citrus Fruit PAIR Triggers (continued)

If after the acreage reduction the AIP determines the crop

production will be reduced by 10-14 percent, the AIP must
adjust the acreage and a RO Determined Yield request is not
required; or

If after the acreage reduction the AIP determines the crop

production will be reduced by 15 percent or more, the AIP must
submit a RO Determined Yield request.

(2) The AIP must complete a PAIR and no RO Determined Yield request is required in
the following situations.

(a) When trees have been removed or replaced with uninsurable trees, resulting in a
change of 15 percent or more of the plant stand for any reported insurable
acreage relative to when the last PAIR was performed or when the last liability
reduction was made, e.g. loss determination.

(b) For added land units, land not previously in the operation, that will increase the
insured’s acreage by 15 percent or more from the previous crop year.

(c) For carryover policies when the insured transfers to a different AIP, unless the
PAIR is provided by the ceding AIP.

(d) When spot checks are completed.

(e) For new insureds.

(f) When requested by RMA.

B. PAIR Requiring a RO Determined Yield Request

In addition to A(1), if the AIP has adjusted the insured’s insurable acres and determines that
a reduction in the crop’s production potential of 15 percent or more on the remaining acres
still exists, see Para. 2031 e.g., due to canopy damage that can be remediated through
severe pruning or other cultural measures, a RO Determined Yield request is required and a
reduction in the applicable amount of insurance may be required, see Para. 2031D and
2033.

June 2015 FCIC 18180 452

2009 PAIR Information (Continued)

C. Previous Adjustment(s) to the Dollar Amount of Insurance

The insured crop’s dollar amount of insurance was previously adjusted:

(1) due to a reduction of the crop’s production potential; and/or

(2) an adjustment to the crop’s insurable acres which resulted in a comparable loss in
yield see Para. 2033.

In one or more of the last five years, then the AIP apply the reductions to the dollar amount
of insurance on the current Acreage Report, see Para 2033, unless an increase to the dollar
amount of insurance has been provided by the RO, see Para. 2031, or further reduction has
occurred which results in an additional RO Determined Yield Request.

D. Processing Acreage Reports

Acreage reports cannot be processed until:

(1) AIP completes review of documentation;

(2) AIP initials any corrections found during review of a Florida Citrus PAIR on the
PAW; and

(3) Any insurability determinations, including RO Determined Yields, are completed.

E. PAIR Completion Instructions

The AIP or a person performing the inspection on behalf of the AIP will conduct the PAIR.
The person completing the inspection must possess training equivalent to that of a loss
adjuster.

ELEMENT REQUIRED INFORMATION

County and
County and policy number to which the acreage pertains.
Policy Number

Insured’s Name, Address,

Phone Number Insured’s name, address, and phone number.

Enter the section, township and range, or other descriptions for land if
rectangular survey is not applicable. This may include GPS coordinates or
Legal Description other land identification.

If additional space is needed, attach a supplemental sheet.

June 2015 FCIC 18180 453

2009 PAIR Information (Continued)

E. PAIR Completion Instructions (continued)

ELEMENT REQUIRED INFORMATION

Enter the names of other owners with an insurable share in the crop acreage
Name of Owner
(not SBIs). If none, enter "NONE".

Name of Operator Enter the name of the operator(s).

Crop Year Enter the appropriate year.

Date Set Out/Grafted Enter the date the trees were set out/grafted.

Enter the month and year of topworking or buckhorning, if applicable, and

Month/Year Topworked enter the comment “topworked” or “buckhorned” for trees topworked or
or Buckhorned buckhorned within the last five policy crop years.

Designate the applicable planting pattern by entering one of the following:

“S” for Square Planting Pattern;
“B” for Hedgerow or Border Planting Pattern;
“Q” for Quincunx Planting Pattern;
Planting Pattern
“H” for Hexagonal Planting Pattern;
“D” for Double Row Planting Pattern; or
“O” for Other Planting Pattern

Identify commodity type, group, subclass, and/or intended use as listed in the
Citrus Fruit Group actuarial document(s). Separate line entries may be made, if applicable.

Enter the appropriate Unit Number. BUs and OUs are allowable as defined in
Unit Number
the Florida Citrus Fruit CP.

By line, enter the block number as identified on the block map.

Separate block numbers are required for each citrus fruit group within the
insured crop and homogenous planting pattern of the citrus fruit group.

A homogenous planting pattern of a variety may or may not consist of

different tree age classes (i.e., 5 years, 6-8 years, or 9 years and above).
Block Number
For age classes within the block that cannot be separately plotted (subplots),
use the age class with the greatest percentage of insurable trees in the block to
determine the amount of insurance.

If the age classes within the block can be separately plotted (drawn out), the
insurable acreage and amount of insurance are determined for each age class
and reported on that basis.

June 2015 FCIC 18180 454

2009 PAIR Information (Continued)

E. PAIR Completion Instructions (continued)

ELEMENT REQUIRED INFORMATION

Enter the insurable block acres, rounded to the nearest tenth.

For a block with percent stand of less than 90%, reduce the acreage by
multiplying the total land acreage by the percent stand.

Acres in Block Example: For a 10-acre block after exclusion of canals or grove service roads
with a 74% plant stand, the insurable acreage is 7.4 acres.

Drainage ditches and/or canals outside the planting pattern are not considered
insurable acres.

Enter the average tree spacing, in whole feet, for the block. If there is a wide
Tree Spacing
variation in spacing, enter “varying” and explain in “REMARKS”.

Verify number of insurable trees reported on the PAW and/or determine an

Number of Trees accurate count. See section 6B of the CP.

Verify the number of insurable trees per acre reported on the PAW and/or
Number of Trees per Acre determine an accurate count.

Per line entry, evaluate and document the insurability of the trees. If the block
Insurable Condition contains trees that are damaged, subdivide the block and use separate lines for
insurable and uninsurable acreage.

By block, enter an estimate of the expected production for the acreage.

Acreage with a potential of less than 100 boxes may be excluded from
insurance by the insured.
Estimated Production
Boxes If the land is excluded, it is considered not insured; if it is insured, it is
considered to have produced 100 boxes per acre see Sec. 6(c) & (d) of the
Florida Citrus Fruit CP.

Determine tree condition and enter “excellent,” “good,” “average,” “fair,”

“poor,” or “other,” as appropriate.
Tree Condition
If the trees are suffering from disease, insect damage, or a physiological
disorder, explain in “REMARKS”.

June 2015 FCIC 18180 455

2009 PAIR Information (Continued)

E. PAIR Completion Instructions (continued)

ELEMENT REQUIRED INFORMATION

Enter the tree age class with the greatest percentage of insurable trees in the
block (i.e., 5 years, 6-8 years, or 9 years and above). Insurability of trees and
the number of insurable acres must be determined prior to determining age tree
class of the block for calculating the amount of insurance (see “Acres in Block”
to determine the number of insurable acres).

Age of the block is calculated as follows:

X = Policy’s Crop Year

Y = Set-Out/Grafted year
Formula: (X-Y) = Age/Leaf Year

Set out/graft year is influenced by the month of planting.

(1) The set out/graft year will be the actual calendar year for acreage planted, if
set out/graft occurs:

(a) Between January 1 and April 30, for 2012 and prior calendar years; or

(b) Between January 1 and April 15 for 2013 and subsequent calendar
Tree Age in Years years.

Example 1: A grove planted in March 2010 is insured on April 30,

2015 for the 2016 crop year (bloom is set in 2015).
Crop year =2012 and set out year = 2010. The age/leaf
year is:

2016-2010= 6 Age/Leaf Year

(2) The set out/graft year shall be the year following the calendar year in which
set out actually occurred, if set out/graft occurs

(a) Between May 1 and December 31 of 2012 and prior calendar years; or

(b) Between April 16 and December 31 of 2013 and subsequent calendar

years.

Example 2: A grove planted in October 2002 is insured on May 1,

2015 for the 2016 crop year (bloom is set in 2015).
Crop year = 2016 and Set out year = 2003. The age/leaf
year is 2016-2003= 13 Age/Leaf Year
Enter the totals from each column of Acres in Block, Number of Trees, and
Totals Number of Trees per acre.
Identify acreage which is uninsurable due to policy requirements such as trees
**Excluded Acreage
not meeting age/leaf year requirement.

June 2015 FCIC 18180 456

2009 PAIR Information (Continued)

E. PAIR Completion Instructions (continued)

ELEMENT REQUIRED INFORMATION

When any damage (i.e., disease, hail, freeze) has occurred that will reduce the
insured crop’s production by 15 percent or more (after accounting for acreage
Has damage (e.g.,
reduction see Para. 2031) relative to when the last PAIR was performed or when
disease, hail, freeze)
the last liability reduction was made (e.g., loss determination), note the blocks
occurred to the trees that
where damage has occurred which may affect yields for the current crop year.
will reduce the insured
crop’s production?
If damage is noted, explain in detail, noting the month/year of damage.

When production methods being used would reduce production relative to when
the last PAIR was performed or when the last liability reduction was made (e.g.,
loss determination) from the previous year (s) by 15 percent or more after
accounting for acreage reduction see Para. 2031; or
Have cultural practices
or production methods When cultural practices have been performed that will reduce the crop
(e.g., buckhorning, production by 15 percent or more (after accounting for acreage reduction see
transitioning to organic) Para.2031) of the planting pattern and/or the previous crop year(s) relative to
been performed that will when the last PAIR was performed or when the last liability reduction was made
reduce the insured crop’s (e.g., loss determination).
production?
Note the blocks where these practices or production methods have been
performed which may affect yields for the current crop year, noting the
month/year of when the practice or production method was performed.

If applicable, review the submitted Acreage Report(s) to either verify the

reduction has been performed for the current crop year or maintained from the
Has the dollar amount of previous crop years see Para. 2033.
insurance for the insured
crop been previously Also, if necessary, note the condition of blocks where adjustments to the dollar
adjusted due to a amount of insurance have been previously performed, such as damage, nature of
reduction of the crop’s the tree stand, tree spacing variations, new set out or grafting dates, unusual
production potential? conditions, and any reasons for non-insurability and/or any reasons for an
increase to the dollar amount of insurance.

If applicable, review the insured’s submitted Acreage Report(s) to either verify

the reduction has been submitted or maintained.
Has an adjustment been
applied to the crop’s Also, if necessary, note the condition of blocks where adjustments to the dollar
insurable acres which amount of insurance have been previously performed, such as damage, nature of
resulted in a comparable the tree stand, tree spacing variations, new set-out or grafting dates, unusual
reduction in yield? conditions, and any reasons for non-insurability and/or any reasons for an
increase to the dollar amount of insurance.

June 2015 FCIC 18180 457

2009 PAIR Information (Continued)

E. PAIR Completion Instructions (continued)

ELEMENT REQUIRED INFORMATION

Have trees been When trees have been removed, buckhorned, topworked or replaced with
removed, buckhorned, uninsurable trees, resulting in a change of 15 percent or more of the plant stand
topworked or replaced for any reported insurable acreage relative to when the last PAIR was performed
with uninsurable trees or when the last liability reduction was made (e.g. loss determination), note the
resulting in a change of blocks where this has occurred for the current crop year.
the original plant stand
for any reported Explain in detail, noting the month/year of the changes.
insurable acreage?

Verify the insured’s block map and correct it if necessary.

1. Identify highways and other significant landmarks that can be used to help
identify groves' locations.

2. Outline citrus block locations and identify block by block number.

Block Map
Draw blocks in actual shapes and as close to scale as possible. Indicate which
acreage has been excluded from coverage by labeling as "excluded."

3. Outline land ownership boundaries in red within each section involved.

Indicate land ownership across section lines with tie bars.

PAW Verification Verify the insured’s PAW and correct if necessary. If corrections are made, the
AIP is responsible for initialing and notating the corrections on the PAW.

For fruit insured as fresh, unless this requirement is waived through the Special
Provisions, verify the insured has:

Fresh Fruit Records (a) fresh fruit sales records from one of the previous three crop years; or
Verification
(b) a current year fresh fruit marketing contract for acreage new to the
operation or in the initial year of fresh fruit production.

Describe weed control measures used for the unit. Include a description of the
Weed Control Measures
orchard.

Describe the fertilization program used for the unit. Include the insured’s
Fertilization Program
method of monitoring soil fertility, e.g., soil analysis, foliar analysis, or both.

June 2015 FCIC 18180 458

2009 PAIR Information (Continued)

E. PAIR Completion Instructions (continued)

ELEMENT REQUIRED INFORMATION

Describe in detail insect control measures used (i.e., integrated pest

management/calendar spray program):
Insect Control Measures
Evidence of disease/insects (check one):

□ Rare □ Moderate □ Severe

If applicable, indicate if a tree replacement program is being carried out.

Tree Replacement
Also if applicable, indicate if fumigation is being used in the replacement
Program
program.

Crops Grown Primarily Indicate what crops by unit are grown primarily for:
for □ Fresh Market □ Processor □ Juice Market

Determine the current unit potential:

Unit Potential
□ Stable □ Declining □ Increasing

Describe in detail the irrigation water source:

Surface: ___Percentage of Total Supply

Irrigation District Name;

Allocation last year: ___Percentage of Normal

Expected allocation this year; ___Percentage of Normal

Irrigation Water Source
Irrigation
Well(s): ___Percentage of Normal

How many wells? ___

Total gallons per minute? ___GPM

Water obtained through water transfer: ___acre feet per acre

Indicate if the trees have sufficient vigor to produce the dollar amount of
insurance computed for this unit.
Indicate if the Plant Vigor is:
Tree Vigor
□ Good □ Average □ Poor

June 2015 FCIC 18180 459

2009 PAIR Information (Continued)

E. PAIR Completion Instructions (continued)

ELEMENT REQUIRED INFORMATION

Aerial Photo(s)/Map(s) Attach any applicable aerial photo(s)/map(s) to the inspection report.

Enter Yes or No. If applicable, please explain if the unit is subject to above
Flood Hazards
normal flood hazards.

Enter Yes or No. If applicable explain soil limitations present, e.g., slope,
Soil Limitations
depth, drainage, Ph, saline/alkai, toxicity.

Percent Stand Block Determine the percent stand by block, see Para. 2031.

Review the most recent prior year’s production and acreage as compared to the
Determine Whether The
current acreage based upon the PAIR for the unit. Note any consistencies and
Current Observed
reconcile tree removals, replacements, grafting, production or practice changes,
Conditions Reconcile to
etc. This review will assist in determining acceptability of prior production
Prior Records
records and insurability determinations for the current crop year.

Please provide your evaluation of the management of the operation. Indicate if

the operation was:

□ Above Average □ Average □ Below Average (check one)

Additionally, the AIP should enter notes pertinent to the grove inspection such
as nature and degree of damage, nature of the tree stand, tree spacing variations,
new set-out or grafting dates, unusual conditions, and any reasons for non-
Inspector Evaluation
insurability.

Indicate if the grove conditions were:

□ Above Average □ Average □ Below Average (check one)

If more space is needed, enter additional information on a Statement of Facts

and attach it to the inspection report.

For the unit, please indicate the action recommended. Such as:

□ Acceptance
Action Recommended □ RMA RO Determined Yield Request

□ Rejection

June 2015 FCIC 18180 460

2010 Macadamia Orchard PAIR and Plat Map

The AIP must inspect all acreage and complete a Macadamia Tree PAIR and plat map for
insurable and uninsurable acreage listed on the acreage report.

A. PAIR requirements

PAIRs may be initiated at the AIP’s discretion; however, inspection must be performed:

(1) for all new applicants;

(2) for new added land units (land not previously in the operation);

(3) when any acreage is added under an existing policy (new acreage not previously in
the operation meeting insurability); or

(4) the year following any substantial damage.

PAIRs involving applications filed after January 1 (of the initial crop year) must be
completed prior to processing the application. If accepted, the application must be
processed before the tenth day following the applicant’s signature. If the application
is accepted after January 1, insurance against excess wind will attach (for insurable
acreage) on the tenth day.

(5) For damage or probable loss, when an indemnity will be claimed on any unit (see Sec.
10 of the CPs).

B. Unreported Acreage

If the AIP finds unreported acreage during the insurance period that has not been damaged
by an insured peril, the AIP must prepare a revised acreage report that includes all
unreported insurable acreage not entered on the original acreage report.

C. PAIR Completion Instructions

The AIP will conduct the PAIR/CAW. The person completing the inspection must possess
training equivalent to that of a loss adjuster.

ELEMENT REQUIRED INFORMATION

Name, Mailing
Address, And Phone Complete the appropriate information that corresponds with the insured.
Number of Applicant
Was Acreage Report
Answer “Yes” or “No”. If “No” explain why in the “REMARKS”.
Verified?

June 2015 FCIC 18180 461

2010 Macadamia Orchard PAIR and Plat Map (Continued)

C. PAIR Completion Instructions (continued)

ELEMENT REQUIRED INFORMATION

Answer “Yes” or “No”.
Are other macadamia
If “Yes”, note the condition of the other Macadamia Orchards owned or
orchards owned or
operated by the insured.
operated by the applicant
or insured?
In addition, note the physical location of where the orchard is located.
If necessary, enter additional comments in “REMARKS”.
Check “Yes” or “No”.
Is orchard managed by
owner?
If “No”, enter manager’s name, address, and telephone number.
Answer “Yes” or “No”.
Is orchard located in an
If “No”, explain the general growing conditions and where the orchard is
established macadamia
physically located.
area?
Enter additional comments in “REMARKS”.
Enter unit number from the Summary of Coverage after it is verified to be
Unit Number
correct.
Variety Appropriate variety name.
Acres in Plot Number of acres in plot, rounded to tenths.
Tree Spacing Spacing in feet (e.g., 15 x 15). If spacing varies, enter “varying” and
explain in “REMARKS”.
Enter total number of trees on the plot acreage. Enter an estimate (identify
Tree Count
as “Est”) if accurate determination is impractical.
Enter the month and year of:

1) Original planting, or
Month & Year Set
2) Replacement, if more than 10 percent of the trees on any unit have been
replanted in the previous 5 years.
Enter “acceptable” or “unacceptable” as applicable.
Tree Condition
Explain any “unacceptable” tree conditions in “REMARKS”.
The correct rate class from the actuarial documents. Verify with the
Summary of Coverage, and if the rate class is found to be incorrect, revise
Rate Area
according to AIP instructions see the LAM.
Enter one of the following:

a. “CWC” Chemical Weed Control;

Weed Control Measures
b. “W/O CWC” Weed Control Without Chemicals; or

c. “None” No Weed Control.

June 2015 FCIC 18180 462

2010 Macadamia Orchard PAIR and Plat Map (Continued)

C. PAIR Completion Instructions (continued)

ELEMENT REQUIRED INFORMATION

Identify acreage which is uninsurable due to policy requirements such as
trees not meeting age/leaf year requirement. Leave unit column blank and
**Excluded Acreage
enter "Excluded" in column for such acreage.
Check “A” if: There are no indications of a change in the data reported.
Result of Inspection Check
Check “B” if: There are changes needed. Enter “A Revised Acreage
“A” or Check “B”
Report”.

Note any of the following:

(1) The number of trees in the original planting pattern.

(2) If more than 10 percent of the trees on any unit have been replaced,
enter the total number of trees per acre in new pattern, and the total
number of new trees set out with the appropriate dates.

(3) If any insurable tree acreage is set out in a new pattern (intersets), enter
the number of trees per acre in a new pattern, and the total number of
new trees set out with the appropriate dates.

(4) Any unusual conditions in the orchard or local growing area.

Remarks
(5) Variations in tree spacing within an orchard.

(6) Any reasons for not recommending insurance coverage.

(7) Note any damage (e.g., disease, hail, freeze, freeze, etc.) that will reduce
the productivity, where such damage occurred and determine whether
such damage may affect the yield potential for the current crop year.
Explain in detail and provide the month/year of damage.

If more space is needed, enter additional information on a Statement of

Facts form and attach it to the inspection report.

Is application/acreage
report recommended for Check “Yes” or “No” box, as applicable.
acceptance?
Orchard Inspector’s
Inspector signs report.
Signature
DATE Inspector enters date of report (MM/DD/YYYY).

2011-2020 (Reserved)

June 2015 FCIC 18180 463

 Section 3 RO Determined Yield Request

2021 Florida Citrus RO Determined Yield Request

A RO Determined Yield Request for Florida Citrus must include all of the following:

(1) the PAW, including to the block map (color satellite imagery, if available);

(2) the acreage report;

(3) a current PAIR;

(4) color photos representative of the condition of the grove or sub-grove(s);

(5) if not already documented on the PAIR, a narrative providing details addressing:

(a) The health or condition of trees in the grove or sub-grove(s);

(b) The causes (insured or uninsured) and estimated dates of the tree canopy damage or
change in cultural practice;

(c) The expected production of the grove (i.e., more specific than indicating that
production will exceed the 100 boxes threshold for acreage exclusion); and

(6) any additional supporting documentation.

(a) The RO will utilize any additional supporting documentation (e.g., letters from
agricultural experts, lab reports, etc.) that may be useful in determining the
appropriate amount of insurance on which the premium and any indemnity will be
based.

(b) For a policy where additional damage has occurred since the last liability and/or
acreage adjustment(s), prior year Acreage Reports that document the adjustments
should be included with the RO Determined Yield Request.

Exception: An untimely RO Determined Yield Request will be accepted at any time when
the request is based on a situation that requires a reduced dollar amount of
insurance for the current crop year.

2022-2024 (Reserved)

June 2015 FCIC 18180 464

 Section 4 Dollar Plans of Insurance Age or Leaf Year Determinations

2025 General Information

Leaf Year is the policy crop year that is designated by the calendar year following the year in
which bloom is normally set. Florida Citrus Fruit and Macadamia Tree age or leaf year
determinations:

A. Florida Citrus Fruit

The age/leaf of a tree is calculated as follows:

X= Policy Crop Year

Y= Set-Out/Grafted Year
Formula: ( X – Y ) = Age/Leaf Year

The Policy Crop Year is designated by the calendar year following the year in which bloom
is normally set.

The Set Out/Graft Year is influenced by the date of planting.

(1) The set out/graft year will be the actual calendar year for acreage planted, if set
out/graft occurs:

(a) Between January 1 and April 30, 2012 and prior calendar years; or
(b) Between January 1 and April 15 of 2013 and subsequent calendar years.

Example 1: A grove planted in March 2010 is insured on May 1, 2015, for

the 2016 crop year (bloom is set in 2015). Crop year = 2016
and set out year = 2010.

The age/leaf year is:

2016-2010 = 6 Age/Leaf Year

(2) The set out/graft year shall be the year following the calendar year in which set out
actually occurred, if set out/graft occurs:

(a) Between May 1 and December 31 of 2012 and prior calendar years; or
(b) Between April 16 and December 31 of 2013 and subsequent calendar years.

Example 2: A grove planted in October 2002 is insured on May 1, 2015, for

the 2016 crop year (bloom is set in 2015). Crop year = 2016
and Set out year = 2003.

The age/leaf year is:

2016-2003 = 13 Age/Leaf Year

June 2015 FCIC 18180 465

2025 General Information (Continued)

B. Macadamia Trees

Age is defined as the number of complete 12-month periods that have elapsed since the
month the trees were set out or were recently grafted, whichever is later. An age
determination will be made for each unit, or portion thereof, as of January 1 of each crop
year.

Crop year is defined as a period beginning with the date insurance attaches extending
through December 31 of the same calendar year. The crop year is designated by the year in
which insurance attaches.

The age/leaf of a Macadamia Tree is calculated as follows:

X= Policy Crop Year

Y= Set-Out/Grafted Year
Formula: ( X – Y ) - 1 = Age/Leaf Year

The 12-month period is defined as the actual 12-months that have passed since the crop was
set out/grafted. To be insurable in crop year 2016 they must have been set out prior to
January 1, 2015.

Example: Acreage planted in April 2010. Insurance begins on January 1, 2016.

Crop year = 2016 and Set out year = 2010. The age/leaf year is:

(2016 – 2010) - 1 = 5 Age/Leaf Year

For the 2016 crop year, the 12-month period is determined as follows:

SET
12 MO. PERIOD CROP YEAR AGE
OUT/GRAFTED
April 2010 Jan. 1, 2012 2012 1
Jan. 1, 2013 2013 2
Jan. 1, 2014 2014 3
Jan. 1, 2015 2015 4
Jan. 1, 2016 2016 5

2026-2030 (Reserved)

June 2015 FCIC 18180 466

 Section 5 Dollar Plans of Insurance Acreage Information

2031 General Information

Florida Citrus Fruit acreage measurements will be based on land acres as provided in Part 15
Section 2. Florida Citrus Fruit also requires the following additional procedures for acreage
determinations.

A. Land Acreage Not Exceeded

The insured acreage cannot exceed the physical amount of land acreage. If an insured
interplants two citrus crops, the acreage will be prorated according to the percentage of the
insurable land acres occupied by the crops interplanted.

Example: An insured has 10 acres of grapefruit planted at a spacing of 30 feet x 30

feet, and decides to interplant with early oranges. Orange trees are
interplanted between the grapefruit trees within the row.

The tree spacing has been changed to 30 feet x 15 feet, but there is no
increase in the acreage. There is a 5 acre unit of early oranges and a 5 acre
unit of grapefruit, NOT 10 acres of each.

The same instructions apply if more than one citrus fruit is planted on the
same acreage; e.g., 10 acres of early and mid-season oranges (50/50mix)
does not represent 10 acres of early oranges and 10 acres of mid-season
oranges.

B. Non-Cropland

Non-cropland, including drainage ditches and/or canals outside of the planting pattern, must
not be included as insurable acreage.

C. Percent Stand

Florida Citrus Fruit require adjustments to insurable acreage when the percent stand is less
than 90 percent. AIPs must first determine the number of insurable acres, followed by any
percent stand adjustments to the insurable acres.

(1) When the original planting pattern is changed due to replanting trees in a higher
density planting pattern, an average planting pattern should be calculated for the
purpose of calculating percent stand see Exh. 20.

(2) When a stand reduction of more than 10 percent has not been reported and is
discovered after insurance has attached, refer to section 6(g) of the BP and Para. 2031
for instructions on reducing the amount of insurance.

(3) The AIP may increase the acreage, without RO approval, when previously reduced
acreage is increased due to replanting of previously missing trees that have reached
insurability.

June 2015 FCIC 18180 467

2031 General Information (Continued)

D. Acreage Adjustments

After acreage has been determined, plots/sub-plots containing dead, damaged, missing, or
uninsurable trees exceeding more than 10 percent of the original planting pattern must have
the acreage reduced following the percent stand reduction procedures provided in the SP.
Only trees that meet the insurability requirements contained in the CP and the SP are to be
counted for comparison with the original planting pattern when determining the percent
stand.

Example: The insured has 10 acres of citrus with an original planting pattern of 12 ft
x 24 ft (151 trees per acre). The insured reports 1,270 trees (of an original
planting of 1,510 trees) on the PAW.

The percent stand is 84 percent (1,270 divided by 1,510). The insurable

acreage will be adjusted to 8.4 acres on the acreage report (10 acres
multiplied by 0.84). See Exh. 20 for additional examples.

E. Block

For the purposes of determining the amount of insurance, the age class for the block/sub-
block must be determined within a unit on a block basis. A block is a homogenous planting
pattern of a citrus crop that may or may not consist of different tree age classes (5 years, 6-8
years, or 9 years and above).

(1) If a specific block can be identified for any of the age classes identified above, that
age class must be separately reported to determine the insurance guarantee and
insurable acreage.

If age classes within a block can be separately plotted (drawn out), the insurable
acreage and amount of insurance are determined for each age class and reported on
that basis.

(2) If a block/sub-block is inseparable by age class, use the age class within the
block/sub-block with the greatest percentage of insurable trees to determine the
insurance guarantee. Only trees that meet the insurability requirements contained in
the CP and the SP are to be counted as part of the corresponding age class for
determining the greatest percentage when assigning the appropriate age class for
insurance guarantee.

Example: A producer has a grove of grapefruit trees. Separate plots, by age

class, cannot be determined. The 9 year or older trees represent the
largest percentage in the plot; therefore, the grove will be insured as
9 year old trees.

June 2015 FCIC 18180 468

2031 General Information (Continued)

E. Block (continued)

(3) The unit may consist of several plots of the same citrus crop. Each unit and each
block within a unit must be separately listed, and the amount of insurance and
insurability determined accordingly.

2032 Excluded Acreage

The reference to “Excluded Acreage” refers to any acreage in a grove that does not meet the
conditions of insurability based on grove age or production or any acreage that according to
policy the insured may elect to exclude. The following Category D crops require special or
additional procedure for excluded acreage:

A. Florida Citrus Fruit

Prior to the date insurance attaches, with AIP approval, the insured may elect to insure or
exclude from insurance any insurable citrus acreage that has a potential production of less
than 100 boxes per acre. If the insured elects to:

(1) insure such acreage; the potential production will be 100 boxes per acre when
determining the amount of loss.

(2) exclude such acreage (the acreage is disregarded for all purposes), the acreage
adjustment should be done prior to determining the potential production of the
acreage, to reflect percent stand on the insured acreage.

Example: A 100-acre unit of X citrus fruit group has a 95 percent stand and a
9,000-box potential.

The average potential production is 90 boxes per acre and the insured
may elect to exclude the acreage from coverage.

However, if the same 100-acre unit has a 75 percent stand and a

9,000-box potential, the insurable acreage will be 75 acres (100 acres
x 0.75 = 75 acres) and the average potential production will be 120
boxes (9,000-box potential ÷ 75 acre = 120 boxes/acre). The acreage
cannot be excluded from coverage.

B. Macadamia Trees

(1) Macadamia Trees are excluded from coverage when:

(a) orchard practices listed on the actuarial documents are not carried out;

(b) trees are maintained or set out for experimental purposes;

June 2015 FCIC 18180 469

2032 Excluded Acreage (Continued)

B. Macadamia Trees (Continued)

(c) an incomplete PAIR is completed for an insurance application; and/or

(d) trees are grafted onto existing rootstock or nursery stock within the one-year
period prior to the date insurance attaches.

(2) Identify and explain any uninsured acreage in the “REMARKS” section of the
acreage report.

(3) The AIP may exclude from insurance or limit the amount of insurance on any acreage
which was not insured the previous crop year. Any excluded acreage must be noted
as excluded acreage on the block map and the PAIR.

C. Tomatoes – Fresh Market Dollar Plan

The AIP must determine, through the insured, whether all acreage within the field is planted
or if there are any areas of the field that are not planted such as unplanted headlands, field
roads, and/or other areas not part of the planting pattern used for spraying and care of the
crop, because unplanted acreage is not insurable.

Based on the Fresh Market Tomato CP, when the insured reports row widths greater than 6
feet, AIPs must determine the insurable acreage using the following method:

(1) divide 6 by the reported row width (i.e., reported 8-foot row width) 6 ÷ 8 = .750
factor; and

(2) multiply the reported field acres by the factor to establish the insurable acreage that
will be entered on the acreage report (i.e., reported 20.0 acres within the field
multiplied by the factor .750 = 15.0 insurable acres).

2033 Florida Citrus Fruit Liability Adjustment Determination

Florida Citrus Fruit requires an adjustment to the dollar amount of insurance consistent with
section 3(d) of the CP when a reduction of the crop’s production potential and/or an adjustment
to the crop’s insurable acres, see Sec. 2009A results in a comparable loss in yield.

A. Dollar Amount of Insurance Reduction

As a result of the loss in yield, a RO Determined Yield must be requested in order to reduce
the amount of insurance and a Guarantee Adjustment Factor assigned by the RO. The AIP
must multiply the Guarantee Adjustment Factor by the Reference Maximum Dollar
Amount. Any unit (grove or sub-grove) that has had a reduction to the dollar amount of
insurance must be reported to PASS with the Guarantee Adjustment Type Code of “D”.

June 2015 FCIC 18180 470

2033 Florida Citrus Fruit Liability Adjustment Determination (Continued)

A. Dollar Amount of Insurance Reduction (Continued)

Example: An 80-acre unit of Citrus Fruit has sustained significant damage since the
last PAIR was conducted due to successive winter freeze events.

After acreage reduction has been performed on 60 acres of the reported 80

acres due to tree removal as a result of the winter freeze events, the
remaining acreage resulted in a reduced average canopy volume across the
unit of 25 percent and a comparable loss in yield. The reduced productive
capacity and the loss in yield triggered a RO Determined Yield.

B. Maintaining the Dollar Amount of Insurance Reduction

If the dollar amount of insurance for the insured crop has been previously adjusted due to a
reduction of the crop’s production potential which resulted in a comparable loss in yield,
and submitted to PASS with the Guarantee Adjustment Type Code of “D”, this reduction is
required to be maintained until an increase to the dollar amount of insurance has been
requested.

Any unit (grove or sub-grove) that has previously received a reduction to the dollar amount
of insurance and has not requested an increase to the dollar amount of insurance as a result
of the previous reduction must be reported to PASS with the Guarantee Adjustment Type
Code of “D”.

C. Dollar Amount of Insurance Increase

A RO Determined Yield must be requested in order to increase the previously reduced

dollar amount of insurance on any unit (grove or sub-grove) that has had a reduction to the
dollar amount of insurance and been reported to PASS with the Guarantee Adjustment
Type Code of “D”.

2034 Macadamia Trees Liability Adjustment Determination

Macadamia Trees require a liability adjustment if the percent stand is 90 percent or less. If the
stand is less than 90 percent, based on the original planting pattern, the dollar amount of
insurance will be reduced by 1 percent for each percent less than 90 percent.

Example: The insured selects $1,000, and the remaining stand is 85 percent of the original
stand. The amount of insurance on which the premium and any indemnity will
be based is $950 ($1,000 multiplied by 0.95).

2035-2040 (Reserved)

June 2015 FCIC 18180 471

 Section 6 Dollar Plans of Insurance Additional Records and Provisions

2041 General Information

For Florida Citrus Fruit, when records are required, they must indicate the location, citrus fruit
commodity and group.

A. For Juice Fruit

Acceptable records include trip tickets, processing records (load certificate summary from
processing facilities and Citranet summaries), and test house inspection certificates from
processing and re-grading facilities.

B. For Fresh Fruit

Unless otherwise provided in the SP, when a PAIR is required or if requested by the AIP or
RMA:

(1) Acceptable fresh fruit sales records must be provided upon request from at least one
of the previous three crop years; or

(2) A current year fresh fruit marketing contract must be provided for fresh fruit acreage
new to the operation or for acreage in the initial year of fresh fruit production.

Acceptable records include trip tickets, run sheets, pack-out statements or year-end
settlement sheets that indicate, by citrus fruit commodity/group, the number of
standard (1 3/5 bu.) size boxes packed or the net weight of the packed fruit.

Exception: If production is marketed directly to consumers and daily sales

records along with other receipts verifying the income from the sale
of the crop are used as supporting documentation see Para. 1421, the
receipts submitted must indicate the crop, the minimum production
sold as fresh, the date the production was sold, the amount of
production sold in the applicable unit of measure, and the price.

Exception: Pre-Harvest appraisals alone are not an acceptable production record

for Fresh Citrus Fruit production see Para. 1421.

2042 (Reserved)

June 2015 FCIC 18180 472

 Section 7 Yield Based Dollar Amount of Insurance Plans

2043 General Information

Hybrid Seed Corn and/or Hybrid Sorghum Seed are Yield Based Dollar Amount of Insurance
Plans that is grown under contract with a seed company. If the insured crop is under contract
with different seed companies, the insured may elect coverage under separate policies or with
different AIPs provided that all acreage of the insured crop in the county is insured.

2044 Different Coverage Levels

If the insured has separate policies by seed company, each policy can have different coverage
levels. Any applicable indemnity payments must be coordinated between multiple policies.

2045 Units

Unit division is determined as follows:

A. Production or Production and Acres Specific Contracts

There will be no more than one BU for all production contracted under each processor
contract. For example, if an insured has three contracts with the same processor, the
insured is eligible for three BUs. OUs are not applicable.

B. Contracts Stating Acreage

Acreage that would otherwise be one BU may be divided into OUs provided OU
qualifications are met (e.g., acreage located in separate, legally identifiable sections, etc.).
See Part 20 Section 2.

Exception: OUs by IRR and NI practices are not applicable to Hybrid Sorghum Seed.

2046 County Yields for Hybrid Seeds

Yields are established by county and used to calculate the amount of insurance. The Hybrid Seed
Yield that applies at each coverage level is in the actuarial documents. The insured may elect a
coverage level (associated yield), as well as a price election.

2047 Amount of Insurance

The amount of insurance is the County Yield minus the minimum contract payment (in bushels)
provided by the seed company times the price election. The amount of insurance for hybrid seed
approximates the dollar value of insurance of corn or sorghum planted for grain. However, the
basis of insurance for hybrid seed is female acres. Acreage planted to the male inbred line is not
insurable.

June 2015 FCIC 18180 473

2047 Amount of Insurance (Continued)

The insured must accurately report the acreage occupied by the female inbred line. The standard
planting practice is to plant the male and female inbred lines in rows separated by normal spacing
(e.g., two rows male and six rows of female-FFFMMFFF). This results in 75 to 80 percent of the
total acreage being occupied by the female inbred line.

This is the concept underlying the determination of the amount of insurance. In some cases, the
male inbred line may be inter-planted between normally spaced rows planted to the inbred female
line. In this situation, the Hybrid Seed Yield is adjusted to reflect the level of coverage normally
associated with field corn so that the amount of insurance for the two planting practices (standard
planting and inter-planting) is equivalent.

2048 Minimum Contract Payment

A statement by the insured is required on the acreage report to identify the amount of any
guaranteed minimum payment provided by the insured's contract with a seed company.

The amount of insurance must be reduced if there is a guaranteed minimum payment.

(1) Deduct any minimum payment that is denominated in bushels from the yield that is used to
establish the amount of insurance.

(2) If the minimum payment is stated in dollars, divide the amount by the price election.

(3) Round the result to the nearest whole bushel and subtract it from the Hybrid Seed Yield.

2049 Yield Based Factor for Seed Companies

RMA will require additional information about a seed company’s operations, the inbred lines,
and foundation seed projections from seed companies in some circumstances. These
circumstances include very high expected yields for a particular hybrid, poor crop insurance
experience, newly formed seed companies, previously limited production records submitted by a
seed company, etc.

The RO will request additional information when needed. An annual update of actual and
expected yields is required from each seed company as a prerequisite to calculating the Yield
Based Factor (YBF) by RO.

2050 Approved Yields

The RO will provide approved yields for insured hybrid crosses upon request. Requests for
approved yields must be received by the RO no later than the calendar date for the end of the
insurance period. Requests submitted to the RO after the end of the insurance period may be
authorized; however, the RO will provide the number of late requests by each AIP to the
Reinsurance Services Division.

June 2015 FCIC 18180 474

2050 Approved Yields (Continued)

Agents initiate approved yield requests by preparing and sending a Hybrid Seed Yield Request to
the AIP. The AIP forwards the request to the appropriate RO. If the hybrid seed company has
not already completed the Hybrid Seed Corn/Hybrid Sorghum Seed Yield History Report for
each insured hybrid, the AIP will assist the seed company by providing blank forms if necessary.
The seed company will return the completed Yield History Report (not a RMA form standard) to
the RO. See Para. 2052 below for additional information.

2051 Value per Bushel

The dollar value per bushel is calculated by the AIP at time of loss. It is multiplied by the seed
production to count to obtain the value of seed production used to calculate the indemnity. The
dollar value per bushel equals the amount of insurance (dollars) divided by the approved yield
times the coverage level. A hybrid with one approved yield can have more than one dollar value
per bushel because the amounts of insurance may vary.

Amount of Insurance (Dollars/Acre)

Dollar Value/Bu. =
Approved Yield (Bushels/Acre) x Coverage Level (%)

2052 Hybrid Seed Corn or Hybrid Sorghum Seed Approved Yield Requests

The AIP must request approved yields from the RO to determine hybrid seed corn or hybrid
sorghum seed indemnities. Refer to Exh. 20 for loss notification and yield issuance processes.
To calculate an approved yield for each insured hybrid cross, two types of yield history must be
obtained from the seed company.

A. Actual Yield Histories for Prior and Current Hybrid Crosses

(1) Each year a seed company must report all actual and expected yields for all hybrid
crosses produced in the previous year. The Hybrid Seed Coordinator/appropriate RO
requests this data in correspondence sent directly to seed companies each year. From
this prior yield data, RMA determines the YBF that is used to calculate approved
yields when actual yield history is limited for a hybrid cross the seed company intends
to produce.

(2) When the RMA Hybrid Seed Coordinator requests prior yield data, it also informs the
seed company that a Hybrid Seed Corn/Hybrid Sorghum Seed Yield History Report
must be completed and submitted to the appropriate RO for each hybrid cross the seed
company intends to produce in the current crop year.

This report must be completed by the seed company, by plant/facility location, by

practice, for each hybrid cross identification. Yield information from this report and
the YBF are used to calculate the approved yield for each hybrid cross by seed
company plant location.

June 2015 FCIC 18180 475

2052 Hybrid Seed Corn or Hybrid Sorghum Seed Approved Yield Requests (Continued)

B. Issuance of approved yields.

The Hybrid Seed Coordinator/appropriate RO, calculates and issues approved yields for
hybrid crosses when:

(1) A “Hybrid Seed Yield Request” prepared by the AIP is received by the RO;

(2) The YBF has been calculated by the appropriate RO from data supplied by the seed
company; and

(3) The “Hybrid Seed Corn/Hybrid Sorghum Seed Yield History Report” has been
completed by an authorized seed company representative and received by the Hybrid
Seed Coordinator/appropriate RO.

2053-2100 (Reserved)

June 2015 FCIC 18180 476

 PART 21 PECAN REVENUE
Section 1 General Requirements

2101 Background

The Pecan Revenue program provides protection against insurable causes of loss for yield and/or
a decline in market price. The Pecan Revenue is a continuous policy purchased in two-year
coverage modules (i.e., insurance coverage remains at the same premium rate, coverage level,
and guarantee for two consecutive years for the crop), except as provided in the CP and this
procedure.

For the purposes of Pecan Revenue, references in the CIH to “yield” shall be used
interchangeably with “yield or revenue”.

2102 Insurability Requirements

To be eligible for coverage, an insured’s acreage must:

(1) have produced at least 600 pounds or more of in-shell pecans per acre subsequent to any top
work, in at least one of the four most recent crop years at the beginning of the two-year
coverage module, unless otherwise authorized by SP or WA;

(2) contain at least one contiguous acre, unless otherwise authorized by WA;

(3) be planted to varieties or groups of varieties that are not specified as uninsurable in the SP;

(4) not be direct marketed to consumers, unless authorized by SP or WA;

(5) not include trees that are/have been hedged, unless authorized by SP or WA;

(6) be grown in an orchard that, if inspected, is considered acceptable;

(7) have a share by the insured; and

(8) not be interplanted with another perennial crop, unless authorized by SP or WA.

To qualify for a WA, the following conditions must be met. For counties:

(1) with actuarial documents, at least two years of production and gross sales records must be
provided.

(2) without actuarial documents, four years of production and gross sales records must be
provided. See CIH Para. 2117A, and WAH Para. 76 and Para. 85.

June 2015 FCIC 18180 477

2103 Two-Year Coverage Module

The insured must insure the crop for both years of the two-year coverage module. The actuarial
documents for the initial year of the two-year coverage module remain in force both years; and
the insured’s elections remain the same for both years of the two-year coverage module (e.g., unit
structure, amount of insurance per acre, coverage level), with the following exceptions:

(1) Non-payment of premium results in cancellation, see Para. 2105;

(2) The insured fails to provide acceptable records necessary to determine a loss for OUs. See
Para. 1086 for combining APH databases.;

(3) Removal of a contiguous block of trees from the unit, see Para. 2117B;

(4) Damage to trees, see Para. 2117D;

(5) Added acreage in excess of 12.5 percent, See Para. 2119A;

(6) Change in practice or production methods, see Para. 2119F; and/or

(7) Late or unreported gross sales by unit, see Para. 2131C.

2104 Unit Division

The insured may elect:

A. EU

In addition to the requirements of Sec. 3 of Part 10, an EU must be:

(1) located on at least two parcels of non-contiguous land; and

(2) at least two of the parcels must contain at least the lesser of:

(a) 20 acres; or
(b) 20 percent of the insured crop acreage in the EU.

B. BU

See Sec. 1 of Part 10.

June 2015 FCIC 18180 478

2104 Unit Division (Continued)

C. OU

OU(s) must:

(1) be located on non-contiguous land;

(2) have separate records of production for at least the most recent two consecutive crop
years; and

(3) be elected on the acreage report the first year of the two-year coverage module.

2105 Premium

The AIP will terminate the policy for non-payment of premium in either year of the two-year
coverage module after the ARD of the first year of coverage module, and before the second year.
If a timely filed acreage report is provided for removed acreage and/or relinquished acreage
(insured no longer has a share in the crop), no premium is due in the second year of the two- year
coverage module for such acreage.

2106 Transfers

Insureds may not transfer policies to another AIP until the end of the two-year coverage module.

Transfer of coverage and right to indemnity may be used in the first or second year of the two-
year coverage module, if executed by the ARD. See Para. 853 in the GSH for transfer of
coverage and right to indemnity requirement.

2107 CAT Coverage

For pecan acreage, CAT coverage is equal to the approved average revenue times 27.5 percent.

2108-2116(Reserved)

June 2015 FCIC 18180 479

 Section 2 Acreage Reporting

2117 Acreage Reports

A. Acreage Report Required for Both Years of the Two-Year Coverage Module

Insureds are required to submit an acreage report by the ARD for each year of the two-year
coverage module.

If an insured does not submit an acreage report by the ARD for the:

(1) first year of the two-year coverage module:

(a) the AIP may choose to deny liability. If the AIP denies liability, no premium is
due or liability is established for either year of the two-year coverage module; or

(b) the AIP may determine acreage and assign the T-revenue in the SRH database
for any applicable years that a Revenue Report is not provided. If the acreage is
determined by the AIP and T-revenue(s), T-revenues are used to calculate the
approved average revenue for both years of the two-year coverage module.

(2) second year of the two-year coverage module:

the AIP must determine acreage and premium based on what was reported or
determined in the first year of the two-year coverage module, and the approved
average revenue for the first year of the two-year coverage module is used to calculate
the approved average revenue for the second year of the two-year coverage module.
See 2117A(1) if no acreage was reported the prior year.

B. Removed Acreage

When an insured removes a contiguous block of trees:

(1) on or before the ARD, during the first year of the two-year coverage module, then the
removed acreage must not be reported on the acreage report.

(2) after the ARD of the first year of the two-year coverage module, and on or before the
ARD for the second year of the two-year coverage module, the removed acreage must
be reported as zero acreage on the acreage report for the second year of the two-year
coverage module.

Note: If acreage is removed after the first year’s ARD of the two-year coverage
module and before the second year’s ARD this may result in the policy no
longer qualifying for an EU or an OU. When this occurs, the unit structure
will be BU for the remainder of the two-year coverage module.

C. Added Acreage

See Para. 2119A.

June 2015 FCIC 18180 480

2117 Acreage Reports (Continued)

D. Acreage Damage

(1) For new insureds, once the acreage is inspected and the application accepted, see
Para. 2117D, subsequent damage from insured cause(s) is covered:

(a) if the entire acreage is damaged prior to application or the date insurance
attached, the application is not accepted and insurance does not attach.

(b) if part of the acreage is damaged, the application may be accepted; however,
units with damaged acreage must be rejected and insurance does not attach to
the damaged acreage.

(2) For carryover insureds, when damage to trees is reported:

(a) after insurance attaches and on or before the ARD, during the first year of the
two-year coverage module, then the acreage is reported on the acreage report.
The insurable acreage may be adjusted by the AIP and require a PAIR to be
performed for the second year of the two-year coverage module.

(b) after the ARD of the first year and on or before the ARD for the second year of
the two-year coverage module, the insurable acreage must be adjusted by the
AIP and requires a PAIR to be performed.

(c) on added acreage that is damaged prior to the PAIR, see Para. 2149, the request
is rejected and insurance does not attach.

(d) for damage resulting, before or after the ARD of any year of the two-year
coverage module, if any reduction in production and damage to the trees of 15
percent or more across the grove, an insured, through the AIP, must request a
RO Determined Yield, see Para. 2168D.

E. Relinquished Share

(1) If the insured’s share is relinquished on or before the ARD, insurance will not attach
and no premium or indemnity is due;

(2) If the insured’s share is relinquished after the ARD, coverage is provided for any
insurable cause of loss prior to the date the share is relinquished and the entire
premium is due. If this occurs during the first year of the two-year coverage module,
the acreage is reported as uninsurable or zero acreage during the second year of the
two-year coverage module; or

(3) An insured may also execute a Transfer of Coverage and Right to an Indemnity for
the relinquished acres. See Para. 2106.

June 2015 FCIC 18180 481

2118 Acreage

A. Acreage Determination

Refer to Part 18 to determine acreage. Para. 1807 General; Para. 1808 Acceptable Forms of
Acreage Measurement; Para. 1809 Acreage Measurement Methods; and Para. 1811 Prior
Removed Acreage.

B. Pecans Trees with No Established Planting Pattern

To calculate acreage for pecan trees with no established planting pattern, see Exh.18, use
the formula below:

A= Acres Example:
N= Number of trees in the orchard/grove
31 ÷ 14= 2.214 rounded to 2.2 acres
Formula: N ÷ 14 = A

Note: 14 trees per acre is used as the standard number of trees per acre, not to exceed
the physical number of acres.

2119 Changes to the Amount of Insurance

The amount of insurance per acre will remain the same as stated in the Summary of Coverage for
each unit, for each year of the two-year coverage module, with the following exceptions:

A. Added Insurable Acreage

If the insured reports additional insurable acreage in the second year of the two-year
coverage module, the added acreage must be added to an existing unit on the acreage report
by the ARD.

(1) For OU, the added acreage must be:

(a) added to the unit contiguous to the added acreage; or

(b) added to the unit with the greatest number of insurable acres if the added
acreage is not contiguous with an existing OU.

(2) For BU, the added acreage must be:

(a) added to the existing BU, if only one exists; or

(b) added to an existing BU with a similar share arrangement (e.g., 50 percent share
in both or same landlord); and

(c) if neither a or b above are applicable, added to an existing BU with the greatest
number of insurable acres if more than one BU exists.

June 2015 FCIC 18180 482

2119 Changes to the Amount of Insurance (Continued)

A. Added Insurable Acreage (continued)

(3) For all unit structures (EU, BU, OU), the AIP must determine if the acreage is more
than 12.5 percent of the first year’s insured acreage for the unit to which the acreage is
added.

If the added acreage is:

(a) greater than 12.5 percent:

(i) a Revenue Report must be provided by the insured by the ARD of the
second year of the two-year coverage module, see Para. 2131 for Revenue
Reporting and Para. 2141E for SRH database Added Acreage;

(ii) the amount of insurance per acre for the second year of the two-year
coverage module must be recalculated for the unit with the added acreage;

(iii) the AIP must establish a new SRH database for the unit to which the
acreage was added if:

(A) there are assigned yields in the SRH database for the added or
existing acreage;

(B) the added acreage is non-contiguous to acreage in the existing OU; or

(C) the added acreage will meet requirements for a separate BU in the
next two-year coverage module.

Note: For the subsequent two-year coverage modules, i.e., the first year of
the next two-year coverage module, the added insurable acreage may
be separated into an additional unit if the acreage meets all of the
requirements in the CP to qualify for a separate BU/OU.

(b) 12.5 percent or less:

(i) the added acreage must be reported on the acreage report, by the ARD; and

(ii) the amount of insurance per acre remains the same as the first year of the
two-year coverage module.

For subsequent two-year coverage modules, i.e., the first year of the next two-
year coverage module, the amount of insurance per acre for the SRH with the
added acreage, see Para. 2141E must be recalculated using the revenue reports
for the added acreage, if available, and/or the T-revenue will be assigned to
determine the amount of insurance for the added acreage for any years that
revenue reports are not provided.

June 2015 FCIC 18180 483

2119 Changes to the Amount of Insurance (Continued)

B. Gross Sales Reduced Below the Approved Average Revenue

Any action taken by the insured that may reduce the gross sales per acre below the
approved average revenue, will result in an adjustment to the approved average revenue.
See Sec. 2 and Para. 2148.

C. Failure to Report Gross Sales for the Previous Two-year Coverage Module

See Para. 2131C.

D. Failure to Provide Acceptable Records for Determining an OU Loss

See Para. 2141D.

E. Removed Acreage

See Para. 2141F for procedures. If an insured has both removed and added insurable
acreage in the second year of the two-year coverage module, complete the removal
procedures before completing the added acreage procedures in Para. 2119A.

F. Damaged Acreage

See Para. 2117D.

G. Change in Practice or Sequential Thinning

See Para. 2146.

H. Late Or Unreported Gross Sales By Unit

See Para. 2131C.

2120-2130 (Reserved)

June 2015 FCIC 18180 484

 Section 3 Revenue Reporting

2131 Revenue Reports

The Revenue Report must be provided on or before the ARD for the first year of the two-year
coverage module for the previous two crop years. The Revenue Report must be provided for
each unit and share arrangement (landlord or tenant). When changes are made that require a
revision to the amount of insurance per acre, see Para. 2119, Revenue Reports may be required to
be provided on or before the ARD for the second year of the two year coverage module.

Although the policy allows an insured to use 4 years of T-Revenue to establish an SRH database,
the AIP must verify that the acreage has met the policy requirements for production minimums
using the insured’s submitted Revenue Reports. Assigned yields (Yield Descriptor “B”) in the
SRH are considered zero production for the purpose of determining insurability.

A. Acceptable Revenue Reports

Revenue reports must meet all of the following to be acceptable.

(1) Include all acreage and production (insured and uninsurable/uninsured; harvested and
appraised) in pounds for in-shell Pecans and gross sales by actuarial P/T/TMA, for
each crop year in the two-year coverage module. Hedged and uninsurable acreage
requires a separate Revenue Report. See Para. 2131D.

Exception: Insureds with commingled production between IRR and NI practices

may use the commingled worksheet procedure in Para. 1853 to
separate production.

(2) Revenue reports for the previous two crop years must conform to the unit structure
(EU, BU, and/or OU) for the current crop year.

(3) To qualify for OU, the insured must certify production for at least the two most recent
consecutive crop years for each OU.

Note: Par. 1088B does not apply. The CPs provide that if only two years of
gross sales records are provided, the approved average revenue will be the
average of the two most recent consecutive years of the gross sales per
acre and two years of the T-revenue.

(4) Report all SRH crop years continuously for the SRH Database when multiple years of
revenue and production history are certified; there cannot be a break in continuity of
production history. See Para. 1306 and Para. 1307 for additional procedure related to
continuity of production reports.

(5) Be supported by acceptable production evidence see Para. 2133 for production
evidence requirements.

June 2015 FCIC 18180 485

2131 Revenue Reports (Continued)

A. Acceptable Revenue Reports (continued)

(6) Be signed by the insured.

(7) Be submitted by the insured to the AIP by the ARD.

B. Claims for Indemnity

If a claim is filed for any year, the value of harvested production and appraised potential
production used to determine the indemnity payment will be the production and gross sales
for that year.

C. Late or Unreported Gross Sales by Unit

(1) If Revenue Reports are not provided or not provided timely, a gross sales amount will
be assigned by the AIP for any crop year that was not reported, unless the AIP choses
to deny liability for failure to provide an acreage report timely in the first year of the
two-year coverage module. See Para. 2117A.

The yield amount assigned will be not greater than the assigned T-revenue for the
current two-year coverage module. APH plan assigned yield provisions, see Para.
1524 do not apply.

(2) If Revenue Reports are provided after the ARD for the first year of the two-year
coverage module, the:

(a) Revenue Report(s) must be provided before the ARD of the second year of the
two-year coverage module; and

(b) average gross sales per acre will be readjusted for the second year of the two-
year coverage module, by unit, as applicable.

D. Uninsurable Acreage

(1) Uninsurable acreage must be reported on a separate Revenue Report.

(2) If the production and gross sales from uninsurable acreage is commingled with
production and gross sales from insurable acreage, OU would no longer apply.

Total production and gross sales, unless a claim is filed, is divided by total acreage
and used for all crop years that were commingled. The commingled production and
all acreage are entered in the SRH database for the insured acreage, and the yield
descriptor “AY” must be shown.

June 2015 FCIC 18180 486

2131 Revenue Reports (Continued)

D. Uninsurable Acreage (continued)

The AIP must ensure that production minimums, see Para. 2102 are met for the
commingled acreage.

(3) See Sec. 13(b) of the CP for determination at the time of loss.

2132 Revenue Report Required Elements

ELEMENT REQUIRED INFORMATION

State
County State, county and policy number to which the report pertains.
Policy Number
Insured’s Name
Name, address, and phone number.
Address Phone No.
Identification Number
Enter the insured's identification number and the type of identification.
and Type
Practice/Type/Map
P/T/TMA and unit number.
Area/Unit Number
Enter the section, township and range, or other descriptions for land if rectangular
Legal Description, survey is not applicable. This may include GPS coordinates or other land
FSA Farm/Tract/Field identification.
Number
If additional space is needed, attach a supplemental sheet.
Enter the names of other persons with an insurable share in the crop acreage (not
Other Person(s)
SBIs). If none, enter "NONE".
Indicate the type of acceptable records maintained for at least the last two crop years
Record Type within the two-year coverage module for the base period. See Part 14 for description
of types of records.
Contract Number If applicable, enter the contract number(s) and buyer(s) name and phone number(s).
Number of Trees Enter the total number of trees.
Indicate whether acreage, production and gross sales being reported is from
Insurability
insurable, uninsurable, or uninsured acreage.
Enter the appropriate crop year within the two-year coverage module for the annual
Crop Year
production and gross sales being reported.
Enter applicable reason an insured is reporting more than the most recent two crop
years, such as:

(1) certification of crop years not previously certified;

(2) correction;
Multi Crop Year
(3) certification by new insured;
Reporting Reason
(4) recertification for new actuarial offer;
(5) recertification for new unit structure; or
(6) other.

If not applicable, leave blank. See Para. 1303E.

June 2015 FCIC 18180 487

2132 Revenue Report Required Elements (Continued)

ELEMENT REQUIRED INFORMATION

The insured’s share of pounds harvested and/or appraised pecans times the
Gross Sales
applicable in-shell average price, in accordance with the CP, reported in dollars and
cents.

Total Pound
Enter total pound production.
Production
Enter planted acreage for each crop year within the two-year coverage module that
Acres production and gross sales are available multiplied by insureds share (net acres).

Enter the appropriate yield type descriptor for average gross sales per acre. See Exh.
Yield Descriptor
15.
Enter the appropriate yield in pounds. The total in-shell Pecan pounds divided by the
Yield in Pounds
total number of net acres.
Average Gross Sales Enter the average gross sales which are the gross sales divided by the net acres
Per Acre rounded to whole dollars.
Added Acreage Indicate whether Revenue Report is for added acreage.
Insured Printed Name,
Insured must sign and date Revenue Report.
Signature and Date
Comments Insured and/or AIP may provide any additional information.

2133 Production Evidence

Settlement sheets, sales receipts, and final or year-end statements from a processor and/or buyer
must indicate the weight of pecans harvested in pounds (in-shell basis rounded to the nearest
whole pound) by variety excluding foreign material and the in-shell price received per pound for
each day the pecans were sold (in dollars and cents). If in-shell pounds or price is not shown,
documentation must be obtained to determine the in-shell pounds and price (e.g. in-shell price
may be shown as the price; received per day of sales). When not all pecans have been marketed,
the pounds of pecans in storage and the market price, as determined in accordance with the CP
and SP, must be reported.

See Para. 1421 for acceptable pick records, and use of pre-harvest appraisal for direct market
sales. If direct market is allowed by the SP or by WA, the AIP must review for any required
adjustments in determining market price.

June 2015 FCIC 18180 488

2134 Excessive Actual Yield

Procedures for excessive actual yields apply to pecans. When identified, yields are adjusted as
follows (see also Para. 1571A and Para. 1573):

(1) Simple average of all actual yields (including excessive actual yields prior to being
adjusted) and assigned yields for the same crop year for the same P/T and TMA (if
applicable) for the crop in the county.

Use the applicable actual yield descriptor “AX, GX, or VX”, see Exh. 15 to identify the
simple average actual yield used instead of excessive actual yields; or

(2) Applicable T-revenue, if the insured has no other applicable actual yields. Use a “TX”
yield descriptor to identify when the applicable T-revenue replaces the excessive actual
yield.

2135-2140 (Reserved)

June 2015 FCIC 18180 489

 Section 4 Summary of Revenue History

2141 Summary of Revenue History (SRH) Database

For Pecan Revenue, the base period is determined by consecutive crop years, not calendar years,
and consists of the consecutive crop years immediately preceding the current two-year coverage
module, with a minimum of four, building to six crop years in two-year increments.

Example: For 2016, the current two-year coverage module provides coverage for the 2016
and 2017 crop years, and the base period in the SRH database includes, at a
minimum, crop years 2015 through 2012.

A. Establishing and Completing SRH Databases

(1) A SRH database is completed in two-year increments from Revenue Reports. One
SRH database is completed by P/T/TMA as provided in the actuarial documents, by
WA, and by unit. The SRH database is established the first year of the two-year
coverage module and continues for the second year of the two-year coverage module.

Exception: Added Acreage, see Para. 2119A or Reductions due to PAW, PAIR
and subsequent RO Determined Yield when applicable, see Para.
2168, and late or unreported gross sales, see Para. 2131C.

(2) When establishing an SRH database, at least one year of gross sales records provided
from the most recent four crop years must show that the minimum production
requirements in the CP for the acreage were met for the unit. If at least four prior
consecutive years of gross sales records are not provided, the T-revenue for the
current two-year coverage module is assigned to complete the SRH database as
follows:

(a) if only one year of gross sales records are provided from the most recent crop
year, AIPs must assign gross sales by using three years of T-revenues with yield
descriptor “B’s”.

(b) if two years of production and gross sales are provided from the most recent two
consecutive crop years, use two years of actual yields with yield descriptors
“A”, “G” or “V”, as applicable plus two years of T-revenues with yield
descriptor “B” to complete the SRH database for the base period.

If assigned gross sales, yield descriptor “B”, are used in place of gross sales records
the “B”s may be replaced with actual gross sales in the next two-year coverage
module.

(3) Block reporting is not applicable.

(4) Identify each value entered in the average gross sales of the SRH with the applicable
yield descriptor, see Exh. 15V.

(5) Substitute yield, see Para. 1545 provisions are not applicable, i.e., YA.

June 2015 FCIC 18180 490

2141 Summary of Revenue History (SRH) Database (Continued)

A. Establishing and Completing SRH Databases (Continued)

(6) YE must be elected by the SCD of the first crop year of the two-year coverage
module. Any actual yield in an eligible crop year the insured chooses to not exclude
must be identified in the SRH database by the PRD of the first crop year of the two-
year coverage module.

B. When Reporting SRH Databases

(1) See CP section 10(b) for changes in share on insurable acreage.

(2) See CP section 3(d)(2) and Para. 2119A for increase in previous year’s insured
acreage.

(3) See CP sections 3(e), 6(b) and Para. 2119E-F for removal of a contiguous block of
trees or damage to trees.

(4) For changes that may occur after insurance attaches or during the two-year coverage
module, see the CP and Para. 853 in the GSH, Transfer of Coverage and Right to
Indemnity.

C. Acreage Less than 1 Acre

An SRH database cannot be established for acreage that is less than 1 acre, unless allowed
by WA.

D. Failure to Provide Acceptable Records for Determining an OU Loss.

When an insured fails to provide acceptable records necessary to determine a loss for
OUs, OUs will be adjusted or combined (see Para. 1086 for combining units)
to reflect the actual unit structure at the time of discovery. The insured’s amount of
insurance per acre will be recalculated for the current crop year and the subsequent crop
year of the two-year coverage module (provided another year remains in the two-year
coverage module).

E. Added Insurable Acreage

(1) If using the gross sales records for the added acreage, the number of years used must
not exceed the number of years in the insured’s present SRH database. A minimum
of two years (the most recent two years for the two-year coverage module base period
applicable by county) must be shown on the SRH databases.

(2) For the next two-year coverage module, the added net acreage and sales records with
appropriate yield descriptor must be shown to account for the previous two crop years
added insurable acreage within the prior two-year coverage module.

June 2015 FCIC 18180 491

2141 Summary of Revenue History (SRH) Database (Continued)

E. Added Insurable Acreage (continued)

(3) Acceptable records of production and gross sales from the prior producer must be
provided or a gross sales amount will be assigned (not to exceed the T-revenue for the
current two-year coverage module). See also Para. 2150 for PAIR requirements.

(4) A separate SRH database must be maintained if T-revenues (“B” yields) are used to
complete the SRH database for the added land when less than 4 years of actual yields
are provided. Once initial (2 or 4) “B” yields roll out of the most recent four years,
the SRH database(s) must be combined into one SRH database for the unit.

(5) For acreage added in the second year of the two-year coverage module, see Para.
2119A.

F. Removed Acreage

It is the insured’s responsibility to account for all prior acreage reported on the PAW. For
removed blocks, the insured must indicate the removal date for the applicable acreage on
the PAW. The insured must continue to report the removed acreage on subsequent PAW(s)
until the related production information no longer remains in the SRH database(s) unless
such acreage is accounted for by RO adjustment.

If the removed block represents an entire SRH database, annotate the removal on the PAW
the initial crop year, and in subsequent crop years no further reporting of the removed SRH
database is required.

If the removed acreage is part of an existing SRH database, the insured, through the AIP,
may request removal of the acreage from the SRH database by submitting a RO Determined
Yield request.

The AIP should select the “Other” category on the RO Determined Yield Request. If a RO
Determined Yield for the removed acreage is not requested, the insured must continue to
report the removed acreage on subsequent PAW(s) until related yields from the removed
acreage no longer remain in the SRH database.

If a contiguous block of trees is removed from the unit after the ARD, the insured must
report the removal on the acreage report within 3 days of the removal. See Sec. 3(e) of the
CP and Para. 2119B above.

June 2015 FCIC 18180 492

2142 Summary of Revenue History Required Elements

ELEMENT REQUIRED INFORMATION

Insured’s Name, Address,
Insured’s name, address, phone number, SSN, EIN or RAN, and
Telephone Number, and
identification number type.
Identification Number
State
County State, county and policy number.
Policy No.
Crop Year Enter the first year of the two-year coverage module.

Practice/Type/TMA/Unit No. P/T/TMA and unit number.

Enter the section, township and range, or other descriptions for land if
Legal Description, FSA rectangular survey is not applicable.
Farm/Tract/Field Number
If additional space is needed, attach a supplemental sheet.
Enter the names of others sharing in the crop (this is not a SBIs or
Others Sharing in the Crop
landlord/tenant policy). If none, enter “NONE”.
T-Revenue Enter the applicable T-Revenue.
Enter the appropriate crop year(s) within the two-year coverage module for
Crop Year of History
production and gross sales being reported.
Acres Applicable acreage of pecans multiplied by insured’s share.
Total pounds of harvested and/or appraised pecans, insured’s share only (in-
Total Pounds Production
shell basis rounded to the nearest whole pound).
The insured’s share of pounds harvested and/or appraised pecans times the
Gross Sales applicable in-shell average price, in accordance with the CP, reported in
dollars and cents.
Enter the Average Gross Sales which is the Gross Sales divided by the Net
Average Gross Sales Per Acre
Acres rounded to whole dollars.
Indicate any yield descriptors that may apply for each average gross sales
Yield Descriptor
entered in the SRH database. See Exh. 15V for yield descriptors.
Total Number Of Years Enter the applicable total number of years.
Total Average Gross Sales Per Enter the total of the Average Gross Sales (the total of the Average Gross
Acre Sales Per Acre column).
Enter the Approved Average Revenue Per Acre (the Total Average Gross
Approved Average Revenue
Sales Per Acre divided by the Total Number of Crop Years) rounded to
Per Acre
whole dollars.
Yield In Pounds Enter the appropriate yield in pounds, see Para. 2132.
Indicate any yield indicators that may apply. See Exh. 15U for yield
Yield Indicator
indicators.
If a PAIR is required, the “Required PAIR” box must be checked when the
Required PAIR
acreage requires an inspection. See Para. 2148.
Comments The insured and/or AIP may include any additional comments.

2143-2144 (Reserved)

June 2015 FCIC 18180 493

 Section 5 PAW/PAIR/CAW

2145 PAW

The PAW is an insured’s self-certification of the planting and other conditions of the pecans.
The PAW is used by the AIP to determine insurability and other policy requirements.

A. PAW Submission

The insured must complete and submit a PAW by the ARD for each year of the two-year
coverage module.

B. Failure to Submit a PAW

If the insured fails to complete and submit a PAW by the ARD, the AIP must either:

(1) obtain the required information from the insured;

(2) conduct a PAIR to determine the required information; or
(3) deny coverage for the crop year.

The AIP representative may assist the insured with the PAW completion.

2146 PAW Required Elements

ELEMENT REQUIRED INFORMATION

Unit Number Enter the applicable unit number for the acreage.

Month/Year Planted Enter the month and year trees were planted.

Month/Year Grafted Month and year of grafting to the current variety, if applicable; otherwise, enter N/A.

Name(s) of the variety(ies) contained in this unit whether specified in the actuarial
Variety document(s) or not.
Type Enter the applicable type from the actuarial document(s).

Number of Plants Enter the number of bearing trees which make up the unit.
Average tree spacing and/or pattern observed within this unit (example 18.5 X 20).
Plant Spacing
See Exh. 18 for other patterns.
Enter:

“S” for Square Planting Pattern

“B” for Hedgerow or Border Planting Pattern
Planting Pattern
“Q” for Quincunx Planting Pattern
“H” for Hexagonal Planting Pattern
“D” for Double Row Planting Pattern
“O” for Other Planting Pattern

June 2015 FCIC 18180 494

2146 PAW Required Elements (Continued)

ELEMENT REQUIRED INFORMATION

Calculate the tree density (number of trees per acre) as follows:

number of square feet number of square feet per tree (based on

per acre ÷ the current planting pattern)

There are 43,560 square feet per acre.

Density Example: Based on a tree spacing of 40 X 40 = 1600 square ft., the number of trees
per acre is calculated as 43,560 square ft. per acre ÷ 1600 square ft. per tree = 27 trees
per acre.

Or, if trees are being interplanted as a part of a tree replacement program and the
spacing changes to 20 X 40 = 800 sq. ft., per tree, the correct density becomes 43,560
sq. ft. per acre ÷ 800 sq. ft. = 54 trees per acre.

Number of planted acres to tenths (0.1).

It is the carryover insured’s responsibility to account for all prior acreage reported.
Acres
Removed acreage, shown on the SRH, should continue to be shown on the PAW until
they roll out and no longer remain on the SRH database, (e.g., line through block
entries and show removal date, except as otherwise allowed see Para. 2141F).
Percent Stand N/A

Designate if the block is:

Practice irrigated or non-irrigated; and/or
certified organic or acreage transitioning to organic.

Designate whether this unit has met insurability requirements. Refer to the policy
provisions, e.g., production minimums, direct marketed to consumer, etc., the
actuarial document(s), and this procedure for determining insurable and uninsurable
acreage.

Insurable or Example: Acreage must be reported as uninsurable when minimum production

Uninsurable requirements are not met.

When prior production or acreage is commingled, the entire commingled acreage

must meet the production minimum requirements for insurability. Acreage combined
to meet insurability requirements may require additional yield adjustment by the AIP
or should be submitted as a RO Determined Yield Request.

June 2015 FCIC 18180 495

2146 PAW Required Elements (Continued)

ELEMENT REQUIRED INFORMATION

Totals (For Acres
This is the last row in the table on the form used to enter the summation of the total
and Number of
acres and total number of trees.
Plants)
IMPORTANT: Prior to answering these questions, the approved average revenue per acre from the preliminary
SRH database must be calculated.
Has Damage (E.G.,
Disease, Hail, Freeze)
Occurred to
Trees/Vines/Bushes/
If the insured answers “YES”, then hard copy records of acreage, production, and gross
Bog that Will Reduce
sales are required.
the Insured Crop’s
Production from
Previous Crop
Years?
Have Practices or
Production Methods
(e.g., Removal,
Dehorning, Grafting, If the insured answers “YES”, then hard copy records of acreage, production, and gross
Transitioning to sales are required.
Organic) been
Performed that Will Tree thinning, hedging and top-work is considered a cultural practice change that could
Reduce the Insured reduce the insured crop’s gross sales below the approved average revenue and/or make
Crop’s Production the crop uninsurable.
from Previous Crop
Years?
Is the Current Water
Supply (Surface
For irrigated practice only.
Allotment/Well)
Adequate to Produce
If the insured answers “NO”, hard copy records of acreage, production, and gross sales
a Normal Crop For
are required.
the Crop Year Being
Certified Above?

2147 AIP PAW Review

The AIP must use the information provided by the insured on the PAW to determine:

(1) the insurable acreage for the current crop year; and
(2) if a PAIR must be conducted by the AIP.

2148 PAW Triggers a PAIR

A PAW triggers the need for a PAIR and a RO Determined Yield for insurability when the
insured answers:

(1) Yes to whether or not “… damage (e.g., disease, hail, freeze) occurred to
Trees/Vines/Bushes/Bog that will reduce the insured crop’s production from previous crop
years?”.

June 2015 FCIC 18180 496

2148 PAW Triggers a PAIR (continued)

(2) Yes to whether or not “have practices or production methods (e.g. removal, dehorning,
grafting, transitioning to organic) been performed that will reduce the insured crop’s
production from previous crop years?”.

(3) No to “Is the current water supply (surface allotment/well) adequate to produce a normal
crop for the crop year being certified above?”.

Exception: Unless the acreage is insured under a non-irrigated practice.

2149 PAIR

A PAIR is an underwriting tool used by the AIP to:

(1) establish insurability of the crop;

(2) evaluate the risk to be assumed by the AIP; and
(3) verify information provided by the insured on the PAW.

If the PAIR discloses that information provided on the PAW was incorrect or incomplete, the
PAW must be corrected. The PAIR must include the applicable CAW(s).

2150 PAIR Requirements

A PAIR is required for the current crop year when:

(1) required by the policy, SP, or for WA to determine insurability;

(2) triggered by the PAW;

(3) an insured either does not complete a PAW or does not complete a PAW in an acceptable
manner;

(4) requested in writing by PM for county crop program;

(5) the AIP is mandated by the policy provisions and agree in writing as a condition of
insurance attachment, see Para. 76 of the WAH;

(6) requested by the RO if a new PAIR is necessary for the RO to approve a RO Determined
Yield;

(7) damage has occurred to trees;

(8) cultural practices have been performed that will reduce the insured crop’s production and
gross sales from previous levels;

(9) added acreage to a unit is greater than 12.5 percent of the existing acreage in the unit;

June 2015 FCIC 18180 497

2150 PAIR Requirements (continued)

(10) a new application is submitted; a PAIR is required not later than 30 days after the SCD and
the insured must be notified of acceptance or rejection of their application; or

(11) spot checks are completed.

A PAIR is required within the most recent five years for a RO Determined Yield Request unless
triggered by the PAW or new applicant.

2151 PAIR Waivers

PAIRs may be waived by RMA, in writing, when an excessive number of policies require PAIRs
that cannot be feasibly accomplished. The RO may provide written approval to the AIP
authorizing PAIR waivers, if the AIP provides:

(1) a written request to the RO;

(2) the reason for the waiver;
(3) documentation supporting an excessive number of PAIRs; and
(4) alternative means to reasonably assess the impact to the perennial crop.

2152 PAIR Deadline

The PAIR must be completed within 30 calendar days after the ARD. When a PAIR is required
for a RO Determined Yield Request, it must be received in the RO no later than 45 calendar days
after the ARD.

When an AIP expects that PAIRs cannot be completed within the established deadline, the AIP
must notify the RO in writing to request an extension and include the reason for the extension.
Based upon the information provided by the AIP, the RO may establish a revised deadline. The
RO will not extend the deadline more than 60 calendar days after the ARD.

If the deadline for the RO Determined Yield Request is extended in accordance with Para. 2214,
the PAIR deadline will be extended. The PAIR must be completed and submitted with the
request.

PAIRs not completed by the deadline for the RO Determined Yield Request results in a RO
Determined Yield not being issued.

Exception: A RO Determined Yield Request will be accepted at any time when the request
is based on a situation that requires a reduced approved average revenue per acre
for the current crop year.

Exception: New applications require a PAIR not later than 30 days after the SCD and the
insured must be notified of acceptance or rejection of their application.

June 2015 FCIC 18180 498

2153 PAIR Completion Requirements

A. Inspector

The AIP, not the insured’s agent, will conduct the PAIR/CAW. The person completing the
inspection must possess training equivalent to that of a loss adjuster.

B. Supporting Documentation

The AIP may request that the insured provide acceptable supporting acreage, production
and gross sales evidence to assist with the completion of the PAIR.

C. Insurable and Uninsurable Acreage

Complete a separate CAW for insurable and uninsurable acreage.

2154 PAIR Required Elements

ELEMENT REQUIRED INFORMATION

Obtain this information from the insured.

Number of Years Insured has
Operated this Unit. This information will assist the inspector in determining
the accuracy and completeness of the SRH databases and
If Less than Three Years, Include Revenue Reports.
Previous Owner Name and Address, if
Known. If less than three years, include previous owner name and
address, if known.

Enter “No” if the acreage in this unit has not been

previously insured by the current insured or another
producer.

Has this Unit Been Insured in Previous Enter “Yes” if the acreage in this unit has been previously
Years? insured by the current insured or another producer.

If Yes, Include the Number of Years If the unit was previously insured, review any previous
Insured and Prior Policy Number(s). PAIRs, PAWs and other policy information (e.g. SRH
databases) to assist in the PAIR completion to understand
any insurability concerns, whether changes have occurred
in production practices or methods that may impact the
insurability of the unit.

June 2015 FCIC 18180 499

2154 PAIR Required Elements (continued)

ELEMENT REQUIRED INFORMATION

Describe Weed Control Measures Used
for the Unit. Review with the insured and explain in detail the
cultivation and/or spray program used to control weeds.
Include a Description of the
Orchard/Vineyard/Plantation/Field/Bog
Floor Management, i.e., Include a description of the current orchard or grove floor
Sterile/Sod/Cover Crop. management (e.g., sterile/sod/cover crop, etc.).
Describe the Fertilization Program Used
for the Unit.
Describe in detail the fertilization program being used for
Include the Insured’s Method of the unit.
Monitoring Soil Fertility, e.g., Soil
Analysis, Foliar Analysis, or both.
Describe in Detail the Insect Control Describe in detail the insect and disease control measures
Measures Used (I.E., Integrated Pest used by the insured (e.g., integrated pest management, a
Management/ Calendar Spray Program) calendar spray program, methods used for organic
practices, etc.).
Evidence of Disease/Insects (Check One):
Identify current evidence of disease/insects as: rare,
□ Rare moderate or severe.
□ Moderate
□ Severe
Is Tree/Vine/Bush/Plant Replacement Determine the insured’s tree replacement program. Are
Program Being Carried Out? dead or diseased trees replaced? If so, explain how.

If Applicable, is Fumigation Used in the If applicable, indicate if fumigation is used in the

Replacement Program? replacement program.
Crops Grown Primarily For:
Although the terms are not generally used for pecan
□ Fresh Market marketing, the AIP must describe the primary use of the
□ Processor crop and/or how the insured typically markets their crop.
□Juice Market
What Date is Harvest Completed For the
Unit Under Normal Conditions? Determine the normal harvest completion date from the
insured.
Describe in Detail the Use and Placement
of Bees for Pollination. N/A

Include Type, Quality, Quantity and

Location.

June 2015 FCIC 18180 500

2154 PAIR Required Elements (continued)

ELEMENT REQUIRED INFORMATION

Describe in Detail the Irrigation Water
Source.

Surface: Describe in detail the irrigation source(s).

 Percentage of Total Supply Obtain from the insured, water source(s) and irrigation
 Irrigation District Name district(s) from which water is allocated, allocation
percentage, and irrigation well information.
 Allocation Last Year Percentage
of Normal Expected Allocation
This Year’s Percentage of Normal Include any information regarding water obtained through
water transfers (transfer volume and number per year) and
Irrigation: any potential curtailment of current and future water
supplies, as well as pumping rate.
 Wells: Percentage of Normal;
 How Many Wells?
 Total Gallons per Minute?
Determine whether any abnormal flood hazards exist.
Is the Unit Subject to Above Normal
Flood Hazard? If so, Explain.
Explain in detail.

Discuss with the insured (and perform an assessment) to

determine any potential soil limitations (e.g., slope, depth,
Are There Soil Limitations (E.G., drainage, pH, saline, or alkaline toxicity, etc.).
Slope, Depth, Drainage, pH,
Saline/Alkali, Toxicity)? Other resources should also be considered when
appropriate, such as soil maps.

If so, Explain. Areas of frequent replanting or stunted growth may

indicate that soil limitations exist.

Explain in detail.

Describe in Detail:
Describe in detail the pruning practices used, date normally
 The Pruning Practices Used completed, and whether pruning is annual, biennial, etc.
 The Date Normally Completed
Indicate if there is excessive pruning or top working which
Indicate Whether Pruning is Annual affect production of the crop to be insured.
or Biennial.

June 2015 FCIC 18180 501

2154 PAIR Required Elements (continued)

ELEMENT REQUIRED INFORMATION

Describe in Detail the Varieties Being
Used as Pollinator(s).

Include: Describe in detail the varieties used as a pollinizer when

applicable.
 Variety
 Location Include variety, location, quantity, density, and
 Quantity configuration.
 Density
 Configuration.
Measured or Determined Acres of Unit

Total Unit Acreage Insurable and Enter the total unit acreage (insurable and uninsurable)
Uninsurable and the methods of measurement.
Method(s) of Measurement

Measured or Determined Acres of Unit

Enter the total unit insurable acreage.
Total Unit Acreage Insurable

Review the SRH database for prior production, gross

sales, and acreage as compared to the current acreage and
varieties based upon the PAIR.

Note any inconsistencies and reconcile tree removals,

Determine Whether Current Observed
replacements, top-working, hedging, grafting, production
Conditions Reconcile to Prior Records
or practice changes, etc.

This review will assist in determining acceptability of

prior revenue records and insurability determinations for
the current crop year.

June 2015 FCIC 18180 502

2154 PAIR Required Elements (continued)

ELEMENT REQUIRED INFORMATION

Percent Stand

 Less Than 50%

 50-60% N/A
 61-70%
 71-80%
 81-90%
 91-100%

Determine the Current Unit Potential:

Evaluate and describe the unit's current crop potential as
□ Stable stable, declining or increasing.
□ Declining
□ Increasing

Do Trees/Vines/Bushes/Plants have These are subjective questions requiring evaluation of the

Sufficient Vigor to Produce the unit's vigor relative to the preliminary SRH approved
Preliminary APH Yield Computed for average revenue.
this Unit?
Note the amount of tree growth, limb size, and color, and
Note Overall Plant Vigor as: other factors which indicate the unit's ability to produce the
preliminary approved average revenue per acre.
□ Good
□ Average Note the overall plant vigor as: good, average or poor.
□ Poor

If Applicable, Provide Inside Bin

N/A
Measurements

Complete a CAW(s) for the acreage being inspected.

Insurable Acreage and
Tree/Vine/Bush/Bog Information,
Verify PAW(s) entries, making any corrections needed,
Complete Check Boxes
and initial the PAW.

Complete a CAW(s) for the acreage being inspected.

Uninsurable Acreage and
Tree/Vine/Bush/Bog Information,
Verify entries on PAW(s), making any corrections needed,
Complete Check Boxes
and initial the PAW.

June 2015 FCIC 18180 503

2154 PAIR Required Elements (continued)

ELEMENT REQUIRED INFORMATION

Obtain aerial photo(s) and/or maps (e.g., GPS) with blocks,

units, and legal description, must be clearly identified.

When the aerial photo(s) and/or map(s) (e.g., GPS) are not
available, include a hand sketch map with the following
information:

(a) identify the location of separate units for the same

insured. The unit location must identify roads, the nearest
Obtain and Attach Aerial
intersection, landmarks along with cardinal directions (e.g.,
Photo(s)/Map(s).
a north arrow);

(b) identify the location of blocks within one unit. Sketch

out the blocks, showing the exact location of each block in
relation to other blocks in the unit. Label each block with a
Block Number and any other applicable identification (e.g.,
home farm); and

(c) include an overall sketch map of all units.

Additional notes and observations, which will assist the
verifier in relating unit information to actual average gross
Additional Information and sales contained within the SRH database.
Comments (Attach Additional Sheets
as Necessary) Include additional sheets, as necessary, referencing
appropriate items.

Your Evaluation Of The Management These are subjective questions requiring consideration for
Of This Operation: (Above Average; overall evaluation of management and conditions of the
Average or Below Average) unit.

Evaluate each block to determine if light penetration into

Your Evaluation of the
the canopy is sufficient to stimulate nut development. Rate
Orchard/Vineyard/Bog/ Grove/Field
as above average, average, or below average based on the
Condition: (Above Average; Average
Inspector’s review.
or Below Average)

Provide recommended action. Sign and date the report.

Action Recommended:
Attach, and if needed, provide any applicable CAW, SRH
Acceptance, RO Determined Yield
database(s), PAW, revenue records, and acreage
Request, Rejection
determinations.

June 2015 FCIC 18180 504

2154 PAIR Required Elements (continued)

Key items the Inspector should consider in conducting the PAIR are:

(1) Age by block;

(2) Damage to the tree(s);

(3) Date of any sequential thinning or hedging;

(4) Whether the orchard/grove is being maintained in a recommended manner with adequate
tree spacing, no over-crowding of adjoining tree branches, good orchard/grove floor
management practice;

(5) Review of marketing methods. A review of records may determine whether any direct
market of production occurred. Direct marketing is insurable only as provided by the SP or
WA;

(6) Verification of correct practice in counties with separate irrigated and non-irrigated rated
practices. If reported as irrigated, an adequate water supply and functional irrigation
system must be verified; and

(7) A review of production records to determine if the insured acreage meets the minimum
production requirement of 600 pounds of in-shell pecans per acre unless otherwise provided
in the SPs.

The above key items, as well as, other information shown on the PAIR/CAW, and certification
by the insured on the PAW/SRH, must be considered in completion of the PAIR/CAW.

2155 CAW Information

A CAW is an underwriting tool used by the AIP to:

(1) establish insurability of the crop;

(2) evaluate the risk to be assumed by the AIP; and
(3) verify information provided by the insured on the PAW.

The CAW is a part of the PAIR, and is used to collect specific information for the crop being
inspected and is completed while completing the PAIR by the AIP. Because the CAW must be
completed in conjunction with the PAIR, it is due with the PAIR, or the date established by the
RO.

See Exh. 18G for the collective “Almonds, Citrus, Figs, Fresh Plums, Macadamia Nuts, Pecans,
Prunes, Stonefruit, Walnuts” CAW completion requirements.

Refer to the crop provisions and/or actuarial document(s) for determining insurable and
uninsurable acreage.

A separate CAW must be completed for insurable and uninsurable acreage.

June 2015 FCIC 18180 505

2156-2166 (Reserved)

June 2015 FCIC 18180 506

 Section 6 RO Underwriting

2167 RO Determined Yield Request

A RO Determined Yield may be requested, see Para. 1881, when applicable, for the following:

A. Higher Yield Requests

Higher Yields can be requested for other changes in management practices (i.e., change in
practice from non-irrigated to irrigated, RO determined yields “F” in two year increments
up to the most recent four years may be applicable where higher non-irrigated history is
provided).

B. Gross Sales Reduced Below the Approved Average Revenue Per Acre

Any action, including sequential thinning, that is taken that may reduce the insured’s gross
sales below their approved average revenue for a unit, may result in an adjustment to the
approved average revenue.

C. Change in Practice or Production Methods

Change in practice or production methods, triggers a PAIR and subsequent RO Determined

Yield.

D. Removed and/or Damaged Acreage

Damage resulting in any reduction in production and damage to the tress of 15 percent or
more across the grove, triggers a PAIR and subsequent RO Determined Yield request.

2168-2200 (Reserved)

June 2015 FCIC 18180 507

June 2015 FCIC 18180 508
 PART 22 RO UNDERWRITING
Section 1 Transmitting RO Determined Yield, MY, and Added Land/New Crop/P/T Request

2201 ROE Requirement

(1) AIPs must transmit/log all RO Determined Yield (including MY) and Added Land/New
Crop/P/T Request forms and supporting documentation electronically through the ROE
system. If all required information is timely submitted to the AIP, these requests must be
transmitted/logged no later than the applicable deadlines identified in Part 22, Sections 2
and 3. Once the applicable information from the RO Determined Yield or Added
Land/New Crop/P/T Request form is transmitted/logged into the ROE system, a folder is
created for uploading the supporting documentation. Do not transmit the supporting
documentation via e-mail, postal delivery, or facsimile.

Note: The official transmission date of the RO Determined Yield or Added Land/New
Crop/P/T Request to the RO is the date the AIP uploads the first document
containing supporting documentation to the ROE system.

If an unforeseen circumstance (such as the unavailability of the ROE system, AIP outage,
etc.) occurs that prevents the AIP from transmitting/logging the RO Determined Yield or
Added Land/New Crop/P/T Request information electronically through the ROE system by
the applicable deadline, the AIP should contact the RO prior to the applicable deadline to
make other arrangements with the RO to transmit (such as by facsimile, postal delivery,
etc.) the RO Determined Yield or Added Land/New Crop/P/T Request and any supporting
documentation. The RO must approve the AIP’s request for the alternative method of
submission, and the RO Determined Yield or Added Land/New Crop/P/T Request form and
any supporting documentation must still be submitted to the RO no later than the applicable
deadlines in Part 22, Sections 2 and 3.

Note: In this event, the official transmission date of the RO Determined Yield or
Added Land/New Crop/P/T Request to the RO is the date the RO receives the
request.

(2) The AIP must upload legible supporting documentation, including the RO Determined
Yield or Added Land/New Crop/P/T Request form, to the ROE system folder created for
the associated RO Determined Yield or Added Land/New Crop/P/T Request no later than
the applicable deadlines identified in Part 22, Sections 2 and 3 to avoid having the request
be incomplete. If technical issues exist that prevent uploading the supporting
documentation, contact the RO. Do not submit supporting documentation in hard copy
format to the RO unless arrangements have been made with the RO, as stated in (c) below.
Any documentation submitted to the ROE system folder later than the applicable deadlines
in Part 22, Sections 2 and 3 will be considered late.

(a) Scan the supporting documentation such that the electronic copy is clearly legible in
Adobe (.pdf) format. If color is critical to the interpretation of the image, provide
color images. The AIP should scan the supporting documentation where all pages can
be viewed upright, to the extent possible.

June 2015 FCIC 18180 509

2201 ROE Requirement (Continued)

(b) The AIP should keep screen shots of the uploaded information to substantiate the
date, time, supporting documentation, etc., of the attempted delivery in case of failure
of the delivery attempt.

(c) If an unusual case arises where the AIP cannot meet the requirement to submit the
supporting documentation through the ROE system, the AIP must document why the
requirement cannot be met and make other arrangements with the RO to submit (such
as by facsimile, postal delivery, etc.) the supporting documentation no later than the
applicable deadlines in Part 22, Sections 2 and 3.

2202 AIP Alert Mechanisms

The ROE system automatically sends an email notification to an AIP-provided distribution email
account when the RO makes electronic documents available for the AIP to retrieve.
Additionally, when RMA releases a RO Determined Yield or Added Land/New Crop/P/T
document to the AIP, the ROE system will post a record to the FTP (File Transfer Protocol) site
to document this action. These alert mechanisms are provided as a courtesy to the AIP and any
failure of these alert mechanisms does not exempt the AIP from the responsibility of timely
retrieving documents and notifying the appropriate parties. The AIP should periodically perform
a search on the SharePoint site to identify new document postings (such as requests for
information) by the RO to ensure that the alert mechanisms did not fail to notify the AIP of
available documents. RMA will also provide daily releases of decisions for submitted RO
Determined Yield or Added Land/New Crop/P/T Requests as part of the ICE (Insurance Control
Element) that should be monitored by the AIP. RMA will not extend deadlines due to an alert
mechanism failure (such as a request for information is not retrieved timely due to an alert
mechanism failure, therefore the required information is not submitted by the applicable
deadlines and the request is incomplete).

2203 Separate Submission for WA

If a policyholder submits an RO Determined Yield or Added Land/New Crop/P/T Request and a

WA request, AIPs will need to transmit these requests separately using the method provided for
each request type. AIPs should note on the documentation for each request that both request
types have been submitted for the policyholder.

2204 Transmitting an Added Land/New Crop/P/T Request as a RO Determined Yield Request

For ROE processing purposes only, Added Land/New Crop/P/T Requests are transmitted as a
type of RO Determined Yield Request. The AIP must transmit the Added Land/New Crop/P/T
Request type under the RO Determined Yield. Even though the Added Land/New Crop/P/T
Request is transmitted for processing purposes as a RO Determined Yield Request type, this does
not alter the Added Land/New Crop/P/T Request requirements identified in Part 22, Section 3.

2205-2210 (Reserved)

June 2015 FCIC 18180 510

 Section 2 Determined Yields, MY and UG

2211 Category B Crops

A. RO Determined Yield Request Requirements

(1) A completed RO Determined Yield Request must include:

(a) a RO Determined Yield Request form (see DSSH for form requirements):

(b) the legal description of the land (in areas where legal descriptions are available);

(c) the FSA Farm/Tract/Field Number, if available.

(d) for units in which RO Determined Yields are requested:

(i) APH databases for the current crop year or prior crop year if the current
crop year is not available; or

(ii) signed production reports for the current crop year.

(e) verifiable records of actual yields, if required by the RO;

(f) FSA aerial photograph or an acceptable GIS/GPS map, or other legible map
issued by a state or federal agency delineating field boundaries, if required by
the RO. Identify the fields where the insured intends to plant the crop, or where
the crop is planted;

(g) other information requested by the RO; and

(h) for MYs only, the MY Summary APH databases and at least the four most
recent APH crop years of continuous production reports.

(2) A completed RO Determined Yield Request must be signed by the insured by the
PRD and submitted by the AIP to the RO no later than 20 calendar days (30 calendar
days for MYs) after the PRD.

B. RO Responsibilities

The RO must:

(1) document the date the RO (use this documentation to verify timeliness of issuance of
RO Determined Yields):

(a) received the RO Determined Yield Request; and

(b) sent the RO Determined Yield(s) to the AIP electronically through the ROE
system (send the RO Determined Yield to the AIP within 15 calendar days after
receipt of a complete RO Determined Yield Request);

June 2015 FCIC 18180 511

2211 Category B Crops (Continued)

B. RO Responsibilities (continued)

(2) notify the AIP verifier if production records are needed to substantiate yields reported
on the production report; and

(3) review requests and determine the RO Determined Yield(s).

C. Yield Guidelines

(1) RO Determined Yields are:

(a) based on soil productivity of the land in the current operation and the
management ability demonstrated by the actual yields submitted; and

(b) limited to 65-100 percent of the applicable T-Yield, unless the request is for a
MY.

(2) The RO will issue the percent of T-Yield in a letter, unless the request is for a MY.
For some situations, the letter may provide the assigned RO Determined Yield rather
than the percent of T-Yield.

(3) The AIP will multiply the percentage of T-Yield issued by the current T-Yield (or use
the assigned RO Determined Yield) and apply a “F” yield descriptor to the annual
yield and a “F” yield indicator to the APH database.

(a) Apply the same percentage when RMA updates T-Yields.

(b) The “F” yield descriptor, “F” yield indicator, and RO Determined Yield remain
in an APH database until the percentage of the variable T-Yield for the crop
exceeds the RO Determined Yield or until the assigned RO Determined Yield is
no longer needed (i.e., the APH database has four years of actual yields).

Example: The RO Determined Yield is 70 percent of the applicable T-Yield

used to establish a four year database. When the insured adds an
actual yield in a subsequent year, the percent of the applicable
variable T-Yield increases to 80 percent (one year of actual and three
80 percent variable T-Yields).

2212 Category C Crops

A. RO Determined Yield Request Requirements

(1) A completed RO Determined Yield Request must include:

(a) the legal description of the land (in areas where legal descriptions are available);

June 2015 FCIC 18180 512

2212 Category C Crops (continued)

A. RO Determined Yield Request Requirements (continued)

(b) FSA Farm/Tract/Field number when available;

(c) a PAIR dated within last five years, including any applicable CAW(s);

(d) a PAW;

(e) an updated APH database for the current crop year; and

(f) if applicable, any additional information documented by the inspector, which

should be attached to the PAIR(s).

(2) Unless otherwise stated see Para. (3) below, a RO Determined Yield Request must be
signed by the insured by the PRD and submitted by the AIP, with any applicable
inspections, to the RO no later than 30 calendar days after the PRD.

(3) When the AIP submits a written request to extend an RO Determined Yield deadline
no later than 30 calendar days after the PRD, the request may be extended when:

(a) the request requires a PAIR and the PAIR deadline was extended by the RO see
Para. 1840;

(b) the request is for alternate bearing or downward trending considerations;

(c) the request is based on a situation that requires a reduced yield, see Para. 1840;
or

(d) an insured notifies the AIP of a change in practice.

When a RO Determined Yield Request deadline is extended, the RO Determined

Yield Request must be signed by the insured and submitted by the AIP to the RO no
later than 60 calendar days after the PRD.

(4) For a timely submitted request, any additional information requested by the RO must
be submitted by the AIP within 20 calendar days from the date of notification from
the RO or by the date specified in the RO’s request.

(5) If the request and required supporting documentation are not received by the
applicable date, they will be considered unacceptable. A RO Determined Yield will
not be issued unless assigned yield provisions are applicable.

(6) If supporting documentation requested by the RO for a timely submitted request is not
received by the RO by the applicable date, the RO will consider the RO Determined
Yield Request to be unacceptable and assigned yields provisions will be applicable for
carryover insureds.

June 2015 FCIC 18180 513

2212 Category C Crops (continued)

A. RO Determined Yield Request Requirements (continued)

For new insureds, the RO will determine that the production records are unacceptable
and determine the yields accordingly.

B. RO Responsibilities

The RO must:

(1) document the date the RO (use this documentation to verify timeliness of issuance of
RO Determined Yields):

(a) received the RO Determined Yield Request; and

(b) sent the RO Determined Yield(s) to the AIP electronically through the ROE
system (send the RO Determined Yield to the AIP within 15 calendar days after
receipt of a complete RO Determined Yield Request);

(2) notify the AIP verifier if records are needed to substantiate yields reported on the
production report; and

(3) review requests and determine the RO Determined Yield(s).

C. RO Perennial UG

ROs may issue UG as procedural exceptions for situations in their Region see CSH for
additional UG criteria.

(1) The RO UG are issued to the AIPs operating in the applicable area serviced by the RO
and are also found on the applicable RO web page at:
[Link] .

(2) Issue UG no later than the first applicable policy contract change date.

(3) A RO may issue UG in order to:

(a) provide authority to the AIP to determine approved APH yields in lieu of
requesting RO Determined Yields; and/or

(b) waive PAIRs or extend the due date for PAIRs when excessive PAIRs are
triggered by a regional issue.

(4) UG must specify:

(a) yield indicators and/or special case indicators for APH databases; or
(b) whether YA, YE, or cups may be applied by the AIP.

June 2015 FCIC 18180 514

2213 Category D Crops

A. RO Determined Yield Request Requirements

A RO Determined Yield Request for Florida Citrus must include:

(1) the PAW, in addition to the block map (color satellite imagery, if available);
(2) the acreage report;
(3) a current PAIR;
(4) color photos representative of the condition of the grove or sub-grove(s);
(5) if not already documented on the PAIR, a narrative providing details addressing the:

(a) health or condition of trees in the grove or sub-grove(s);

(b) causes (insured or uninsured) and estimated dates of the tree canopy damage or
change in cultural practice; and

(c) expected production of the grove (more specific than indicating that production
will exceed the 100 boxes threshold for acreage exclusion); and

(6) any additional supporting documentation (such as letters from agricultural experts, lab
reports, etc.) that may be useful in aiding the RO in determining the appropriate
amount of insurance on which the premium and any indemnity will be based.

Include prior year Acreage Report if request is for a policy where additional damage
has occurred since the last liability and/or acreage adjustment.

Exception: For Florida Citrus Fruit a RO Determined Yield Request will still be
accepted when the request results in a lower dollar amount of insurance.

B. RO Responsibilities

The RO must:

(1) document the date the RO (use this documentation to verify timeliness of issuance of
RO Determined Yields):

(a) received the RO Determined Yield Request; and

(b) sent the RO Determined Yield(s) to the AIP electronically through the ROE
system (send the RO Determined Yield to the AIP within 15 calendar days after
receipt of a complete RO Determine Yield Request);

(2) notify the AIP verifier if records are needed to substantiate yields reported on the
production report; and

(3) review requests and determine the RO Determined Yield(s).

June 2015 FCIC 18180 515

2214 Pecan Revenue

A. RO Determined Yield Request Requirements

(1) A completed RO Determined Yield Request must include all of the following:

(a) a PAW;

(b) revenue report(s);

(c) SRH database(s);

(d) acreage report;

(e) a current PAIR and CAW;

(f) color photos representative of the condition of the orchards/sub-orchards or

grove/sub-grove(s);

(g) if not already documented on the PAIR, a narrative providing details addressing:

(i) the health or condition of trees in the orchards/sub-orchards or grove/sub-

grove(s); and

(ii) the causes of damage (insured or uninsured) and estimated dates of the tree
canopy damage or change in cultural practice;

(h) the expected production of the orchard/grove; and

(i) any additional supporting documentation.

Note: The RO will utilize any additional supporting documentation (e.g.,

letters from agricultural experts, lab reports, etc.) that may be useful in
determining the appropriate amount of insurance on which the
premium and any indemnity will be based.

(2) Unless otherwise stated in Para. (3) below, a RO Determined Yield request must be
signed by the insured and submitted by the AIP, with any applicable inspections, to
the RO no later than 45 calendar days after the ARD.

(3) When the AIP submits a written request to extend an RO Determined Yield deadline
no later than 45 calendar days after the ARD, the request may be extended when:

(a) the request requires a PAIR and the PAIR deadline was extended by the RO, see
Para. 2152;

(b) the request is based on a situation that requires a lower approved average
revenue per acre; or

June 2015 FCIC 18180 516

2214 Pecan Revenue (Continued)

A. RO Determined Yield Request Requirements (Continued)

(c) an insured notifies the AIP of a change in practice.

When a RO Determined Yield Request deadline is extended, the RO Determined

Yield Request must be signed by the insured and submitted by the AIP to the RO no
later than 60 calendar days after the ARD.

(4) For a timely submitted request, any additional information requested by the RO must
be submitted by the AIP within 20 calendar days from the date of notification from
the RO or by the date specified in the RO’s request.

(5) If the request and required supporting documentation are not received by the
applicable date, they will be considered unacceptable. A RO Determined Yield will
not be issued.

Exception: A RO Determined Yield Request will be accepted at any time when the
request is based on a situation that requires a reduced approved average
revenue per acre for the current crop year.

B. RO Responsibilities

The RO must:

(1) document the date the RO (use this documentation to verify timeliness of issuance of
RO Determined Yields):

(a) received the RO Determined Yield Request; and

(b) sent the RO Determined Yield(s) to the AIP electronically through the ROE
system (send the RO Determined Yield to the AIP within 15 calendar days after
receipt of a complete RO Determined Yield Request);

(2) notify the AIP verifier if records are needed to substantiate yields/revenue reported on
the revenue report; and

(3) review requests and determine the RO Determined Yield(s).

2215-2220 (Reserved)

June 2015 FCIC 18180 517

 Section 3 Added Land/New Crop/P/T

2221 When RMA RO Will Perform an Underwriting Review

(1) RMA RO will perform an underwriting review to determine the appropriate yield method to
use for Added Land/New Crop/P/T SA T-Yield requests when:

(a) the total acres being added to the farming operation is greater than or equal to 640
cropland acres, but is less than 2,000 cropland acres; and

(b) both of the following are received by the RO electronically through the ROE system
no later than 30 calendar days after the ARD:

(i) a signed written request for RMA RO underwriting review; and

(ii) all required documentation according to Para. 1777.

(2) RMA RO will not perform an underwriting review unless both a signed request and all
required documentation are submitted to the RMA RO.

(3) RMA RO will not approve SA T-Yield or the approved APH yield of the existing unit for
land on which the insured has produced the crop.

2222 RO Responsibilities

The RO must document the date the RO (use this documentation to verify timeliness of
approval/disapproval of the use of the SA T-Yield):

(1) received the Added Land/New Crop/P/T Request; and

(2) sent the approved yield determination method(s) to the AIP electronically through the ROE
system (send the approved yield determination method to the AIP no later than 20 calendar
days after the receipt of a complete request).

2223 RMA RO Review

(1) Use the following steps to determine the productivity of the added land. The same
procedure below is used to determine productivity of acreage for approval of SA T-yield on
New Crop/P/T APH databases.

(a) For approval to use the SA T-Yield, the productivity of the added land must equal or
exceed 85 percent of the simple average of all the existing units yield capability in the
insured’s farming operation, if the land is being added as a new BU(s) or separate
OU(s).

(b) For approval to use an existing unit’s approved APH yield, the productivity of the
added land must equal or exceed 85 percent of the existing unit’s yield capability.

June 2015 FCIC 18180 518

2223 RMA RO Review (continued)

(c) RMA RO will use one or more of the following indicators to determine the
productivity of the added land, and the productivity of the land in the applicable
existing unit(s). Compare the results to determine whether the productivity of the
added land equals or exceeds 85 percent of the applicable existing unit(s)
productivity.

(i) The actual production history of the added land, by crop/P/T, if applicable, for
the previous crop year(s). To use the actual production history of the added
land, the insured must obtain such records from the previous
owner/operator/tenant, and submit such records with the signed request.

(ii) Soil survey maps to identify similar soil types, elevation, or climate data to
determine similar agronomic conditions.

(iii) Soil survey information from the NRCS.

(iv) RMA Actuarial Maps (past or present).

(v) Other factors determined appropriate by the RO.

(2) The RMA RO may utilize factors other than just the productivity of the added land when
determining the appropriate yield method to use for the added land. For example, the SA
T-Yield may be based on a relatively small acreage in comparison to the amount of land
being added (such as SA T-Yield based on three OUs averaging less than 25 planted acres
and the total cropland added is 700 acres).

In an instance such as this, the RMA RO may determine whether the use of a SA T-Yield
based on a small acreage is an appropriate method for determining a T-Yield for the added
land. Use the variable T-Yield (with a “B” yield indicator) in those instances where the SA
T-Yield is inappropriate.

2224-3000 (Reserved)

June 2015 FCIC 18180 519

June 2015 FCIC 18180 520
 Exhibit 1

Reserved

June 2015 FCIC 18180 521

 Exhibit 1

Reserved (continued)

June 2015 FCIC 18180 522

 Exhibit 2

Reserved

June 2015 FCIC 18180 523

 Exhibit 2

Reserved (continued)

June 2015 FCIC 18180 524

 Exhibit 3

Reserved

June 2015 FCIC 18180 525

 Exhibit 3

Reserved (continued)

June 2015 FCIC 18180 526

 Exhibit 4

Reserved

June 2015 FCIC 18180 527

 Exhibit 4

Reserved (continued)

June 2015 FCIC 18180 528

 Exhibit 5

Reserved

June 2015 FCIC 18180 529

 Exhibit 5

Reserved (continued)

June 2015 FCIC 18180 530

 Exhibit 6

Reserved

June 2015 FCIC 18180 531

 Exhibit 6

Reserved (continued)

June 2015 FCIC 18180 532

 Exhibit 7

Reserved

June 2015 FCIC 18180 533

 Exhibit 7

Reserved (continued)

June 2015 FCIC 18180 534

 Exhibit 8

Reserved

June 2015 FCIC 18180 535

 Exhibit 8

Reserved (continued)

June 2015 FCIC 18180 536

 Exhibit 9

A. Endorsements and Options Chart

The following chart provides information about endorsements and options.

Endorsement Pilot Crop

Crop Endorsement or  Elected by CAT
Crop Name or or Pilot Continuous Elected By Loss By Source
Code Option Name Date Coverage
Option Code Option
Fresh Fruit
Quality
0054 Apples AF No Continuous SCD Acre No Unit CP
Adjustment
Option
Basic Unit Varies by
Multiple Crops BU Continuous ARD Unit Yes Unit BP
Discount Crop
Coverage
Grapefruit
0208 CE Enhancement No Continuous SCD Crop/County No Unit BP/AD
Trees
Option
Coverage
0207 Orange Trees CE Enhancement No Continuous SCD Crop/County No Unit BP/AD
Option
Coverage
Tangerine
0193 CE Enhancement No Continuous SCD Crop/County No Unit BP/AD
Trees
Option
Coverage
0210 Lime Trees CE Enhancement No Continuous SCD Crop/County No Unit BP/AD
Option
All Other Comprehensive
0211 CV Yes Continuous SCD Crop/County No Unit CP
Citrus Tree Value
Comprehensive
0212 Avocado Trees CV Yes Continuous SCD Crop/County No Unit CP
Tree Value
Comprehensive
0266 Coffee Trees CV Yes Continuous SCD Crop/County No Unit CP
Tree Value
Grapefruit Comprehensive
0208 CV Yes Continuous SCD Crop/County No Unit CP
Trees Tree Value
Comprehensive
0207 Orange Trees CV Yes Continuous SCD Crop/County No Unit CP
Tree Value


“Continuous” refers to Continuous once the endorsement/option is elected. However, if any policy is transferred to a different AIP, a new endorsement or
option must be submitted to the new AIP.
June 2015 FCIC 18180 537
 Exhibit 9

A. Endorsements and Options Chart (continued)

Endorsement Pilot Crop

Crop Endorsement or  Elected by CAT
Crop Name or or Pilot Continuous Elected By Loss By Source
Code Option Name Date Coverage
Option Code Option
Comprehensive
0267 Papaya Trees CV Yes Continuous SCD Crop/County No Unit CP
Tree Value
Tangerine Comprehensive
0193 CV Yes Continuous SCD Crop/County No Unit CP
Trees Tree Value
Certified Seed
0084 Potatoes CH No Continuous SCD Acre No Acre Endorsement
High
Certified Seed
0084 Potatoes CL No Continuous SCD Acre No Acre Endorsement
Low
0084 Potatoes QA Quality Option #1 No Continuous SCD Crop/County No Unit Endorsement
0084 Potatoes QB Quality Option #2 No Continuous SCD Crop/County No Unit Endorsement
0084 Potatoes QC Quality#2/ Fresh No Continuous SCD Crop/County No Unit Endorsement
Quality#2/
0084 Potatoes QD No Continuous SCD Crop/County No Unit Endorsement
Processing
0084 Potatoes ST Storage No Continuous SCD Crop/County No Unit Endorsement
2 Year Crop
0015 Canola CR No Continuous ARD Acre Yes Unit CP/AD
Rotation
Enterprise Unit
Multiple Crops EU No Continuous SCD Crop/County No Unit BP/AD
Discount
All Other With Frost
0226 FR No Yearly ARD Acre Yes Unit AD
Grapefruit Protection
With Frost
0054 Apples FR No Yearly ARD Acre Yes Unit AD
Protection
Early &
With Frost
0224 Midseason FR No Yearly ARD Acre Yes Unit AD
Protection
Oranges
With Frost
0201 Grapefruit FR No Yearly ARD Acre Yes Unit AD
Protection
With Frost
0225 Late Oranges FR No Yearly ARD Acre Yes Unit AD
Protection


“Continuous” refers to Continuous once the endorsement/option is elected. However, if any policy is transferred to a different AIP, a new endorsement or
option must be submitted to the new AIP.
June 2015 FCIC 18180 538
 Exhibit 9

A. Endorsements and Options Chart (continued)

Endorse
Pilot Crop
Crop ment or Endorsement or  Elected by CAT
Crop Name or Pilot Continuous Elected By Loss By Source
Code Option Option Name Date Coverage
Option
Code
With Frost
0202 Lemons FR No Yearly ARD Acre Yes Unit AD
Protection
Mandarins/Tanger With Frost
0309 FR No Yearly ARD Acre Yes Unit AD
ines Protection
With Frost
0207 Orange Trees FR No Yearly ARD Acre Yes Unit AD
Protection
With Frost
0215 Navel Oranges FR No Yearly ARD Acre Yes Unit AD
Protection
With Frost
0227 Oranges FR No Yearly ARD Acre Yes Unit AD
Protection
With Frost
0203 Tangelos FR No Yearly ARD Acre Yes Unit AD
Protection
With Frost
0193 Tangerine Trees FR No Yearly ARD Acre Yes Unit AD
Protection
Rio Red & Star With Frost
0238 FR No Yearly ARD Acre Yes Unit AD
Ruby Protection
With Frost
0210 Lime Trees FR No Yearly ARD Acre Yes Unit AD
Protection
With Frost
0208 Grapefruit Trees FR No Yearly ARD Acre Yes Unit AD
Protection
Ruby Red With Frost
0228 FR No Yearly ARD Acre Yes Unit AD
Grapefruit Protection
With Frost
0217 Valencia Oranges FR No Yearly ARD Acre Yes Unit AD
Protection
Hail & Fire
Multiple Crops HF No Both Other Crop/County No Unit BP/ CIH/DSSH
Exclusion
High-Risk Land
Multiple Crops HR No Continuous SCD Acre No Unit BP/AD
Exclusion


“Continuous” refers to Continuous once the endorsement/option is elected. However, if any policy is transferred to a different AIP, a new endorsement or
option must be submitted to the new AIP.
June 2015 FCIC 18180 539
 Exhibit 9

A. Endorsements and Options Chart (continued)

Endorse Pilot
Endorsement
Crop ment or Crop or  Elected by CAT
Crop Name or Continuous Elected By Loss By Source
Code Option Pilot Date Coverage
Option Name
Code Option
Hybrid Seed Price
0062 Hybrid Corn Seed HS No Continuous SCD Unit No Unit Endorsement
Endorsement
Malting Barley
0091 Barley ME Yes Continuous SCD Crop/County No5 Unit Endorsement
Endorsement
0013 Onions NS Stage Removal Yes Continuous SCD Crop/County No Unit Endorsement
0039 Sugar Beets NS Stage Removal Yes Continuous SCD Crop/County No Unit Endorsement
All Other Citrus
0211 OW Olo Base Policy Yes Continuous SCD Unit No Unit CP/AD
Trees
0207 Orange Trees OW Olo Base Policy Yes Continuous SCD Unit No Unit CP/AD
All Other Citrus
0211 OX, Olo Ctv Endorsement Yes Continuous SCD Unit No Unit CP/AD
Trees
0212 Avocado Trees OX Olo Ctv Endorsement Yes Continuous SCD Unit No Unit CP/AD
0266 Coffee Tree OX Olo Ctv Endorsement Yes Continuous SCD Unit No Unit CP/AD
0208 Grapefruit Trees OX Olo Ctv Endorsement Yes Continuous SCD Unit No Unit CP/AD
0207 Orange Trees OX Olo Ctv Endorsement Yes Continuous SCD Unit No Unit CP/AD
0266 Coffee Trees OW Olo Base Policy Yes Continuous SCD Unit No Unit CP/AD


“Continuous” refers to Continuous once the endorsement/option is elected. However, if any policy is transferred to a different AIP, a new endorsement or
option must be submitted to the new AIP.

5
You must elect an additional coverage level on the underlying Small Grains Crop Provision policy to be eligible for this Endorsement. You are not eligible for
this Endorsement if you have elected the Catastrophic Risk Protection Endorsement unless such election is made in accordance with section 3(b)(2)(ii) of the
Basic Provisions.
June 2015 FCIC 18180 540
 Exhibit 9

A. Endorsements and Options Chart (continued)

Endorsement Endorsement Pilot Crop

Crop * Elected by CAT Loss
Crop Name or or or Pilot Continuous Elected By Source
Code Date Coverage By
Option Code Option Name Option
0212 Avocado Trees OW Olo Base Policy Yes Continuous SCD Unit No Unit CP/AD
Carambola
0213 OW Olo Base Policy Yes Continuous SCD Unit No Unit CP/AD
Trees
Grapefruit
0208 OW Olo Base Policy Yes Continuous SCD Unit No Unit CP/AD
Trees
0209 Lemon Trees OW Olo Base Policy Yes Continuous SCD Unit No Unit CP/AD
0210 Lime Trees OW Olo Base Policy Yes Continuous SCD Unit No Unit CP/AD
0214 Mango Trees OW Olo Base Policy Yes Continuous SCD Unit No Unit CP/AD
Tangerine
0193 OW Olo Base Policy Yes Continuous SCD Unit No Unit CP/AD
Trees
Nursery Peak
0073 PE No Yearly OTHER Unit No Unit Endorsements
(FG&C) Endorsement
Authorized By
Prevented
Actuarial PF No Continuous SCD Crop/County No Acre BP/AD
Planting +5%
Documents
Authorized
Prevented
By Actuarial PT No Continuous SCD Crop/County No Unit BP/AD
Planting +10%
Documents
Price
Nursery
0073 PO Endorsement Yes Yearly SCD Plant No Unit Endorsements
(FG&C)
Option


“Continuous” refers to Continuous once the endorsement/option is elected. However, if any policy is transferred to a different AIP, a new endorsement or
option must be submitted to the new AIP.
June 2015 FCIC 18180 541
 Exhibit 9

A. Endorsements and Options Chart (continued)

Endorsement Endorsement Pilot Crop

Crop * Elected by CAT Loss
Crop Name or or or Pilot Continuous Elected By Source
Code Date Coverage By
Option Code Option Name Option
Nursery Rehabilitation
0073 RH No Yearly SCD Crop/County No Unit Endorsements
(FGg&C) Endorsement
Pear Quality
0089 Pears PQ No Continuous SCD Crop/County No Unit CP/AD
Adjustment
Processing
0084 Potatoes PR No Continuous SCD Unit No Unit Endorsements
Quality
Fresh Market Replant SP-
0086 RE No Yearly SCD Crop/County Yes Acre
Tomatoes Exclusion Pennsylvania
Fresh Market Minimum Value
0086 VA No Continuous SCD Crop/County No Acre CP/AD
Tomatoes Option
North Dakota
Only: Barley,
Canola, Corn,
Dry Beans,
Dry Peas, Pilot Option
Flax, Grain Approved by
Sorghum, Board,
PY Personal T-Yield Yes Continuous PRD Crop/County No Unit
Millet, procedure via
Mustard, Oats, PM Bulletin
Rye, 06-028
Safflower,
Soybeans,
Sunflowers,
Wheat
Minimum Value
0083 Peppers VA No Continuous SCD Crop/County No Acre CP/AD
Option I


“Continuous” refers to Continuous once the endorsement/option is elected. However, if any policy is transferred to a different AIP, a new endorsement or
option must be submitted to the new AIP.
June 2015 FCIC 18180 542
 Exhibit 9

A. Endorsements and Options Chart (continued)

Pilot
Endorsement Endorsement
Crop Crop or * Elected by CAT
Crop Name or or Continuous Elected By Loss By Source
Code Pilot Date Coverage
Option Code Option Name
Option
Minimum
0083 Peppers VB No Continuous SCD Crop/County No Acre CP/AD
Value Option II
Fresh Market Minimum
0044 VO No Continuous SCD Crop/County No Acre CP/AD
Sweet Corn Value Option
Fresh Market Minimum
0086 VO No Continuous SCD Crop/County No Acre CP/AD
Tomatoes Value Option
Grapefruit Without Weed
0208 WC No Yearly ARD Acre Yes Acre CP/AD
Trees Control
Without Weed
0207 Orange Trees WC No Yearly ARD Acre Yes Acre CP/AD
Control
Without Weed
0193 Tangerine Trees WC No Yearly ARD Acre Yes Acre CP/AD
Control
Winter Endorsement
0091 Barley WO No Continuous SCD Unit No Unit
Coverage / CP
Winter
0074 Mint WO No Continuous SCD Crop/County No Acre CP
Coverage
Winter
0067 Dry Peas WO No Continuous SCD Crop/County No Acre CP
Coverage


“Continuous” refers to continuous once the endorsement/option is elected. However, if any policy is transferred to a different AIP, a new endorsement or
option must be submitted to the new AIP.
June 2015 FCIC 18180 543
 Exhibit 9

A. Endorsements and Options Chart (continued)

Endorsement Endorsement Pilot Crop

Crop * Elected by CAT
Crop Name or or or Pilot Continuous Elected By Loss By Source
Code Date Coverage
Option Code Option Name Option
Winter Endorsement/
0011 Wheat WO No Continuous SCD Unit No Unit
Coverage CP
0081 Soybeans CP Contract Price No Continuous ARD Crop/County Yes Unit SP
0091 Barley CP Contract Price Yes Continuous ARD Crop/County Yes Unit SP
As
authorized Contract Price
CP No Continuous SCD Crop/County Yes Unit CPA/SP
by Actuarial Addendum
Documents
Table Protective
0052 PC No Continuous ARD Acre Yes Unit SP
Grapes Cover
As Supplemental
authorized Coverage Crop/County/
SCO No Continuous SCD Yes County Endorsement
by Actuarial Option FSA FN
Documents Endorsement
As
Yield
authorized Varies By
YA Adjustment Continuous PRD Crop/County Yes Unit BP
by Actuarial Crop
60%
Documents
As
authorized Yield
YE No Continuous SCD Crop/County Yes Unit BP
by Actuarial Exclusion
Documents


“Continuous” refers to continuous once the endorsement/option is elected. However, if any policy is transferred to a different AIP, a new endorsement or
option must be submitted to the new AIP.
June 2015 FCIC 18180 544
 Exhibit 9

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

With Winter
Endorsement/
Coverage
Option


Damage
Occurs


Replant
Will Crop Be Appraisal
Payment  
Harvested?
N N Required 6
Requested?
o o
Y  Y  
e e
s s
Winter
Endorsement/ Destroy Crop Appraisal Used
Appraisal
Required 7/
Coverage Option & Plant Spring No  For Winter Type
Coverage Type APH
Continues

  Yes 

Replanted, Insure Spring Appraisal Used

Replant Type as a  For Winter Type
No
Payment Made Separate Unit? APH8

  

Appraisal & Acres

Winter
Spring Type & Production From
Endorsement/
Production N Spring Type Used
Coverage Option o
Separated? for
Continues
Winter Type APH 3/

Y
  es
 Spring Type 
Acres & Acres &
Appraisal Acres &
Production Used Production Used
Winter Production
For Winter Type For Winter Type
Type APH Spring Type
APH APH
APH

6
Appraisal for potential production used for Winter Type APH
7
Must qualify for replant payment
8
If Winter Type and Spring Type production commingled. Also used acres and production for Spring Type for Winter
Type APH.
June 2015 FCIC 18180 545
 Exhibit 9

C. SCO Endorsement Calculation Examples

Producer A farms 100 acres in county X with an approved yield of 154.6 bushels per acre and has
a 100 percent share in those acres. The actuarial documents in county X show that the expected
area yield is 145.0 bushels per acre, the projected price is $4.00, and the expected area revenue is
$580.00. From the actuarial documents in county X, Producer A elects the 70 percent coverage
level for the underlying policy, which results in a liability for the underlying policy of $43,288
based on the projected price.

At the end of the insurance period, for county X, FCIC releases a harvest price of $4.30, a final
area yield for county X of 110.2 bushels, and a final area revenue for county X of $473.86. For
the revenue protection example only, the liability for the underlying policy increases to $46,535.

A. SCO Endorsement Calculations Example for Revenue Protection

The example below is the calculations of the supplemental protection, payment factor, and
the indemnity for revenue protection with an underlying policy and a revenue SCO
Endorsement:

(1) Supplemental protection:

Step 1: Calculate the supplemental coverage range which is area loss trigger minus
coverage level of the underlying policy.

Example: County loss trigger = 86%

Insured underlying policy coverage level = 70%
Supplemental coverage range = (86% - 70% = 16%)

Step 2: Calculate the expected crop value by dividing the liability of the
underlying policy by the coverage level of the underlying policy.

Example: Underlying policy unit liabilities = $46,535

Underlying policy coverage level = 70%
Expected crop value ($46,535 / 70%) = $66,479

Step 3: Calculate the supplemental protection by multiplying the supplemental

coverage range by the expected crop value.

Example: Supplemental coverage range = 16%

Unit 0001-0000: 16% x $66,479 = $10,637
Supplemental protection = $10,637

(2) Calculate the indemnity payment factor by:

Step 1: multiplying the expected area yield by the higher of the projected price or
harvest price;

Example: (145.0 bushels * $4.30) = $623.50

June 2015 FCIC 18180 546

 Exhibit 9

C. SCO Endorsement Calculation Examples (continued)

A. SCO Endorsement Calculations Example for Revenue Protection (continued)

Step 2: dividing the final area revenue by the result of step 1;

Example: ($473.86 / $623.50) = 0.76

Step 3: subtracting the percent from step 2 from area loss trigger; and

Example: (0.86 – 0.76) = 0.10

Step 4 dividing the result of step 3 by the supplemental coverage range.

Example: (0.10 / 0.16) = 0.625

Payment factor = 0.625

(0.86 – (473.86 / (145.0 bushels * $4.30))) / 0.16 = 0.625

(3) Calculate the indemnity by taking the supplemental protection times the payment
factor.

Example: ($10,637* 0.625) = $6,648

B. SCO Endorsement Calculations Example for Revenue Protection with HPE

The example below is the calculations of the supplemental protection, payment factor, and
the indemnity for revenue protection with the HPE for an underlying policy and a revenue
SCO Endorsement with the HPE:

(1) Supplemental protection:

Step 1: Calculate the supplemental coverage range which is area loss trigger minus
coverage level of the underlying policy.

Example: County loss trigger = 86%

Insured underlying policy coverage level = 70%
Supplemental coverage range = (86% - 70% = 16%)

Step 2: Calculate the expected crop value by dividing the liability of the
underlying policy by the coverage level of the underlying policy.

Example: Underlying policy unit liabilities = $43,288

Underlying policy coverage level = 70%
Expected crop value ($43,288 / 70%) = $61,840

Step 3: Calculate the supplemental protection by multiplying the supplemental

coverage range by the expected crop value.

June 2015 FCIC 18180 547

 Exhibit 9

C. SCO Endorsement Calculation Examples (continued)

B. SCO Endorsement Calculations Example for Revenue Protection with HPE

(continued)

Example: Supplemental coverage range = 16%

Unit 0001-0000: 16% x $61,840 = $9,894
Supplemental protection = $9,894

(2) Calculate the indemnity payment factor by:

Step 1: dividing the final area revenue by the expected area revenue;

Example: ($473.86 ÷ $580.00) = 0.817

Step 2: subtracting the percent from step 1 from area loss trigger; and

Example: (0.86 – 0.817) = 0.043

Step 3 dividing the result of step 2 by the supplemental coverage range.

Example: (0.043 / 0.16) = 0.269

Payment factor = 0.269

(0.86 – ($473.86 / $580.00)) / 0.16 = 0.269

(3) Calculate the indemnity by taking the supplemental protection times the payment
factor.

Example: ($9,894* 0.269) = $2,661

The example below is the calculations of the supplemental protection, payment factor, and
the indemnity for policies other than revenue protection for an underlying policy and a SCO
Endorsement for other than revenue protection:

(1) Supplemental protection:

Step 1: Calculate the supplemental coverage range which is area loss trigger minus
coverage level of the underlying policy.

Example: County loss trigger = 86%

Insured underlying policy coverage level = 70%
Supplemental coverage range = (86% - 70% = 16%)

Step 2: Calculate the expected crop value by dividing the liability of the
underlying policy by the coverage level of the underlying policy.

June 2015 FCIC 18180 548

 Exhibit 9

C. SCO Endorsement Calculation Examples (continued)

C. SCO Endorsement Calculations Example for Policies Other Than Revenue Protection

Example: Underlying policy unit liabilities = $43,288

Underlying policy coverage level = 70%
Expected crop value ($43,288/ 70%) = $61,840

Step 3: Calculate the supplemental protection by multiplying the supplemental

coverage range by the expected crop value.

Example: Supplemental coverage range = 16%

Unit 0001-0000: 16% x $61,840= $9,894
Supplemental protection: $9,894

(2) Calculate the indemnity payment factor by:

Step 1: dividing the final area yield by the expected area yield;

Example: (110.2 bushels / 145.0 bushels) = 0.76

Step 2: subtracting the percent from step 1 from area loss trigger; and

Example: (0.86 – 0.76) = 0.10

Step 3 dividing the result of step 2 by the supplemental coverage range.

Example: (0.10 / 0.16) = 0.625

Payment factor = 0.625

(0.86 – (110.2 bushels / 145.0 bushels)) / 0.16 = 0.625

(3) Calculate the indemnity by taking the supplemental protection times the payment
factor.

Example: (9,894 * 0.625) = $6,184

June 2015 FCIC 18180 549

 Exhibit 10

A. Examples of Unit Numbering when Units Change

(1) Change in Elected Unit Structure

In 2015, insured elected OUs. In 2016, insured changed to CAT level coverage and can
only have BUs. Although the insured’s elected unit structure has changed, APH databases
at the OU level must be maintained and transmitted to RMA.

If the insured reports production on a BU level or production is commingled between OUs,

AIPs must prorate the production to the existing APH databases with planted acreage.

Crop Year 2015 Additional Coverage  Crop Year 2016 CAT Coverage

SHARE UNIT UNIT SHARE UNIT UNIT

HOLDER(S) NUMBER STRUCTURE HOLDER(S) NUMBER STRUCTURE
Landlord A/ Landlord A/
0001-0001 OU 0001-0001 BU
Tenant 1 Tenant 1
Landlord A/ Landlord A/
0001-0002 OU 0001-0002 BU
Tenant 1 Tenant 1
Landlord A/ Landlord A/
0001-0003 OU 0001-0003 BU
Tenant 1 Tenant 1

(2) Unit Division

In 2015, insured has one BU (0001-0000) consisting of 180 acres, share-rented from
Landlord A. In 2016, Landlord A has sold 80 acres of the 180 acres to Landlord B. Insured
continues to share-rent the same 180 acres, but now is share-renting 100 acres from
Landlord A and share-renting 80 acres from Landlord B.

For 2016, BU 0001-0000 must be divided into 0001-0000BU and 0002-0000BU. See Part
10 Section 7 for instructions and procedures for dividing units.

Crop Year 2015  Crop Year 2016

UNIT
SHARE UNIT SHARE UNIT UNIT
ACRES STRUCT ACRES
HOLDER(S) NUMBER HOLDER(S) NUMBER STRUCTURE
URE

Landlord A/ Landlord 0001-

180 0001-0000 OU 100 BU
Insured A/ Insured 0000

Landlord 0002-
80 BU
B/ Insured 0000

June 2015 FCIC 18180 550

 Exhibit 10

A. Examples of Unit Numbering when Units Change (Continued)

(3) Commingled Production between Two or More OUs

In 2015, the insured had five OUs. During processing of a claim for indemnity it was
discovered that production was commingled between units 0001-0001OU and 0001-
0003OU and also between 0001-0002OU and 0001-0004OU. The next crop year’s APH
would be processed with three OUs (with two of the OUs having 2 APH databases each).

Crop Year 2015  Crop Year 2016

UNIT UNIT UNIT RECORD REASON

UNIT NUMBER
STRUCTURE NUMBER STRUCTURE NUMBER CODE
0001-0001 OU 0001-0001 OU 001 C
0001-0002 OU 0001-0002 OU 001 C
0001-0003 OU 0001-0001 OU 002 C
0001-0004 OU 0001-0002 OU 002 C
0001-0005 OU 0001-0005 OU

B. Combining Units and APH Databases

Example 1: This example illustrates combining units and yield history due to a change in BU
structure from two OU APH databases into a single BU APH database when both
APH databases contain actual or assigned yields.

In this example, land that was previously share rented has been purchased and is
being combined with unit 0002-0002OU, which is owned by the insured.

Previous (Policy) Year’s Databases (2015)

UNIT 0002-0002OU UNIT 0001-0001OU

2015 SEC. 17 2015 SEC. 17
(NI NFAC) (NI NFAC)
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2009 2009
2010 T19 2010
2011 T19 2011 T19
2012 1200 60.0 A20 2012 2880 90.0 A32
2013 0.0 Z 2013 1680 60.0 A28
2014 880 40.0 A22 2014 1920 80.0 A24

June 2015 FCIC 18180 551

 Exhibit 10

B. Combining Units and APH Databases (Continued)

Step 1 The insured provides the 2016 production report for the 2015 APH crop year: NI
NFAC practice with 3000 bu. production, 100.0 actual acres and a 30-bu. average
yield.

Step 2 Actual acres and production are combined.

YEAR 4080 150.0

(1200[Bu] + 2880[Bu]) ÷ (60.0[acres] +
2012 = 27
90.0[acres])

1680 60.0
(0[Bu] + 1680[Bu]) ÷ ( 0.0[acres] +
2013 = 28
60.0[acres])

2800 120.0
(880[Bu] + 1920[Bu]) ÷ (40.0[acres] +
2014 = 23
80.0[acres])

Step 3 Since four years of actual records are available, T-Yields are not used in the
resulting APH database.

Step 4 Calculate approved APH yield.

Current (Policy) Year’s Database (2016)

UNIT 0002-0000BU
2016 SEC. 17
(NI NFAC)
STEP YEAR PROD ACRES YIELD
STEP 3
STEP 2 2012 4080 150.0 A27
STEP 2 2013 1680 60.0 A28
STEP 2 2014 2800 120.0 A23
STEP 1 2015 3000 100.0 A30 MOST RECENT
APH CROP
STEP 4 TOTAL 108/4= 27
YEAR

June 2015 FCIC 18180 552

 Exhibit 10

B. Combining Units and APH Databases (Continued)

Example 2: This example illustrates establishing the current (policy) crop year APH database
when two BUs are combined into a single BU due to a change in the BU structure.
For the prior APH crop year, unit 0001-0001OU contained actual and assigned
yields. Unit 0001-0002OU was added land the prior year and contained only T-
Yields of 17 bu.

Previous (Policy) Year’s Databases (2015)

UNIT 0001-0000BU UNIT 0002-0000BU

2015 SEC. 2 2015 SEC. 2
(NI NFAC) (NI NFAC)
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2009 2009
2010 2200 55.0 A40 2010
2011 0.0 Z 2011 T17
2012 40.5 P15 2012 T17
2013 2520 60.0 A42 2013 T17
2014 1210 50.0 A24 2014 T17

Step 1 For the current (policy) crop year (2016), the insured reported 120 acres and 5760
bushels of production (from both locations) on a combined production report for
the most recent APH crop year (2015). Acreage and productivity requirements
stated in Part 17 Section 9 for added land were met in 2014, which allows the
databases to be combined.

Step 2 Since there is no actual acres or production from unit 0002-0000 BU to be

combined with unit 0001-0000BU, no action is necessary for this step.

Step 3 Since four years of actual/assigned yield are available, T-Yields are not used in
the resulting APH database.

Step 4 Calculate the approved APH yield.

June 2015 FCIC 18180 553

 Exhibit 10

B. Combining Units and APH Databases (Continued)

Current (Policy) Year's (2016) Combined Database

UNIT 0001-0000BU
2016 SEC. 2
(NI NFAC)
STEP YEAR PROD ACRES YIELD
STEP 2 2010 2200 55.0 A40
STEP 2 2011 0.0 Z
STEP 2 2012 40.5 P15
STEP 2 2013 2520 60.0 A42
STEP 2 2014 1210 50.0 A24
STEP 1 2015 5760 120.0 A48
STEP 4 TOTAL 169
APH 169/5=34

Example 3: Maintaining previously established APH databases for the current (policy) crop year
(2015) when three OUs are temporarily combined into a single BU. The BU for the
previous (policy) crop year contained three OUs (0001-0001OU, 0001-0002OU and
0001-0003OU). Two OUs contained actual yields and one contained T-Yields.

Previous (Policy) Year’s APH Databases (2015)

UNIT 0001-0001OU UNIT 0001-0002OU UNIT 0001-0003OU

ACRE YIEL
YEAR PROD ACRES YIELD YEAR PROD YEAR PROD ACRES YIELD
S D
2011 17,170 85.0 A202 2011 L174 2011 T150
2012 10,450 110.0 A95 2012 L174 2012 T150
2013 16,200 90.0 A180 2013 15,000 100.0 A150 2013 T150
2014 18,500 100.0 A185 2014 41,000 200.0 A205 2014 T150
AVERAGE: 166 AVERAGE: 176 AVERAGE: 150

Current (Policy) Year’s APH Databases (2016)

STEP 1 UNIT 0001-0001BU STEP 1 UNIT 0001-0002BU STEP 1 UNIT 0001-0003BU

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2011 17,170 85.0 A202 2011 2011 T150
2012 10,450 110.0 A95 2012 L174 2012 T150
2013 16,200 90.0 A180 2013 15,000 100.0 A150 2013 T150
2014 18,500 100.0 A185 2014 41,000 200.0 A205 2014 T150
STEP STEP
STEP 2
2 21,450 110.0 A195 2 24,000 150.0 A160 Z
2015
2015 2015
STEP 3 AVERAGE: 171 STEP 3 AVERAGE: 172 STEP 3 AVERAGE: 150

June 2015 FCIC 18180 554

 Exhibit 10

B. Combining Units and APH Databases (Continued)

Subsequent (Policy) Crop Year (2017)

For 2017 the previous APH crop year’s production (2016) was not reported separately by APH
database. APH database 0001-0002BU and APH database 0001-0003BU were planted and the
production was commingled (50,000 bushels / 500 acres = 100 bu per acre). 200 acres were planted on
APH database 0001-0002BU (200.0 X 100 = 20,000 bu.) and 300 acres planted on APH database
0001-0003BU (300.0 X 100 = 30,000 bu.). The APH databases are completed using the prorated
actual production. No acres were planted on APH database 0001-0001BU and its APH database is
updated using zero planted rules. The “PA” yield descriptor must be used to identify prorated actual
yields for the 2017 APH crop year.

UNIT 0001-0001BU UNIT 0001-0002BU UNIT 0001-0003BU

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2011 17,170 85.0 A202 2011 2011
2012 10,450 110.0 A95 2012 2012 T150
2013 16,200 90.0 A180 2013 15,000 100.0 A150 2013 T150
2014 18,500 100.0 A185 2014 41,000 200.0 A205 2014 T150
2015 21,450 110.0 A195 2015 24,000 150.0 A160 2015 Z
2016 0.0 Z 2016 20,000 200.0 PA100 2016 30,000 300.0 PA100
AVERAGE: 171 AVERAGE: 154 AVERAGE: 138

Example 4: Using the same information as Example 3, maintaining previously established databases
for the current (policy) crop year (2016) when OUs 0001-0001OU and 0001-0003OU
are temporarily combined into an OU (0001-0001OU) and OU 0001-0002OU will be
retained.

Previous (Policy) Year’s Databases (2015)

UNIT 0001-0001OU UNIT 0001-0002OU UNIT 0001-0003OU

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2011 17,170 85.0 A202 2011 L174 2011 T150
2012 10,450 110.0 A95 2012 L174 2012 T150
2013 16,200 90.0 A180 2013 15,000 100.0 A150 2013 T150
2014 18,500 100.0 A185 2014 41,000 200.0 A205 2042 T150
AVERAGE: 166 AVERAGE: 176 AVERAGE: 150

June 2015 FCIC 18180 555

 Exhibit 10

B. Combining Units and APH Databases (Continued)

Current (Policy) Year’s Databases (2016)

STEP 1 UNIT 0001-0001 RECORD STEP 1 UNIT 0001-0001 RECORD

STEP 1 UNIT 0001-0002
.1 .3
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2011 17,170 85.0 A202 2011 2011 T150
2012 10,450 110.0 A95 2012 L174 2012 T150
2013 16,200 90.0 A180 2013 15,000 100.0 A150 2013 T150
2014 18,500 100.0 A185 2014 41,000 200.0 A205 2014 T150
STEP STEP STEP
2 21,450 110.0 A195 2 24,000 150.0 A160 2 0.0 Z
2015 2015 2015

STEP 3 AVERAGE: 171 STEP 3 AVERAGE: 172 STEP 3 AVERAGE: 150

Dividing the OUs in a Subsequent Crop Year (2018)

The following illustrates dividing the BU into three OUs in a subsequent crop year (2018). 2016
production was commingled between units 0001-0002OU and 0001-0003OU and prorated when
calculating the 2017 approved yield. The appropriate records were updated with the acres and
separated actual production for the most recent APH crop year to qualify for OUs (prorated production
calculations are not acceptable records to qualify for OUs).

UNIT 0001-0001 UNIT 0001-0002 UNIT 0001-0003

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2011 17,170 85.0 A202 2011 2011
2012 10,450 110.0 A95 2012 2012
2013 16,200 90.0 A180 2013 15,000 100.0 A150 2013 T150
2014 18,500 100.0 A185 2014 41,000 200.0 A205 2014 T150
2015 21,450 110.0 A195 2015 24,000 150.0 A160 2015 0.0 Z
2016 0.0 Z 2016 20,000 200.0 PA100 2016 30,000 300.0 PA100
2017 21,120 110.0 A192 2017 25,500 150.0 A170 2017 8,000 50.0 A160
AVERAGE: 175 AVERAGE: 157 AVERAGE: 140

June 2015 FCIC 18180 556

 Exhibit 10

C. Dividing Units Examples

Example 1: A BU is divided into two OUs. The insured filed acceptable production reports for the
current (policy) crop year (2015 APH crop year only) for units 0001-0001OU and 0001-
0002OU. Insured does not recertify production or acres.

The same process will be used for insured that start providing separate production
reports for acreage that could be separate OUs under additional coverage while still
insured under CAT.

Previous (Policy) Year (2015)

BU (Sec 1& 2)

2015 UNIT 0001-0000(SF) SEC. 1 & 2

YEAR PROD ACRES YIELD
2009 8,800 200.0 A44
2010 0.0 Z
2011 100.0 P37
2012 10,080 210.0 A48
2013 8,000 200.0 A40
2014 4,800 240.0 A20

Current (Policy) Year's OU (2016)

2016 UNIT 0001-0001(SF) SEC. 1 2016 UNIT 0001-0002 (SF) SEC. 2

YEAR PROD ACRES YIELD STEP YEAR PROD ACRES YIELD
2009 8,800 200.0 DA44 STEP 2 2009 8,800 200.0 DA44
2010 0.0 Z STEP 2 2010 00 Z
2011 100.0 P37 STEP 2 2011 100.0 P37
2012 10,080 210.0 DA48 STEP 2 2012 10,080 210.0 DA48
2013 8,000 200.0 DA40 STEP 2 2013 8,000 200.0 DA40
2014 4,800 240.0 DA20 STEP 2 2014 4,800 240.0 DA20
2015 4,400 80.0 A55 STEP 1 2015 0.0 Z
TOTAL 244/6=41 STEP 4 TOTAL 189/5=38
APH 41 APH 38

June 2015 FCIC 18180 557

 Exhibit 10

C. Dividing Units Examples (Continued)

Example 2: 2016 APH crop year production reports are submitted for two OUs. The acreage was
previously reported as one unit. Acreage previously reported was recertified for two
OUs. The same process will be used for insureds that start providing separate
production reports for acreage that could be separate OUs under additional coverage
while still insured under CAT.

Previous (Policy) Year (2015)

BU (Sec. 10 and 11)

2015 UNIT 0001-0000BU (SF)

YEAR PROD ACRES YIELD
2009 10,400 200.0 A52
2010 0.0 Z
2011 100.0 P36
2012 11,340 210.0 A54
2013 8,000 200.0 A40
2014 4,800 240.0 A20
TOTAL 202/5=40
APH 40

Current (Policy) Year (2016) OU

2016 UNIT 0001-0002OU SF 2016 UNIT 0001-0001OU SF

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD

2008 STEP 3
2009 5,920 120.0 PA49 STEP 2 2009 4480 80.0 PA56
2010 0.0 Z STEP 2 2020 0.0 Z
2011 2,280 100.0 PA38 STEP 2 2011 1200 100.0 PA30
2012 5,840 110.0 PA53 STEP 2 2012 5500 100.0 PA55
2013 5,120 140.0 PA37 STEP 2 2013 2880 60.0 PA48
2014 600 100.0 PA6 STEP 2 2014 4200 140.0 PA30
2015 0.0 Z STEP 1 2015 4400 80.0 A55
TOTAL 183/5=37 STEP 4 TOTAL 274/6=46
APH 37 APH 46

June 2015 FCIC 18180 558

 Exhibit 10

C. Dividing Units Examples (Continued)

Example 3: The BU definition changed and the BUs increased from one unit to two units. The
insured filed one policy unit production report according to the previous BU definition.
The yield history is simply duplicated to the additional unit. However, separate
production reports must be filed the subsequent crop year.

Previous (Policy) Year (2015)

BU

2015 UNIT 0001-0000BU (NISP)

YEAR PROD ACRES YIELD
2010
2011 0.0 N270
2012 0.0 N270
2013 20,000 50.0 A400
2014 31,875 75.0 A425
TOTAL 1365/4=341
APH 341

Current (Policy) Year (2016) Current (Policy) Year (2016)

BU Production Report

2016 UNIT 0001-0000BU (NISP) 2016 UNIT 0002-0000BU (NISP)

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2011 2011
2012 0.0 T300 2012 T300
2013 20,000 50.0 DA400 2013 20,000 50.0 DA400
2014 31,875 75.0 DA425 2014 31,875 75.0 DA425
2015 45,400 100.0 DA454 2015 45,400 100.0 DA454
TOTAL 1579/4=395 TOTAL 1579/4=395
APH 395 APH 395

June 2015 FCIC 18180 559

 Exhibit 10

D. Additional Bean Procedure for Units and Yields by Types

(1) Definitions

(a) Beans - Dry beans and contract seed beans.

(b) Dry Beans - The crop defined by the United States Standards for Beans excluding
contract seed beans. The insured may elect to insure dry bean acreage grown under
contract with a seed company as commercial dry beans provided it is reported as the
appropriate type (not contract seed) on the acreage report. The minimum quality
standards stated in the seed contract will not apply.

(c) Contract Seed Beans - Dry beans grown under the terms of a seed bean processor
contract for the purpose of producing dry beans or vegetable beans in a future crop
year.

(d) Type - A category of beans identified as a type in the actuarial documents.

(2) Unit Division for Dry and Contract Seed Beans

(a) Acreage planted to dry beans and contract seed beans are separate BUs. For dry
beans and contract seed beans a BU is all insurable acreage of dry beans or contract
seed beans in the county in which the insured has:

(i) 100 percent share; or

(ii) Is owned by one entity and operated by another specific entity on a share basis.

(b) BUs determined in A above may be further divided into OUs by:

(i) Bean Type Shown on the actuarial documents (Dry Beans only).

(ii) Section, Section Equivalent, or FSA FN (Dry Beans or Contract Seed Beans if
the contract specifies the number of acres under contract).

(iii) Irrigated and non-irrigated Practices (Dry Beans or Contract Seed Beans IF the
contract specifies the number of acres under contract).

(iv) Written Unit Agreement (Dry Beans or Contract Seed Beans IF the contract
specifies the number of acres under contract).

OUs are not available for contract seed beans grown under a seed bean processor
contract that specifies only an amount of production.

June 2015 FCIC 18180 560

 Exhibit 10

D. Additional Bean Procedure for Units and Yields by Type (Continued)

(c) Refer to the following examples and Part 10 Section 1 and 2 for additional unit
determination instructions. Part 10 Section 5 provides instructions for numbering
BUs and OUs.

OUS

0001-0001 OU SEC. 10 (100% SHARE) PINK/310

0001-0000 BU 0001-0002 OU SEC. 12 (100% SHARE) PINK/310

0001-0003 OU SEC. 10 (100% SHARE) PINTO/311

BASIC 0002-0000 BU SEC. 10 (100% SHARE) CONTRACT SEED/062

UNITS
(CS)

0003-0000 BU (JONES 1/3 SHARE) PINTO/311

OUS
SEC. 8 (ADAM 1/3 SHARE)
0004-0001 OU
1/062/ACRES
SEC. 2 (ADAM 1/3 SHARE)
0004-0000 BU 0004-0002 OU
1/062/ACRES
SEC. 1 (ADAM 1/3 SHARE)
0004-0003 OU
1/062/ACRES

BASIC 0005-0000 BU SEC. 12 (SMITH 1/3 SHARE) PINTOS/311

UNITS

0006-0000 BU SEC. 12 (SCOTT 1/3 SHARE) PINTOS/311

0007-0001 OU SEC. 3 (TUTTLE .400) PINKS/310

0007-0000 BU

0007-0002 OU SEC. 3 (TUTTLE .400) PINTOS/310

If contract specifies the number of acres. If contract specified only an

1/
amount of production one BU.

June 2015 FCIC 18180 561

 Exhibit 10

E. Flowchart for Determining Unit Structure when Insured Does Not Qualify for Enterprise
Units by Irrigated and Non-Irrigated Practices

June 2015 FCIC 18180 562

 Exhibit 11

A. Summerfallow Database

Example 1 CC Yield Higher Than SF Yield

Step 1 Calculate the SF yield for a new insured using standard variable T-Yield
procedure and compare to the CC approved APH yield. In this example,
two years of records have been provided for the crop/county for the current
crop year (qualifies for a 90% variable T-Yield). The SF T-Yield = 30; the
CC T-Yield = 28. The SF database is retained, but the higher CC database
is identified and reported for the SF practice.

SF APH CURRENT YEAR CC APH CURRENT YEAR

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2010 N27 2010
2011 N27 2011 N25
2012 N27 2012 N25
2013 4200 100.0 A42 2013 3800 100.0 A38
2014 0.0 Z 2014 4000 100.0 A40
123/4=3 128/4=
TOTAL TOTAL
1 32
2015 SF APH 31 2015 CC APH 32

Step 2 Retained SF database updated in subsequent crop year (better than CC

yield).

SF APH - SUBSEQUENT YEAR CC APH - SUBSEQUENT YEAR

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2011 T30 2011
2012 T30 2012 T28
2013 4200 100.0 A42 2013 3800 100.0 A38
2014 0.0 Z 2014 4000 100.0 A40
2015 4500 100.0 A45 2015 3700 100.0 A37
147/4=3 143/4=3
TOTAL TOTAL
7 6
2016 SF APH 37 2016 CC APH 36

June 2015 FCIC 18180 563

 Exhibit 11

A. Summerfallow Database (Continued)

Example 2: SF Yield Higher Than CC Yield

Three years of records have been provided for the crop/county for the current crop
year. SF T-Yield = 30; CC T-Yield = 28

In this case, the SF APH would be reported for the SF practice since it is higher
than the CC APH.

SF APH - CURRENT YEAR CC APH - CURRENT YEAR

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2011 T30 2011
2012 T30 2012 T28
2013 5200 100.0 A52 2013 T28
2014 0.0 Z 2014 3800 100.0 A38
2015 4800 100.0 A48 2015 3400 100.0 A34
TOTAL 160/4=40 TOTAL 128/4=32
2016 SF APH 40 2016 CC APH 32

B. Skip-Row Planted Cotton and ELS Cotton Overview

This exhibit provides skip-row planted cotton and ELS cotton percent planted factors, PASS
skip-row codes, yield conversion factors, an example of comingled production, and an example
of determining planted acres using FSA percent planted factor and calculating per acre yield.
Skip-row yield conversion factors are applicable to, and used only for, NI cotton and NI ELS
cotton. Skip-row yield conversion factors are not applicable to, and are not used for, IRR cotton
or IRR ELS cotton.

C. FSA Determination for 30/50 Planting Pattern

Beginning with the 2013 crop year, FSA determined that IRR and NI cotton and ELS cotton
planted in a 2 rows planted 1 row skipped with a row width of 30 inches between the 2 planted
rows and a 20 inch skipped area is not a skip-row planting. This planting pattern is sometimes
referred to as a “30/50” planting pattern because there is 30 inches between the two planted rows
and 50 total inches between the rows where the planted row is skipped. No FSA percent planted
factor shall be applied to determine the number of planted acres of cotton or ELS cotton planted
in a 2 rows planted 1 row skipped with a row width of 30 inches between the 2 planted rows and
a 20 inch skipped area.

June 2015 FCIC 18180 564

 Exhibit 11

D. Percent Planted Factor, Yield Conversion Factor, and PASS Skip-Row Code Applicable to
Arkansas, Louisiana, Missouri, and All States East of those States

The following table, Table 1, provides skip-row planting information applicable to Arkansas,
Louisiana, Missouri and all states east of those states.

PERCENT YIELD
SKIP-ROW PLANTING PATTERN PASS SKIP-
ROW WIDTH 9 PLANTED CONVERSION
TABLE 1 ROW CODE
FACTOR FACTOR
Solid planted or non-qualifying No PASS
skip-row patterns, as determined 1.0 1.0 skip-row
by FSA or RMA code
2 rows planted 1 row skipped 30 to 40 inch 0.6667 1.33 102
2 rows planted 1 row narrow skip
30 to 40 inch 0.7692 1.23 102
(40-40-24)
2 rows planted 1 row narrow skip
30 to 40 inch 0.7451 1.25 102
(38-38-26)
2 rows planted 2 rows skipped 30 to 40 inch 0.5000 1.50 103
2 rows planted 4 or more rows
30 to 40 inch FSA Rules 1.67 118
skipped
4 rows planted 1 row skipped 30 to 40 inch 0.8000 1.20 106
4 rows planted 2 rows skipped 30 to 40 inch 0.6667 1.33 107
4 rows planted 4 rows skipped 30 to 40 inch 0.5000 1.33 108
6 rows planted 1 row skipped 30 to 40 inch 0.8571 1.14 111
6 rows planted 2 or more rows
30 to 40 inch FSA Rules 1.20 112
skipped
Other Cannot exceed 40 inch FSA Rules RMA Rules10 117

9
Row widths are equal unless otherwise indicated.

40-inch planted row width with 24-inch skip row width.

38-inch planted row width with 26-inch skip width.
10
See RMA Rules Below.
June 2015 FCIC 18180 565
 Exhibit 11

D. Percent Planted Factor, Yield Conversion Factor… (Continued)

The following table provides instructions for calculating the skip-row yield conversion factor for
NI skip-row planted cotton and ELS cotton in Arkansas, Louisiana, Missouri and all states east of
those states when the skip-row planting pattern:

(1) has unequal row widths within the pattern; or

(2) is not identified in Table 1.

STEP ACTION RESULT

Determine the width, in inches, of the skipped area in the Width of skipped area in
1
planting pattern. pattern.
Determine the width, in inches, of the entire planting Width of entire planting
2
pattern. pattern.
Divide the result of step 1 by the result of step 2, and
3
round to 2 decimal places.
Skip-row yield conversion
4 Add 1.00 to result of step 3. factor, subject to
limitation.

The calculated skip-row yield conversion factor shall not exceed:

(1) 1.67 for any planting pattern or part of a planting pattern of 1 planted row or 2 consecutive
planted rows alternating with a skipped area;

(2) 1.45 for any planting pattern or part of a planting pattern of 3 consecutive planted rows
alternating with a skipped area;

(3) 1.33 for any plating pattern or part of a planting pattern of 4 consecutive planted rows
alternating with a skipped area;

(4) 1.20 for any plating pattern or part of a planting pattern of 5 or 6 consecutive planted rows
alternating with a skipped area; or

(5) 1.00 for any plating pattern or part of a planting pattern of 7 consecutive planted rows
alternating with a skipped area.

Example: Insured A planted NI cotton in Arkansas using a 3 rows planted 1 row skipped
with 40 inch rows planting pattern. The width of the skipped area in the
planting pattern is 40 inches (step 1). The width of the entire planting pattern is
160 inches (step 2). The calculated yield conversion factor is 1.25 (40 ÷ 160 =
0.25 + 1.00) (step 3 and 4).

June 2015 FCIC 18180 566

 Exhibit 11

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

The following table, Table 2, provides skip-row planting information 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.

Percent Yield
Skip-Row Planting Pattern PASS Skip-
Row Width11 Planted Conversion
Table 2 Row Code
Factor Factor
Solid planted or non-qualifying No PASS
skip-row patterns, as determined 1.0 1.0 skip-row
by FSA or RMA code
1 row planted 1 row skipped 40 inch 0.5000 1.32 201
1 row planted 1 row skipped 36 inch 0.5556 1.19 201
1 row planted 1 row skipped 32 inch 0.6250 1.06 201
2 rows planted 1 row skipped 30 to 40 inch 0.6667 1.29 202
2 rows planted 2 rows skipped 30 to 40 inch 0.5000 1.29 203
3 rows planted 1 row skipped 30 to 40 inch 0.7500 1.19 204
3 rows planted 2 rows skipped 30 to 40 inch 0.6000 1.19 205
4 rows planted 1 row skipped 30 to 40 inch 0.8000 1.14 206
4 rows planted 2 rows skipped 30 to 40 inch 0.6667 1.14 207
4 rows planted 4 rows skipped 30 to 40 inch 0.5000 1.02 208
5 rows planted 1 row skipped 30 to 40 inch 0.8333 1.12 209
5 rows planted 2 rows skipped 30 to 40 inch 0.7143 1.12 210
6 rows planted 1 row skipped 30 to 40 inch 0.8571 1.10 211
6 rows planted 2 rows skipped 30 to 40 inch 0.7500 1.10 212
7 rows planted 1 row skipped 30 to 40 inch 0.8750 1.08 213
7 rows planted 2 rows skipped 30 to 40 inch 0.7777 1.08 214
8 rows planted 1 row skipped 30 to 40 inch 0.8889 1.07 215
8 rows planted 2 rows skipped 30 to 40 inch 0.8000 1.07 216
Cannot exceed
Other FSA Rules RMA Rules12 217
40 inch

11
Row widths are equal unless otherwise indicated.
12
See RMA Rules below Table 3 in subparagraph E.
June 2015 FCIC 18180 567
 Exhibit 11

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

The following table, Table 3, provides skip-row planting information applicable to Kansas,
Oklahoma and all counties in Texas for which Table 2 in D does not apply.

Skip-Row Planting Pattern Percent Yield Conversion PASS Skip-

Row Width13
Table 3 Planted Factor Factor Row Code
Solid planted or non-qualifying
No PASS
skip-row patterns, as determined 1.0 1.0
skip-row code
by FSA or RMA
1 row planted 1 row skipped 40 inch 0.5000 1.40 301
1 row planted 1 row skipped 36 inch 0.5556 1.26 301
1 row planted 1 row skipped 32 inch 0.6250 1.12 301
2 rows planted 1 row skipped 30 to 40 inch 0.6667 1.35 302
2 rows planted 2 rows skipped 30 to 40 inch 0.5000 1.35 303
3 rows planted 1 row skipped 30 to 40 inch 0.7500 1.23 304
3 rows planted 2 rows skipped 30 to 40 inch 0.6000 1.23 305
4 rows planted 1 row skipped 30 to 40 inch 0.8000 1.17 306
4 rows planted 2 rows skipped 30 to 40 inch 0.6667 1.17 307
4 rows planted 4 rows skipped 30 to 40 inch 0.5000 1.04 308
5 rows planted 1 row skipped 30 to 40 inch 0.8333 1.14 309
5 rows planted 2 rows skipped 30 to 40 inch 0.7143 1.14 310
6 rows planted 1 row skipped 30 to 40 inch 0.8571 1.12 311
6 rows planted 2 rows skipped 30 to 40 inch 0.7500 1.12 312
7 rows planted 1 row skipped 30 to 40 inch 0.8750 1.10 313
7 rows planted 2 rows skipped 30 to 40 inch 0.7777 1.10 314
8 rows planted 1 row skipped 30 to 40 inch 0.8889 1.09 315
8 rows planted 2 rows skipped 30 to 40 inch 0.8000 1.09 316
Cannot exceed
Other FSA Rules RMA Rules14 317
40 inch

The following Individual Row Factor table provides a row factor for each individual row,
including the skipped row, in the planting pattern to be used to calculate the skip-row yield
conversion factor for skip-row planting patterns not listed in Table 2 or Table 3 for NI skip-row
planted cotton and NI ELS cotton in Kansas, Oklahoma and Texas.

13
Row widths are equal unless otherwise indicated
14
See RMA rules below.
June 2015 FCIC 18180 568
 Exhibit 11

F. … Table 2 Does Not Apply (Continued)

County INDIVIDUAL ROW FACTORS

where crop is Row Skipped Planted row on Planted row on one side, Skipped row
planted Width Row both sides skipped row on other side on both sides
40 0.00 1.00 1.29 1.32
Counties in
36 0.00 1.00 1.29 1.19
Table 2
32 0.00 1.00 1.29 1.06
40 0.00 1.00 1.35 1.40
Counties in
36 0.00 1.00 1.35 1.26
Table 3
32 0.00 1.00 1.35 1.12

The following table provides instructions to calculate the skip-row yield conversion factor for
skip-row planting patterns not listed in Table 2 or Table 3 for NI skip-row planted cotton and NI
ELS cotton in Kansas, Oklahoma, and Texas.

STEP ACTION
1 Using the Individual Row Factor table, assign the appropriate row factor for each
individual row, including the skipped row, in the planting pattern. Row factors are
based on the planting pattern only; therefore, turning at the end of the field has no
effect on the calculation.
2 Sum the row factors from step 1.
3 Divide the result of step 2 by the total number of rows in the planting pattern,
including the skipped rows. Round the result to 4 decimals.
4 Divide the result of step 3 by the FSA percent planted factor applicable to the skip-
row planting pattern. Round the result to 2 decimals.

Example 1: Insured C planted NI cotton in Baylor County, Texas, using a 2 rows planted, 3
rows skipped, 1 row planted with 40 inch rows planting pattern. Assign the
appropriate row factor to each individual row using the Individual Row Factor
table (step 1) as follows.

PLANTING PATTERN = 2x3x1 with 40-inch row width

1 2 3 4 5 6
Row
Planted Planted Skipped Skipped Skipped Planted
Assigned
Row 1.29 1.29 0.00 0.00 0.00 1.32
Factor

Sum the row factors (step 2), then divide the total by the total rows in the
planting pattern (step 3). 1.29 + 1.29 + 0.00 + 0.00 + 0.00 + 1.32 = 3.90 ÷ 6
rows = 0.6500

Divide the result by the FSA percent planted factor for the planting pattern (step
4). The skip-row yield conversion factor for the planting pattern is 1.30 (0.6500
÷ 0.5000).

June 2015 FCIC 18180 569

 Exhibit 11

F. … Table 2 Does Not Apply (Continued)

Example 2: Insured D planted NI cotton in Baylor County, Texas, using a 4 rows planted, 1
row skipped, 2 rows planted, 1 row skipped with 36 inch rows planting pattern.
Assign the appropriate row factor to each individual row using the Individual
Row Factor table (step 1) as follows.

PLANTING PATTERN = 4x1x2x1 with 36-inch row width

1 2 3 4 5 6 7 8
Row
Planted Planted Planted Planted Skipped Planted Planted Skipped

Assigned
1.29 1.00 1.00 1.29 0.00 1.29 1.29 0.00
Row Factor

Sum the row factors (step 2), then divide the total by the total rows in the
planting pattern (step 3). 1.29 + 1.00 + 1.00 + 1.29 + 0.00 + 1.29 + 1.29 + 0.00
= 7.16 ÷ 8 rows = 0.8950

Divide the result by the FSA percent planted factor for the planting pattern (step
4). The skip-row yield conversion factor for the planting pattern is 1.19 (0.8950
÷ 0.7500).

G. Determining Planted Acres Using FSA Percent Planted Factor and Calculating Per Acre
Yield Using Skip-Row Yield Conversion Factor

The following is an example of how to determine planted acres using FSA percent planted factor
and calculating per acre yield using skip-row yield conversion factor.

Insured E in Baylor County, Texas, certifies the following physical land acres and total
production for the most recent six crop years. Insured E planted NI cotton using a 2 rows
planted, 1 row skipped with 40 inch rows planting pattern in each of the six years certified.

CROP YEAR PHYSICAL LAND ACRES TOTAL PRODUCTION

2010 930.3 217,070 lbs. cotton
2011 675.0 182,250 lbs. cotton
2012 600.0 128,800 lbs. cotton
2013 765.0 143,310 lbs. cotton
2014 1050.0 259,000 lbs. cotton
2015 600.0 122,010 lbs. cotton

June 2015 FCIC 18180 570

 Exhibit 11

G. Determining Planted Acres Using FSA Percent Planted Factor… (Continued)

The following is an example of using a multipurpose production and yield worksheet to

determine the number of planted acres using the applicable FSA percent planted factor and
calculating the per acre yield using the appropriate skip-row yield conversion factor based on the
skip-row planting pattern used and the county in which the acreage is located. The acres
considered planted and the factored production for each year is entered in the insured’s APH
database.

1 2 3 4 5 6
FSA ACRES
CROP PHYSICAL YIELD FACTORED
PERCENT CONSIDERED GROSS
YEAR LAND CONVERSION PRODUCTION
PLANTED PLANTED PRODUCTION
ACRES FACTOR (4 ÷ 5)
FACTOR (1 X 2)
2010 930.3 0.6667 620.2 217,070 1.29 168,271
2011 675.0 0.6667 450.0 182,250 1.29 141,279
2012 600.0 0.6667 400.0 128,800 1.29 99,845
2013 765.0 0.6667 510.0 143,310 1.29 111,093
2014 1050.0 0.6667 700.0 259,000 1.29 200,775
2015 600.0 0.6667 400.0 122,010 1.29 94,581

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

Insured F in Baylor County, Texas, commingled production between IRR solid-planted cotton
and NI skip-row planted cotton. Total production of 32,710 pounds was produced on the
following acres.

(1) 50 IRR solid planted acres.

(2) 29.4 NI acres planted in a 2 planted rows, 3 skipped rows, 1 planted row with 40-inch row
width planting pattern with a calculated yield conversion factor of 1.30.

(3) 26.6 NI acres planted in a 2 planted rows, 4 skipped rows with 40 inch row width planting
pattern with a calculated yield conversion factor 1.28.

(4) 95.0 NI acres planted in a 2 planted rows, 1 skipped row with 40 inch row width planting
pattern with a yield conversion factor 1.29.

The skip-row planted acres (29.4, 26.6, and 95.0) are the determined planted acres after applying
the applicable FSA percent planted factor.

June 2015 FCIC 18180 571

 Exhibit 11

H. Commingled Production… (Continued)

Step 1: is to determine the IRR and NI yield using a Multi-Purpose Production and Yield
Worksheet.

1 2 3 4 5 6
YIELD
YIELD FACTOR
100% YIELD FACTOR
PLANTED (TOTAL PRODUCTION ÷
PRACTICE “T” EXTENSION X
ACRES TOTAL OF YIELD
YIELD (2 X 3) T-YIELD
EXTENSION)
(3 X 5)
IR 50.0 350 17,500 0.88 (32,710 ÷ 37,130) 308
NI 151.0 130 19,130 0.88 (32,710 ÷ 37,130) 114
Total of Yield Extension 37,130

Step 2: is to determine the yield factor for the NI skip-row acreage.

1 2 3 4 5 6
YIELD
DETERMINED FACTORED SOLID
PLANTING YIELD CONVERSION
SKIP-ROW ACRES PLANTED
PATTERN CONVERSION FACTOR
ACRES (2 X 3) YIELD15
(4 ÷ 2)
2X3X1 – 40” 29.4 1.30 38.2 1.29 88
2X4 – 40” 26.6 1.28 34.1 1.29 88
2X1 – 40” 95.0 1.29 122.6 1.29 88
TOTAL 151.0 194.9

Insured F reported the four most recent crop year’s production. Unit 0001-0001’s production for
the next most recent crop year was commingled between IRR solid planted acreage and NI skip-
row planted acreage, as described above.

UNIT 0001-0001 IRRIGATED

YEAR PRODUCTION ACRES YIELD
20XX 29,824 64.0 A466
20XX 48,400 55.0 A880
20XX 15,400 50.0 A308
20XX 36,600* 52.0 A704
TOTAL: 2358
PRELIMINARY YIELD: 590 APPROVED APH YIELD: 590

15
NI Yield from Step 1 ÷ Yield Conversion Factor (Column 5)

Production Commingled
June 2015 FCIC 18180 572
 Exhibit 11

H. Commingled Production… (Continued)

UNIT 0001-0002 NON-IRRIGATED

YEAR PRODUCTION ACRES YIELD
20XX 37,200 200.0 A186
20XX 28,700 140.0 A205
20XX 13,288 151.0 A88
20XX 36,660 244.0 A150
Total: 629
PRELIMINARY YIELD: 157 APPROVED APH YIELD: 157
PRIOR YIELD: N/A

I. Category B Crop APH Database Examples for Transitioning under an Organic Plan

(1) APH Databases for Conventional, Transitional and Certified Organic acreage is maintained
in separate APH databases. The APH examples illustrate the conversion of acreage from a
conventional farming practice to an organic farming practice and the maintenance of APH
yield history.

Scenario: In 2004, an insured transitions conventional acreage using organic practices.

The insured has no prior organic farming history.

(a) The insured’s yield history (conventional APH database) prior to transitioning the
acreage under the organic practice.

(a) CONVENTIONAL APH DATABASE

CROP YEAR: 2004 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
1996 17,443 160.0 A109
1997 15,377 125.0 A123
1998 Z
1999 8,965 80.0 A112
2000 12,876 103.0 A125
2001 Z
2002 10,623 90.0 A118
2003 14,615 115.0 A127
TOTAL 714 ÷ 6 = 119.0
APPROVED
119
APH YIELD


Production Commingled and Factored
June 2015 FCIC 18180 573
 Exhibit 11

I. Category B Crop APH Database Examples for Transitioning …(Continued)

(b) The transitional APH database will consist of four T-Yields when no actual yields are
available for the transitional acreage.

(b) TRANSITIONAL APH DATABASE

CROP YEAR: 2004 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2000 T75
2001 T75
2002 T75
2003 T75
TOTAL 300 ÷ 4 = 75.0
APPROVED
75
APH YIELD

Examples (c) - (e) illustrate a Transitional APH database that contains yield history. The yield
actual yields include total production and number of acres. The transitional actual yields will
replace the T-Yield(s) as they are accumulated in the APH database.

(c) One year of actual yields in the transitional APH database and three T-Yields.

(c) TRANSITIONAL APH DATABASE

CROP YEAR: 2005 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2001 T75
2002 T75
2003 T75
2004 5,345 60.0 G89
TOTAL 314 ÷ 4 = 78.5
APPROVED
79
APH YIELD

June 2015 FCIC 18180 574

 Exhibit 11

I. Category B Crop APH Database Examples for Transitioning …(Continued)

(d) Two years of actual yields for transitional acreage and two T-yields.

(d) TRANSITIONAL APH DATABASE

CROP YEAR: 2006 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2002 T75
2003 T75
2004 5,345 60.0 G89
2005 5,268 56.0 G94
TOTAL 333 ÷ 4 = 83.25
APPROVED
83
APH YIELD

(e) Three years of actual yields for transitional acreage and one T-Yield. At this phase,
the transition period (i.e., thirty-six months) as required by the OFPA and NOP
standards is complete. The acreage, for the 2007 crop year, may be insured as
certified organic.

(e) TRANSITIONAL APH DATABASE

CROP YEAR: 2007 UNIT NO. 0001-0000

YEAR TOTAL PROD ACRES YIELD
2003 T75

2004 5,345 60.0 G89

2005 5,268 56.0 G94

2006 4,810 49.0 G98

TOTAL 356 ÷ 4 = 89.0

APPROVED
89
APH YIELD

June 2015 FCIC 18180 575

 Exhibit 11

I. Category B Crop APH Database Examples for Transitioning …(Continued)

(2) Certified Organic APH database examples illustrate the maintenance of the Certified Organic
APH database.

Scenario: After the transitioning period has been completed, the certified organic
APH database is established.

(a) Initial year of the Certified Organic APH database.

(a) CERTIFIED ORGANIC APH DATABASE

CROP YEAR: 2008 UNIT NO. 0001-0000
Year TOTAL PROD ACRES YIELD
2004 T75
2005 G89
2006 G94
2007 G98

TOTAL 356 ÷ 4 = 89.0

APPROVED
89
APH YIELD

Do not add total production and acre data from the Transitional APH database to the
Certified Organic APH. Use only the actual yields from the Transitional APH
database.

(b) One certified organic yield and three actual yields from the Transitional APH
database to complete the Certified Organic APH database.

(b) CERTIFIED ORGANIC APH DATABASE

CROP YEAR: 2009 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2005 G89
2006 G94
2007 G98
2008 4,042 40.0 V101

TOTAL 382 ÷ 4 = 95.50

APPROVED APH
96
YIELD
June 2015 FCIC 18180 576
 Exhibit 11

I. Category B Crop APH Database Examples for Transitioning …(Continued)

(i) Use only the actual yields from the Transitional APH database to complete the
Certified Organic APH database.

(ii) Do not include the production and acres from the Transitional APH database in
the Certified Organic database, only use the actual yield(s).

(c) Two years of Certified Organic actual yields and two actual yields from the
Transitional APH database are used to complete the Certified Organic APH database.

(c) CERTIFIED ORGANIC APH DATABASE

CROP YEAR: 2010 UNIT NO. 0001-0000
Year TOTAL PROD ACRES YIELD
2006 G94
2007 G98
2008 4,042 40.0 V101
2009 4,152 45.0 V92
TOTAL 385 ÷ 4 = 96.25
APPROVED
96
APH YIELD

(d) Three years of Certified Organic actual yields and one actual yield from the
Transitional APH database to complete the Certified Organic APH database.

(d) CERTIFIED ORGANIC APH DATABASE

CROP YEAR: 2011 UNIT NO. 0001-0000
Year TOTAL PROD ACRES YIELD
2007 G98
2008 4,042 40.0 V101
2009 4,152 45.0 V92
2010 5,528 51.0 V108
TOTAL 399 ÷ 4 = 99.75
APPROVED
100
APH YIELD

June 2015 FCIC 18180 577

 Exhibit 11

I. Category B Crop APH Database Examples for Transitioning …(Continued)

(e) As the insured accumulates certified organic actual yields, the AIP will remove the
Transitional APH database actual yields from the Certified Organic APH database.

(e) CERTIFIED ORGANIC APH DATABASE

CROP YEAR: 2012 UNIT NO. 0001-0000
Year: TOTAL PROD ACRES YIELD
2008 4,042 40.0 V101
2009 4,152 45.0 V92
2010 5,528 51.0 V108
2011 4,785 53.0 V90
TOTAL 391 ÷ 4 = 97.75
APPROVED
98
APH YIELD

(f) Although the AIP is only required to submit the Certified APH database if that is the
only one being planted, the Conventional and Transitional APH databases must be
maintained.

(3) In the event of an occurrence of a prohibited substance(s) or drift, the Insured may
transition the acreage towards organic status or return to conventional farming practices.

Scenario: The insured in 2009 notifies the certifying agency of the spraying of
prohibited substance(s) or drift onto the organic acreage. As a result of the
occurrence, the certifying agency did not issue a certificate or, the current
certificate is considered invalid.

(a) If the acreage was found to be affected by drift before the ARD, then the affected
yield (2009 actual yield) is added to the Conventional APH database.

June 2015 FCIC 18180 578

 Exhibit 11

I. Category B Crop APH Database Examples for Transitioning …(Continued)

(a) CONVENTIONAL APH DATABASE

CROP YEAR: 2010 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
1996 17,443 160.0 A109
1997 15,377 125.0 A123
1998 Z
1999 8,965 80.0 A112
2000 12,876 103.0 A125
2001 Z
2002 10,623 90.0 A118
2003 14,615 115.0 A127
2008 Z
2009 4,152 45.0 A92
TOTAL 806 ÷ 7 = 115.14
APPROVED APH YIELD 115

(b) If the acreage was found to be affected by drift after the ARD, the yield (2009 actual
yield) is added to the Certified Organic APH database.

(b) CERTIFIED ORGANIC APH DATABASE

CROP YEAR: 2010 UNIT NO. 0001-0000

YEAR TOTAL PROD ACRES YIELD

2006 G94
2007 G98
2008 4,042 40.0 V101
2009 4,152 45.0 V92
TOTAL 385 ÷ 4 =96.25

APPROVED APH YIELD 96

June 2015 FCIC 18180 579

 Exhibit 11

I. Category B Crop APH Database Examples for Transitioning …(Continued)

(c) To regain certified organic status, the acreage that was found to be affected by drift
will have to be transitioned again for 36-months towards full organic certification by
the NOP standards. The insured must submit to the AIP a copy of the updated organic
plan that includes all changes in practices, procedures, and inputs from the previous
crop year’s organic plan, if applicable, or written documentation from a certifying
agent indicating an organic plan is in effect, as specified in the BP.

(c) TRANSITIONAL APH DATABASE

CROP YEAR: 2013 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2004 5,345 60.0 G89
2005 5,268 56.0 G94
2006 4,810 49.0 G98
2007 Z
2008 Z
2009 Z
2010 3,735 45.0 G83
2011 3,748 43.0 G87
2012 3,734 41.0 G91
TOTAL 542 ÷ 6 = 90.33
APPROVED
90
APH YIELD

June 2015 FCIC 18180 580

 Exhibit 11

I. Category B Crop APH Database Examples for Transitioning …(Continued)

(d) The Certified Organic APH database shows the acreage qualifies for the 2014 crop
year as certified organic.

(i) Illustration is based on scenario in (3)(a) above for acreage affected by drift
before the ARD, or
(d) CERTIFIED ORGANIC APH DATABASE
CROP YEAR: 2014 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2008 4,042 40.0 V101
2009 Z
2010 Z
2011 G87
2012 G91
2013 4,512 41.0 V110
TOTAL 389 ÷ 4 = 97.25
APPROVED APH YIELD 97

(ii) Illustration is based on scenario in (3)(b) above for acreage affected by drift
after the ARD

(d) CERTIFIED ORGANIC APH DATABASE

CROP YEAR: 2014 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2008 4,042 40.0 V101
2009 4,152 45.0 V92
2010 Z
2011 Z
2012 G91
2013 4,512 41.0 V110
TOTAL 394 ÷ 4 = 98.5
APPROVED APH YIELD 99

June 2015 FCIC 18180 581

 Exhibit 11

I. Category B Crop APH Database Examples for Transitioning …(Continued)

(4) Converting back to conventional farming practices. Use prior years’ conventional actual
yields to compute the approved APH yield whenever acreage that is normally farmed under
an organic practice is transitioned back to a conventional farming practice.

Scenario: For the 2011 crop year, the following illustrations demonstrate when the
insured returns to the conventional farming practices.

The insured has prior years see (1)(a) above conventional production history. During crop
years 2004-2010, the insured farmed organically. In 2011, the insured returns to
conventional farming practices.

(a) The Conventional APH database after the conversion from certified organic farming
practices back to conventional farming practices.

(a) CONVENTIONAL APH DATABASE

CROP YEAR: 2012 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
1996 17,443 160.0 A109
1997 15,377 125.0 A123
1999 8,965 80.0 A112
2000 12,876 103.0 A125
2002 10,623 90.0 A118
2003 14,615 115.0 A127
2008 Z
2009 Z
2010 Z
2011 19,250 110.0 A175
TOTAL 889 ÷ 7 = 127.0

APPROVED APH YIELD 127

(b) Because the insured returned to farming acreage under the conventional farming
practices, the AIP is only required to submit the Conventional APH database to RMA.
However, the AIP must maintain the Certified Organic and Transitional APH
databases.

June 2015 FCIC 18180 582

 Exhibit 11

I. Category B Crop APH Database Examples for Transitioning …(Continued)

(5) Converting organic acreage to the conventional farming practice with no prior conventional
actual yields. If an insured converts organic acreage to a conventional farming practice and
has no prior conventional farming actual yields, use the applicable variable T-Yields to
establish the Conventional APH database. Refer to Part 17 for instruction regarding
Category B crop procedures.

Scenario: For the 2011 crop year, a certified organic insured with no prior
conventional farming APH begins farming organic acreage under the
conventional farming practices. In this example the insured has produced
the crop (other practices and/or types) for at least three years in the county.
Examples below illustrate the conversion and maintenance of the APH
databases.

(a) The initial year (2011) the acreage is converted to the conventional farming practice
with no prior conventional APH. The Conventional APH database will contain four
T-Yields.

(a) CONVENTIONAL DATABASE

CROP YEAR: 2011 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2007 T75
2008 T75
2009 T75
2010 T75
TOTAL 300 ÷ 4 = 75.00
APPROVED APH YIELD 75

June 2015 FCIC 18180 583

 Exhibit 11

I. Category B Crop APH Database Examples for Transitioning …(Continued)

(b) For the following crop year (2012), one actual yield and three T-Yields are identified
in the Conventional APH database. After the insured obtains four actual yields,
remove the T-Yields from the Conventional APH database.

(b) CONVENTIONAL DATABASE

CROP YEAR: 2012 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2008 T75
2009 T75
2010 T75
2011 9,789 60.0 A163
TOTAL 388 ÷ 4 = 97.0
APPROVED APH YIELD 97

(c) When the insured is no longer farming under the organic (certified organic or
transitional) farming practices, the AIP is only required to submit the Conventional
APH database to RMA. However, the AIP must maintain the organic (Certified
Organic and Transitional) APH databases.

(6) A certified organic farming operation whose certification has been suspended or revoked
will be ineligible to receive certification under the organic practice. The certificate is no
longer valid.

Scenario: In 2011, a certifying agency revokes an insured’s certification:

June 2015 FCIC 18180 584

 Exhibit 11

I. Category B Crop APH Database Examples for Transitioning …(Continued)

(a) If an insured’s certification was revoked by the certifying agency before the ARD, the
acreage must be insured under conventional farming practices.

(a) CONVENTIONAL APH DATABASE

CROP YEAR: 2012 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
1996 17,443 160.0 A109
1997 15,377 125.0 A123
1998 Z
1999 8,965 80.0 A112
2000 12,876 103.0 A125
2001 Z
2002 10,623 90.0 A118
2003 14,615 115.0 A127
2010 Z
2011 4,785 53.0 A90
TOTAL 804 ÷ 7 = 114.85
APPROVED APH YIELD 115

(b) If an insured’s certification, however, was revoked by the certifying agency after the
ARD, the certified organic APH database in effect at ARD remains for the remainder
of the crop year. The acreage does not qualify as certified organic the following crop
year. Para. 1164.

(b) CERTIFIED ORGANIC APH DATABASE

CROP YEAR: 2012 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2007 5,528 51.0 V108
2008 6,225 53.0 V117
2009 Z
2010 5,887 60.0 V98
2011 4,785 53.0 V90
TOTAL 413 ÷ 4 = 103.25
APPROVED APH YIELD 103

June 2015 FCIC 18180 585

 Exhibit 11

J. Example for Initial Year of Certified Organic APH Database

This Certified Organic APH database example illustrates the initial Certified Organic APH
database set up for a new insured with an organic plan and organic certificate from a certifying
agency.

Scenario: In 2012, a new insured (who is certified organic) provides to the AIP a copy the
organic plan and organic certificate. The new insured does not provide the AIP
with a production report; therefore, the Certified Organic APH database will be
established using variable T-Yields (65 percent of the T-Yield).

(1) Initial year of the Certified Organic APH database.

(a) CERTIFIED ORGANIC APH DATABASE

CROP YEAR: 2012 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2008 S49
2009 S49
2010 S49
2011 S49
TOTAL 196 ÷ 4 = 49.0
T-YIELD = 75
APPROVED APH YIELD 49

(2) As the certified organic history is accumulated, the AIP will remove the variable T-Yield(s)
from the Certified Organic APH database.

(3) See Part 17 for additional information/record requirements for Category B crops.

June 2015 FCIC 18180 586

 Exhibit 11

K. APH Databases for Transitional and Certified Organic-Drift

Scenario: The insured has two certified organic blocks (001 and 002). In 2011, the insured notifies the certifying agency of the
spraying of prohibited substance(s) or drift onto block 002.

(1) For the 2011 crop year, the insured requested a RO Determined Yield for block 002. In the illustration, a RO
Determined Yield of 504 bushels was added in lieu of production; and
APH BLOCK PRODUCTION WORKSHEET
(For illustration purposes ONLY)
NAME POLICY NUMBER UNIT NUMBER
I. M. INSURED
(a) CROP STATE LEGAL DESCRIPTION
APPLES NC (37)
CROP YEAR COUNTY FSA FN/TRACT/FIELD
2012 Henderson (089) 4312
(b) PRACTICE 702 (d) TYPE 114 (b) PRACTICE 702 (c) TYPE 114 (b) PRACTICE (c) TYPE
(d) VARIETY/OTHER Gala (d) VARIETY/OTHER Fuji (d) VARIETY/OTHER
04/ 05/
BLOCK NO.: 001 BLOCK NO.: 002 Mo/Yr BLOCK NO.:
Mo/Yr 2000 2002 Mo/Yr
SET OUT SET OUT
2000 DENSITY: 2002 DENSITY: SET OUT YEAR: DENSITY:
YEAR YEAR: YEAR:
PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD
2007 7,344 12.0 V612
2008 7,780 10.0 V778 F504
2009 6,620 10.0 V662 F504
2010 6,210 10.0 V621 F504
2011 5,888 8.0 V736 F504
TOTAL 3,409 TOTAL 2,016 TOTAL
T-YIELD ADJ. T-YIELD ADJ. T-YIELD ADJ.
APPROVED APPROVED APPROVED
682 504
YIELD YIELD YIELD

June 2015 FCIC 18180 587

 Exhibit 11

K. APH Databases for Transitional and Certified Organic-Drift (Continued)

(2) The insured will have to go back to the Transitional APH database and transition block 002 again for 36-months as
required by the NOP until certification was re-established for block 002.

APH BLOCK PRODUCTION WORKSHEET

(For illustration purposes ONLY)
NAME POLICY NUMBER UNIT NUMBER
I. M. INSURED
(a) CROP STATE LEGAL DESCRIPTION
APPLES NC (37)
CROP YEAR COUNTY FSA FN/TRACT/FIELD
2012 Henderson (089) 4312
(b) PRACTICE (d) TYPE (b) PRACTICE 712 (c) TYPE 114 (b) PRACTICE (c) TYPE
(d) VARIETY/OTHER (d) VARIETY/OTHER Fuji (d) VARIETY/OTHER
BLOCK NO.: Mo/Yr BLOCK NO.: 002 Mo/Yr 05/ BLOCK NO.: Mo/Yr
2002
YEAR SET OUT SET OUT
DENSITY: 2002 DENSITY: SET OUT YEAR: DENSITY:
YEAR: YEAR:
PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD

2009 F504
2010 F504
2011 F504
2012 G610
TOTAL TOTAL 2,122 TOTAL
T-YIELD ADJ. T-YIELD ADJ. 380 T-YIELD ADJ.
APPROVED APPROVED APPROVED
682 531
YIELD YIELD YIELD

June 2015 FCIC 18180 588

 Exhibit 11

L. Examples of Transitioning without an Organic Plan and Other Exceptions

(1) Transitioning Category B Crops Certified Organic without an organic plan or written
documentation from a certifying agency.
Scenario: For the 2008 crop year, an insured transitioned conventional acreage using
organic practices without an organic plan or written documentation from a
certifying agency; therefore:

(a) The acreage must be insured under the conventional farming practice. Example (1)(a)
illustrates the Conventional APH database prior to transitioning the acreage.

(a) CONVENTIONAL APH DATABASE

CROP YEAR: 2008 UNIT NO. 0001-0000

1999 8,965 80.0 A112
2000 12,876 103.0 A125
2001 Z
2002 10,623 90.0 A118
2003 14,615 115.0 A127
2004 Z
2005 18,238 108.0 A169
2006 12,789 92.0 A139
2007 23,910 139.0 A172
TOTAL 962 ÷ 7 = 137.42

APPROVED APH YIELD 137

June 2015 FCIC 18180 589

 Exhibit 11

L. Examples of Transitioning without an Organic Plan and Other Exceptions (Continued)

(b) If the conventional acreage had been transitioned accordingly as shown in I(1)
above, a Transitional APH database would be established for the insured.
However, as a result of the conventional acreage being transitioned under an organic
practice without an organic plan or written documentation from a certifying agency,
an Analysis database is used by the AIP to compute, or reduce the yield.
The insured did not have any other acreage of the same P/T/unit using these
practices; therefore, the Analysis database is established using the applicable T-
Yield. Since the yield determined in the Analysis database is lower than the
Conventional APH approved yield, the Conventional APH approved yield is
adjusted to the yield established in the Analysis database.
See Para. 1168 for determining approved APH yield(s) for acreage without an
organic plan or written documentation from a certifying agent.

(b) CONVENTIONAL APH DATABASE

(b) ANALYSIS DATABASE
CROP YEAR:
UNIT NO. 0001-0000
2008
CROP YEAR: 2008 UNIT NO. 0001-0000
1999 8,965 80.0 A112
2000 12,876 103.0 A125 TOTAL
YEAR ACRES YIELD
PROD
2001 Z
2004 T110
2002 10,623 90.0 A118
2003 14,615 115.0 A127 2005 T110
2004 Z
2005 18,238 108.0 A169 2006 T110

2006 12,789 92.0 A139

2007 T110
2007 23,910 139.0 A172
TOTAL 962 ÷ 7 = 137.42
T-YIELD = 110 TOTAL 440÷ 4 = 110
APPROVED
110
APH YIELD


Yield Limitation Flag “11”
June 2015 FCIC 18180 590
 Exhibit 11

L. Examples of Transitioning without an Organic Plan and Other Exceptions (Continued)

(c) Actual transitional yields the insured accumulated while transitioning the
conventional acreage, without an organic plan or written documentation from a
certifying agency, to certify organic acreage.
The acreage qualifies, upon acceptance by a certifying agency, as certified organic
acreage. Once the acreage qualifies as certified organic acreage, the insured will have
to provide a copy of an organic plan and organic certificate to the AIP.

(c) CONVENTIONAL APH DATABASE (c) ANALYSIS DATABASE

CROP YEAR: 2012 UNIT NO. 0001-0000
CROP YEAR:
2002 10,623 90.0 A118 UNIT NO. 0001-0000
2012
2003 14,615 115.0 A127
TOTAL
YEAR ACRES YIELD
2004 Z PROD
2005 18,238 108.0 A169 2007 T110
2006 12,789 92.0 A139
2007 23,910 139.0 A172 2008 11,682 118.0 A99

2008 11,682 118.0 A99

2009 Z
2009 Z
2010 12,650 110.0 A115 2010 12,650 110.0 A115
2011 10,725 90.0 A119
TOTAL 1,058 ÷ 8 = 132 2011 10,725 90.0 A119

APPROVED
111 T-YIELD = 110 TOTAL 443 ÷ 4 =111
APH YIELD


Yield Limitation Flag “11”
June 2015 FCIC 18180 591
 Exhibit 11

L. Examples of Transitioning without an Organic Plan and Other Exceptions (Continued)

(d) Establish a Certified Organic APH database only when the insured has an organic
plan and certificate from a certifying agency. In this situation, the insured has
completed the transitional period for organic acreage and has provided an organic
plan and certificate.

Because the acreage was transitioned without a plan, any applicable actual yield(s)
from the transitional acreage (without a plan or written documentation) must be
considered when determining the certified organic approved APH yield. An Analysis
database is used to determine whether the certified organic approved APH yield must
be adjusted.

(d) CERTIFIED ORGANIC APH DATABASE

CROP YEAR: 2013 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2009 T110
2010 T110
2011 T110
2012 15,000 120.0 V125
TOTAL 455 ÷ 4 = 113.75
APPROVED APH YIELD 114

(d) ANALYSIS DATABASE

CROP YEAR: 2012 UNIT NO. 0001-0000
YEAR TOTAL PROD ACRES YIELD
2008 11,682 118.0 A99
2009 Z
2010 12,650 110.0 A115
2011 10,725 90.0 A119
2012 10,890 87.0 V125

T-YIELD = 110 TOTAL 458 ÷ 4 = 115

(2) Transitioning Category C Crops to Certified Organic without an organic plan or written
documentation from a certifying agency – Block Reporting.

June 2015 FCIC 18180 592

 Exhibit 11

L. Examples of Transitioning without an Organic Plan and Other Exceptions (Continued)

Scenario: For 2012, a carryover insured with a CAT policy reports 30 acres of trees
as conventional (blocks 001 and 002) and 80 acres as certified organic
(block 003). This insured has been transitioning block 003 without a plan
since 2009 and has not marked the PAW question concerning “different
methods” in previous years.
The AIP completes an inspection and determines the following: the blocks
are as reported on the PAW, Block 001 has 10 acres, block 002 has 20
acres, and block 003 has 80 acres for a total of 110 acres, block 003 is now
certified organic and block 002 has been transitioning without an organic
plan or written documentation from a certifying agency since the 2010
crop year.

(a) The table below illustrates the information reported on the PAW for 2011 by the
insured:

BLOCK SET OUT PERCENT

ACRES TYPE SPACING DENSITY
NUMBER YEAR STAND
001 1992 10 Gala 12 X 18 100 202
002 1998 20 Gala 12 X 12 100 303
003 2004 80 Gala 6 X12 100 605

(b) The APH database below illustrates the commingled APH production from blocks
001, 002, and 003. None of the production has been kept separate.

(2)(a) APPLE PRODUCTION

(For Illustration Purposes only)
Crop Year: 2012
Crop: Apples (0054)
TYPE: 114 Variety/Other/NA
Practice: IRR (002)
Unit No.: 0001
Block No: 001, 002, 003 Month/Year:
YEAR TOTAL PRODUCTION ACRES YIELD
2007 27,500 110.0 250
2008 33,000 110.0 300
2009 63,800 110.0 580
2010 36,300 110.0 330
2011 90,200 110.0 820
Total 2,280
2,280 ÷ 5 = 456

June 2015 FCIC 18180 593

 Exhibit 11

L. Examples of Transitioning without an Organic Plan and Other Exceptions (Continued)

(c) Applicable T-Yields for this example.

001 002 003

BLOCK BLOCK BLOCK
CONVENTIONAL TRANSITIONAL CERTIFIED ORGANIC
YEAR
YEAR YEAR
1992 1998 SET 2004
SET OUT SET OUT
OUT
ACRES 10 ACRES 20 ACRES 80
DENSIT
DENSITY 202 DENSITY 303 605
Y
LEAF LEAF LEAF
YEAR T-YIELD YEAR T-YIELD YEAR T-YIELD
YEAR YEAR YEAR
2007 16 1100 2007 10 1100 2007 4 1055
2008 17 1100 2008 11 1100 2008 5 960
2009 18 1100 2009 12 1100 2009 6 810
2010 19 1100 2010 13 1100 2010 7 660
2011 20 1100 2011 14 1085 2011 8 505
2012 21 1100 2012 15 1055 2012 9 350

(d) For the 2012 crop year, block 003 now qualifies as certified organic because the
insured has provided to the AIP a copy of an organic plan and organic certificate.
This block did not qualify as an organic practice prior to 2012.

Because the insured did not have an organic plan and written documentation from a
certifying agent for the transitional acreage, the production from the transitional
acreage must be insured under the conventional practice see Para. 1168. Production
must be separated by other characteristics due to the requirement of separate APH
databases for P/T/TMA/Other Characteristics.

(e) Complete the following steps to determine the approved APH yield for each
P/T/TMA/Other Characteristics.

STEP ACTION
Use procedures in Part 15 Section 2 to apportion production
1
by APH database.
Use the Analysis database procedures in Para. 1168 to
determine whether to adjust the approved yields when acreage
and production is transitioning to a certified organic practice
2
(or has previously transitioned to a certified organic practice)
without an organic plan or written documentation from a
certifying agency.
3 Show the resulting APH databases and approved APH yields.

Note: In the example for Block 003, the prorated actual yields are not shown for 2008
because the prorated yield is less than the required policy minimum of 250 boxes
per acre. This results in the need for the applicable leaf year/density T-Yield.
June 2015 FCIC 18180 594
 Exhibit 11

L. Examples of Transitioning without an Organic Plan and Other Exceptions (Continued)

STEP 1 - Prorating
Example 1 STEP 2 - Analysis Databases STEP 3 - Resulting APH Databases
Production

Block 001 -- Prorated Actual Block 001 -- APPROVED

Year Prod Acres Yield Year Prod Acres Yield
2007 5033 10 503 2007 5033 10 PA 503
2008 4966 10 497 2008 4966 10 PA 497
2009 8179 10 818 2009 8179 10 PA 818
2010 4083 10 408 2010 4083 10 PA 408
2011 9036 10 904 2011 9036 10 PA 904
Total 3130 Total 3130
APH 626 APH 626

Block 002 -- Prorated Actual Block 002 -- ANALYSIS Block 002 -- APPROVED
Year Prod Acres Yield Year Prod Acres Yield Year Prod Acres Yield
2007 9655 20 483 2007 2007 9655 20 PA 483
2008 9796 20 490 2008 T 1085 2008 9796 20 PA 490
2009 16359 20 818 2009 T 1100 2009 16359 20 PA 818
2010 8166 20 408 2010 PA 408 2010 8166 20 PA 408
2011 18073 20 904 2011 PA 904 2011 18073 20 PA 904
Total 3103 Total 3497 Total 3103
Avg. 621 Avg. 874 APH 621

Block 003 -- Prorated Actual Block 003 -- ANALYSIS Block 003 -- APPROVED
Year Prod Acres Yield Year Prod Acres Yield Year Prod Acres Yield
2007 12812 80 2007 2007
2008 18238 80 T 1055 2008 T 1055 2008 T 1055
2009 39262 80 491 2009 PG 491 2009 39262 80 PG 491
2010 24052 80 301 2010 PG 301 2010 24052 80 PG 301
2011 63091 80 789 2011 PG 789 2011 63091 80 PG 789
Total 2636 Total 2636 Total 2636
Avg. 659 Avg. 659 APH 659

June 2015 FCIC 18180 595

 Exhibit 11

L. Examples of Transitioning without an Organic Plan and Other Exceptions (Continued)

(3) Transitioning Category C Crops to Certified Organic without an organic plan or written
documentation from a certifying agency – Optional Units

Scenario: Same situation as in (2) above, with the following exceptions: the insured is
changing to a buy-up policy for 2012; elects OUs by organic and conventional
practices; and elects the YA for 2010 for low production due to spring frost.
The insured provides 2011 production history separately as follows (boxes
meaning loose field boxes):

BLOCK PRODUCTION ACREAGE AVERAGE YIELD

Block 001 8100 boxes 10.0 810
Block 002 15300 boxes 20.0 765
Block 003 66800 boxes 80.0 835

(a) For 2012, separate APH database must be established for Apples by P/T/TMA/Other
Characteristics, as listed on the actuarial documents unless the exceptions listed in
Para. 1505 apply.

Additionally, APH approved yields for Organic acreage transitioned without an

organic plan or written documentation from a certifying agency must be adjusted
when the acreage and production is known for Transitional Organic and Certified
Organic. Additionally, if the producer selects YA the applicable YA yield is available
and would be based on the applicable T-Yield by age/density and leaf year.

(b) Only the most recent year is separate and the remaining years of the APH database is
commingled such that production by practice is unknown.

(c) Complete the following steps to determine the approved APH yield for each
P/T/TMA/Other Characteristics.

STEP ACTION
Establish APH database using procedures in Para. 1523. The
most recent year’s production has been provided separate
according to practice. Due to the insured being unable to
1
recertify prior year’s production by practice, prior year’s
production must be apportioned production by APH database as
shown below.
Use the Analysis Database procedures in Para. 1168 to
determine whether to adjust the approved yields when acreage
and production is transitioning to a certified organic practice (or
2
has previously transitioned to a certified organic practice)
without an organic plan or written documentation from a
certifying agency.
Show the resulting APH databases and approved APH yields,
3
Block 003 is now a separate OU.

June 2015 FCIC 18180 596

 Exhibit 11

L. Examples of Transitioning without an Organic Plan and Other Exceptions (Continued)

Note: In the example below for Block 003, prorated actual yields are not shown for
2008 because the prorated yield is less than the required policy minimum of 250
boxes per acre. This results in the need for the applicable leaf year/density T-
Yield.

EXAMPL STEP 1 - PRORATING STEP 3 - RESULTING APH

STEP 2 - ANALYSIS DATABASES
E2 PRODUCTION DATABASES
Block 001 -- Prorated Actual Block 001 -- APPROVED
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2007 5033 10 503 2007 5033 10 PA 503
2008 4966 10 497 2008 4966 10 PA 497
2009 8179 10 818 2009 8179 10 PA 818
2010 4083 10 408 2010 4083 10 PA 408
2011 8100 10 810 2011 8100 10 A 810
Total 3036 Total 3036
Avg. 607 APH 607

Block 002 -- Prorated Actual Block 002 -- ANALYSIS Block 002 -- APPROVED
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2007 9655 20 483 2007 2007 9655 20 PA 483
2008 9796 20 490 2008 T 1085 2008 9796 20 PA 490
2009 16359 20 818 2009 T 1100 2009 16359 20 PA 818
2010 8166 20 408 2010 PA 408 2010 8166 20 PA 408
2011 15300 20 765 2011 A 765 2011 15300 20 A 765
Total 2964 Total 3358 Total 2964
Avg. 593 Avg. 840 APH 593

Block 003 -- Prorated Actual Block 003 -- ANALYSIS Block 003 -- APPROVED
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2007 12812 80 2007 2007
2008 18238 80 T 1055 2008 T 1055 2008 T 1055
2009 39262 80 491 2009 PG 491 2009 39262 80 PG 491
2010 24052 80 301 2010 PG 301 2010 24052 80 PG 301
2011 66800 80 835 2011 V 835 2011 66800 80 V 835
Total 2682 Total 2682 Total 2682

June 2015 FCIC 18180 597

 Exhibit 12

Reserved

June 2015 FCIC 18180 598

 Exhibit 12

Reserved

June 2015 FCIC 18180 599

 Exhibit 13

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

See Part 13.

PRODUCTION REPORT
Policy #: XX-XXX-XXXX State: Insured State (XX) County: Insured County (XXX)
Insured/Policyholder Information AIP Information Agency/Agent Information
Name: Name: Name:
I. M. Insured I. M. Agent
Mailing address: I.M. Company Mailing address:
Insured Address Agent/Agency Address
State, Zip State, Zip
Telephone #: (XXX) XXX-XXXX Address: Telephone #: (XXX) XXX-XXXX
Insured id # & type: XXX-XX-XXXX SSN Agent Code: XXXXXX
Spouse’s name: Also Insured Company Address
Spouse’s id #: State, Zip Insured signature &
XXX-XX-XXXX
date
Irr. Cropping Organic Farm-
Multi Crop Year Practice: Interval:
Crop Practice: Practice: Practice: Total Yield Legal Tract-Field
Reporting Unit # Crop Acres Yield
year Production Descriptor Description #
Reason NI (003)
Soybeans Comm Intended XXXX
Type: Class: Sub-Class:
(0081) Type use: 326.8 XX XXXX XXXXX
2015 n/a 0001-0001 14,052 A 43
NTS XXXX XX XXX
(997)
Other Processor Record # Of Other:
Insurability Area Classification
Persons Number/Name Type Trees/Vines
Production N/A
none n/a Insurable
Sold
Irr. Cropping Organic Farm-
Multi Crop Year Practice: Interval: Land
Crop Practice: Practice: Practice: Total Yield Tract-Field
Reporting Unit # Crop Acres Yield Description
year Production Descriptor #
Reason
Comm Intended
Type: Class: Sub-Class:
Type: use:

Other Processor Record # Of Other:

Insurability Area Classification
Persons Number/Name Type Trees/Vines

June 2015 FCIC 18180 600

 Exhibit 13

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

PRODUCTION REPORT
Policy #: XX-XXX-XXXX State: Insured State (XX) County: Insured County (XXX)
Insured/Policyholder Information AIP Information Agency/Agent Information
Name: Name: Name:
I. M. Insured I. M. Agent
Mailing address: I.M. Company Mailing address: Agent/Agency
Insured Address
Address
State, Zip
State, Zip
Telephone #: (XXX) XXX-XXXX Address: Telephone #: (XXX) XXX-XXXX
Insured id # & type: XXX-XX-XXXX SSN Agent Code: XXXXXX
Spouse’s name: Also Insured Company Address
State, Zip
Spouse’s id #: Insured signature & date
XXX-XX-XXXX

Irr. Cropping Organic

Multi Crop Year Practice: Interval Farm-Tract-
Crop Practice Practice Practice Total Yield Legal
Reporting Unit # Crop Acres Yield Field #
year Production Descriptor Description
Reason I (002)
Intended XXXX
Type: Type: Class: Sub-Class:
Corn use: 87.4 XX XXXX XXXXX XX
2015 n/a 0002-0002 18,092 A 207
(0041) NTS XXXX XXX
(997)
Other Processor Record # Of Other:
Insurability Area Classification
Persons Number/Name Type Trees/Vines
T. n/a
Production
Tenant Insurable
Sold
2/5
Irr. Cropping Organic Use of
Multi Crop Year Interval: Legal Farm-Tract-
Crop Practice: Practice: Practice: Acreage: Total Yield
Reporting Unit # Crop Acres Yield Description Field #
year Production Descriptor
Reason
Sub- Intended
Type: Class:
Class: use:

Other Processor Record # Of Other:

Insurability Area Classification
Persons Number/Name Type Trees/Vines

June 2015 FCIC 18180 601

 Exhibit 14

Reserved

June 2015 FCIC 18180 602

 Exhibit 14

Reserved (Continued)

June 2015 FCIC 18180 603

 Exhibit 15

A. Examples of Completed APH Databases-New Insured

A new insured provides a production report for the prior crop year only and then APH database is
established.

Insured’s Name and Address: Required Field Review: (check one) Agent Name and Address:
Yes □ No □
I.M. Insured Required Inspection: (check one) I.M. Agent
Street Yes □ No □ Street
State, Zip AIP Name and Address: State, Zip

Phone Number: (XXX) XXX- I.M. Company Phone Number: (XXX)

XXXX Street XXX-XXXX
Identification Number: State, Zip
XXX-XX-XXXX Agent Code: XXXXXX
Policy Number: XX-XXX-XXXX State: Insured State (XX) County: Insured County
(XXX)
Practice: FAC-NI (043) Type: Commodity (091)
Irr. Interval:
Cropping Organic Commodity Sub- Intended
Practice: Use of Class:
Practice: Practice: Type: class: use:
Acreage:

Crop Year: 2016 Crop Year Total Production Acres Yield

Crop: Soybeans (0081) 2006
2007
Unit Number: 2008
0001-0001 OU 2009
2010
Others sharing in crop: 2011
2012 E17
Land Description: 2013 E17
Section: XX 2014 E17
Township: XXXX 2015 2,976.0 95.0 A31
Range: XXXX Average Yield: Total: 82
Other Land Identifier: Approved APH Yield: 21
FSA Farm: XXXX Preliminary Rate Yield:
Tract: XXXXX Yield: 21 Prior Year Yield: N/A
Field Number: XX T-Yield: 21 Other:

Area Classification: Yield Indicator:

June 2015 FCIC 18180 604

 Exhibit 15

B. Examples of Completed APH Databases-New Producer

The insured has met the requirements for a New Producer and has not previously produced the
crop/P/T in the county.

Insured’s Name and Address: Required Field Review: (check Agent Name and
one) Address:
I.M. Insured Yes □ No □
Street Required Inspection: (check one) I.M. Agent
State, Zip Yes □ No □ Street
AIP Name and Address: State, Zip
Phone Number: (XXX) XXX-XXXX
I.M. Company Phone Number: (XXX)
Identification Number: Street XXX-XXXX
XXX-XX-XXXX State, Zip
Agent Code: XXXXXX
Policy Number: XX-XXX-XXXX State: Insured State (XX) County: Insured County
(XXX)
Practice: NI (003) Type: Commodity (091)
Cropping Organic Sub- Intended
Irr. Practice: Interval: Commodity Type: Class:
Practice: Practice: class: use:

Crop Year: 2016 Crop Year Total Production Acres Yield

Crop: Soybeans (0081) 2009
Unit Number: 2010
Others sharing in crop: 2011
2012 I46
Land Description: 2013 I46
Section: XX 2014 I46
Township: XXXX 2015 I46
Range: XXXX Average Total: 184
Other Land Identifier: Yield: Approved APH Yield: 46
FSA Farm: XXXX Preliminary Rate Yield:
Tract: XXXXX Yield: 46 Prior Year Yield: N/A
Field Number: XX
T-Yield: 46 Other:

Yield
Indicator:

June 2015 FCIC 18180 605

 Exhibit 15

C. Examples of Completed APH Databases –Carryover Insured

A carryover insured has a previously established APH database. The insured provides a
production report indicating the prior year’s production and acreage for the unit/P/T, which is
added to the existing APH database.

Insured’s Name and Address: Required Field Review: (check Agent Name and Address:
one)
I.M. Insured Yes □ No □ I.M. Agent
Street Required Inspection: (check one) Street
State, Zip Yes □ No □ State, Zip
AIP Name and Address:
Phone Number: (XXX) XXX-XXXX Phone Number: (XXX)
I.M. Company XXX-XXXX
Identification Number: Street
XXX-XX-XXXX State, Zip Agent Code: XXXXXX

Policy Number: XX-XXX-XXXX State: Insured State (XX) County: Insured County
(XXX)
Practice: NI (003)
Type: Commodity (091)
Irr. Practice: Cropping Organic Interval: Sub-
Type: Class: Intended use:
Practice: Practice: class:

Crop Year: 2016 Crop Year Total Production Acres Yield

Crop: Soybeans (0081)
Unit Number: 2008
0001-0001 OU 2009
2010 2,800.0 100.0 A28
Others sharing in crop: 2011 5,850.0 150.0 A39
2012 5,160.0 120.0 A43
Land Description: 2013 8,800.0 220.5 A40
Section: XX 2014 2,970.0 110.0 A27
Township: XXXX 2015 2,940.0 105.0 A28
Range: XXXX Average Yield: Total: 205
Other Land Identifier: Approved APH Yield: 34
FSA Farm: XXXX Preliminary Rate Yield:
Tract: XXXXX Yield: 34 Prior Year Yield: 33
Field Number: XX T-Yield: Other:
35
Yield
Indicator:

June 2015 FCIC 18180 606

 Exhibit 15

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

A carryover insured has previously established an APH database. A production report showing
no acreage was planted the prior crop year for the unit/P/T and the existing APH database is
updated.

Required Field Review: (check

Insured’s Name and Address: one) Agent Name and Address:
Yes □ No □
I.M. Insured Required Inspection: (check I.M. Agent
Street one) Street
State, Zip Yes □ No □ State, Zip
AIP Name and Address:
Phone Number: (XXX) XXX-XXXX Phone Number: (XXX)
I.M. Company XXX-XXXX
Identification Number: Street
XXX-XX-XXXX State, Zip Agent Code: XXXXXX

County: Insured County

Policy Number: XX-XXX-XXXX State: Insured State (XX)
(XXX)
Practice: NI (003) Type: Grain (016)
Cropping Organic Commodity Sub- Intended
Irr. Practice: Interval: Class:
Practice: Practice: Type: class: use:

Crop Year: 2016 Crop Year Total Production Acres Yield

Crop: Corn (0041)
0001-0001 OU

2010 14,400.0 120.0 A 120

2011 24,300.0 180.0 A 135
Others sharing in crop:
2012 22,500.0 150.0 A 150
Land Description: 2013 0 Z
Section: XX 2014 18,850.0 130.0 A 145
Township: XXXX 2015 0 Z
Range: XXXX Average Total: 550
Other Land Identifier: Yield: Approved APH Yield: 138
FSA Farm: XXXX Preliminary Rate Yield:
Tract: XXXXX Yield: 138 Prior Year Yield: 138
Field Number: XX Other:
T-Yield: 80

Yield
Indicator:

June 2015 FCIC 18180 607

 Exhibit 15

E. Examples of Completed APH Databases-Assigned Yield

A carryover insured who had planted acres failed to provide a production report for the prior crop
year. An assigned yield is used for the previous crop year to update the APH database.

Insured’s Name and Address: Required Field Review: (check

Agent Name and Address:
one)
I.M. Insured Yes □ No □
I.M. Agent
Street Required Inspection: (check one)
Street
State, Zip Yes □ No □
State, Zip
AIP Name and Address:
Phone Number: (XXX) XXX-
Phone Number: (XXX)
XXXX I.M. Company XXX-XXXX
Street
Identification Number: State, Zip Agent Code: XXXXXX
XXX-XX-XXXX
County: Insured County
Policy Number: XX-XXX-XXXX State: Insured State (XX)
(XXX)
Practice: NI (003) Type: GR (029)
Cropping Organic Commodity Sub- Intended
Irr. Practice: Interval: Class:
Practice: Practice: Type: class: use:

Crop Year: 2016 Crop Year Total Production Acres Yield

Crop: Corn (0041)

Unit Number:
0001-0001 OU
2011 11,500.0 100.0 A115
Others sharing in crop:
2012 13,200.0 120.0 A110
Land Description: 2013 8,651.0 105.5 A82
Section: XX 2014 9,102.0 111.0 A82
Township: XXXX 2015 100.0 P77
Range: XXXX Average Total: 466
Other Land Identifier: Yield: Approved APH Yield: 93
FSA Farm: XXXX Preliminary Rate Yield:
Tract: XXXXX Yield: 93 Prior Year Yield: 103
Field Number: XX
T-Yield: 80 Other:

Yield
Indicator:

June 2015 FCIC 18180 608

 Exhibit 15

F. Examples of Completed APH Databases-Category C Crops

A carryover insured certifies prior crop year’s production.

Insured’s Name and Address: Required Field Review: (check one) Agent Name and Address:
Yes □ No □
I.M. Insured Required Inspection: (check one) I.M. Agent
Street Yes □ No □ Street
State, Zip AIP Name and Address: State, Zip

Phone Number: (XXX) XXX- I.M. Company Phone Number: (XXX)

XXXX Street XXX-XXXX
State, Zip
Identification Number: Agent Code: XXXXXX
XXX-XX-XXXX
Policy Number: XX-XXX-XXXX State: Insured State (XX) County: Insured County
(XXX)
Practice: IRR (002) Type:
Irr. Cropping Organic Interval: Sub- Intended
Type: Class:
Practice: Practice: Practice: class: use:

Crop Year: 2016 Crop Year Total Production Acres Yield

Crop: 2006
Almonds (0028) 2007
Unit Number: 2008
0001-0001 OU 2009 92,500 50.5 A1832
2010 95,000 50.5 A1881
Others sharing in crop: 2011 97,500 50.5 A1931
2012 100,000 50.5 A1980
Land Description: 2013 103,125 60.0 A1719
Section: XX 2014 97,900 60.0 A1632
Township: XXXX 2015 86,250 60.0 A1438
Range: XXXX Average Yield: Total: 12413
Other Land Identifier: 1773 Approved APH Yield: 1773
FSA Farm: XXXX Preliminary Rate Yield:
Tract: XXXXX Yield: 1773 Prior Year Yield: 1830
Field Number: XX Other:
T-Yield:

Yield Indicator:

June 2015 FCIC 18180 609

 Exhibit 15

G. Yield Determinations-Converting an Existing Practice to a New Practice

For the previous (policy) year, a single APH database for FAC practice contained actual or
assigned yields. The current T-Yield for NI is 17. For this example the NI FAC database is
converted to the new practice.

2015 UNIT 0001-0000BU NI FAC

YEAR PROD ACRES YIELD
2009
2010 2,200 55.0 A40
2011 0.0 Z
2012 40.5 P12
2013 2,520 60.0 A42
2014 1,210 50.0 A20

Resulting APH Database

2016 UNIT 0001-0000BU NI

YEAR PROD ACRES YIELD STEP
2009 STEP 3
2010 2,200 55.0 A40 STEP 2
2011 0.0 Z STEP 2
2012 40.5 P12 STEP 2
2013 2,520 60.0 A42 STEP 2
2014 1,210 50.0 A20 STEP 2
2015 5,760 120.0 A48 STEP 1
TOTAL 162/5=32 STEP 4
APH 32

June 2015 FCIC 18180 610

 Exhibit 15

H. Yield Determinations—Combining Two Practices into a New Practice

The following example illustrates combining NI FAC and NI NFAC APH databases containing
actual yields into a single NI APH database. The APH databases below are considered the
previous (policy) year's APH databases.

2015 UNIT 0001-0000BU NI FAC 2015 UNIT 0001-0000BU NI NFAC

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD

2010 T13 2010

2011 T13 2011 T17
2012 1,200 60.0 A20 2012 2,880 90.0 A32
2013 0.0 Z 2013 1,680 60.0 A28
2014 880 40.0 A22 2014 1,920 80.0 A24

Steps for combining APH databases:

STEP ACTION
The current production report (2016) indicates for the 2015 crop year: NI
1 NFAC practice with 3000 bu. production, 100.0 actual acres and a 30 bu.
average yield.
2 Actual acres and production are combined.

YEAR 4080 150.0

2012 (1200[FAC] + 2880[NFAC]) / (60.0[FAC] + 90.0[NFAC]) = 27

1680 60.0
2013 (0[FAC] + 1680[NFAC]) / (0.0[FAC] + 60.0[NFAC]) = 28

2800 120.0
2014 (880[FAC] + 1920[NFAC]) / (40.0[FAC] + 80.0[NFAC]) = 23

June 2015 FCIC 18180 611

 Exhibit 15

H. Yield Determinations—Combining Two Practices into a New Practice (Continued)

2016 Non-Irrigated Database (0001-0000BU)

STEP YEAR PROD. ACRES YIELD

STEP 2 2012 4,080 150.0 A27
STEP 2 2013 1,680 60.0 A28
STEP 2 2014 2,800 120.0 A23
STEP 1 2015 3,000 100.0 A30
STEP 3 TOTAL 108/4=27
APH 27

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

The NI yield has been divided into SF and CC practices. The insured apportioned production
using the Multi-Purpose Production and Yield Worksheet by CC and SF practice, which was
previously reported as NI. Current crop year production reports were also submitted for CC and
SF practices.

Multi-Purpose Production and Yield

Original APH Database
Worksheet

YEAR 1 2 3 4 5 6
2015 UNIT 0001-0000BU NI
2009 SF 40 80.0 3200 1.25 50
YEAR PROD. ACRES YIELD 2009 CC 32 120.0 3840 1.25 40
2009 8,800 200.0 A44 2012 SF 40 100.0 4000 1.34 54
2010 0.0 Z 2012 CC 32 110.0 3520 1.34 43
2011 100.0 P32 2013 SF 40 60.0 2400 1.16 46
2012 10,080 210.0 A48 2013 CC 32 140.0 4480 1.16 37
2013 8,000 200.0 A40 2014 SF 40 140.0 5600 0.55 22
2014 4,800 240.0 A20 2014 CC 32 100.0 3200 0.55 18

June 2015 FCIC 18180 612

 Exhibit 15

I. …Dividing a Practice into Two Practices Using Apportionment (Continued)

Resulting APH Databases

UNIT 0001-
2016 UNIT 0001-0000BU SF 2016 CC
0000BU
YEAR PROD ACRES YIELD STEP YEAR PROD ACRES YIELD STEP
STEP STEP
2009 4,000 80.0 A50 2009 4,800 120.0 A40
2 2
STEP STEP
2010 0.0 Z 2010 0.0 Z
2 2
STEP STEP
2011 100.0 P32 2011 0.0 Z
2 2
STEP STEP
2012 5,400 100.0 A54 2012 4,730 110.0 A43
2 2
STEP STEP
2013 2,760 60.0 A46 2013 5,180 140.0 A37
2 2
STEP STEP
2014 3,080 140.0 A22 2014 1,800 100.0 A18
2 2
STEP STEP
2015 4,400 80.0 A55 2015 0.0 Z
1 1
STEP STEP
TOTAL 259/6=43 TOTAL 138/4=35
4 4
APH 43 APH 35

June 2015 FCIC 18180 613

 Exhibit 15

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

In this example, the NI practice has been divided into SF and CC practices. The insured did not
re-certify production that was previously reported as non-irrigated. The Multi-Purpose
Production and Yield Worksheet cannot be used to apportion production because the insured did
not have separate records of acres by practice.

Current production reports were submitted for SF and CC practices for the most recent year. If
acceptable records had not been submitted for the 2015 crop year, the assigned yield would have
been used.
Original APH Database

2015 UNIT 0001-0000BU NI

YEAR PROD. ACRES YIELD
2009 11,600 200.0 A58
2010 4,800 100.0 A48
2011 2,900 100.0 A29
2012 4,200 210.0 A20
2013 3,000 200.0 A15
2014 1,200 240.0 A5

The SF practice is considered to be the higher yield practice, therefore, the SF APH database is
established using the actual acres and production. The CC APH database is established using
the percentage relationship between the T-Yield for the CC practice and T-Yield for the SF
practice. The resulting relationship is used as a percentage of the SF approved APH yield to
calculate the Determined Yield (F). For example, CC T-Yield = 32 and SF T-Yield = 40.
Therefore, 32/40=.80 and the SF approved yield of 29 x .80 = F23.

June 2015 FCIC 18180 614

 Exhibit 15

J. …Dividing a Practice into Two Practices Using Attribution (Continued)

Resulting APH Databases

UNIT 0001-
2016 SF 2016 UNIT 0001-0000BU CC
0000BU
YEAR PROD ACRES YIELD STEP YEAR PROD ACRES YIELD STEP
2009 11,600 200.0 A58 STEP 2
2010 4,800 100.0 A48 STEP 2
2011 2,900 100.0 A29 STEP 2
2012 4,200 210.0 A20 STEP 2 2012 F 23 STEP 3
2013 3,000 200.0 A15 STEP 2 2013 F 23 STEP 3
2014 1,200 240.0 A5 STEP 2 2014 F 23 STEP 3
2015 0.0 Z STEP1 2015 800 100.0 A8 STEP 1
77/4=1
TOTAL 175/6=29 STEP 4 TOTAL STEP 4
9
APH 29 APH 19

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

In this example, the NI practice has been divided into SF and CC practices. The insured had
added this land as a separate OU in 2013 with a SA T-yield of 29. The insured re-certified
production that was previously reported as NI. Current production reports were submitted for SF
and CC practices for the most recent year. The insured’s calculated SA T-Yield for 2016 for SF
is 25 and for CC is 20. If acceptable records had not been submitted for the 2015 crop year, the
assigned yield would have been used.

Original APH Database

2015 UNIT 0001-0000BU NI

YEAR PROD ACRES YIELD

2011 L29

2012 L29

2013 8,000 200.0 A15

2014 4,800 240.0 A5

June 2015 FCIC 18180 615

 Exhibit 15

K. …Dividing a Practice into Two Practices Using Recertification (continued)

Resulting APH Databases

UNIT 0001-
2016 UNIT 0001-0000BU SF 2016 CC
0000BU
YEAR PROD ACRES YIELD STEP YEAR PROD ACRES YIELD STEP
2011 L25 STEP 3
2013 L25 STEP 3 2012 L20 STEP 3
2013 8000 200.0 A15 STEP 2 2013 L20 STEP 3
2014 0.0 Z STEP 2 2014 4800 240.0 A5 STEP 3
2015 3750 125 A30 STEP1 2015 2500 100.0 A25 STEP 1
70/4=
TOTAL 95/4=24 STEP 4 TOTAL STEP 4
18
APH 24 APH 18

L. Yield Determinations-Dividing APH Databases by Recertification

Scenario 1-3 illustrate how to divide a non-irrigated (NI) database containing NI Following
Another Crop (FAC) and NI Not Following Another Crop (NFAC) into two separate databases
by practice (NI FAC and NI NFAC).

June 2015 FCIC 18180 616

 Exhibit 15

L. Yield Determinations-Dividing APH Databases by Recertification (Continued)

Scenario 1: Production is certified/re-certified - Insured has records of acreage and production

by practice.

SOYBEANS - 003 NI
2015 UNIT 0001-0000BU Insured reported both practices together
according to previous actuarial structure for
YEAR PROD ACRES YIELD
2014 and prior years, had records of acreage and
2011 N45 production by practice for the new actuarial
structure. 2015 production was certified
2012 N45
according to the new actuarial structure.
2013 3500 92.0 A38
2014 3000 50.0 A60 The databases must have at least four yields to
calculate the APH yield. If the database
T-YLD 50 APH 47 contains less than 4 yields, a percentage of the
applicable transitional yield (T-Yield) is used to
provide four yields.

SOYBEANS – 053 NI NFAC The percent of T used is determined on a

2016 UNIT 0001-0000BU
crop/county basis and is based on the number of
YEAR PROD ACRES YIELD actual/assigned yields:
2012 T50
 1 year, 80 percent of applicable T-Yield (E);
2013 2260 52.0 A43
 2 years, 90 percent of applicable T-Yield
2014 2000 30.0 A67 (N); and
2015 2800 50.0 A56  3 years, 100 percent of applicable T-Yield
(T).
T-YLD 50 APH 54
In the example, the T-Yield for NI NFAC
remained unchanged at 50 and the T-Yield for
SOYBEANS – 043 NI FAC NI FAC was changed to 30, since the insured
2016 UNIT 0001-0000BU has three actual yields 100 percent of the
YEAR PROD ACRES YIELD applicable T-Yield is used to provide the fourth
yield for both the NI FAC and NI NFAC
2012 T30
databases.
2013 1240 40.0 A31
2014 1000 20.0 A50
2015 1680 35.0 A48
T-YLD 30 APH 40

June 2015 FCIC 18180 617

 Exhibit 15

L. Yield Determinations-Dividing APH Databases by Recertification (Continued)

Scenario 2: Production is certified/re-certified - Insured has records of acreage and production

by practice.

SOYBEANS – 003 NI
2015 UNIT 0001-0000BU In this example the insured has two
years of actual yields and 90 percent
YEAR PROD ACRES YIELD
of the applicable T-Yield is used.
2011 E40
2012 E40
2013 E40
2014 3,000 50.0 A60
T-YLD 50 APH 45

SOYBEANS – 053 NI NFAC

2016 UNIT 0001-0000BU
YEAR PROD ACRES YIELD
2012 N45
2013 N45
2014 2,000 30.0 A67
2015 2,800 50.0 A56
T-YLD 50 APH 53

SOYBEANS – 043 NI FAC

2016 UNIT 0001-0000BU
YEAR PROD ACRES YIELD
2012 N27
2013 N27
2014 1,000 20.0 A50
2015 1,680 35.0 A48
T-YLD 30 APH 38

June 2015 FCIC 18180 618

 Exhibit 15

L. Yield Determinations-Dividing APH Databases by Recertification (Continued)

Scenario 3: Production is certified/re-certified - Insured has records of acreage and production

by practice.

SOYBEANS – 003 NI In this example the insured did not

2015 UNIT 0001-0000BU
have any soybeans planted on this
YEAR PROD ACRES YIELD unit in 2013 and in 2014 all the beans
2010 N45 planted were NI NFAC.

2011 N45 The insured still gets 100 percent of

2012 4,400 80.0 A55 the applicable T-Yield for the NI FAC
database, because the number of
2013 0.0 Z actual/assigned yields is determined
2014 3,000 50.0 A60 on a crop/county basis.

T-YLD 50 APH 51

SOYBEANS – 053 NI NFAC

2016 UNIT 0001-0000BU
YEAR PROD ACRES YIELD
2011 T50
2012 3,500 60.0 A58
2013 0.0 Z
2014 3,000 50.0 A60
2015 2,800 50.0 A56
T-YLD 50 APH 56

SOYBEANS – 043 NI FAC

2016 UNIT 0001-0000BU
YEAR PROD ACRES YIELD
2010 T30
2011 T30
2012 900 20.0 A45
2013 0.0 Z
2014 0.0 Z
2015 1,680 35.0 A48
T-YLD 30 APH 38

June 2015 FCIC 18180 619

 Exhibit 15

M. Yield Determinations-Dividing APH Databases by Apportioning Commingled Production

The following scenarios illustrate how to divide a non-irrigated (NI) database containing NI
NFAC and NI FAC into two separate databases using the Multi-Purpose Production and Yield
Worksheet. If current year’s production is not certified, the Multi-Purpose Production and Yield
Worksheet can be used to separate the production by practice.

Scenario 1: Apportion production - Insured has records of acreage by practice and total
production, but does not know the amount of production by practice.

SOYBEANS – 003 NI Insured has reported production from both practices together
2015
UNIT 0001-0000BU according to previous actuarial structure. The insured has
YEAR PROD ACRES YIELD records of the acreage by practice and total production, but does
not know the amount production by practice.
2011 N45
2012 N45 Insured will have to set up the databases according to the new
2013 3,500 92.0 A38 actuarial structure apportioning production using the Multi-
purpose Production and Yield Worksheet. In the example the T-
2014 3,000 50.0 A60 Yield for NI NFAC remained unchanged at 50 and the T-Yield
T-YLD 50 APH 47 for NI FAC is 30.

MULTI-PURPOSE PRODUCTION AND YIELD WORKSHEET

1 2 3 4 5 6
CROP YEAR YIELD
PRACTICE ACRES T-YIELD FACTOR YIELD
EXTENSION
NFAC 52 50 2,600 46
2013 0.92
FAC 40 30 1,200 28
NFAC 30 50 1,500 72
2014 1.43
FAC 20 30 600 43
NFAC 50 50 2,500 63
2015 1.26
FAC 35 30 1,050 38

Insured did not keep 2015 production separate according to new actuarial structure and used
the Multi-purpose Production and Yield Worksheet to separate 2015 production. For this
example, the insured planted 50 acres NI NFAC and 35 acres NI FAC with total production of
4,480.

June 2015 FCIC 18180 620

 Exhibit 15

M. …Dividing APH Databases by Apportioning Commingled Production (Continued)

FOR EXAMPLE: CROP YEAR 2013 CALCULATIONS

COLUMN
– Practice
1
COLUMN
– Transitional Yield for the applicable practice (NI NFAC 50 and NI FAC 30)
2
COLUMN
– Planted acres for the applicable practice (NI NFAC 52 and NI FAC 40
3
COLUMN
– Yield Extension is Col. 2 x Col. 3 (NI NFAC 50 x 52 = 2600 NI FAC 30 x 40 = 1200)
4
Factor (total
COLUMN (total yield extensions in
– commingled ÷ (3,500 ÷ 3,800) = 0.92*
5 Col. 4)
production)
COLUMN
– Yield is Col. 3 x Col. 5. (NI NFAC – 50 x 0.92 = 46 NI FAC – 30 x 0.92 = 28)
6
*Values rounded to nearest hundredth

June 2015 FCIC 18180 621

 Exhibit 15

M. …Dividing APH Databases by Apportioning Commingled Production (Continued)

SOYBEANS – 003 NI
2015 UNIT 0001-0000BU The yield by practice from Col. 6 on Multi-purpose
YEAR PROD ACRES YIELD Production and Yield Worksheet is used to create
two separate databases (NI NFAC and NI FAC)
2011 N45
according to the new actuarial structure.
2012 N45
Since the insured has three actual yields, 100
2013 3500 92.0 A38
percent of the applicable T-Yield is used to provide
2014 3000 50.0 A60 the fourth yield.
T-YLD 50 APH 47

SOYBEANS – 053 NI NFAC

2016 UNIT 0001-0000BU This example used the same original database as
YEAR PROD ACRES YIELD example 1 in the previous certification/re-
certification section. Since the production was
2012 T50 apportioned according to practice the APH by
2013 2392 52.0 A46 practice is different.
2014 2160 30.0 A72
The APH for NI NFAC changed from 54 to 58
2015 3150 50.0 A63 and the APH for NI FAC changed from 40 to 35.
T-YLD 50 APH 58 Note that the total production after apportioning
the production may not equal the total
commingled production due to rounding.
SOYBEANS – 043 NI FAC
2016 UNIT 0001-0000BU
YEAR PROD ACRES YIELD
2012 T30
2013 1120 40.0 A28
2014 860 20.0 A43
2015 1330 35.0 A38
T-YLD 30 APH 35

June 2015 FCIC 18180 622

 Exhibit 15

M. …Dividing APH Databases by Apportioning Commingled Production (Continued)

Scenario 2: Apportion production - Insured has records of acreage by practice and total
production, but does not have production records by practice.

SOYBEANS – 003 NI In this example the insured has

2015 UNIT 0001-0000BU
two years of actual yields and 90
YEAR PROD ACRES YIELD percent of the applicable T-Yield
2011 E40 is used.

2012 E40
2013 E40
2014 3000 50.0 A60
T-YLD 50 APH 45

SOYBEANS – 043 NI FAC SOYBEANS – 053 NI NFAC

2016 UNIT 0001-0000BU 2016 UNIT 0001-0000BU
YEAR PROD ACRES YIELD YEAR PROD. ACRES YIELD
2012 N27 2012 N45
2013 N27 2013 N45
2014 860 20.0 A43 2014 2160 30.0 A72
2015 1330 35.0 A38 2015 3150 50.0 A63
T-YLD 30 APH 34 T-YLD 50 APH 56

MULTI-PURPOSE PRODUCTION AND YIELD WORKSHEET

COL. 1 COL. 2 COL. 3 COL. 4 COL. 5 COL. 6
CROP YEAR PRACTICE ACRES T-YIELD YIELD EXTENSION FACTOR YIELD
NFAC 30.0 50 1500 72
2014 1.43
FAC 20.0 30 600 43
NFAC 50.0 50 2500 63
2015 1.26
FAC 35.0 30 1050 38

June 2015 FCIC 18180 623

 Exhibit 15

M. …Dividing APH Databases by Apportioning Commingled Production (Continued)

Scenario 3: Apportion production - Insured has records of acreage by practice and total
production, but does not have production records by practice.

SOYBEANS – 003 NI
2015 In this example the insured has three years
UNIT 0001-0000BU
of actual yields and 100 percent of the
YEAR PROD ACRES YIELD applicable T-Yield is used.
2010 N45
In this example the insured did not have any
2011 N45
soybeans planted on this unit in 2013, and in
2012 4400 80.0 A55 2014 all the soybeans planted were NI
NFAC.
2013 0.0 Z
2014 3000 50.0 A60
T-YLD 50 APH 51

SOYBEANS – 053 NI NFAC SOYBEANS – 043 NI FAC

2016 2016
UNIT 0001-0000BU UNIT 0001-0000BU
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD

2011 T50 2010 T30

2011 T30
2012 3,660 60.0 A61
2012 740 20.0 A37
2013 0.0 Z
2013 0.0 Z
2014 3,000 50.0 A60
2014 0.0 Z
2015 3,150 50.0 A63 2015 1,330 35.0 A38 Exception: On any
T-YLD 50 APH 59 T-YLD 30 APH 34 unit for any year, if
only one P/T/TMA
was planted on the
MULTI-PURPOSE PRODUCTION AND YIELD WORKSHEET unit, that unit’s
CROP 1 2 3 4 5 6 actual acres and
YEAR PRACTICE ACRES T-YIELD YIELD EXTENSION FACTOR YIELD production may be
NFAC 60.0 50 3.000 61 re-certified without
2012 1.22
FAC 20.0 30 600 37 regard to instructions
NFAC 50.0 50 2,500 63 for apportioning or
2015 1.26 attributing the
FAC 35.0 30 1,050 38
acreage and
production for other
units for that year.

June 2015 FCIC 18180 624

 Exhibit 15

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

The following example illustrates how to divide a non-irrigated (NI) database containing NI
NFAC and NI FAC into two separate databases when acres and production are attributed.

Scenario 1: Attribute acres and production - insured does not have separate records of acres by
practice. Insured knows total production, but does not have records for acres
planted to each practice.

SOYBEANS – 003 NI When acres and production have to be attributed, all the acres
2015 UNIT 0001-0000BU and production are charged to the practice with the higher T-
YEAR PROD ACRES YIELD Yield. In this example all acres and production in the NI – 003
database is charged to the new NI NFAC - 053 database.
2011 N45
2012 N45 The NI FAC database - 043 is established using the percentage
2013 3,500 92.0 A38 relationship between the T-Yield for the NI FAC practice and
the T-Yield for the NI NFAC practice. The resulting
2014 3,000 50.0 A60 relationship is used as a percentage of the NI NFAC approved
T-YLD 50 APH 47 APH yield to calculate the Determined Yield (F) for the FAC
database.

SOYBEANS – 053 NI NFAC For this example the T-Yield for the NI NFAC practice is 45
2016 UNIT 0001-0000BU and the T-Yield for the NI FAC practice is 30. The insured
YEAR PROD ACRES YIELD certified 2015 production according to new actuarial structure
2012 T50 and was unable to apportion 2014 production.

2013 3,500 92.0 A38 The Determined Yield is calculated by dividing the T-Yield of
2014 3,000 50.0 A60 the lower practice by the T-Yield of the higher practice and
multiplying the result by the approved APH yield of the higher
2015 2,800 50.0 A56
practice. The determined yield cannot exceed the lower of the
T-YLD 50 APH 51 lower of the T-Yield or determined yield.

SOYBEANS – 043 NI FAC

e.g., NI NFAC T-Yield = 50, NI FAC T-Yield = 30, and NI
2016 UNIT 0001-0000BU NFAC APH yield = 47. Therefore, 30 ÷ 50 = 0.60 and the NI
YEAR PROD ACRES YIELD NFAC approved APH yield of 51 x 0.6 = 31.

2012 F30
2013 F30
2014 F30
2015 1,680 35.0 A48
T-YLD 30 APH 33

June 2015 FCIC 18180 625

 Exhibit 15

O. Yield Determinations-Dividing APH Databases Using All 3 Methods

The following example illustrates how to divide a non-irrigated (NI) database containing NI
Following Another Crop (FAC) and NI Not Following Another Crop (NFAC) into two separate
databases by practice (NI NFAC and NI FAC) using all three methods to separate prior
production and acreage history.

SOYBEANS – 003 NI SOYBEANS – 053 NI NFAC SOYBEANS – 043 NI FAC

2015 2016 2016
UNIT 0001-0000BU UNIT 0001-0000BU UNIT 0001-0000BU
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2006 5,630 92.0 A61 2006 0.0 Z
2006 5,630 92.0 A61
2007 2,450 38.0 A64 2007 0.0 Z
2007 2,450 38.0 A64
2008 1,600 46.0 A35 2008 0.0 Z
2008 1,600 46.0 A35
2009 1,920 40.0 A48 2009 594 18.0 A33
2009 2,500 58.0 A43
2010 234 18.0 A13 2010 513 57.0 A9
2010 750 75.0 A10
2011 6,500 110.0 A59 2011 0.0 Z
2011 6,500 110.0 A59
2012 3,835 65.0 A59 2012 615 15.0 A41
2012 4,400 80.0 A55
2013 0.0 Z 2013 0.0 Z
2013 0.0 Z 2014 1,400 26.0 A54
2014 1,600 24.0 A67
2014 3,000 50.0 A60 2015 1,680 35.0 A48
2015 2,800 50.0 A56
T-YLD 50 APH 48 T-YLD 50 APH 52 T-YLD 35 APH 37

MULTI-PURPOSE PRODUCTION AND YIELD WORKSHEET

CROP 1 2 3 4 5 6
YEAR PRACTICE ACRES T-YIELD YIELD EXTENSION FACTOR YIELD
NFAC 40.0 50 2,000 48
2009 0.95
FAC 18.0 35 630 33
NFAC 18.0 50 900 13
2010 0.26
FAC 57.0 35 1,995 9
NFAC 65.0 50 3,250 59
2012 1.17
FAC 15.0 35 525 41

June 2015 FCIC 18180 626

 Exhibit 15

O. Yield Determinations-Dividing APH Databases Using All 3 Methods …(Continued)

(1) The insured must separate all prior production and acreage history according to the new
actuarial structure using one of the three following methods: production records
certified/re-certified, production apportioned, or acres and production attributed in the order
listed.

Only one of the three methods below may be elected within a crop year for the crop/county
and the selected method applies across all units by P/T/V/TMA for that crop year.
Exception: On any unit for any year, if only one P/T/V/TMA was planted on the unit, that
unit’s actual acres and production may be re-certified without regard to instructions for
apportioning or attributing the acreage and production for other units for that year.

(2) The insured had records of acreage and production by practice for crop years 2014 and
2015. The production and acres for crop year 2011 was also certified/re-certified, because
the insured did not have any FAC soybeans planted on that unit in 2011.

(3) The insured has records of acreage by practice and total production, but does not know the
amount of production by practice for crop years 2009, 2010, and 2012.

(4) For crop years 2006-2008 the insured does not have separate records of acres by practice.
Insured knows total production, but does not know how many acres were planted to each
practice.

The production for crop years 2006-2008 are attributed to the NI NFAC database. Since the
NI FAC database already contains at least four actual/assigned yields, the NI FAC APH is
calculated using those yields. If the NI FAC database did not contain four actual/assigned
yields, then the Determined Yield (F) would be entered to provide four yields.

June 2015 FCIC 18180 627

 Exhibit 15

P. Yield Determinations-Dividing an Added Land APH Database

(1) This example illustrates how to divide a database with added land according to the new
actuarial structure (NI NFAC and NI FAC). The insured had the following OUs 0001-
0001OU, 0001-0002OU, and 0001-0003OU. Unit 0001-0003OU is an added land unit
(added in 2014).

Soybeans – 003 NI Soybeans – 003 NI Soybeans – 003 NI

2015 2015 2015
UNIT 0001-0001OU UNIT 0001-0002OU UNIT 0001-0003OU
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD

2011 4210 84.0 A50 2011 1410 33.0 A43 2011 L51

2012 3220 70.0 A46 2012 2744 56.0 A49 2012 L51

2013 3000 50.0 A60 2013 3276 63.0 A52 2013 L51

2014 5200 100.0 A52 2014 3976 71.0 A56 2014 7625 125.0 A61

T-YIELD 50 APH 52 T-YIELD 50 APH 50 T-YIELD 50 APH 54

(2) To establish unit 0001-0003OU according to the new actuarial structure, a new SA T-Yield
must be calculated for NI NFAC and NI FAC. The first step is to establish APH databases
according to the new actuarial structure.

For this example, the insured certified/re-certified all prior production and acres to establish
the NI NFAC and NI FAC APH databases for units 0001-0001OU, 0001-0002OU, and
0001-0003OU. If an APH database contains SA T-Yields, the applicable T-Yield will
replace the SA T-Yields before calculating the approved APH yield.

June 2015 FCIC 18180 628

 Exhibit 15

P. Yield Determinations-Dividing an Added Land APH Database (Continued)

SOYBEANS – 053 NI FAC SOYBEANS - 043 NI FAC

SOYBEANS – 003 NI 2016 2016
2015 UNIT 0001-0001OU UNIT 0001-0001OU
UNIT 0001-0001OU
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
YEAR PROD ACRES YIELD
2011 3472 62.0 A56 2011 738 22.0 A34
2011 4210 84.0 A50 2012 2912 56.0 A52 2012 308 14.0 A22
2012 3220 70.0 A46 2013 2640 40.0 A66 2013 360 10.0 A36
2013 3000 50.0 A60 2014 3965 65.0 A61 2014 1235 35.0 A35
2015 3150 50.0 A63 2015 1323 35.0 A38
2014 5200 100.0 A52
T-YIELD 50 APH 60 T-YIELD 30 APH 33
T-YIELD 50 APH 52

SOYBEANS - 043
SOYBEANS – 003 NI SOYBEANS – 053
2015 2016 NI FAC
UNIT 0001-0002OU 2016 NI NFAC
UNIT 0001-0002OU UNIT 0001-0002OU

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD

YEAR PROD ACRES YIELD
2011 1410 33.0 A43 2011 470 13.0 A36
2011 940 20.0 A47
2012 2744 56.0 A49 2012 502 18.0 A28
2012 2242 38.0 A59
2013 882 21.0 A42
2013 3276 63.0 A52 2013 2394 42.0 A52
2014 1434 30.0 A48
2014 3976 71.0 A56 2014 2542 41.0 A62
2015 1680 35.0 A48
T-YIELD 50 APH 50 2015 2800 50.0 A56
T-YIELD 30 APH 40
T-YIELD 50 APH 55

June 2015 FCIC 18180 629

 Exhibit 15

P. Yield Determinations-Dividing an Added Land APH Database (Continued)

(3) If SA T-Yields were applicable in the prior year and there are less than four years of actual
and assigned yields for the APH database, recalculate the SA T-Yields according to the new
actuarial structure using the simple average of approved yields for all APH databases by
P/T/TMA and enter the recalculated SA T-Yield in the yield column of the APH database
to establish a 4-year database.

SOYBEANS – 003 NI SOYBEANS – 053 NI FAC

2015 2016 SOYBEANS - 043 NI FAC
UNIT 0001-0003OU UNIT 0001-0003OU 2016
UNIT 0001-0003OU
YEAR PROD. ACRES YIELD YEAR YEAR ACRES YIELD PROD. ACRES YIELD
2011 L51 2012 T50 2012 T30
2012 L51 2013 T50 2013 T30
2013 L51 2014 6110 94.0 A65 2014 1515 31.0 A49
2014 7625 125.0 A61 2015 3000 50.0 A60 2015 3500 92.0 A38

T-YIELD 50 APH 54 T-YIELD 50 APH 56 T-YIELD 30 APH 37

Calculation of New SA T-Yields by practice for Unit 0001-0003OU

The SA T-Yield for the NI NFAC practice is

calculated by averaging the approved NI NFAC SOYBEANS – 053 NI NFAC
2016
APH yield of units 0001-0001OU, 0001- UNIT 0001-0003OU
0002OU, and 0001-0003OU. YEAR PROD. ACRES YIELD

NI NFAC 2012 L57

UNIT
APH
0001-0001OU 60
2013 L57
0001-0002OU 55
0001-0003OU 56
2014 6110 94.0 A65

NI NFAC SA T-Yield Calculation for Unit

2015 3000 50.0 A60
0001-0003OU
T-YIELD 50 APH 60
(60 + 55 + 56) ÷ 3 = 57

June 2015 FCIC 18180 630

 Exhibit 15

P. Yield Determinations-Dividing an Added Land APH Database (Continued)

Calculation of New SA T-Yields by practice for Unit 0001-0003OU Cont’d

The SA T-Yield for the NI FAC practice is SOYBEANS – 053 NI NFAC

2016
calculated by averaging the approved NI FAC APH UNIT 0001-0003OU
yield of units 0001-0001OU, 0001-0002OU, and YEAR PROD. ACRES YIELD
0001-0003OU.
2012 L37
NI FAC
UNIT
APH
2013 L37
0001-0001OU 33
0001-0002OU 40
2014 1515 31.0 A49
0001-0003OU 37

2015 3500 92.0 A38

NI NFAC SA T-Yield Calculation for Unit 0001-
0004OU
T-YIELD 30 APH 40
(33 + 40 + 37) ÷ 3 = 37

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

Scenario: RMA divides the existing barley (Type 997) into five types: all others (872), malting
(873), waxy hulled (874), waxy hulless (875), and hulless (876). Historically, the
insured has produced three non-irrigated types of barley: all others, malting, and
hulless. Therefore, the insured must separate prior year’s history in the barley APH
database to reflect the new type structure in the actuarial documents.

2015 APH Database (original APH database)

2015 CROP: BARLEY (0091)
UNIT # PRACTICE: NI (003)
0001-0001OU TYPE: NO TYPE SPECIFIED (997)
YEAR PRODUCTION ACRES YIELD
2005 7200 120 A 60
2006 6000 150 A 40
2007 5435 140 A 39
2008 9000 150 A 60
2009 3108 42 A 74
2010 5270 85 A 62
2011 2066 30 A 69
2012 404 117 A 3
2013 966 10 A 97
2014 4940 76 A 65
569/10
T-YIELD 45 APPROVED APH 57

June 2015 FCIC 18180 631

 Exhibit 15

Q. Dividing an APH Database … into More than Two Types (Continued)

For APH crop years 2011-2014, the insured has separate production records of the three types of
barley and will be able to re-certify the barley production by type.

Note: 2012 was a loss year and the loss records must be used in re-certification process). In
the years 2008-2010 the insured does not have separate production records for the three
types of barley, but the insured has the acreage of the three types of barley grown.

For those years, the insured will apportion the barley production by using the Multi-Purpose
Production and Yield Worksheet see Para. 1715 and Exhibit 17. For years 2006-2007, the
insured does not have separate production records or acreage records. For those years, the
insured will attribute the barley production to the type that normally has the highest yield (i.e.,
highest T-Yield or if T-Yields are the same, the highest yielding type designated by RMA). The
steps used to separate prior year’s history in the barley APH database are illustrated in (1), (2),
and (3) below.

(1) Recertification: For APH crop years 2011-2014, the insured has separate production
records for the three types of barley and will be able to re-certify the barley production by
type.

Note: 2012 was a loss year and the loss records must be used in re-certification process.

Para. 1523 provides instructions to re-certify production. Remarks concerning these steps
are provided below:

STEP ACTION
Add the production from the acceptable production report filed for the current
1 crop year (enter the assigned yield if carryover insureds acceptable production
reports are not filed).
Enter the certified/re-certified production, acres, actual yields, and assigned yields
2 (for carryover insureds) into the resulting APH databases for crop year 2011-
2015.
Would not apply because other production history is available that could be
apportioned or attributed. Also, Simple Average T – Yields (SA T-Yields) were
3 not applicable in the prior year in this example. If they were, and there were less
than four years of actual and assigned yields for the database, SA T-Yields would
be recalculated and used to establish a 4-year APH database.

4 Will not apply as there is remaining production to be separated.

June 2015 FCIC 18180 632

 Exhibit 15

Q. Dividing an APH Database … into More than Two Types (Continued)

After Re-Certification

2016 CROP: BARLEY (0091) 2016 CROP: BARLEY (0091) 2016 CROP: BARLEY (0091)
UNIT # PRACTICE: NI (003) UNIT # PRACTICE: NI (003) UNIT # PRACTICE: NI (003)
0001- 0001- 0001-
0001OU TYPE: ALL OTHERS (872) 0001OU TYPE: MALTING (873) 0001OU TYPE: HULLESS (876)

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2011 0 0 Z 2011 2066 30 A 69 2011 0 0 Z
2012 404 105 A4 2012 0 0 Z 2012 0 12 A0
2013 0 0 Z 2013 966 10 A 97 2013 0 0 Z
2014 2720 40 A 68 2014 2220 36 A 62 2014 0 0 Z
2015 5520 80 A 69 2015 2090 35 A 60 2015 1134 14.8 A 77
T-YIELD T-YIELD T-YIELD
45 45 35

(2) Apportionment: Para. 1523 provides instructions to apportion production, requiring the use
of the Multi-Purpose Production and Yield Worksheet. See Exh.17. Remarks concerning
these steps are provided below. In this example, production for years 2011-2014 have been
re-certified and the insured only has the acreage by type for years 2008-2010, therefore
production will be apportioned by type.

STEP ACTION
1 Was completed prior to re-certification of production for years 2011-2014.
Enter the acres, apportioned production and yields, and assigned yields (for
2 carryover insureds) in the database. See the completed Multi-Purpose
Production and Yield Worksheet.
Would not apply at this point because other production history is available
3 that could be attributed. Additionally, the insured has more than 4-years of
production history.
4 Will not apply as there is remaining production to be separated.

COLUMN 1 – Type
COLUMN 2 – Planted Acres
COLUMN 3 – Transitional Yield
COLUMN 4 – Yield Extension (Col. 2 x Col. 3)
COLUMN 5 – Factor (total commingled production ÷ total yield extensions in Col. 4)
COLUMN 6 – Yield (Col. 3 x Col. 5)

June 2015 FCIC 18180 633

 Exhibit 15

Q. Dividing an APH Database … into More than Two Types (Continued)

Multi-Purpose Production and Yield Worksheet

COL.1 COL. 2 COL. 3 COL. 4 COL. 5 COL. 6
CROP PLANTED YIELD
TYPE TRANSITIONAL YIELD FACTOR YIELD
YEAR ACRES EXTENSION
2008 ALL OTHERS 50 45 2250 1.44 65
2008 MALTING 50 45 2250 1.44 65
2008 HULLESS 50 35 1750 1.44 50
2009 ALL OTHERS 30 45 74
2009* MALTING 12 45 74
*
2009 HULLESS 0 35 0
2010 ALL OTHERS 30 45 1350 1.47 66
2010 MALTING 30 45 1350 1.47 66
2010 HULLESS 25 35 875 1.47 51

After Re-certification and Apportionment

CROP: BARLEY
2016 2016 CROP: BARLEY (0091) 2016 CROP: BARLEY (0091)
(0091)
UNIT # PRACTICE: NI (003) UNIT # PRACTICE: NI (003) UNIT # PRACTICE: NI (003)
0001- TYPE: ALL OTHERS 0001- 0001-
0001OU TYPE: MALTING (873) TYPE: HULLESS (876)
0001OU (872) 0001OU

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD

2008 3250 50 A 65 2008 3250 50 A 65 2008 2500 50 A 50

2009 2220 30 PA 74 2009 888 12 PA 74 2009 0 0 Z
2010 1980 30 A 66 2010 1980 30 A 66 2010 1275 25 A 51
2011 0 0 Z 2011 2066 30 A 69 2011 0 0 Z
2012 404 105 A4 2012 0 0 Z 2012 0 12 A 0
2013 0 0 Z 2013 966 10 A 97 2013 0 0 Z
2014 2720 40 A 68 2014 2220 36 A 62 2014 0 0 Z
2015 5520 80 A 69 2015 2090 35 A 60 2015 1134 14.8 A 77
T-YIELD T-YIELD T-YIELD
45 45 35

For 2009, the production is prorated to the planted acres of each applicable type since all of the barley
production was from types with the same T-Yield see Para. 1523. When production is prorated, the
yield is identified by the yield descriptor PA (Example PA74).
June 2015 FCIC 18180 634
 Exhibit 15

Q. Dividing an APH Database … into More than Two Types (Continued)

(3) Attribution: Para. 1523 provides instructions to attribute production to the type with the
highest T-Yield or if the T-Yields are the same, to the highest yielding type designated by
RMA. In this example, production for years 2011-2014 has been re-certified and
production for years 2008-2010 has been apportioned by type.

Therefore, production for years 2006-2007 must be attributed to the highest yielding type.
For this example, RMA has designated the all others type as the highest yielding type. For
years 2006-2007; the insured only planted these types, the all others (872) and hulless
(876). Remarks concerning these steps are provided below:

(a) For the higher yielding type:

STEP ACTION
1 Was completed prior to re-certification of production for years 2011-2014.
2 Enter the production, acres, actual yields and assigned yields in the APH database.
3 Would not apply because insured has more than 4-years of production history.
Calculate the approved APH yield according to applicable Category B procedure for the
4
higher yielding type. Cups will not apply because original APH database was divided.

(b) For the lower yielding type(s):

STEP ACTION
1 Was completed prior to re-certification of production for years 2011-2014.
2 Divide the lower yielding type(s) T-Yield for each type by the highest yielding type T-
Yield to calculate a percentage factor. A percentage factor would need to be calculated
for each lower yielding type, if the lower yielding type(s) were produced in prior years.
For example, hulless T-Yield of 35 (lower yielding) divided by the all others T-Yield of
45 (highest yielding type):

35/45= .78 (rounded to two places) or 78 percent.

3 Apply the percentage factor calculated in Step 2 to the approved yield for the highest
yielding type to calculate the Determined Yield for the lower yielding type. A
Determined Yield would need to be calculated for each lower yielding type, if the lower
yielding types were produced in prior years. For example, the insured’s approved APH
yield for the all others type is 53.

Although the Determined Yield for hulless (41 = 53 x .78) is higher than the T-Yield
(35), an APH database cannot be updated with a Determined Yield greater than the T-
Yield. In this case, the APH database is updated with the T-Yield and identified with the
F yield descriptor. If the calculated Determined Yield is equal to or less than the T-
Yield, the APH database is updated with the Determined Yield and identified with the F
yield descriptor.
4 Calculate the approved APH yield following the applicable Category B procedure.

June 2015 FCIC 18180 635

 Exhibit 15

Q. Dividing an APH Database … into More than Two Types (Continued)

After Re-certification, Apportionment, and Attribution

2016 Crop: Barley (0091) 2016 Crop: Barley (0091) 2016 Crop: Barley (0091)
UNIT # Practice: NI (003) UNIT # Practice: NI (003) UNIT # Practice: NI (003)
0001- Type: All others 0001- 0001-
Type: Malting (873) Type: Hulless (876)
0001OU (872) 0001OU 0001OU
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2006 6000 150 A40 2006 0 0 Z 2006 0 0 Z
2007 5435 140 A39 2007 0 0 Z 2007 0 0 Z
2008 3240 50 A65 2008 3240 50 A65 2008 2520 50 A50
2009 2220 30 PA74 2009 888 12 PA74 2009 0 0 Z
2010 1980 30 A66 2010 1980 30 A66 2010 1275 25 A51
2011 0 0 Z 2011 2066 30 A69 2011 0 0 Z
2012 404 105 A4 2012 0 0 Z 2012 0 12 A0
2013 0 0 Z 2013 966 10 A97 2013 0 0 Z
2014 2720 40 A68 2014 2220 36 A62 2014 0 0 Z
2015 5520 80 A69 2015 2090 35 A60 2015 1134 14.8 A77
425/8 493/7 178/4
Approved Approved Approved
T-YLD 45 53 T-YLD 45 70 T-YLD 35 45
APH APH APH

June 2015 FCIC 18180 636

 Exhibit 15

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

RMA divided one type (997) into five different types. The insured has only produced feed barley
on an APH database, which is considered an all other type (872). Therefore, only the type name
and code will be changing on the APH database, after the inclusion of the current year’s
production report, and cups would apply. Re-certification is not required.

Original APH Database Resulting APH Database

2015 CROP: BARLEY (0091) 2016 CROP: BARLEY (0091)

UNIT # PRACTICE: NI (003) UNIT # PRACTICE: NI (003)
0001- TYPE: NO TYPE SPECIFIED 0001-
TYPE: ALL OTHERS (872)
0001OU (997) 0001OU
YEAR PRODUCTION ACRES YIELD YEAR PRODUCTION ACRES YIELD
2009 7300 100 A 73 2009 7300 100 A 73
2010 10200 150 A 68 2010 10200 150 A 68
2011 12150 150 A 81 2011 12150 150 A 81
2012 2225 30 A 74 2012 2225 30 A 74
2013 7035 105 A 67 2013 7035 105 A 67
2014 2100 24.8 A 85 2014 2100 24.8 A 85
448/6 2015 938 134 A 7
T-YIELD
APPROVED APH 75 455/7
45
AVERAGE YIELD: 65
CUPPED YIELD: 67
T-YIELD
APPROVED APH: 67
45

June 2015 FCIC 18180 637

 Exhibit 15

S. Retaining 10 Crop Years of APH History

Example 1: In 2015, a carryover insured has actual yields for crop years 2005, 2006, 2008,
2009, 2010, 2011, 2013 and 2014. In crop years 2007 and 2012, the insured
crop was not planted on acreage contained in this APH database. In 2016, the
carryover insured reports an actual yield 90 bushel per acres for crop year 2015.
The base period for 2015 crop year is the 10 most recent APH crop years. APH
databases are limited to the 10 most recent APH crop years. When the 2015
actual yield is added to the APH database, the oldest Z yield is removed. The
carryover insured will have 9 actual yields in the 2016 APH database.

2015 APH DATABASE 2016 APH DATABASE

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2005 11250 150 A75 2005 11250 150 A75
2006 11100 150 A74 2006 10952 148 A74
2007 0 Z 2008 8450 130 A65
2008 8450 130 A65 2009 12150 150 A81
2009 12150 150 A81 2010 10005 145 A69
2010 10005 145 A69 2011 10950 150 A73
2011 10950 150 A73 2012 0 Z
2012 0 Z 2013 3750 150 A25
2013 3750 150 A25 2014 14250 150 A95
2014 14250 150 A95 2015 13320 148 A90
APPROVED APH 557/8 = 70 APPROVED APH 647/9 = 72

Example 2: A carryover insured who has provided actual yields for crop years 2005, 2006,
2008, 2009, 2010, 2011, 2013 and 2014. The base period for 2013 crop year is
the 10 most recent APH crop years. Zero acres planted were reported for crop
year 2007 and 2012. In 2016, the insured reported zero acres planted for crop
year 2015. The 2015 APH database is duplicated for the 2016 APH database
with the exception of the yield descriptor “Z” deleted for crop year 2007. The
carryover insured has 8 actual yields in the 2016 database.
2015 APH DATABASE 2016 APH DATABASE
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2005 11250 150 A75 2005 11250 150 A75
2006 11100 150 A74 2006 10952 148 A74
2007 0 Z 2008 8450 130 A65
2008 8450 130 A65 2009 12150 150 A81
2009 12150 150 A81 2010 10005 145 A69
2010 10005 145 A69 2011 10950 150 A73
2011 10950 150 A73 2012 0 Z
2012 0 Z 2013 3750 150 A25
2013 3750 150 A25 2014 14250 150 A95
2014 14250 150 A95 2015 0 Z
APPROVED APH 557/8 = 70 APPROVED APH 557/8 = 70

June 2015 FCIC 18180 638

 Exhibit 15

S. Retaining 10 Crop Years of APH History (Continued)

Example 3: A carryover insured who has previously provided actual yields for crop years
2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, and 2014. The base
period for the 2015 crop year is the most recent 10 APH crop years. In 2016, the
insured reports zero acres were planted in crop year 2015. The 2015 APH
database is duplicated for the 2016 APH database. The carryover insured has 10
actual yields in the 2016 database.

2015 APH DATABASE 2016 APH DATABASE

YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2005 11250 150 A75 2005 11250 150 A75
2006 11100 150 A74 2006 11100 150 A74
2007 12040 140 A86 2007 12040 140 A86
2008 8450 130 A65 2008 8450 130 A65
2009 12150 150 A81 2009 12150 150 A81
2010 10005 145 A69 2010 10005 145 A69
2011 10950 150 A73 2011 10950 150 A73
2012 12040 146 A64 2012 12040 146 A64
2013 3750 150 A25 2013 3750 150 A25
2014 14250 150 A95 2014 14250 150 A95
APPROVED APH 707/10 = 71 APPROVED APH 707/10 = 71

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

This example applies only to those crop P/Ts where the T-Yields are the same for both P/Ts and
a single APH database was established for both P/Ts (it does not apply when RMA divides a crop
P/T).

Insured has previously produced both oil and confectionary sunflowers on the same unit. The T-
Yields for both sunflower types were the same, thus both types could use the same APH
database. Beginning with the 2016 crop year, separate APH databases are required for each type,
regardless of whether the T-Yields are the same.

However, an exception to the rule that an APH database for a P/T may not be duplicated to
establish an APH database for another P/T is authorized to allow the single APH database for
both types to be duplicated to establish an APH database for each type. Production must be
reported and maintained separately for each type in subsequent years.

June 2015 FCIC 18180 639

 Exhibit 15

T. Dividing Previously Established APH Databases for P/Ts with the Same T-Yield (Cont.)

SUNFLOWERS (0078) UNIT:

2015
NI (003) 0001-0001
YEAR PRODUCTION ACRES YIELD
2009 127,342 113.8 A 1119
2010 122,235 145.0 A 843
2011 88,388 88.3 A 1001
2012 97,028 101.6 A 955
2013 92,403 85.4 A 1082
2014 112,500 100.0 A 1125
T-YIELD 950 APH 1021

Sunflowers (0078) Unit: Sunflowers (0078) Unit:

2016 2016
NI (003) OIL (048) 0001-0001 NI (003) CONFT (049) 0001-0001
Year Production Acres Yield Year Production Acres Yield
2009 127,342 113.8 DA1119 2009 127,342 113.8 DA1119
2010 122,235 145.0 DA843 2010 122,235 145.0 DA843
2011 88,388 88.3 DA1001 2011 88,388 88.3 DA1001
2012 97,028 101.6 DA955 2012 97,028 101.6 DA955
2013 92,403 85.4 DA1082 2013 92,403 85.4 DA1082
2014 112,500 100.0 DA1125 2014 112,500 100.0 DA1125
2015 74,481 61.0 A1221 2015 53,708 45.4 A1183
T-YIELD 950 APH 1049 T-YIELD 950 APH 1044

June 2015 FCIC 18180 640

 Exhibit 15

U. Yield Indicators

Yield indicators are codes that are used to identify the approved APH yield. APH databases must
be identified with the applicable yield indicator see Appendix III.

(1) Yield indicators, if applicable, must be shown; otherwise, show 000. See the following
table for a list of yield indicators and the conditions when they are applicable.

Yield
WHEN APPLICABLE
Indicator
A For Category B crops, Added land using SA T-Yields
For Sugarcane and Tobacco (0236, Type 061 in CT and MA), added land using
AL
SA T-Yields
For Category B crops, Added land, using Variable T-Yields due to not being
B
eligible for use of SA T-Yield
For Sugarcane and Tobacco (0236, Type 061 in CT and MA), added land using
BL
variable T-Yields due to not being eligible for use of SA T-Yield
 For Category B crops, Added land using Variable T-Yields due to SA T-
C Yield lower than variable T-Yield; or
 Determined Irrigated Yield for added Irrigated Practice
For Sugarcane and Tobacco (0236, Type 061 in CT and MA), added land using
CL
variable T-Yields due to SA T-Yield being lower than variable T-Yield

For Category B Crops, used to identify APH databases containing acreage

CR
emerging from CRP

For Category B, C, and D crops used to identify APH Databases containing RO

F
Determined Yield. No cup or YA is applicable unless specified by the RO.
L For Sugar Cane Lag Year Planted
M Master Yield
For Category B crops, used to identify APH databases containing acreage planted
NB
the year after the initial year of new breaking
For annual crops, primarily Category B crops see Exhibit 17L for applicable
SB crops, used to identify APH databases containing native sod acreage during the
first four crop years of planting.
S Skip-row planting pattern for all skip-row crops, except Cotton and Corn
For Category C APH crops, when multiple blocks are reported as a unit or as one
block that has mixed age and/or density with production reported together.

When commingled production does not include immature acreage, yield

W
indicators may be eligible for YA or CUP see Para. 1856.

Note: When only one T-Yield is shown on the AD, T-Yield indicator “W” is not
reported.
June 2015 FCIC 18180 641
 Exhibit 15

U. Yield Indicators (Continued)

(2) Special case indicators are provided for specified situations that trigger: 1) RO Determined
Yield Requests, 2) adjustments by the AIP by formulas and/or 3) procedures provided in
RO UG or the CIH. YA or CUP will apply only when authorized by the RO.

Special Case
Yield WHEN APPLICABLE
Indicators
Higher yield than the average is approved for the block or unit. No YA or
H
CUP is applicable.

R Productivity is reduced. No YA or CUP is applicable.

Non-conventional farming practice is carried out. No YA or CUP is

N
applicable.
When a non-conventional farming practice is carried out and is determined
NS to be a sustainable practice. YA or CUP may be applicable if authorized by
the RO Determined Yield.

I Irrigation water supply is not adequate. No YA or CUP is applicable.

High variability of actual yields with adjustment made by the AIP according
AF
to the formula. No YA or CUP is applicable.
High variability of actual yields not adjusted by formula. No YA or CUP is
D
applicable.
High variability of actual yields with adjustment made by the AIP according
DF
to the formula. No YA or CUP is applicable.
High variability of actual yields when adjustment made by formula shown in
F
RO UG. No YA or CUP is applicable unless specified by the RO.

June 2015 FCIC 18180 642

 Exhibit 15

V. Yield Descriptors

Refer to Appendix III for the appropriate yield type descriptors and reporting instructions. Key:

1 Eligible for yield substitution.

Counts as a year of records for determining percent of T-Yield or Yield Floor, if
2
applicable.

Not eligible for yield substitution or counted as a year of records for percent of T-
N/A
Yield or Yield Floor determinations.

If insured elects yield adjustments, use applicable yield descriptor (AY, GY, VY, NA,
*
NV, NG, RY, NR) to indicate if yield should not be substituted.

(1) Actual Yield Descriptor

Applicable
Actual Yield
Condition(s) WHEN APPLICABLE
Descriptor
(1, 2 or N/A)
Actual yield (for conventional and sustainable practices),
A 1, 2
(Example: A120).
Conventional and sustainable practice actual yields less than 60
AY 2 percent of the T-Yield that do not qualify for yield substitutions,
(Example: AY20).
Actual yield transferred from another person under BFR
BF 1, 2
procedures.
G 1, 2 Actual Yield from transitional acreage, (Example: G110).
Actual yields from transitional acreage less than 60 percent of the
GY 2 T-Yield that do not qualify for yield substitutions, (Example:
GY50).
Conventional and sustainable practice actual yields less than 60%
of the T-Yield that qualify for yield adjustment and the insured did
NA 2
not elect the adjustment for a specific crop year(s), (Example:
NA30).
Actual yields from transitional acreage less than 60% of the T-
NG 2 Yield that qualify for yield adjustment and the insured did not elect
the adjustment for a specific crop year(s), (Example: NG39).
Certified organic actual yields less than 60% of the T-Yield that
NV 2 qualify for yield adjustment and the insured did not elect the
adjustment for a specific crop year(s), (Example: NV30).
V 1, 2 Actual Certified Organic Yield, (Example: V105).

Certified organic actual yields less than 60 percent of the T-Yield

VY 2
that do not qualify for yield substitutions, (Example: VY50).

June 2015 FCIC 18180 643

 Exhibit 15

V. Yield Descriptors (Continued)

(2) Prorated Yield Descriptor

Prorated Applicable
Yield Condition(s) WHEN APPLICABLE
Descriptor (1, 2 or N/A)
Conventional and sustainable practice actual yield developed from
PA* 1, 2
prorated (or apportioned) actual production (Example: PA75).
Actual yield from transitional acreage developed from prorated
PG* 1, 2
actual production (Example: PG75).
Certified organic actual yield developed from prorated actual
PV* 1, 2
production (Example: PV75).
Actual or Summarized Actual Yield taken from the previous year's
Master Yield Summary that was replicated to a new county's
PR* 1, 2
database that was developed from prorated actual
production(Example: PR75).
Conventional and sustainable practice actual yield developed from
DA* 1. 2 duplicated actual production, see Para. 1505 and Exhibit 15
(Example: DA75).

Actual yield from transitional acreage developed from duplicated

DG* 1, 2
actual production, see Para. 1505 and Exhibit 15 (Example: DG75).

Certified organic actual yield developed from duplicated actual

DV* 1, 2
production, see Sec. 16B(4) and Exh. 16E (Example: DV75).

(3) Assigned Yield Descriptor

Assigned Applicable
Yield Condition(s) WHEN APPLICABLE
Descriptor (1, 2 or N/A)

Pecan, assigned value using the lowest available dollar span shown on
B N/A
the actuarial documents (Example: B299).

P 2 Assigned yield, (Example: P75).

June 2015 FCIC 18180 644

 Exhibit 15

V. Yield Descriptors (Continued)

(4) PP Assigned Yield Descriptor

PP Assigned Applicable
Yield Condition(s) WHEN APPLICABLE
Descriptor (1, 2 or N/A)
A yield assigned when PP payments are limited to 35% of the PP
GP N/A coverage and the unit/P/T/V contains only PP acreage of the first
insured crop on transitional acreage (Example: GP60).
A yield assigned when PP payments are limited to 35% of the PP
PP N/A coverage and the unit/P/T/V contains only PP acreage of the first
insured crop (Example: PP60).
A yield assigned when PP payments are limited to 35% of the PP
VP N/A coverage and the unit/P/T/V contains only PP acreage of the first
insured certified organic crop (Example: VP60).

(5) Special Yield Descriptor

Special Applicable
Yield Condition(s) WHEN APPLICABLE
Descriptor (1, 2 or N/A)
A special yield entered in the database (Example: C105):
 .If the crop was grown prior to enrollment in CRP and acceptable
production records are not provided.
C N/A
 New databases for new crop/P/T/TMAs using SA T-Yields or using
variable T-Yields for forage production,
 For Determined Irrigated Yields
RMA RO Determined Yields.
 Used when less than four years of actual and/or assigned yields are
available for a database and the T-Yield is specifically assigned and
N/A
designated by the RMA RO, or high-risk T-Yields (also applicable to
(For all other
unrated land when high-risk T-Yields are assigned by written
crops)
F agreement) are used in the approved APH Yield calculation.
 For Texas Citrus Fruit, RMA RO appraised yields (when entered into
2 ( peanuts
the databases and used to calculate the approved APH yield) will be
and tobacco)
considered RMA RO Determined Yields.
 For peanuts and tobacco, classification yields used to establish
approved APH yields. (Example: F100).
OG N/A Organic determined yield, see Para. 1167A and B (Example: OG75).
Q 2 Used for short rated acreage, see Para. 1304F (Example: Q).
U N/A Uninsured acreage shown to prevent a break in continuity of records
UG 2 Unharvested acres insured under ARPI.
UR N/A Production report not provided under ARPI.
Z N/A Zero planted acreage.

June 2015 FCIC 18180 645

 Exhibit 15

V. Yield Descriptors (Continued)

(6) Weighted Average Yield Descriptor

Weighted Applicable
Average Yield Condition(s) WHEN APPLICABLE
Descriptor (1, 2 or N/A)
A weighted average yield assigned when PP payments are limited to 35%
GW 1, 2 of the PP coverage and the unit/P/T/V contains both PP acreage and
planted acreage of the first insured transitional crop, (Example: GW65).

A weighted average yield assigned when PP payments are limited to 35%

of the PP coverage and the unit/P/T/V contains both PP acreage and
NO 2 planted acreage of the first insured certified organic crop and is less than
60 % of the T-Yield that qualifies for yield adjustment and the insured did
not elect the adjustment for a specific crop year(s), (Example: NO75).

A weighted average yield assigned when PP payments are limited to 35%

of the PP coverage and the unit/P/T/V contains both PP acreage and
NU 2 planted acreage of the first insured transitional crop and is less than 60% of
the T-Yield that qualifies for yield adjustment and the insured did not elect
the adjustment for a specific crop year(s), (Example: NU65).
A weighted average yield assigned when PP payments are limited to 35%
of the PP coverage and the unit/P/T/V contains both PP acreage and
NW 2 planted acreage of the first insured crop and it is less than 60% of the T-
Yield that qualifies for yield adjustment and the insured did not elect the
adjustment for a specific crop year(s), (Example: NW60).
A weighted average yield assigned when PP payments are limited to 35%
of the PP coverage and the unit/P/T/V contains both PP acreage and
OY 2 planted acreage of the first insured certified organic crop and is less than
60% of the T-Yield but does not qualify for yield substitutions, (Example:
OY63).
A weighted average yield assigned when PP payments are limited to 35%
PW 1, 2 of the PP coverage and the unit/P/T/V contains both PP acreage and
planted acreage of the first insured crop, (Example: PW95).
A weighted average yield assigned when PP payments are limited to 35
percent of the PP coverage and the unit/P/T/V contains both PP acreage
UY 2
and planted acreage of the first insured transitional crop and is less than 60
percent of the T-Yield but does not qualify for yield substitutions.
A weighted average yield assigned when PP payments are limited to 35%
of the PP coverage and the unit/P/T/V contains both PP acreage and
VW 1, 2
planted acreage of the first insured certified organic crop, (Example:
VW95).
A weighted average yield assigned when PP payments are limited to 35%
of the PP coverage and the unit/P/T/V contains both PP acreage and
WY 2
planted acreage of the first insured crop and is less than 60% of the T-
Yield but does not qualify for yield substitutions, (Example: WY90).

June 2015 FCIC 18180 646

 Exhibit 15

V. Yield Descriptors (Continued)

(7) Reduced/Replaced Yield Descriptor

Reduced/
Applicable
Replaced
Condition(s) (1, WHEN APPLICABLE
Yield
2 or N/A)
Descriptor
For Category C APH crops, used to identify commingled production where
AC 2 separate acres are available to separate production using different T-Yields
by P/T/V/TMA or other characteristics.
Used to identify excessive yields that were replaced by the simple average
AX 1, 2 of all actual and assigned yields for the same crop year for the same
P/T/V/TMA or other characteristics (Example: AX100).
For Category C crops, used to identify 80% T-Yields used instead of actual
EX 2 yields. This descriptor takes precedence over any other applicable yield
descriptor. (Example: One actual/assigned yield = EX80).
For Category C APH crops, used to identify commingled production from
GC 2 transitional acreage where separate acres are available to separate
production using different T-Yields by P/T/V/TMA or other characteristics.
Used to identify excessive yields from transitional acreage that were
replaced by the simple average of all actual and assigned yields for the same
GX 1, 2
crop year for the same P/T/V/TMA or other characteristics (Example:
GX100).
For Category C crops, used to identify 100% T-Yield. This descriptor is
IX 2 used instead of actual yields and takes precedence over any other applicable
yield descriptor, (Example: Three actual/assigned yields = IX100).
For Category C crops, used to identify 90% T-Yield used instead of actual
NX 2 yields. This descriptor takes precedence over any other applicable yield
descriptor, (Example: Two actual/assigned yields = NX90).
For Category C crops, used to identify 65% T-Yields used instead of actual
yields for crops without production minimums. This descriptor takes
SX N/A
precedence over any other applicable yield descriptor. (Example: No
actual/assigned yields = SX65).
Used to identify excessive yields that were replaced by the applicable
county T-Yield, or lowest available dollar span for pecan revenue, if insured
TX 2
has no other applicable actual/assigned yields for the same crop year for the
same P/T/V/TMA or other characteristics (Example: TX100).
For Category C APH crops, used to identify commingled production from
VC 2 certified organic acreage where separate acres are available to separate
production using different T-Yields by P/T/V/TMA or other characteristics.
Used to identify certified organic excessive yields that were replaced by the
VX 1, 2 simple average of all actual and assigned yields for the same crop year for
the same P/T/V/TMA or other characteristics, (Example: VX100).

June 2015 FCIC 18180 647

 Exhibit 15

V. Yield Descriptors (Continued)

(8) Summed Yield Descriptor

Summed Applicable
Yield Condition(s) (1, WHEN APPLICABLE
Descriptor 2 or N/A)
Actual or Summarized Actual Yield taken from the previous year's
Master Yield Summary that was replicated to a new county's database
NR 2 less than 60% of the T-Yield that qualify for yield adjustment and the
insured did not elect the adjustment for a specific crop year(s),
(Example: NR100).
Actual or Summarized Actual Yield taken from the previous year's
R 1, 2
Master Yield Summary that was replicated to a new county's database.
Actual or Summarized Actual Yield taken from the previous year's
Master Yield Summary that was replicated to a new county's database
RY 2
to identify yields less than 60% of the T-Yield that do not qualify for
yield substitutions, (Example: RY100).

(9) T-Yield Descriptor

Applicable
T- Yield
Condition(s) (1, When Applicable
Descriptor
2 or N/A)
E N/A 80% T-Yield, (Example: One actual/assigned yield = E80).
For Category C crops, used to identify if adjusted for percent stand
EK N/A
prior to adjustment for 80% T-Yield, (Example: EK80).
Initial yield for new producer of the crop in the county, (Example:
I N/A
I100).
100% T-Yield or SA T-Yield, used to identify initial databases for
IL N/A added land for new producers, see Part 17 Section 9 for additional
instructions, (Example: IL100).
L N/A SA T-Yield for added land, (Example: L103).
N N/A 90% T-Yield, (Example: Two actual/assigned yields = N90).
For Category C crops, used to identify if adjusted for percent stand
NK N/A
prior to adjustment for 90% T-Yield, (Example: NK90).
S N/A 65% T-Yield, (Example: No actual/assigned yields = S65).
For Category C crops, used to identify if adjusted for percent stand,
SK N/A on crops without minimum production, prior to adjustment for 65%
T-Yield, (Example: SK65).
T N/A 100% T-Yield, (Example: Three actual/assigned yields =T100).
For Category C crops, used to identify if adjusted for percent stand
TK N/A
prior to adjustment for 100% T-Yield, (Example: TK100).
80% T-Yield, remaining for feed or forage APH databases qualified
X N/A
in a previous crop year (Example: No actual assigned yields =X80).

June 2015 FCIC 18180 648

 Exhibit 15

V. Yield Descriptors (Continued)

(10) Temporary Yield Descriptor

Temporary Applicable
Yield Condition(s) (1, WHEN APPLICABLE
Descriptor 2 or N/A)
J 2 Temporary Yield, (Example: J105).

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

Example 1: The following Corn example assumes a 100-bu. T-Yield through the 2016 crop year
for a carryover insured with two years of low actual yields.

(1) For 2015, the insured reported an actual yield of 53 bushels per acre for the 2014 crop year
due to hail damage. Yield substitution under the APH Yield Adjustment was not elected.
The approved APH yield was calculated by using the actual yield (53 bu.) and three 80
percent T-Yields

A53 + E80 + E80 + E80 = 293 ÷ 4 = 73

(2) For 2016, the insured reported an actual yield of zero bushels per acre for the previous
(2015) crop year. (The corn was flooded out.) Yield substitution under the APH Yield
Adjustment is elected. Yield determinations are as follows:

(a) To calculate the average APH yield, the zero actual yield is added to the previous
production data and two 90 percent T-Yields (90 bu.) are used to complete the 4-year
APH database.

A0 + A53 + N90 + N90 = 233 ÷ 4 = 58

(b) Sixty percent of the T-Yield is substituted for the two low actual yields and two 90
percent T-Yields are used to calculate the adjusted yield

YA60 +YA60 + N90 + N90 = 300 ÷ 4 = 75

(c) The 10 Percent Yield Limitation (Cup) is calculated by multiplying the previous
year's approved APH yield x .90. Normal rounding rules apply. See GSH Exh. 8 for
Rounding Rules.

73 x .90 = 66

(d) The insured has provided two years of records and is eligible for the 75 percent yield
floor.
100 bu. T-Yield x .75 = 75bu

June 2015 FCIC 18180 649

 Exhibit 15

W. APH Yield Limitations/Adjustments- Carryover Insured with Actual Yields (Continued)

(e) Approved APH Yield.

(i) For additional coverage policies, the cupped yield (66 bu.) and the yield floor
(75), and the APH Yield Adjustment (75) are compared. The insured may elect
to use the yield calculated using yield substitutions under the APH Yield
adjustment or the yield floor (75).

(ii) For CAT policies, the cupped yield (66 bu.), the average APH yield (58) and the
APH Yield Adjustment (75), if elected, are compared. The approved APH yield
selected by the insured is the cupped yield (66 bu.) unless yield substitutions
under the APH Yield Adjustment are elected.

(f) The premium rate is determined by:

(i) Using the average APH yield (58 bu.) when the approved APH yield is the yield
floor for added coverage level policies.

(ii) Using the cupped yield (66 bu.), and adding a five (5) percent surcharge when
the approved APH yield is the cupped yield for CAT polices.

(iii) Using the average APH yield (58 bu.), if the approved APH yield is calculated
using yield substitution(s) under the APH Yield Adjustment Election.

Example 2: The following Cotton example (solid-planted or irrigated skip-row cotton)

assumes a 400-lb T-Yield through the 2016 crop year, for a carryover insured with
five years of actual records which reflect three low actual yields.

(1) For crop year 2015, the insured reported actual yields of 600 lbs. (2011 crop year), 245
lbs. (2012 crop year), 0 lbs. (2013 crop year), and 300 lbs. (2014 crop year) per acre.

The average APH yield is 286.

A600 + A245 + A0 + A300 = 1145 ÷ 4 = 286

Yield substitutions under the APH Yield Adjustment election resulted in an approved
APH yield of 346.

A600 + A245 + 240/A0 + 300 = 1385 ÷ 4 = 346

(2) For crop year 2016, the insured reported an actual yield of 50 lbs. per acre for the previous
crop year (2015). (The cotton was damaged by drought.)

(a) Crop year 2016 average APH yield. The 50-lbs. actual yield was added to the
previous data and used to complete the APH database. The average APH yield is 239.

A600 + A245 + A0 + A300 + A50 = 1195 ÷ 5 = 239.

June 2015 FCIC 18180 650

 Exhibit 15

W. APH Yield Limitations/Adjustments- Carryover Insured with Actual Yields (Continued)

(b) 10 percent yield limitation (Cup), is not applicable since the previous year’s approved
APH yield was calculated using yield substitutions.

(c) Yield Floor. The insured has provided five years of records and is eligible for the 80
percent yield floor, if insured has an additional coverage level policy.

400-lb. T-Yield X .80 = 320 lb.

(d) APH Yield Adjustment (YA). Sixty percent of the T-Yield is substituted (if elected)
for the two low actual yields.

A600 + A245 + 240/A0 + A300 + 240/A50 = 1625 ÷ 5 = 325

(e) Approved APH Yield.

(i) For additional coverage level policies, the yield floor (320 lbs.) and the APH
average yield (239) are compared. The insured may elect to use the yield
calculated using yield substitutions under the APH Yield adjustment (325) or
cancel the yield substitution and use the yield floor (320).

(ii) For CAT policies, the average APH yield (239) and the yield calculated using
APH Yield Adjustments (325) are compared. The insured may elect to use the
yield calculated using yield substitutions (325).

(f) The rate yield is the average APH yield (239) for the yield floor, for additional
coverage level policies, and for yield substitutions, under the APH Yield Adjustment
Election.

(3) For Non-Irrigated Cotton planted to a qualifying skip-row pattern, the approved APH yield
is calculated on a solid-planted basis; however, the applicable yield conversion factor is
applied when determining the approved APH yields for qualifying skip-row patterns.

June 2015 FCIC 18180 651

 Exhibit 15

X. APH Yield Limitations/Adjustments- No Production Records Initially

Example 3: A new insured that has produced the insured crop did not provide any production
records. The insured is eligible for 65% of T-Yield.

RMA T-Yield is 100.

2011 S65
2012 S65
2013 S65
2014 S65
260/4 = 65

2015 Approved APH Yield is 65.

Yield limitations (Cups) do not apply until the insured provides an actual record or the
assigned yield provision is applied.

(1) The Carryover Insured Provided 2015 Production History

The insured reports the actual yield for the most recent crop year. It is used to calculate the
approved yield.

2012 E80
2013 E80
2014 E80
2015 A95
335/4 = 84

The average yield is 84; the 2016 crop year Approved APH Yield is 84.

(2) The Carryover Insured Provided Production Records for the 2014 and 2015 Crop Year

Cups do not apply because the insured provided more than the most recent crop year
production records.

2012 N90
2013 N90
2014 A40
2015 A95
315/4 = 79

The 2016 crop year Approved APH Yield is 79.

June 2015 FCIC 18180 652

 Exhibit 15

Y. APH Yield Limitations/Adjustments- Assigned Yield

Continuation of Example 3.

If the carryover insured did not provide any production records for the 2015 crop year, assigned
yield provisions apply.

2012 E80
2013 E80
2014 E80
2015 P49 (65 x 75%)
289/4 = 72

The 2016 crop year Approved APH yield is 72.

Z. Carryover Insured Provided a Production Report Applicable for the 2016 Crop Year

The prior year’s approved APH yield was 97 and was not a yield floor or calculated using yield
substitutions.

2011 A105
2012 A80
2013 A98
2014 A103
2015 A0
386/5 = 77

The average yield is 77; however, the 2016 crop year Yield is CUPPED AT 87 (97 x
90%).

June 2015 FCIC 18180 653

 Exhibit 15

AA. Yield Adjustment Examples

In this example, the 2005 and prior years’ RMA T-Yield was 97 bushels, the 2012 RMA T-Yield
is 105 bushels, the 2014 and 2015 RMA T-Yields are 110. The prior year’s APH yield was 117
bushels which was calculated using YA/yield substitutions. Insured has elected APH
YA/substitutions for crop years 2006, 2012, and 2015. Insured is eligible for APH Adjustment
for crop year 2014; however, the insured did not elect the adjustment for crop year 2014.

APH CALCULATION WITH

APH CALCULATION WITHOUT YA/SUBSTITUTIONS
YA/SUBSTITUTIONS
CROP PRACTICE TYPE UNIT CROP PRACTICE TYPE UNIT
CORN NI GR 00101 CORN NI GR 00101
YEAR PROD ACRES YIELD YEAR PROD ACRES YIELD
2005 0 90.0 A0 2005 5220 90.0 A0/58
2007 16000 100.0 A160 2007 16000 100.0 A160
2008 10850 70.0 A155 2008 10850 70.0 A155
2009 7700 55.0 A140 2009 7700 55.0 A140
2010 11375 65.0 A175 2010 11375 65.0 A175
2011 13178 125.5 A105 2011 13178 125.5 A105
2012 0 100.0 A0 2012 5800 100.0 A0/58
2013 6300 100.0 A63 2013 6300 100.0 A63
2014 3510 90.0 A39 2014 3510 90.0 NA39
2015 0 100.0 A0 2015 0 100.0 A0/66
TOTAL 837 TOTAL 1019

YIELD ADJ. AVG. YIELD ADJ.

METHOD: AVG. YIELD CUP METHOD CUP
FLOOR APH YIELD FLOOR APH
110X .8 = 101910
YIELD 837÷10= 84 NA NA YIELD 84 88 NA
88 =102
PREMIUM $9.27 $9.37 PREMIUM $11.61

In the example above, the average yield prior to yield adjustment is 84 bushels. After
YA/substitutions, the approved APH would be 102 bushels. If the insured chose not to apply
YA/substitutions, the approved APH yield would be 88 using the yield floor (cups do not apply
because the prior year’s APH was based on YA/substitutions.


60 percent of the 2005 T-Yield

60 percent of the 2012 T-Yield

2014 yield substitution not elected.

60 percent of the 2015 T-Yield
June 2015 FCIC 18180 654
 Exhibit 15

BB. Yield Exclusion Examples

(1) Example of YE Concept
Yield Exclusion
Selection Criteria
Year: 2015 Commodity: Cotton (0021) State: Xxxx (XX)
Data: Example Plan: Revenue Protection (02) County: Xxxx (XXX)
Types / Practices T/P 01 T/P 02 T/P 03 T/P 04
Type No Type Specified 997 No Type Specified 997 No Type Specified 997 No Type Specified 997
Practice Non-IRR 003 Non-IRR Skip Row 063 IRR 002 Organic(Certified) Non-
IRR 713
Yield Exclusions
LBS LBS LBS LBS

Eligible Yield Exclusion Years 2013 (P) 2013 (P) 2012 (P) 2013 (P)
2012 (P) 2012 (P) 2011 (P) 2012 (P)
2007 (C) 2007 (C) 2007 (C)
(P) indicates yield exclusion based on primary county.
(C) indicates yield exclusion based on contiguous county.
APH w/ All APH w/ All
60% of APH w/ APH w/All
Eligible for T- APH w/ eligible eligible yields
Year applicable T- APH YA and eligible yields
Exclusion Yield YA yields excluded, YA
Yield TA excluded and YA
excluded and TA
2005 No 126 76 628 628 684 628 628 684
2006 No 140 84 746 746 797 746 746 797
2007 Yes - by contiguous 164 98 231 231 276
2008 No 197 118 563 563 602 563 563 602
2009 No 197 118 430 430 464 430 430 464
2010 No 197 118 111 118 146 111 118 146
2011 No 197 118 531 531 554 531 531 554
2012 Yes - by county 197 118 0 118 135
2013 Yes - by county 197 118 35 118 129
2014 No 219 131 95 131 137 95 131 137
Approved APH Yield: 337 361 392 443 450 483

June 2015 FCIC 18180 655

 Exhibit 15

BB. Yield Exclusion Examples (Continued)

(2) Impact to Approved APH Yield when All Eligible Crop Years are Excluded, Including Those Above the T-Yield

APH w/ All
APH w/ All
eligible APH w/All
60% of APH w/ eligible yields
Eligible for T- APH w/ yields eligible yields
Year applicable T- APH YA and excluded except
Exclusion Yield YA excluded excluded except
Yield TA for 2006, YA and
except for for 2006 and YA
TA
2006
2007 Yes - by contiguous 140 84 746 746 797 746 746 797
2008 No 197 118 563 563 602 563 563 602
2009 No 197 118 430 430 464 430 430 464
2010 No 197 118 111 118 146 111 118 146
2011 No 197 118 531 531 554 531 531 554
2012 Yes - by county 197 118 0 118 135
2013 Yes - by county 197 118 35 118 129
2014 No 219 131 95 131 137 95 131 137
Approved Yield: 313 344 371 413 420 450

APH w/All APH w/ All

60% of APH w/ APH w/ All
Eligible for T- APH w/ eligible yields eligible yields
Year applicable T- APH YA and eligible yields
Exclusion Yield YA excluded and excluded, YA
Yield TA excluded
YA and TA
2007 Yes – by contiguous 140 84 746 746 797
2008 No 197 118 563 563 602 563 563 602
2009 No 197 118 430 430 464 430 430 464
2010 No 197 118 111 118 146 111 118 146
2011 No 197 118 531 531 554 531 531 554
2012 Yes – by county 197 118 0 118 135
2013 Yes – by county 197 118 35 118 129
2014 No 219 131 95 131 137 95 131 137
Approved Yield: 313 344 371 346 355 381

June 2015 FCIC 18180 656

 Exhibit 15

BB. Yield Exclusion Examples (Continued)

(3) Using the T-Yield to Complete an APH When Less Than 4 Years Are Left After Exclusion

Selection Criteria
Year: 2015 Commodity: Cotton (0021) State: Xxxx (XX)
Data: Example Plan: Revenue Protection (02) County: Xxxx (XXX)
Types / Practices T/P 01 T/P 02 T/P 03 T/P 04
Type No Type Specified 997 No Type Specified 997 No Type Specified 997 No Type Specified 997
Practice Non-IRR 003 Non-IRR Skip Row 063 IRR 002 Organic(Certified) Non-
IRR 713
Yield Exclusions
LBS LBS LBS LBS

Eligible Yield Exclusion Years 2013 (P) 2013 (P) 2012 (P) 2013 (P)
2012 (P) 2012 (P) 2011 (P) 2012 (P)
(P) indicates yield exclusion based on primary county.
(C) indicates yield exclusion based on contiguous county.

APH w/ All APH w/ All

60% of APH w/ APH w/All
Eligible for APH w/ eligible eligible yields
Year T-Yield applicable T- APH YA and eligible yields
Exclusion YA yields excluded, YA
Yield TA excluded and YA
excluded and TA*

2008 No 197 118 563 563 602 563 563 592

2010 No 197 118 111 118 139 111 118 139
2012 Yes - by county 197 118 0 118 130 T 219 T 219 T 219
2014 No 219 131 95 131 135 95 131 135
Approved
Yield: 192 233 252 247 258 271
*County Trend = 5.5
3 actuals in the last 12 = 0.75 of Trend
5.5 x 0.75 = 4.125

June 2015 FCIC 18180 657

 Exhibit 15

BB. Yield Exclusion Examples (Continued)

(4) Example - YE Only

Insured has produced soybeans in a single BU APH database since 2010. The county T-Yield is 30 bushels. For the 2015 crop year,
the insured elects YE. The year circled in the example actuarial documents below is the eligible year for YE. The 2013 crop year is
excludable and the insured chooses to exclude the actual yield in 2013.
Yield Exclusion
Selection Criteria
Year: 2015 Commodity: Soybeans (0081) State: Xxxx (XX)
Data: Example Plan: Revenue Protection (02) County: Xxxx (XXX)
Types / Practices T/P 01 T/P 02 T/P 03 T/P 04
Type No Type Specified 997 No Type Specified 997 No Type Specified 997 No Type Specified 997
Practice NFAC (Non-IRR) 053 FAC (Non-IRR) 043 NFAC (IRR) 094 I FAC (IRR) 095
Yield Exclusions
BU BU BU BU

Eligible Yield Exclusion Years 2013 (P) 2013 (P) 2013 (P) 2013 (P)

APH Database before YE Unit 0001-0000 BU APH database After YE

Soybeans NFAC NI Soybeans NFAC NI
2015 NTS (997) 2015 NTS (997)
(0081) (053) Excludable year(s): 2013 (0081) (053)
Unit # 0001-0000 BU Unit # 0001-0000 BU YE
Yld Excluded year(s): 2013 Yld
Yield Yield Opt
Year Prod Acres Desc Year Prod Acres Desc
Out
2010 2750 50 A 55 Approved Yield Calculation: 2010 2750 50 A 55
2011 4700 100 A 47 (61 + 42 + 47 + 55) / 4 = 51 2011 4700 100 A 47
2012 2100 50 A 42 2012 2100 50 A 42
2013 1200 100 A 12 Adjusted Yield Calculation: 2013 1200 100 A 12
2014 3050 50 A 61 (61 + 12 + 42 + 47 + 55) / 5 = 2014 3050 50 A 61
T-Yield = 30 Approved APH 43 43 T-Yield = 30 Approved APH 51
Average Yield 43 Adjusted Yield = Average Yield 43
43
Rate Yield 43 Rate Yield 43

June 2015 FCIC 18180 658

 Exhibit 15

BB. Yield Exclusion Examples (Continued)

(5) Example - Yield Exclusion Elected, Eligible Crop Years Not Excluded and Less Than 4 Years Remain after Exclusions
Insured has a single BU APH database for soybeans. The county T-Yield is 30 bushels. The years circled in the example actuarial
documents below are the eligible years for YE. For the 2015 crop year, the insured elects YE and chooses to exclude the 2012 crop
year actual yield and to not exclude 2013 crop year actual yield. In this example, the APH database will only have three actual yields
after the 2012 actual yield is excluded. The approved APH yield is calculated with the applicable T-Yield (100 percent of the county
T-Yield in this case) to complete the APH database because less than four actual yields are available after yield exclusion.
Yield Exclusion
Selection Criteria
Year: 2015 Commodity: Soybeans (0081) State: Xxxx (XX)
Data: Example Plan: Revenue Protection (02) County: Xxxx (XXX)
Types / Practices T/P 01 T/P 02 T/P 03 T/P 04
Type No Type Specified 997 No Type Specified 997 No Type Specified 997 No Type Specified 997
Practice NFAC (Non-IRR) 053 FAC (Non-IRR) 043 NFAC (IRR) 094 I FAC (IRR) 095
Yield Exclusions
BU BU BU BU

Eligible Yield Exclusion Years 2013 (P) 2013 (P) 2012 (P) 2012 (P)
2012 (P) 2012 (P)

APH database before YE Unit 0001-0000 BU APH database After YE

Soybeans NFAC NI Soybeans NFAC NI NTS (997)
2015 NTS (997) Excludable year(s): 2013, 2015 (0081) (053)
(0081) (053) Yld Limitation Flag 15
2012
Unit # 0001-0000 BU Yld Unit # 0001-0000 BU Yld YE Opt
Yield Yield
Year Prod Acres Desc Excluded year(s): 2012 Year Prod Acres Desc Out
2011 2640 80 A 33 2011 2640 80 A 33
2012 280 40 A 7 Approved Yield Calculation: 2012 280 40 A 7
2013 2880 80 A 36 (33 + 30T + 36 + 44) / 4 = 36 2013 2880 80 A 36 Y
2014 1760 40 A 44 2014 1760 40 A 44
T-Yield = 30 Approved APH 30 Adjusted Yield Calculation: T-Yield = 30 Approved APH 36
Average Yield 30 (33 + 7 + 36 + 44) / 4 = 30 Adjusted Yield = Average Yield 30
30
Rate Yield 30 Rate Yield 30

June 2015 FCIC 18180 659

 Exhibit 15

BB. Yield Exclusion Examples (Continued)

(6) Example - YE and YA Elected

The insured has elected YE for cotton in 2015 and has two OUs for non-irrigated cotton. In the example actuarial documents below,
the insured can exclude crop years 2013, 2011, and 2008. For OU 0001-0001, the insured has elected to exclude crop year 2008; not
exclude crop years 2013 and 2011; and to use yield substitutions for crop years 2006 and 2011. For OU 0001-0002, the insured elected
to not exclude any crop years, although 2013 was an eligible crop year, and did not plant any cotton in crop years 2011 and 2008.

Yield Exclusion
Selection Criteria
Year: 2015 Commodity: Cotton (0021) State: Xxxx (XX)
Data: Example Plan: Revenue Protection (02) County: Xxxx (XXX)
Types / Practices T/P 01 T/P 02 T/P 03 T/P 04
Type No Type Specified 997 No Type Specified 997 No Type Specified 997 No Type Specified 997
Practice Non-IRR 003 Non-IRR Skip Row 063 IRR 002 Organic(Certified) Non-
IRR 713
Yield Exclusions
LBS LBS LBS LBS

Eligible Yield Exclusion Years 2013 (P) 2013 (P) 2011 (P) 2013 (P)
2011 (P) 2011 (P) 2008 (P) 2011 (P)
2008 (P) 2008 (P) 2008 (P)

June 2015 FCIC 18180 660

 Exhibit 15

BB. Yield Exclusion Examples (Continued)

(6) Example - YE and YA Elected (continued)

2015 Cotton NI NTS 2015 Cotton NI NTS

(0021) (003) (997) (0021) (003) (997)
Yield limitation flag: 09 Yield limitation flag: 09
Unit # 0001-0001 OU Yield Unit # 0001-0001 OU Yield YE Opt
Yield Yield
Year Prod Acres Desc Year Prod Acres Desc Out
2005 15500 50 A 310 2005 15500 50 A 310
2006 39600 200 A 198 2006 39600 200 A 198
2007 86600 100 A 866 2007 86600 100 A 866
2008 6250 50 A 125 2008 6250 50 A 125
2009 152800 200 A 764 2009 152800 200 A 764
2010 84900 100 A 849 2010 84900 100 A 849
2011 6700 50 A 134 2011 6700 50 YA 134 Y
2012 40400 200 NA 202 2012 40400 200 NA 202
2013 41500 100 A 415 2013 41500 100 A 415 Y
2014 38040 40 A 951 2014 38040 40 A 951
T-Yield = 350 Approved APH 499 T-Yield = 350 Approved APH 531
Average Yield 481 Adjusted Yield Average Yield 481
Rate Yield 481 = 499 Rate Yield 481

(a) Unit 0001-0001 OU

Excludable crop year(s): 2008, 2011, 2013

Excluded crop year(s): 2008

Substituted crop year(s): 2006, 2011

Average Yield: (951 + 415 + 202 + 134 + 849 + 764 + 125 + 866 + 198 + 310) / 10 =
481

Adjusted Yield: (951 + 415 + 202 + 210 + 849 + 764 +210 + 866 + 210 + 310) / 10 =
499

Approved APH Yield: (951 + 415 + 202 + 210 + 849 + 764 + 866 + 210 + 310) / 9 =
531

June 2015 FCIC 18180 661

 Exhibit 15

BB. Yield Exclusion Examples (Continued)

(6) Example - YE and YA Elected (continued)

Unit 0001-0002 APH Database Before YE  Unit 0001-0002 APH Database After YE
2015 Cotton NI NTS 2015 Cotton NI NTS
(0021) (003) (997) (0021) (003) (997)
Yield limitation flag: 01 Yield limitation flag: 01
Unit # 0001-0002 OU Yield Unit # 0001-0002 OU Yield YE Opt
Yield Yield
Year Prod Acres Desc. Year Prod Acres Desc. Out
2005 11320 40 A 283 2005 11320 40 A 283
2006 0 0 Z 0 2006 0 0 Z 0
2007 80880 120 A 674 2007 80880 120 A 674
2008 0 0 Z 0 2008 0 0 Z 0
2009 64560 80 A 807 2009 64560 80 A 807
2010 0 0 Z 0 2010 0 0 Z 0
2011 0 0 Z 0 2011 0 0 Z 0 Y
2012 28080 120 A 234 2012 28080 120 A 234
2013 40080 80 A 501 2013 40080 80 A 501 Y
2014 35480 40 A 887 2014 35480 40 A 887
T-Yield = 350 Approved APH 564 T-Yield = 350 Approved APH 564
Average Yield 564 Adjusted Average Yield 564
Rate Yield 564 Yield = NA Rate Yield 564

(b) Unit 0001-0002 OU

Excludable years: 2008, 2011, 2013
Excluded years: none
Average Yield: (887 + 501 +234 + 807 + 674 + 283) / 6 = 564
Approved Yield: (887 + 501 +234 + 807 + 674 + 283) / 6 = 564
Adjusted Yield: Not Applicable because YE does not apply to APH database

June 2015 FCIC 18180 662

 Exhibit 15

CC. Yield Reductions- Excessive Actual Yield (Without Verifiable Records)

Example 1: The following example is for a carryover insured who reported an excessive
yield for 2015 on the 2016 production report. The AIP requested production
evidence for all OU within the BU. The insured indicated that unit 0002-
0001OU produced ten, 400 bu. truckloads of corn (4000 bu./10.0 acres. = 400
bu./acre.); however, OU 0002-0002 (same BU) produced only 80 bushels per
acre and loss records were available for that unit.

The insured did not provide any verifiable records to support the excessive
actual yield certified (the two units adjoined, had similar planting dates, soils
and growing conditions). Therefore, the assigned yield procedure is applicable
(168 X .75 = 126) for the 2015 crop year, resulting in an approved APH yield of
159. The insured does not qualify for OUs, separate APH databases are
maintained, and other BU and OU with actual yields where claim records are not
available require the use of assigned yields.

ORIGINAL APH DATABASE REDUCED APH DATABASE

CROP: 0041 (CORN) LEGAL: CROP: 0041 (CORN) LEGAL:
PRACTICE: 003 (NI) S1/2SEC. PRACTICE: 003 (NI) S1/2SEC.
T-YIELD: T-YIELD:
TYPE: 029 (GRAIN) 12-XX-XX TYPE: 029 (GRAIN) 12-XX-XX
90 BU. 90 BU.
UNIT NO: 0002- FSA UNIT NO: 0002-0001 FSA
0001OU FN:XX01 BU FN:XX01
CROP TOTAL CROP TOTAL
ACRES YIELD ACRES YIELD
YEAR PRODUCTION YEAR PRODUCTION
2010 2010
2011 380 2.0 A190 2011 380 2.0 A190
2012 4000 40.0 A100 2012 4000 40.0 A100
2013 600 2.0 A300 2013 600 2.0 A300
2014 16000 200.0 A80 2014 16000 200.0 A80
2015 4000 10.0 A400 2015 10.0 P126
TOTAL: 1070 TOTAL:796
PRELIMINARY YIELD: PRELIMINARY YIELD: APPROVED
214 APPROVED APH 214 APH YIELD:
PRIOR YIELD: YIELD: PRIOR YIELD: 159
168 168 (REDUCED)

June 2015 FCIC 18180 663

 Exhibit 15

DD. Inconsistent Approved APH Yield and Insured Acreage Limitation

Example 2: Using the information from Example 1, Example 2 illustrates whether the
reduced approved APH yield (159) requires any further reduction after insured
acreage is reported. The insured reported 100.0 planted and 100.0 prevented
planted acres of non-irrigated corn (grain) for acreage using the approved APH
yield calculated from the database.
The average number of acres (including the 2015 crop year) with
actual/assigned yields reported is 50.8 (2.0 + 40.0 + 2.0 + 200.0 + 10.0 = 254/5).
The insured acreage (200.0) does not exceed 400 percent of the average acreage;
however, three individual crop years (2011, 2013, and 2015) each contain less
than 10 percent of the current year’s insured acreage.

The insured has 10 non-irrigated units of corn (grain) in his farming operation
that contains actual/assigned yields. The simple average of the approved APH
yields for these units is 125.5, rounded to 126 bu. per acre. The reduced
approved APH yield (159) exceeds 115 percent of the simple average (126 X
1.15 = 145 bu.) and one of the insured acreage limitations was exceeded;
therefore, the reduced approved APH yield must be reduced further. The simple
average of the other nine approved APH yields (excluding the approved APH
yield that must be reduced) is 122 bu. per acre.

ORIGINAL APH DATABASE

LEGAL:
CROP: 041 (CORN)
S1/2SEC.
PRACTICE: 003 (NI)
12-XX- T-YIELD:
TYPE: 029 (GRAIN)
XX 90 BU.
UNIT NO: 0002-0001
FSA
(.1)
FN:XX01
CROP TOTAL
ACRES YIELD
YEAR PRODUCTION
2011 380 2.0 A190
2012 4000 40.0 A100
2013 600 2.0 A300
2014 16000 200.0 A80
2015 4000 10.0 P126
TOTAL: 796
21 APPROVED APH
PRELIMINARY YIELD:
YIELD
214
159 (REDUCED)
PRIOR YIELD:
122 (REDUCED
168
AGAIN)

June 2015 FCIC 18180 664

 Exhibit 15

DD. Inconsistent Approved APH Yield and Insured Acreage Limitation (continued)

Example 3:

(1) Three existing APH databases insured as three separate OUs as follows:

Average Acres in
APH Database Approved Yield 2012 Acres
APH Database
0001-0001 30 20 50
0001-0002 50 5 0
0001-0003 40 25 60

The county T-Yield is 22 bushels. For 2016, the insured adds 25 acres of cropland as a
separate OU and plants all 25 acres to the same insured crop.

(2) Step 1: Determine the simple average of the approved yields for all three existing APH
databases.

Result: 40 bushels (30 + 50 + 40 = 120/3 = 40).

(3) Step 2: Multiply the average by 1.15

Result: 46 bushels (40 bushels X 1.15 = 46).

(4) Step 3: Compare each approved APH yield to the result in Step 2 to determine if an
inconsistent yield exists.

Result: The approved yield for APH database 0001-0002 (50 bushels) exceeds 46
bushels and is considered an inconsistent approved yield but will only be
reduced if one or both of the insured acreage limitations are exceeded. Since
there are no acres planted or prevented from being planted for this database for
2016, the acreage limitations are not exceeded and there is no reduction in the
approved yield for APH database 0001-0002.

(5) The 25 acres of added land are being added as a separate OU; therefore, those acres are not
included in the acreage limitation computations for any of the existing APH databases. The
added land APH database is established using the SA T-Yield of 40 bushels.

The SA T-Yield is not an inconsistent yield since it is the average of the existing APH
databases’ approved yields and does not exceed 115 percent of the average of all of the
approved yields.

June 2015 FCIC 18180 665

 Exhibit 15

EE. Determining Tolerance and Corrective Action

(1) Review of the Insured’s 2013 Crop Records for the Unit 0001-0001OU indicated

INSURED
REVIEWER DETERMINED
REPORTED
PLANTED ACRES 96.0 96.0
HARVESTED
10,560.0 8,640.0
PRODUCTION
CROP YEAR
110 90
ACTUAL YIELD
PERCENT 22% (Computed difference between reported
DIFFERENCE actual yield and reviewer actual yield; divide
the difference by reviewer actual yield.)

The error exceeds 5% which results in a corrected APH database for the current crop year.

CORRECTED APH DATABASE

INSURED REVIEWER
2007 90.0 A105 90.0 A105
2008 86.0 A98 86.0 A98
2009 85.0 A100 85.0 A100
2010 95.0 A92 95.0 A92
2011 89.0 A115 89.0 A115
2012 94.0 A100 94.0 A100
2013 96.0 A110 86.0 A90
720 ÷ 7= 103 700 ÷ 7= 100
Percent Difference 3% (Computed difference between the approved APH yield and the
correct APH yield).

As the discrepancy results in a difference of 3% and the revision is 5% or less, the

correction of the approved APH yield is made effective for the following crop year.

June 2015 FCIC 18180 666

 Exhibit 15

EE. Determining Tolerance and Corrective Action (Continued)

(2) Review of the insured’s 2013 Crop Records for the Unit 0001-00002OU indicates

INSURED REPORTED REVIEWER DETERMINED

PLANTED ACRES 56.0 56.0
HARVESTED
6,160.0 4,088.0
PRODUCTION
CROP YEAR
110 73
ACTUAL YIELD
PERCENT 51% (Computed difference between reported actual yield and reviewer
DIFFERENCE actual yield; divide the difference by reviewer actual yield.)

The error exceeds 5% which results in a corrected APH database for the current crop year.

CORRECTED APH DATABASE

INSURED REVIEWER
2007 80.0 A115 80.0 A115
2008 85.0 A88 85.0 A88
2009 95.0 A105 95.0 A105
2010 65.0 A82 65.0 A82
2011 79.0 A135 79.0 A135
2012 84.0 A140 84.0 A140
2013 56.0 A110 56.0 A73
775 ÷ 7= 111 738 ÷ 7= 105
PERCENT
6% (Computed difference between the approved APH yield and the
DIFFERENCE
correct APH yield).

As the discrepancy results in a difference of 6% and the revision is 5% or greater, the

correction of the approved APH yield is made effective for the current crop year.

June 2015 FCIC 18180 667

 Exhibit 15

EE. Determining Tolerance and Corrective Action (Continued)

(3) Review of the insured’s 2013 Crop Records for the Unit 0001-0001OU Indicates

INSURED REPORTED REVIEWER DETERMINED

PLANTED ACRES 106.0 106.0
HARVESTED
11,130.0 11,024.0
PRODUCTION
CROP YEAR
105 104
ACTUAL YIELD
PERCENT 1% (Computed difference between reported actual yield and reviewer
DIFFERENCE actual yield; divide the difference by reviewer actual yield.)

Error does not exceed 5% which results in a corrected APH database for the following crop
year.

(4) Review of the Insureds 2013 Crop Records for the Unit 0001-0001OU Indicates

INSURED REPORTED REVIEWER DETERMINED

PLANTED ACRES 65.0 65.0
HARVESTED
5,785.0 7,540.0
PRODUCTION
CROP YEAR
89 116
ACTUAL YIELD
PERCENT 23% (Computed difference between reported actual yield and reviewer
DIFFERENCE actual yield; divide the difference by reviewer actual yield.)

Error exceeds 5% which results in a corrected APH database for the current crop year.

CORRECTED APH DATABASE

INSURED REVIEWER
2010 105.0 A93 105.0 A93
2011 83.0 A99 83.0 A99
2012 112.0 A127 112.0 A127
2013 65.0 A89 65.0 A116
408 ÷ 4= 102 435 ÷ 4= 109
PERCENT
6% (Computed difference between the approved APH yield and the correct
DIFFERENCE
approved APH yield).

As the discrepancy results in a difference of 6% and the revision is 5% or greater, the

correction of the approved APH yield is made effective for the current crop year. However,
in a loss situation, the liability cannot be increased.

June 2015 FCIC 18180 668

 Exhibit 16

Reserved

June 2015 FCIC 18180 669

 Exhibit 16

Reserved

June 2015 FCIC 18180 670

 Exhibit 17

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

This worksheet may be used to arrive at the factored production to be entered on the APH
database in the total production column. See A(1)-A(8) for instructions and suggested column
headings for this worksheet.

COLUMN
CROP YEAR
1 2 3 4 5 6
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX

(1) The worksheet may be used to separate production that was commingled between
P/T/TMAs that have different T-Yields. This worksheet shall not be used to separate
production between conventional, transitional or organic practices.

Production from types or varieties that are being separated must have the same unit of
measure (e.g., pounds). If the T-Yields are the same, a higher yielding practice has not
been designated by RMA and the insured cannot separate the commingled production or
provide a yield estimate by P/T/TMA; the production for each applicable P/T/TMA may be
prorated instead of using the Multi-Purpose Production and Yield Worksheet if acres of the
P/T/TMAs are provided. See Para. 1715C.

Col. 1 - P/T/TMA
Col. 2 - Planted Acres (for skip-row cotton, acres considered planted to cotton)
Col. 3 - Transitional Yield (T-Yield)
Col. 4 - Yield Extension (Col. 2 X Col. 3)
Col. 5 - Factor (total commingled production ÷ total yield extensions from Col. 4)
Col. 6 - Yield (Col. 3 X Col.5)


Values rounded to nearest hundredth.
June 2015 FCIC 18180 671
 Exhibit 17

A. Category B Crops-Multi-Purpose Production and Yield Worksheet (Continued)

(2) Converting Skip-row Cotton Production to Solid Plant

Col. 1 - Total Production

Col. 2 - Yield Factor See Exhibit 11 Skip Row Factors C, D, E and F
Col. 3 - Total Production (factored, Col. 1 ÷ Col. 2)
Col. 4 - Gross Acres X percent planted factor See Exh. 11 Skip Row Factors G
Col. 5 - Acres
Col. 6 - Yield (solid planted)

(3) Determining Skip-Row Cotton Yield Factors. See Exh. 11 Skip Row Factors H used when
production is commingled between more than one non-irrigated skip-row planting pattern:

Col. 1 - Non-Irrigated Skip-Row Pattern

Col. 2 - Planted Acres (acres considered planted to Cotton for each pattern)
Col. 3 - Yield Factor (for each different pattern)
Col. 4 - Yield Extension
Col. 5 - Yield Factor (divide total yield extensions (Col. 4) by total acres (Col. 2)
Col. 6 - Solid Planted Yield (skip-row yield ÷ yield factor)

(4) Green Peas. See Para. G

Col. 1 - Dollars Received for Crop

Col. 2 - Contract price for the TR Sieve number shown on the actuarial documents.
Col. 3 - Adjusted Production (Col. 1 ÷ Col. 2)
Col. 4 - Lbs. Dry Peas ÷ .60 (converts to green pea equivalent)
Col. 5 - Total Production (Col. 3 + Col. 4)

(5) Contract Seed Beans (Bush Varieties for Garden Seed) and Wrinkled Seed Peas. See Para.
F:

Col. 1 - Reference Year Adjustment Factor (RYAF)

Col. 2 - Total Dollars ($) Received (or value of)
Col. 3 - RYAF total $ (rounded to whole $). Transfer factored $ to the APH Database.

(6) Sugar Beets, used to adjust production to percentage of sugar on the actuarial documents:

Col. 1 - % Sugar (records)

Col. 2 - % Sugar (actuarial documents)*
Col. 3 - Sugar Factor* (Col 1 ÷ Col 2)
Col. 4 - Actual Production
Col. 5 - Adjusted Production (Col. 3 x Col. 4)


Values Rounded to the nearest thousand
June 2015 FCIC 18180 672
 Exhibit 17

A. Category B Crops-Multi-Purpose Production and Yield Worksheet (Continued)

(7) Potatoes used when the Northern Potato Quality Endorsement or Northern Potato
Processing Quality Endorsement is applicable:

Col. 1 - Fresh % No. 1

Col. 2 - Fresh % No. 2 or better
Col. 3 - Processing % No. 1
Col. 4 - Processing % No. 2 or Better

(8) Cultivated Wild Rice, used to adjust green weight production to finished weight
production):

Col. 1 - Total green weight production

Col. 2 - % recovery (production records or actuarial documents)
Col. 3 - Finished weight (Col. 1 x Col. 2)

B. Category B Crops-Master Yields

(1) MY List by State and Crop. Check the actuarial documents for applicable crop programs,
practices and maps or supplements.

STATE CROPS
Alaska Potatoes
Arizona Potatoes
Dry Beans, Onions, Potatoes, Sugar Beets, and Tomatoes (Processing
California
& Fresh Market)
Colorado Potatoes, Onions, and Sugar Beets
Dry Beans, Processing Beans, Canola/Rapeseed, Onions, Dry Peas,
Idaho Green Peas, Potatoes, Safflower, Sugar Beets, and Sweet Corn
(Processing)
Indiana Tomatoes (Processing)
Kansas Potatoes
Missouri Potatoes
Michigan Dry Beans, Sugar Beets, and Tomatoes (Processing)
Minnesota Potatoes and Sugar Beets
Montana Sugar Beets and Dry Peas
Nebraska Potatoes and Sugar Beets
Nevada Potatoes
New Mexico Potatoes
North Dakota Dry Peas, Potatoes, Sugar Beets
Ohio Tomatoes (Processing)

June 2015 FCIC 18180 673

 Exhibit 17

B. Category B Crops-Master Yields (Continued)

STATE CROPS
Dry Beans, Processing Beans, Canola/Rapeseed, Dry Peas, Green
Oregon
Peas, Onions, Potatoes, Sugar Beets, and Sweet Corn (Processing)
South Dakota Potatoes and Dry Peas
Texas Potatoes
Utah Onions
Dry Beans, Processing Beans, Canola/Rapeseed, Dry Peas, Green
Peas, Onions, Potatoes, Sugar Beets, and Sweet Corn
Washington
(Processing)

Wisconsin Potatoes
Wyoming Potatoes and Sugar Beets

(2) Example of MY Concept. This example illustrates the MY concept. The crop has been
grown in two TMAs. One P/T (IRR) has been grown in each TMA. Figures 1-3 are
located in TMA

(a) Figure 1, production reports for farm A indicate two actual yields (one BU located in
section 11).

Figure 1: Unit 0001-0000, Sec. 11, TMA 1

YEAR PROD ACRES YIELD

2012 42,200 100.0 A422
2013 0.0 Z
2014 43,000 100.0 A430
2015 0.0 Z

PRIOR YIELD APPROVED APH

Figure 2: Unit 0002-0001, Sec. 12, TMA 1

YEAR PROD ACRES YIELD

2012 0.0 Z
2013 40,000 100.0 A400
2014 0.0 Z
2015 35,200 80.0 A440

PRIOR YIELD APPROVED APH

June 2015 FCIC 18180 674
 Exhibit 17

B. Category B Crops-Master Yields (Continued)

(b) Figures 2 and 3, production reports for farm B indicate two actual yields for unit
0002-0001 (located in section 12) and no actual yields for unit 0002-0002 (located in
section 13).

Figure 3: Unit 0002-0002, Sec. 13, TMA 1

YEAR PROD ACRES YIELD

2012 0.0 Z
2013 0.0 Z
2014 0.0 Z
2015 0.0 Z

PRIOR YIELD APPROVED APH

(c) Figures 4, 5 and 6 are production reports for farm C, which indicate three OUs located
in sections 27, 28, and 36 all within TMA 2. Unit 0003-0001 does not have any
actual yields. Unit 0003-0002 has two actual yields. Unit 0003-0003 has one actual
yield. Each actual yield must be compared to the applicable T-Yield for the TMA
multiplied by the actual yield verification factor for the applicable practice (TMA 1
[400 x 1.40 = 560] TMA 2 [350 x 1.40 = 490]). None of the actual yields exceed the
factored T-Yields; therefore, they are considered reasonable.

Figure 4: Unit 0003-0001, Sec. 27, TMA 2

YEAR PROD ACRES YIELD

2012 0.0 Z
2013 0.0 Z
2014 0.0 Z
2015 0.0 Z

PRIOR YIELD APPROVED APH

June 2015 FCIC 18180 675

 Exhibit 17

B. Category B Crops-Master Yields (Continued)

Figure 5: Unit 0003-0002, Sec. 28, TMA 2

YEAR PROD ACRES YIELD

2012 20,250 50.0 A405
2013 0.0 Z
2014 0.0 Z
2015 40,000 100.0 A400

PRIOR YIELD APPROVED APH

Figure 6: Unit 0003-0003, Sec. 36, TMA 2

YEAR PROD ACRES YIELD

2012 0.0 Z
2013 0.0 Z
2014 0.0 Z
2015 8,200 20.0 A410

PRIOR YIELD APPROVED APH

(d) Figures 7 and 8 are MY APH Summaries, one for each TMA. These summaries are
completed following the same instructions as for an APH database outlined in Part 15,
except they contain the total acreage and production of the crop for each TMA for the
operator/tenant entity requesting the MY.

The insured has filed production reports for each OU for at least the most recent
policy crop year (on planted units) in the base period and therefore qualifies for OUs.

Figure 7: MY Summary, TMA 1

Applicable to Units 0001-0000, 0002-0001, and 0002-0002

YEAR PROD ACRES YIELD

2012 42,200 100.0 A422
2013 40,000 100.0 A400
2014 43,000 100.0 A430
2015 35,200 80.0 A440
1692
PLEM.
423 APPROVED APH YIELD
YIELD

June 2015 FCIC 18180 676

 Exhibit 17

B. Category B Crops–Master Yields (Continued)

Figure 8, MY Summary, TMA 2
Applicable to Units 0003-0001 through 0003-0003

YEAR PROD ACRES YIELD

2010 T350
2011 T350
2012 20,250 50.0 A405
2013 0.0 Z
2014 0.0 Z
2015 48,200 120.0 A402
1507
PLEM. 377 APPROVED APH YIELD
YIELD
The summaries are forwarded to the verifier who approves the initial MY. A separate
MY Summary is required for each TMA for each P/T requested. Four years of
records are required for MY and 100 percent T-Yields apply with IDY=T.

Compare each preliminary MY to the applicable T-Yield for the TMA multiplied by
the applicable MY verification factor (IRR: TMA 1 [400 x 1.40 = 560] TMA 2 [350 x
1.40 = 490]). Neither of the preliminary MYs exceeds the T-Yields; therefore, they
are considered reasonable and approved.

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

(1) Acreage that has not been planted in at least two of the previous three crop years to comply
with any other USDA program is insurable under the terms of the BP Sec. 9(a)(1)(i)(A).
For example, acreage that has been in CRP for 2013 and prior crop years would be
insurable under the terms of the BP if planted for the first time since emerging from CRP in
either the 2014 or 2015 crop years.

If the acreage has not been planted within two crop years (i.e., 2014 or 2015) since
emerging from CRP, it no longer meets the requirement to comply with any other USDA
program and requires a WA to insure the initial year of breaking.

2012 2013 2014 2015 2016

Insurable (emerging Insurable (emerging Insurable via WA for New
CRP CRP
from CRP) from CRP) Breaking

June 2015 FCIC 18180 677

 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

(2) Example 1: The insured has acreage emerging from CRP in September 2015 with no
production history and meets the insurability requirements for the crop. The emerging CRP
acreage is being added to an existing unit 0001-0001 OU and production history for the
acreage prior to enrollment in CRP is not available.

The year the acreage emerges from CRP, a separate APH database must be established for
the acreage coming out of CRP and the acreage must be reported by Farm/Tract/Field
number.

Existing Unit 0001-

Waterway
0001 OU 56.3 acres
Existing Unit 0001-
FN/Tract/Field 1234-
0001 OU 43.7 acres
56789-02
FN/Tract/Field 1234-
56789-01

Acreage Emerging from CRP 10

acres FN/Tract/Field
1234-56789-03

(a) 2016 APH Databases for Acreage Emerging From CRP Initial Year. The CRP
acreage being added to the existing unit in 2016 requires a separate APH database the
initial year it is added. The APH database for the acreage emerging from CRP must:

(i) Be identified with the database exception code 0001R and the yield indicator
CR; and

(ii) Use 100 percent of the applicable T-Yield to establish the APH database when
production prior to enrollment in CRP is not available.

EXISTING UNIT APH DATABASE ACREAGE EMERGING FROM CRP APH DATABASE
Yield
AO - AO -
2016 NI - 003 2016 NI - 003 Indicator -
095 095
CR
SB SB
Unit 0001-0001 OU Unit 0001-0001 OU EC – 001R
(0081) (0081)
YEAR PRODUCTION ACRES YIELD YEAR PRODUCTION ACRES YIELD
2012 4500 100.0 A 45 2012 C30
2013 5500 100.0 A 55 2013 C30
2014 4000 100.0 A 40 2014 C30
2015 3500 100.0 A 35 2015 C30
Total 175/4 Total 120/4
T-Yield T-Yield
Approved Yield 44 Approved Yield 30
30 30

June 2015 FCIC 18180 678

 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

(b) 2016 Acreage Report for Acreage Emerging From CRP (Initial Year). Acreage
emerging from CRP must be reported separately on the acreage report by
Farm/Tract/Field number.

CROP YEAR UNIT # FN/TRACT/FIELD(S) ACRES

2016 0001-0001 OU 1234-56789-01, 02 100 Existing Acreage in OU

2016 0001-0001 OU 1234-56789-03 10 Emerging Acreage from CRP

(c) 2017 Production Report for Acreage Emerging From CRP. In 2016 the insured did
not have a loss and reports total production for unit 0001-0001 OU as follows:

CROP YEAR UNIT # FN/TRACT/FIELD(S) ACRES PRODUCTION

2017 0001-0001 OU 1234-56789-01, 02, 03 110 3520

(d) In 2017, the APH databases for the existing unit and the acreage from CRP are
combined and the exception code for multiple APH databases for a OU/P/T/TMA is
no longer used, nor the CR yield indicator.

RESULTING APH DATABASE

2017 NI - 003 AO – 095
SB (0081) Unit 0001-0001 OU
YEAR PRODUCTION ACRES YIELD
2012 4500 100.0 A45
2013 5500 100.0 A55
2014 4000 100.0 A40
2015 3500 100.0 A35
2016 3520 110.0 A32
207/5

T-Yield 30 Approved Yield 41

(e) For the 2017 Acreage Report, the acreage that emerged from CRP the prior year
must be reported by Farm/Tract/Field number.

CROP YEAR UNIT # FN/TRACT/FIELD(S) ACRES

2017 0001-0001 OU 1234-56789-01, 02, 03 110

(3) Example 2. The insured has provided production history for the acreage prior to
enrollment in CRP. The year the acreage emerges from CRP, a separate APH database
must be established for the acreage emerging from CRP and the acreage must be reported
by Farm/Tract/Field number.
June 2015 FCIC 18180 679
 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

(a) 2016 Production Report for the Acreage Emerging from CRP and recertifying prior
year’s production. The acreage was planted and insured in 2002-2005 prior to
enrollment in CRP and the insured recertifies production for those crop years. The
insured had 65 total acres which were farmed as one unit 2002-2005. In 2005, the
insured enrolled 15 acres in CRP.

CROP YEAR UNIT # FN/TRACT/FIELD(S) ACRES PRODUCTION

2015 0001-0002 OU 1234-98765-01 50 1750
2005 0001-0002 OU 1234-98765-01, 02, 03 65 1820
2004 0001-0002 OU 1234-98765-01, 02, 03 65 1690
2003 0001-0002 OU 1234-98765-01, 02, 03 65 2145
2002 0001-0002 OU 1234-98765-01, 02, 03 65 1365

(b) 2016 APH Databases for Acreage Emerging from CRP and prior years recertified
production. The insured recertifies production for the years prior to enrollment in
CRP. The CRP acreage being added to the existing unit in 2016 requires a separate
APH database the initial year it is added. The APH database for the acreage emerging
from CRP must:

(i) be identified with the database exception code 001R and the yield indicator code
CR; and

(ii) use production history for years prior to enrollment to CRP to establish the APH
database.

June 2015 FCIC 18180 680

 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

EXISTING UNITS APH DATABASE ACREAGE EMERGING FROM CRP APH DATABASE
AO - AO - Yield
2016 NI - 003 2016 NI – 003
095 095 Indicator - CR
SB SB
Unit 0001-0002 OU Unit 0001-0002 OU EC - 001R
(0081) (0081)
YEAR PRODUCTION ACRES YIELD YEAR PRODUCTION ACRES YIELD
2006 1500 50.0 A30
2007 2750 50.0 A55
2008 2100 50.0 A42
2009 2250 50.0 A45
2010 1900 50.0 A38
2011 2000 50.0 A40
2012 2550 50.0 A51 2002 1365 65.0 A21
2013 2350 50.0 A47 2003 2145 65.0 A33
2014 2200 50.0 A44 2004 1690 65.0 A26
2015 1750 50.0 A35 2005 1820 65.0 A28
Total 427/10 Total 108/4
T-YIELD T-YIELD
APPROVED YIELD 43 APPROVED YIELD 27
30 30

(c) 2016 Acreage Report for Acreage Emerging from CRP. Acreage emerging from CRP
must be reported separately on the acreage report by Farm/Tract/Field number.

CROP YEAR UNIT # FN/TRACT/FIELD ACRES

2016 0001-0002 OU 1234-98765-01 50 Existing Acreage in OU
Emerging Acreage from
2016 0001-0002 OU 1234-98765-02, 03 15
CRP

(d) 2017 Production Report for Acreage Emerging from CRP. In 2016, the insured did
not have a loss and reports total production for unit 0001-0002 OU.

CROP YEAR UNIT # FN/TRACT/FIELD(S) ACRES PRODUCTION

2016 0001-0002 OU 1234-98765-01, 02, 03 65 2015

(e) In 2017, the APH databases for the existing unit and the acreage from CRP are
combined and the exception code for multiple APH databases for an OU/P/T/TMA is
no longer used.

June 2015 FCIC 18180 681

 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

RESULTING APH DATABASE

2017 NI - 003 AO - 095
SB (0081) Unit 0001-0002 OU
YEAR PRODUCTION ACRES YIELD
2007 2750 50.0 A55
2008 2100 50.0 A42
2009 2250 50.0 A45
2010 1900 50.0 A38
2011 2000 50.0 A40
2012 2550 50.0 A51
2013 2350 50.0 A47
2014 2200 50.0 A44
2015 1750 50.0 A35
2016 2015 65.0 A31
428/10
T-YIELD 30 APPROVED YIELD 43

(f) For the 2017 Acreage Report, the acreage that emerged from CRP the prior year must
be reported by Farm/Tract/Field number.

CROP YEAR UNIT # FN/TRACT/FIELD ACRES

2017 0001-0002 OU 1234-98765-01, 02, 03 65

(4) Example 3. The insured has acreage that was broken out of pasture in September 2015 and
has submitted a new breaking WA to the RMA RO. The new breaking acreage is being
added to existing unit 0001-0003 OU.

The year the new breaking acreage is broken out, a separate APH database must be
established for the acreage from the new breaking WA and the acreage must be reported by
Farm/Tract/Field number.

(a) The new breaking acreage being added to the existing unit in 2016 requires a separate
APH database the initial year it is added. The new breaking acreage APH database
must be identified with the database exception code 0001N and the yield indicator
code NB.

In the example below the RO provided the insured with 70 percent of the applicable
county T-Yield for that county/crop/P/T/TMA on the accepted WA. The actuarial
documents provide a T-Yield of 30 bushels an acre (0.70 x 30 = 21 bushels an acre).

June 2015 FCIC 18180 682

 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

EXISTING UNIT APH DATABASE NEW BREAKING WA APH DATABASE

AO - AO - Yield Indicator -
2016 NI - 003 2016 NI - 003
095 095 NB
SB SB
Unit 0001-0003 OU Unit 0001-0003 OU EC – 001N
(0081) (0081)
YEAR PRODUCTION ACRES YIELD YEAR PRODUCTION ACRES YIELD
2012 4000 80.0 A50 2012 F21
2013 3520 80.0 A44 2013 F21
2014 3760 80.0 A47 2014 F21
2015 4480 80.0 A56 2015 F21
Total 197/4 Total 84/4
T-Yield T-Yield
Approved Yield 49 Approved Yield 21
30 30

(b) 2016 Acreage Report for New Breaking WA. New breaking acreage must be reported
separately by Farm/Tract/Field number.

CROP YEAR UNIT # FN/TRACT/FIELD(S) ACRES

2016 0001-0003 OU 1234-54321-01 80.0 Acreage in existing unit
2016 0001-0003 OU 1234-54321-02 40.0 New breaking WA acreage

(c) 2017 Production Report for New Breaking WA. In 2016, the insured did not have a
loss and reports total production for unit 0001-0003 OU.

CROP
UNIT # FN/TRACT/FIELD(S) ACRES PRODUCTION
YEAR
2017 0001-0003 OU 1234-54321-01, 02 120.0 5880

(d) In 2017, the APH databases for the existing unit and the acreage from a new
breaking WA are combined and the exception code for multiple APH databases for
an OU/P/T/TMA is no longer used, nor the yield indicator NB.

June 2015 FCIC 18180 683

 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

Resulting APH Database

2017 NI - 003 AO - 095
SB (0081) Unit 0001-0003 OU
Year Production Acres Yield
2012 4000 80.0 A50
2013 3520 80.0 A44
2014 3760 80.0 A47
2015 4480 80.0 A56
2016 5880 120.0 A49
246/5
T-Yield 30 Approved Yield 49

(e) CY 2017 acres for unit 0001-0003 OU must be reported by Farm/Tract/Field

number.

CROP YEAR UNIT # FN/TRACT/FIELD(S) ACRES

2017 0001-0003 OU 1234-54321-01, 02 120.0

(5) Example 4. The insured has acreage in Iowa that was tilled in September 2015 and has
submitted a new breaking WA to the RMA RO. However, the insured cannot substantiate
that the acreage has been previously tilled and planted for the production of a crop. Since
the new breaking acreage is in Iowa and cannot be substantiated, the acreage is considered
native sod. The acreage is being added to existing optional unit 0001-0003 OU.

The year the native sod acreage is tilled separate APH database(s) must be established for
the acreage from the new breaking WA and the acreage must be reported by FN/Tract/Field
number.

Year 1:

(a) The native sod acreage being added to the existing unit in 2016 requires separate APH
database(s) the first four crop years planted to an annual crop. The native sod acreage
APH database must be identified with the multiple database exception code D and the
yield indicator code SB. The native sod APH database must also be submitted with
the yield limitation flag of “04” which requires the rate yield to equal the approved
yield.

In the example below, the RO provided the insured with 65 percent of the applicable
county T-Yield for that county/crop/P/T/TMA on the accepted WA needed to allow
the acreage to be insurable the initial year of planting. The actuarial documents
provide a T-Yield of 35 bushels an acre for soybeans and 100 bushels an acre for
corn. The resulting T-Yield provided by the WA is 23 bushels an acre for soybeans
(0.65 x 35 = 22.75 = 23) and 65 bushels an acre for corn (0.65 x 100 = 65).
June 2015 FCIC 18180 684
 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

EXISTING UNIT APH DATABASE NATIVE SOD APH DATABASE

AO - AO -
2016 NI - 003 2016 NI - 003 YI - SB
095 095
Sbean Sbean
Unit 0001-0003 OU Unit 0001-0003 OU EC – 001D
(0081) (0081)
YEAR PRODUCTION ACRES YIELD YEAR PRODUCTION ACRES YIELD
2012 4000 80.0 A50 2012 F23
2013 3520 80.0 A44 2013 F23
2014 3760 80.0 A47 2014 F23
2015 4480 80.0 A56 2015 F23
Rate Yield 49 Total 197/4 Rate Yield 23 Total
T-Yield T-Yield
Approved Yield 49 Approved Yield 23
35 35

EXISTING UNIT APH DATABASE NATIVE SOD APH DATABASE

Grain – Grain –
2016 NI – 003 2016 NI – 003 YI – SB
016 016
Corn Corn
Unit 0001-0003 OU Unit 0001-0003 OU EC – 001D
(0041) (0041)
YEAR PRODUCTION ACRES YIELD YEAR PRODUCTION ACRES YIELD
2012 24000 200.0 A120 2012 F65
2013 11520 80.0 A144 2013 F65
2014 29400 200.0 A147 2014 F65
2015 10080 80.0 A126 2015 F65
Rate Yield 135 Total 537/4 Rate Yield 65 Total
T-Yield T-Yield
Approved Yield 134 Approved Yield 65
100 100

(b) 2016 Acreage Report for New Breaking WA for Native Sod. The native sod acreage
must be reported separately by FN/Tract/Field number. The acreage must be
identified by the program indicator code of “NS” and the acreage type code of native
sod insurable by WA.

CROP
YEAR CROP UNIT # FN/TRACT/FIELD(S) ACRES ACREAGE TYPE
(CY)
2016 Sbean 0001-0003 OU 1234-54321-01 80.0 Acreage in existing unit
Insured native sod WA
2016 Sbean 0001-0003 OU 1234-54321-02 40.0 NS
acreage
2016 Corn 0001-0003 OU 1234-54321-03 200.0 Acreage in existing unit

Year 2:

(c) 2017 Production Report for Native Sod. In 2016, the insured did not have a loss and
is required to report the production from the native sod acreage separate on the
production report for unit 0001-0003 OU.
June 2015 FCIC 18180 685
 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

CY CROP UNIT # FN/TRACT/FIELD(S) ACRES PRODUCTION

2017 Sbean 0001-0003 OU 1234-54321-01 80.0 3680
2017 Sbean 0001-0003 OU 1234-54321-02 40.0 1280
2017 Corn 0001-0003 OU 1234-54321-03 200.0 26600

(d) In 2017, the native sod acreage is still required to have a separate APH database for
each crop P/T/TMA. The insured plans to plant corn on the native sod acreage.

EXISTING UNIT APH DATABASE NATIVE SOD APH DATABASE

AO – AO –
2017 NI – 003 2017 NI – 003 YI – SB
095 095
Sbean Sbean
Unit 0001-0003 OU Unit 0001-0003 OU EC – 001D
(0081) (0081)
YEAR PRODUCTION ACRES YIELD YEAR PRODUCTION ACRES YIELD
2012 4000 80.0 A50
2013 8800 200.0 A44 2013 T35
2014 3760 80.0 A47 2014 T35
2015 11200 200.0 A56 2015 T35
2016 3680 80.0 A46 2016 1280 40.0 A32
Rate Yield 49 Total 243/5 Rate Yield 23 Total
T-Yield T-Yield
Approved Yield 49 Approved Yield 23
35 35

EXISTING UNIT APH DATABASE NATIVE SOD APH DATABASE

Grain – Grain –
2017 NI – 003 2017 NI – 003 YI – SB
016 016
Corn Corn
Unit 0001-0003 OU Unit 0001-0003 OU EC – 001D
(0041) (0041)
YEAR PRODUCTION ACRES YIELD YEAR PRODUCTION ACRES YIELD
2012 24000 200.0 A120 2012 T100
2013 11520 80.0 A144 2013 T100
2014 29400 200.0 A147 2014 T100
2015 10080 80.0 A126 2015 T100
2016 26600 200 A133 2016 Z0
Rate Yield 135 Total 675/5 Rate Yield 65 Total
T-Yield T-Yield
Approved Yield 135 Approved Yield 65
100 100

(e) 2017 Acreage Report for Native Sod. The native sod acreage must be reported
separately by FN/Tract/Field number. The acreage must be identified by the program
indicator code of “NS” and the acreage type code of native sod insured under the
terms of the policy.

June 2015 FCIC 18180 686

 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

CY CROP UNIT # FN/TRACT/FIELD(S) ACRES ACREAGE TYPE

2017 Corn 0001-0003 OU 1234-54321-01 80.0 Acreage in existing unit
Insured terms of policy
2017 Corn 0001-0003 OU 1234-54321-02 40.0 NS
native sod acreage
2017 Sbean 0001-0003 OU 1234-54321-03 200.0 Acreage in existing unit

Year 3:

(f) 2018 Production Report for Native Sod. In 2017, the insured did not have a loss and
is required to report the production from the native sod acreage separate on the
production report for unit 0001-0003 OU.

CY CROP UNIT # FN/TRACT/FIELD(S) ACRES PRODUCTION

2018 Corn 0001-0003 OU 1234-54321-01 80.0 9520
2018 Corn 0001-0003 OU 1234-54321-02 40.0 4240
2018 Sbean 0001-0003 OU 1234-54321-03 200.0 7800

(g) In 2018, the native sod acreage is still required to have a separate APH database for
each crop P/T/TMA. The insured plans to plant soybeans on the native sod acreage.

EXISTING UNIT APH DATABASE NATIVE SOD APH DATABASE

AO - AO -
2018 NI - 003 2018 NI - 003 YI - SB
095 095
Sbean Sbean
Unit 0001-0003 OU Unit 0001-0003 OU EC – 001D
(0081) (0081)
YEAR PRODUCTION ACRES YIELD YEAR PRODUCTION ACRES YIELD
2012 4000 80.0 A50
2013 8800 200.0 A44 2013 T35
2014 3760 80.0 A47 2014 T35
2015 11200 200.0 A56 2015 T35
2016 3680 80.0 A46 2016 1280 40.0 A32
2017 7800 200.0 A39 2017 0 0 Z0
Rate Yield 47 Total 282/6 Rate Yield 23 Total
T-Yield T-Yield
Approved Yield 47 Approved Yield 23
35 35

June 2015 FCIC 18180 687

 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

EXISTING UNIT APH DATABASE NATIVE SOD APH DATABASE

Grain - Grain -
2018 NI - 003 2018 NI - 003 YI - SB
016 016
Corn Corn
Unit 0001-0003 OU Unit 0001-0003 OU EC – 001D
(0041) (0041)
YEAR PRODUCTION ACRES YIELD YEAR PRODUCTION ACRES YIELD
2012 24000 200.0 A120
2013 11520 80.0 A144 2013 T100
2014 29400 200.0 A147 2014 T100
2015 10080 80.0 A126 2015 T100
2016 26600 200 A133 2016 Z0
2017 9520 80.0 A119 2017 4240 40 A106
Rate Yield 132 Total 790/6 Rate Yield 65 Total
T-Yield T-Yield
Approved Yield 132 Approved Yield 65
100 100

(h) 2018 Acreage Report for Native Sod. The native sod acreage must be reported
separately by FN/Tract/Field number. The acreage must be identified by the program
indicator code of “NS” and the acreage type code of native sod insured under the
terms of the policy.

CY CROP UNIT # FN/TRACT/FIELD(S) ACRES ACREAGE TYPE

2018 Sbean 0001-0003 OU 1234-54321-01 80.0 Acreage in existing unit
Insured terms of policy
2018 Sbean 0001-0003 OU 1234-54321-02 40.0 NS
native sod acreage
2018 Corn 0001-0003 OU 1234-54321-03 200.0 Acreage in existing unit

Year 4:

(i) 2019 Production Report for Native Sod. In 2018, the insured did not have a loss and
is required to report the production from the native sod acreage separate on the
production report for unit 0001-0003 OU.

CY CROP UNIT # FN/TRACT/FIELD(S) ACRES PRODUCTION

2019 Sbean 0001-0003 OU 1234-54321-01 80.0 3520
2019 Sbean 0001-0003 OU 1234-54321-02 40.0 1480
2019 Corn 0001-0003 OU 1234-54321-03 200.0 28200

(j) In 2019 the native sod acreage is still required to have a separate APH database for
each crop P/T/TMA. The insured plans to plant corn on the native sod acreage.

June 2015 FCIC 18180 688

 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

EXISTING UNIT APH DATABASE NATIVE SOD APH DATABASE

AO – AO –
2019 NI – 003 2019 NI – 003 YI – SB
095 095
Sbean Sbean
Unit 0001-0003 OU Unit 0001-0003 OU EC – 001D
(0081) (0081)
YEAR PRODUCTION ACRES YIELD YEAR PRODUCTION ACRES YIELD
2012 4000 80.0 A50
2013 8800 200.0 A44
2014 3760 80.0 A47 2014 T35
2015 11200 200.0 A56 2015 T35
2016 3680 80.0 A46 2016 1280 40.0 A32
2017 7800 200.0 A39 2017 0 0 Z0
2018 3520 80.0 A44 2018 1480 40.0 A37
Rate Yield 47 Total 326/7 Rate Yield 23 Total 133/4
T-Yield T-Yield
Approved Yield 47 Approved Yield 23
35 35

EXISTING UNIT APH DATABASE NATIVE SOD APH DATABASE

Grain – Grain –
2019 NI – 003 2019 NI – 003 YI – SB
016 016
Corn Corn
Unit 0001-0003 OU Unit 0001-0003 OU EC – 001D
(0041) (0041)
YEAR PRODUCTION ACRES YIELD YEAR PRODUCTION ACRES YIELD
2012 24000 200.0 A120
2013 11520 80.0 A144 2013 T100
2014 29400 200.0 A147 2014 T100
2015 10080 80.0 A126 2015 T100
2016 26600 200 A133 2016 Z0
2017 9520 80.0 A119 2017 4240 40 A106
2018 28200 200.0 A141 2018 Z0
Rate Yield 133 Total 930/7 Rate Yield 65 Total 346/4
T-Yield T-Yield
Approved Yield 133 Approved Yield 65
100 100

(k) 2019 Acreage Report for Native Sod. The native sod acreage must be reported
separately by FN/Tract/Field number. The acreage must be identified by the program
indicator code of “NS” and the acreage type code of native sod insured under the
terms of the policy.

CY CROP UNIT # FN/TRACT/FIELD(S) ACRES ACREAGE TYPE

2019 Corn 0001-0003 OU 1234-54321-01 80.0 Acreage in existing unit
Insured terms of policy
2019 Corn 0001-0003 OU 1234-54321-02 40.0 NS
native sod acreage
2019 Sbean 0001-0003 OU 1234-54321-03 200.0 Acreage in existing unit
June 2015 FCIC 18180 689
 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

Year 5 and Subsequent Years:

(l) 2020 Production Report for Native Sod. In 2019, the insured did not have a loss and
is required to report total production for unit 0001-0003 OU.

CY CROP UNIT # FN/TRACT/FIELD(S) ACRES PRODUCTION

2020 Corn 0001-0003 1234-54321-01, 02 120.0 16440
2020 Sbean 0001-0003 1234-54321-03 200.0 10200

(m) In 2020, the APH databases for the existing unit and the native sod acreage are
combined. The exception code for multiple APH databases for an OU/P/T/TMA and
the yield indicator SB are no longer used.

Resulting APH Database

2020 NI - 003 AO - 095
Sbean
Unit 0001-0003 OU
(0081)
Year Production Acres Yield
2012 4000 80.0 A50
2013 8800 200.0 A44
2014 3760 80.0 A47
2015 11200 200.0 A56
2016 4960 120.0 A41
2017 7800 200.0 A39
2018 5000 120.0 A42
2019 10200 200.0 A51
Rate Yield 46 Total 370/8
T-Yield 35 Approved Yield 46

June 2015 FCIC 18180 690

 Exhibit 17

C. …Emerging from USDA Program, New Breaking, and Native Sod Examples (Continued)

Resulting APH Database

Grain -
2020 NI - 003
016
Corn (0041) Unit 0001-0003 OU
Year Production Acres Yield
2012 24000 200.0 A120
2013 11520 80.0 A144
2014 29400 200.0 A147
2015 10080 80.0 A126
2016 26600 200 A133
2017 13760 120.0 A115
2018 28200 200.0 A141
2019 16440 120.0 A137
Rate Yield 133 Total 1063/8
T-Yield 100 Approved Yield 133

(n) CY 2020 acres for unit 0001-0003 OU must be reported by FN/Tract/Field number.

CY CROP UNIT # FN/TRACT/FIELD(S) ACRES

2020 Sbean 0001-0003 OU 1234-54321-01, 02 120.0
2020 Corn 0001-0003 OU 1234-54321-03 200.0

June 2015 FCIC 18180 691

 Exhibit 17

D. Cup Applicability Chart

The following chart illustrates when approved APH yields are eligible for cups.

SITUATION ELIGIBLE FOR CUP? [REFERENCE]

Para. 1722
New insured No
Para. 1856
Carryover insured updates with most recent Yes if 1/ and yield Para. 1722
year’s history substitution NOT elected Para. 1873
Most recent year was zero planted: Maybe… Para. 1724
Yes if 1/ and yield
Para. 1722
Database contains actual history substitution NOT elected
No Para. 1722
Database does not contain actual history
Carryover insured provides additional years of Para. 1722
No
history besides most recent Para.1873B
Yield floor is higher than cup No (use yield floor) 2/ Para. 1724
Yes if 1/ and yield
substitution NOT elected
Yield substitution or cup applicable Para. 1745
(No if yield substitution
elected).
Published T-Yield changes: Maybe…
Change is less than a 10% decrease. Yes if 1/ and yield
substitution NOT elected
Change is greater than a 10% decrease &: Maybe… Para. 1722
T-Yield(s) needed to complete the 4-year No Para. 1873B
database.
T-Yield is not needed to complete the database Yes if 1/ and yield
(at least 4-years of other types of yields) substitution NOT elected
Para. 1722
Other revisions to previously approved yields No
Para. 1873
Para. 1722
Other special cases No
Para. 1873 B
Prior yield used yield floor No 2/ Para. 1722
Para. 1722
Prior yield used yield substitution No
Para. 1873 B

1/ Prior year’s approved APH Yield did not use yield floor (yield floor not applicable to Category C
Crops) or yield substitution under the APH Yield Adjustment Election (may elect yield
substitution).

2/ Yield Floor does not apply to Category C Crops.

June 2015 FCIC 18180 692

 Exhibit 17

E. Recording and Maintaining SA T-Yields

(1) Example of Added Land with Records Combined with an Existing Unit.

The following example illustrates combining an existing unit's database and added land with
records into a single unit database. Both databases contain actual and/or assigned yields and
cannot be further divided into OUs. The insured share-rented another farm (FSA FN) from the
same landlord who was insured the previous (policy) crop year and who has an established
database.
Previous (Policy) Crop Year Databases (2015)

ADDED LAND/LANDLORD A EXISTING UNIT/LANDLORD A

2015 UNIT 0001-0000 NI FAC Sec.10 2015 UNIT 0001-0000 NI FAC Sec.10
YEAR PROD. ACRES YIELD YEAR PROD. ACRES YIELD
2011 640 40.0 A16 2011 1400 70.0 A20
2012 700 50.0 A14 2012 2880 90.0 A32
2013 1200 60.0 A20 2013 1680 60.0 A28
2014 880 40.0 A22 2014 1920 80.0 A24

STEP ACTION
The 2016 production report indicates for the 2015 crop year: NI FAC with 3,000
1
bu. production, 100.0 actual acres and a 30 bu. average yield.
2 Actual acres and production are combined.
The actual yields are totaled and divided by five to determine the
3
preliminary/approved APH yield.

Year 2040 110.0

2011 (640[Bu] + 1400[Bu]) ÷ (40.0 [acres] + 70.0[acres]) = 19
3580 140.0
2012 (700[Bu] + 2880[Bu]) ÷ (50.0 [acres] + 90.0[acres]) = 26
2880 120.0
2013 (1200[Bu] + 1680[Bu]) ÷ (60.0[acres] + 60.0[acres]) = 24
2800 120.0
2014 (880[Bu] + 1920[Bu]) ÷ (40.0[acres] + 80.0[acres]) = 23

June 2015 FCIC 18180 693

 Exhibit 17

E. Recording and Maintaining SA T-Yields (Continued)

(1) Example of Added Land with Records Combined with an Existing Unit (continued)

2016 UNIT 0001-0000 NI FAC

STEP YEAR PROD. ACRES YIELD
STEP 2 2011 2040 110 A19
STEP 2 2012 3580 140.0 A26
STEP 2 2013 2880 120.0 A24
STEP 2 2014 2800 120.0 A23
STEP 1 2015 3000 30.0 A30
STEP 3 Total 122/5=24
APH 24

(2) Example of Separate APH Database Required

The following example illustrates establishing current databases for a BU. The added land
did not have records, exceeded cropland acreage limitations but did not exceed the 2000
cropland acreage maximum, and the RMA RO did not authorize the use of the existing
unit’s APH yield for the added land.

Current Crop Year Databases (2016)

EXISTING UNIT/100 PERCENT ADDED LAND/CASH RENTED

2016 UNIT 0001-0000 NI FAC 2016 UNIT 0001-0000 NI FAC
YEAR PROD. ACRES YIELD YEAR PROD. ACRES YIELD
2011 2200 55.0 A40 2011
2012 0.0 Z 2012 T17
2013 40.5 P15 2013 T17
2014 2520 60.0 A42 2014 T17
2015 1210 50.0 A20 2015 T17
Total 117/4=29 Total 68/4=17
APH 29 APH 17

For the subsequent crop year, the insured provides separate production reports and requests
separate OUs.

June 2015 FCIC 18180 694

 Exhibit 17

E. Recording and Maintaining SA T-Yields (Continued)

Subsequent Crop Year Databases (2017)

EXISTING UNIT/ 100 PERCENT ADDED LAND/ CASH RENTED

2017 UNIT 0001-0001 NI FAC 2017 UNIT 0001-0002 NI FAC
YEAR PROD. ACRES YIELD YEAR PROD. ACRES YIELD
2011 2200 55.0 A40 2011
2012 0.0 Z 2012
2013 40.5 P15 2013 T17
2014 2520 60.0 A42 2014 T17
2015 1210 50.0 A20 2015 T17
2016 1280 40.0 32 2016 3300 150.0 A22
Total 149/5=30 Total 73/4=18
APH 30 APH 18

F. Special APH Instructions for Contract Seed Beans and Contract Seed Peas

[Examples 2, 3, 4 do not have the applicable current crop year RYAFs. The RMA RO issues
them in early March for each current crop year. Current crop year RYAFs must be used when
calculating approved APH yields.]

(1) Instructions for Use of the Multi-Purpose Production Yield Report Worksheet

Enter each crop year’s respective RYAF in col. 1 of the Multi-purpose Production and
Yield Report Worksheet. If fewer than four years of production have been certified, enter
the appropriate RYAF for factoring T-Yields to complete a four-year database. The
factored T-Yields are also applicable in calculating Yield Floors.

When using T-Yields with the RYAF, the published T-Yield is multiplied:

(a) by the RYAF for the crop year designated by the double asterisk in the published
RYAF document for the applicable crop year [$580 - see example]; and

(b) by the applicable variable T-Yield percentage factor. Individual year RYAF’s are not
used to adjust the T-Yields except as stated above.

(c) With an appropriate factor for deriving the variable T-Yield, YA, or Yield Floor
value, substitute yields calculated according to Part 15 Section 3 APH Yield
Adjustment procedure are also entered in Col. 18; see also (l) below.

June 2015 FCIC 18180 695

 Exhibit 17

F. Special APH Instructions for Contract Seed Beans and Contract Seed Peas (Continued)

(d) Representing a 100 percent share equivalent basis, enter the total dollars received (or
value of, e.g., production utilized as feed, assigned yields multiplied times acres, etc.,)
for each crop year in Col. 2 of the worksheet. If fewer than four-years of production
have been certified, use the factored T-Yield to complete a four year database. Do not
consider a year with zero planted acres a year with actual production.

(e) Multiply the RYAF in col. 1 times total dollars, in Col. 2, and enter the resulting
product in Col. 3. Transfer the factored dollar value(s) (Col. 3) to Total Production
Column on the APH form. Refer to Exh. 17 below for using a standard RYAF when
calculating current crop year equivalent T-Yields.

(f) Enter the planted acres in the Acres Column on the APH form for each crop year
certified.

(g) Divide factored dollars (Col. 16) by planted acres (Col. 17) and enter resulting
quotient in the Yield Column (18) on the APH form.

(h) Total the factored average dollar values (Col. 18) and enter the total in the Total
Block (19) on the APH form.

(i) Divide the total (Block 19) by the number of years that have yields, including T-
Yields (Col. 18). Enter the result in the Preliminary Yield Block (20 (A)) on the APH
form as the preliminary yield in whole dollars per acre.

(j) To express the prior year's approved yield in current dollars-per-acre equivalent,
multiply the previous year's approved APH yield (in dollars per acre) by the most
recent year's RYAF. See block 20 (B) in (2) below, Multi-Purpose Production Report
Example.

(k) Any yield limitation (cup) provisions, if applicable, apply to carryover policies.
Multiply the previous year's approved APH yield (in dollars per acre) by the most
recent year's RYAF and 90 percent, and then compare it to the current year's
preliminary yield. If necessary, apply the yield limitation and enter the approved
APH yield.

(l) APH Yield Adjustment, see Part 15 Section 3. The substitute yield is derived by
multiplying the applicable published T-Yield by the RYAF for the crop year
designated within the published RYAF document by 60 percent. For crop years 2002
and prior, use the 1987 factor; T-Yields for crop years 2003 and later are expressed in
2002 dollar equivalents and are therefore adjusted by the 2002 RYAF; see example
(4) below.

(m) Assigned Yield. If the insured fails to report production, and an assigned yield (75
percent of the prior year's production) is needed, then: any assigned yield should be
recorded / stored as initially determined and then factored by the RYAF
corresponding to the crop year grown, since that is the year the dollar amount per acre
is expressed as.
June 2015 FCIC 18180 696
 Exhibit 17

F. Special APH Instructions for Contract Seed Beans and Contract Seed Peas (Continued)

Example: An insured’s Approved APH Yield for 2015 was 520 $/ac.; insured
fails to report timely by PRD; assigned yield of 390 $/ac. (75 percent
of 520) is assigned and stored in the APH Database; the 390 $/ac. is
factored in subsequent crop years by the RYAF corresponding to the
2015 crop year.

(n) For Production and Yield Reports for carryover policies, actual dollars are entered in
the column labeled “total dollars.”

Final factored average dollar per acre is calculated by dividing “total dollars” by
“planted acres” and multiplying times the RYAF. The resulting value is entered in the
column labeled “average value.”

(o) It is necessary to convert the approved APH yield from dollars per acre ($/A) to
pounds per acre (#/A) for entry on the acreage report. Divide the approved APH yield
by the contract price(s) per pound. A separate line entry is required for each different
contract price.

Note: When performing mathematical calculations within a year, round only at the
completion of all calculations for the given year (including (k) above).

(2) Multi-Purpose Production Report Example

Use this worksheet to determine the factored production to be entered on the APH database.

Example: Magic Valley Idaho producer of Contract Seed Beans

CROP YEAR 1 2 3 4 5 6
RYAF TOT $ FAC $
20XX 1.47 9450 13892
20XX 1.46 10580 15447
20XX 1.39 ---- ----
20XX 0.99 21027 20817
FACTORED T-YIELD **1.58 T-580 F916

June 2015 FCIC 18180 697

 Exhibit 17

F. Special APH Instructions for Contract Seed Beans and Contract Seed Peas (Continued)

15
16 TOTAL
6 CROP CROP 18
PRODUCTION 17 ACRES
Dry Beans 7 SECTION 36 YIELD
*
(0047) YEAR
PRACTICE
TWNSHP 10S
IRR. (002)
TYPE
RANGE 10W
C.S.B. (062)
UNIT NO. LAND OTHER COUNTY YES
0002-0000 NO
FSA FN
8 OTHER PERSON(S)

NONE 1001

9 RECORD CROP **2002

TYPE: YEAR: 20XX RYAF F916

20XX 13892 15.0 A926

PRODUCTION SOLD/COMMERCIAL STORAGE
ON FARM STORAGE, RECORDED BIN 20XX 15447 14.0 A1103
MEASUREMENT 13 RMA
LIVESTOCK FEEDING RECORDED APPRAISAL YIELD: 20XX Z
FSA LOAN RECORD OTHER
NUMBER OF TREES OR VINES DY = 580 20XX 20817 25.8 A807
$/Ac. 19
2002 equiv. TOTAL
3752

10 PROCESSOR 11 OTHER 14 20 (A) PRELIMINARY 21 APPROVED APH

NUMBER/NAME TRANSITIONAL YIELD 938 YIELD
Contract Prices .50, .60 YIELD:
*Factored $ Production (if available) DY= 580 20 (B) PRIOR YIELD (For Verifier use only)
(1.58)= F916 968
968 x 0.99 (2008 RYAF) =
958

June 2015 FCIC 18180 698

 Exhibit 17

F. Special APH Instructions for Contract Seed Beans and Contract Seed Peas (Continued)

(3) APH, CSA (Contract Seed Beans) Example

XXXX DRY BEANS (047)

PRODUCTION REPORT

NAME: GARDENSEED, GROWER ANY AGENT 99

ADDRESS: RR # 1 ANY AIP 999
TOWN, ST. ZIP
PHONE: (XXX)-XXX-XXXX POLICY: XX-XXX-XXXXX
(Magic Valley Idaho Example) SSN/TAX NO.: XXX-XX-XXXX
SERVICE OFFICE: C. I. AGENT AGENT CODE: XXXXXXX
ADDRESS: 101 N. Main St.
Town, St. Zip
COMPANY: INS. AGENCY INC. COMPANY CODE: XXXXX
UNIT NO. – 0002-0000 FSA FN: XXXX
LEGAL DESCRIPTION: W½ 36 10S 16E
OTHER ENTITY: NONE
PROCESSOR NUMBER/NAME:
PRACTICE: IRRIGATED (002)
TYPE: CONTRACT SEED (062)
CROP REF YEAR ADJ TOTAL FACTORED PLANTED FACTORED
YEAR FACTOR DOLLARS DOLLARS ACRES AVERAGE VALUE

Sample
XXXX 1.53
XXXX 1.61
XXXX 0.61
XXXX 0.58
XXXX 1.54
XXXX 1.53 0.0 F916
XXXX 1.47 9450 13892 15.0 A926
XXXX 1.46 10580 15447 14.0 A1103
XXXX 1.39 0 0 0.0 Z
SUBTOTAL

XXXX 0.99 21027 20817 25.8 A807

AREA: TOTAL OF AVERAGE YIELDS
TRANSITIONAL YIELD: $580/A 3752
PRIOR APPROVED APH YIELD
X RYAF = (1.58): 916 APP. APH YIELD
PRELIMINARY YIELD: 938 938

For this example, the T-Yield is $580 per acre. The factored T-Yield is determined by
multiplying the published T-Yield by the RYAF designated with the double asterisk on the
RYAF document issued for the applicable crop year (since the published T-Yields are expressed
in dollar equivalents for the designated crop year). The factored T-Yield shown in this example
is determined as follows: T-Yield ($580/Acre x RYAF (1.58) = a factored T-Yield of $916. The
factored T-Yield is then multiplied by the applicable variable T-Yield percentage factor.
June 2015 FCIC 18180 699
 Exhibit 17

F. Special APH Instructions for Contract Seed Beans and Contract Seed Peas (Continued)

(4) Example of 20XX Reference (Base) Year Adjustment Factors

20XX REFERENCE (BASE) YEAR ADJUSTMENT FACTORS

Contract Seed (Wrinkled) Dry Peas
Crop Columbia Blue Mts. Treasure Magic Valley &
Palouse
Year Basin WA/OR Valley South East Idaho
85 2.08 2.06 1.85 - 2.28
86 2.14 2.07 1.87 - 2.41
* 87 2.13 2.10 1.98 - 2.50
88 2.13 2.12 1.99 - 2.51
89 1.79 1.86 1.74 - 2.15
90 1.75 1.83 1.71 - 2.08
91 1.82 1.81 1.74 - 2.18
92 1.94 1.94 1.83 - 2.27
93 1.82 1.80 1.75 - 2.19
94 1.91 1.93 1.83 - 2.30
95 1.80 1.79 1.73 - 2.13
96 1.66 1.67 1.63 - 1.91
97 1.69 1.67 1.63 - 2.00
98 1.74 1.73 1.68 - 1.98
99 1.86 1.88 1.81 - 2.11
00 1.98 2.02 1.93 - 2.21
01 1.95 2.03 1.92 - 2.24
** 02 1.90 1.98 1.87 - 2.15
03 1.71 1.74 1.68 - 1.87
04 1.69 1.72 1.66 - 1.83
05 1.76 1.81 1.71 - 1.89
06 1.88 2.01 1.85 - 1.97
07 1.52 1.56 1.50 - 1.68
08 0.90 0.92 0.88 - 0.99

June 2015 FCIC 18180 700

 Exhibit 17

F. Special APH Instructions for Contract Seed Beans and Contract Seed Peas (Continued)

(4) Example of 20XX Reference (Base) Year Adjustment Factors (continued)

Contract Seed (BVGS) Dry

Beans
Crop Columbia Blue Mts. Treasure Magic Valley &
Palouse
Year Basin WA/OR Valley South East Idaho
85 2.28 - - 2.21 2.19
86 2.33 - - 2.31 2.25
* 87 2.27 - - 2.37 2.30
88 2.11 - - 2.24 2.20
89 1.62 - - 1.66 1.64
90 1.59 - - 1.55 1.52
91 1.64 - - 1.71 1.70
92 1.79 - - 1.82 1.81
93 1.66 - - 1.73 1.72
94 1.67 - - 1.76 1.70
95 1.62 - - 1.64 1.60
96 1.48 - - 1.48 1.41
97 1.45 - - 1.51 1.45
98 1.45 - - 1.53 1.48
99 1.51 - - 1.58 1.53
00 1.60 - - 1.67 1.61
01 1.61 - - 1.66 1.61
** 02 1.58 - - 1.61 1.58
03 1.56 - - 1.6 1.54
04 1.55 - - 1.57 1.53
05 1.49 - - 1.5 1.47
06 1.49 - - 1.5 1.46
07 1.43 - - 1.44 1.39
08 1.01 - - 1.03 0.99
(**) Use for factoring current
(*) Use for factoring 2002 & prior Determined Yields
Determined Yields
Columbia Basin Palouse
Counties - Gilliam, Counties - Benewah, Clearwater, Idaho, Kootenai, Latah,
Morrow - OR Lewis, Nez Perce - ID
Counties - Adams, Franklin, Grant,
Counties - Spokane, Stevens, Whitman - WA
Lincoln - WA

Blue Mts. OR/WA Treasure Valley

Counties - Umatilla, Counties - Ada, Canyon, Owyhee, Payette,
Union - OR Washington - ID
Counties - Asotin, Columbia, Garfield,
Counties - Malheur - OR
Walla Walla - WA
Magic Valley S.E. Idaho

Counties - Blain, Cassia, Elmore, Gooding, Jerome, Counties - Bannock, Bingham, Bonneville, Butte, Clark,
Lincoln, Minidoka, Twin Falls - ID Franklin, Fremont, Jefferson, Madison, Power - ID

June 2015 FCIC 18180 701

 Exhibit 17

G. Green Pea Example

I. M. Insured certified 10 years of production which included the contract price. The total
production was determined by dividing the dollars received by the contract price for the
tenderometer reading or sieve size shown on the actuarial table for the type of green peas on the
unit. For the Dry Peas column, Dry pea production harvested from green pea acreage was added
to the green pea production.

GREEN PEA MULTIPURPOSE PRODUCTION AND YIELD WORKSHEET

1 2 3 4 5 6
Dollars
Crop Contract Price for Adjusted Lbs. Dry Total
Received for
year the TR Sieve number Production Peas / .60 Production
Crop
2006 4,783.80 0.05950 80,400 80,400
2007 2,565.00 0.06000 42,750 42,750
2008 4,559.75 0.06100 74,750 74,750
2009 4,875.00 0.06250 78,000 78,000
2010 2,929.50 0.06300 46,500 46,500
2011 7,010.29 0.07105 98,667 17,133 115,800
2012 5,859.97 0.07145 82,015 82,015
2013 7,686.00 0.07000 109,800 109,800
2014 4,623.00 0.06900 67,000 67,000
2015 2,930.00 0.05860 50,000 50,000

June 2015 FCIC 18180 702

 Exhibit 17

G. Green Pea Example (Continued)

RESULTING APH DATABASE

Insured’s Name and Required Field Agent Name and Address:
Address: Review: (check one)
Yes □ I.M. Agent
I.M. Insured No □ Street
Street Required Inspection: State, Zip
State, Zip (check one)
Yes □ Phone Number: (XXX) XXX-XXXX
Phone Number: (XXX) No □
XXX-XXXX AIP Name and Agent Code: XXXXXX
Address:
Identification Number:
XXX-XX-XXXX I.M. Company
Street
State, Zip

Policy Number: XX-XXX- State: Insured State County: Insured County (XXX)
XXXX (XX)
Practice: I (002) Type: S (097)
Irr. Cropping Organic Commodity Sub-
Interval: Class: Intended use:
Practice: Practice: Practice: Type: class:

Total
Crop Year: 2016 Crop Year Acres Yield
Production
Crop: Green Peas (0064) 2006 80,400 30.0 A2,680
2007 42,750 15.0 A2,850
2008 74,750 25.0 A2,990
Unit Number:
0001-0000
2009 78,000 30.0 A2,600

Sample
2010 46,500 15.0 A3,100
2011 115,800 40.5 A2,859
Others sharing in crop:
2012 82,015 25.2 A3,255
2013 109,800 30.0 A3,660
Land Description: 2014 67,000 20.0 A3,350
Section: XX
2015 50,000 20.0 A2,500
Township: XXXX
Range: XXXX Total: 29,844
Other Land Identifier: Average Yield: 2984 Approved APH
2,984
Yield:
FSA Farm Number: XXXX Preliminary Yield: Rate Yield:
Tract Number: XXXXX 2984 Prior Year Yield:
Field Number: XX T-Yield:
Cropland Acres: XXX 2800
Other:
Yield Indicator:

June 2015 FCIC 18180 703

 Exhibit 17

H. Potato Example

In this example, I Am Insured certified the prior year’s production. He had 20.0 acres of potatoes
that made 4,761 CWT (238 CWT per acre). The verifier updated I Am Insured’s database. I. M.
Insured has an approved yield of 343 CWT at the applicable percentage factor for the current
crop year.

POTATOES MULTIPURPOSE PRODUCTION AND YIELD WORKSHEET

1 2 3 4 5 6
CROP FRESH % FRESH % NO. 2 OR PROCESSING PROCESSING %
YEAR NO. 1 BETTER % NO. 1 NO. 2 OR BETTER
2012 DP-50 DP-60 DP-50 DP-85
2013 DP-50 DP-60 DP-50 DP-85
2014 DP-50 DP-60 DP-50 DP-85
2015 DP-50 DP-60 DP-50 AAP-92
Avg. 50 60 50 87

DP = Default Percentage from Actuarial Document. Not applicable to CAT.

AAP = Average Actual Percentage

RESULTING APH DATABASE

Insured’s Name and Address: Required Field Review: (check Agent Name and Address:
I.M. Insured one)Yes □ No □
Street Required Inspection: (check one) I.M. Agent
State, Zip Yes □ No □ Street
Phone Number: (XXX) XXX-XXXX AIP Name and Address: State, Zip
Identification Number :XXX-XX- I.M. Company
XXXX Street Phone Number: (XXX) XXX-XXXX
State, Zip Agent Code: XXXXXX
Policy Number: XX-XXX-XXXX State: Insured State (XX) County: Insured County (XXX)
Practice: I (002) Type: Group A (161)
Irr. Practice: Cropping Organic
Interval: Commodity Type Class: Sub-class: Intended use:
Practice: Practice:

Crop Year: 2016 Crop Year Total Production Acres Yield

Crop: Potatoes (0084) 2006 0 0 0
2007 3890 10.0 A 389
Unit Number: 2008 8120 20.0 A 406
0001-0000 2009 8340 20.0 A 417

Sample
2010 7260 20.0 A 363
Others sharing in crop: 2011 7360 20.0 A 368
2012 5187 18.0 A 288
Land Description: 2013 5390 18.0 A 299
Section: XX 2014 6306 20.0 A 315
Township: XXXX 2015 4761 20.0 A 238
Range: XXXX Average Yield: Total: 3083
Other Land Identifier: Approved APH Yield: 343
FSA Farm Number: XXXX Preliminary Rate Yield:
Tract Number: XXXXX Yield: 343 Prior Year Yield:
Field Number: XX T-Yield: Other:
Cropland Acres: XXX 320
Yield Indicator:

June 2015 FCIC 18180 704

 Exhibit 17

I. Forage Production Underwriting Report

The forage CP provide that insurance will not attach on any acreage that does not have an
adequate stand at the beginning of the insurance period. An adequate stand is a population of
live forage plants that equals or exceeds the minimum required number of plants per square foot
as shown in the SP.

The purpose of the Forage Production Underwriting Report is to identify each field and to certify
basic information needed to determine type classification, unit structure, and insurability of the
stand (age of stand and adequacy of plant count). This information will be used to update the
APH form before requesting an Approved APH Yield for the upcoming crop year, and also to
complete the acreage report:

(1) All insureds must complete the Forage Production Underwriting Report for each field of
forage production and submit a copy of the report to the AIP before insurance attaches.

(2) Crop inspections, if needed, are made before the calendar date for the beginning of the
insurance period.

(3) If a Claim for Indemnity was filed the preceding crop year and an adequate stand was
determined, the Claim for Indemnity Report will be used to determine insurability.

If the insured does not complete the Forage Production Underwriting Report, or does not
complete in an acceptable manner, AIPs must obtain the required information or deny coverage
for the crop year. If the crop is damaged prior to application or the date insurance should have
attached, the insurance does not attach.

J. Elements and Information Required for Forage Production Underwriting Report

ELEMENT REQUIRED INFORMATION

Insured’s Name The name of the insured applying for the coverage.
State State name where insured forage production is located.
County County name where insured forage production is located.
Crop Year 4-digit crop year, as defined in the policy.
Policy Number Insured’s policy number.
Unit Number Unit number.
FSA FN/Field ID The FSA farm number and Field ID.
Legal Description The legal description; Section, Township, and Range where forage
Sec/Twp/Rng production is located.
Acres Total acres in field/subfield.
Share Insured’s share in the unit.
Shareholder/Farm The name of the shareholder, if the insured’s interest is less than
Name 1.000 (100 percent).
The month and year the forage was seeded (land completely broken
Date Seeded Mo/Yr
up and reworked).

June 2015 FCIC 18180 705

 Exhibit 17

J. …Forage Production Underwriting Report (Continued)

ELEMENT REQUIRED INFORMATION

The number of forage plants per square foot. Calculate using the
following steps:

Step 1: Select representative samples from each field or subfield. If

the field/subfield consists of: 0.1-10.0 acres, select a minimum of
three samples; 10.1-40.0 acres, select a minimum of 4 samples; add
one additional sample for each additional 40.0 acres (or fraction
thereof) in the field/subfield.

Step 2: Select a sample size (area in square feet, e.g., 1 square foot
Forage Plants Per Sq. or 2 square feet, etc.) for all samples in the field/subfield. Identify
Ft. samples in representative areas throughout the field (examples of
measuring devices are contained in the FCIC-25150 Forage Loss
Adjustment Standards Handbook).

Step 3: Count number of insurable live forage plants (alfalfa, clover

or other insurable types shown on the actuarial documents, but not
including grass plants) within each sample area. Compute average
number of plants/square foot (total number of plants divided by total
number of square feet for all samples within a field/subfield).

Step 4: Enter separate plant counts for each type that applies.
The percentage of the ground cover that is alfalfa, clover, or other
Percent of ground
insurable grass as determined by visual inspection. This is to be
cover,
completed if the SP define a type as specified in terms of percentage
Alf/Clover/Other
of ground cover.
Crop Practice Enter irrigated or non-irrigated.
Plants Other Than List other significantly occurring plants, i.e., grasses, such as brome
Forage grass or orchard grass; or weeds, such as cheat grass or kochia.
The number of acres based on the seeding date and stand
Uninsurable Acres information, rounded to tenths of an acre (overage or inadequate
stand).
Acres Seeded With List the acreage that has been seeded with another crop different than
Another Crop those listed on this form.
Remarks Any special information that clarifies items on this form.
Insured’s Signature The insured must sign this form.
Date Date the insured signs this form.
Agent’s Signature Signature of agent after the insured has signed.
Agent’s Code Code number of Agent.
Date Date the agent signs this form.

June 2015 FCIC 18180 706

 Exhibit 17

K. Forage Production Underwriting Report Example

INSURED’S NAME STATE COUNTY CROP YEAR POLICY

I. M. Insured XX XXX 2016 NUMBER
XXXXXXX
Legal Date Forage Plants
FSA FN/ Shareholder/ % of Ground Cover Crop Plants Other
Unit Number Description Acres Share Seeded Per [Link].
Field ID Farm Name Alf/Clover/Other Practice Than Forage
Sec/Twp/Rng Mo/Yr Alf/Clover/Other
1204 – Alfalfa -
0001-0001 13 023N 004W 34.7 1.0 05/19/12 7.0 0.60 0.10 Brome
10,11 NI
1204 - 12 Alfalfa -
0001-0001 13 023N 004W 12.3 1.0 05/02/13 10.0 0.70 0.10 Brome
NI
1204 – 2, 3, Alfalfa -
0001-0001 13 023N 004W 23.6 1.0 05/03083 3.0 0.30 0.20 Brome

SAMPLE
4, 9 NI
Red
0001-0001 1204 - 13 13 023N 004W 27.9 1.0 05/18/14 16.0 3.0 0.80 0.20 Clover - Grass
NI
Alfalfa
0001-0002 1204 - 14 14 024N 004W 4.9 1.0 05/19/14 14.0 0.90
– NI
Red
1204 – 16,
0001-0002 14 024N 004W 22.8 1.0 05/01/11 9.0 4.0 0.60 0.40 Clover - Grass
17
NI
Red
0001-0002 1204 - 15 14 024N 004W 8.9 1.0 05/01/13 9.0 4.0 0.60 0.40 Clover - Grass
NI

Uninsurable Acres Acres Seeded With Another Crop

Line 3 over age 23.6, Line 6 over age 22.8 = 46.4 total uninsurable acres
Remarks
Insured’s Signature Date Agent’s Signature Agent’s Date
Code
XX/XX/XXXX XXXXXX XX/XX/XXXX

June 2015 FCIC 18180 707

 Exhibit 17

L. Applicable Native Sod Annual Crops

(1) The following annual crops are applicable to the reduction in premium subsidy only:

Annual Forage Chile Peppers Fresh Market Sweet Corn

Fresh Market Tomatoes* Hybrid Corn Seed Hybrid Sorghum Seed
Peppers

*For the Dollar Amount of Insurance Plan only.

(2) The following annual crops are applicable to both the reduction in premium subsidy and the
reduction in yield guarantee:

Barley Buckwheat Burley Tobacco

Cabbage Camelina Canola
Cigar Binder Tobacco Cigar Filler Tobacco Cigar Wrapper Tobacco
Corn Cotton Cotton Extra Long Staple
Cucumbers Cultivated Wild Rice Dark Air Tobacco
Dry Beans Dry Peas Fire Cured Tobacco
Flax Flue Cured Tobacco Fresh Market Beans
Fresh Market Tomatoes** Grain Sorghum Green Peas
Maryland Tobacco Millet Mustard
Oats Onions Peanuts
Popcorn Potatoes Processing Beans
Pumpkins Rice Rye
Safflower Sesame Silage Sorghum
Soybeans Strawberries Sugar Beets
Sugarcane Sunflowers Sweet Corn
Sweet Potatoes Tomatoes Wheat

**For the APH Plan of Insurance only.

June 2015 FCIC 18180 708

 Exhibit 18

A. Category C Crop- Apple Crop Addendum Worksheet Procedures

ELEMENT REQUIRED INFORMATION

Designate whether this block has met insurability requirements. Refer to the policy
provisions, the actuarial documents, and this procedure for determining insurable
and uninsurable acreage.

Example: Acreage must be reported as uninsurable when minimum requirements

are not met for:

(a) Age;
Insurable Or
(b) Yield per acre; and/or
Uninsurable
(c) Age and yield per acre.

When minimum production requirements, age, or a combination of production

and/or age are not met, acreage must be reported as uninsurable. When prior
production or acreage is commingled, the entire commingled acreage must meet the
production minimum requirements for insurability. Acreage that is combined to
meet insurability requirements may require additional yield adjustment by the AIP
or should be submitted as a RO Determined Yield Request.
Divide the orchard into as many blocks as needed to facilitate collection and
reporting of information. Separate blocks by practice, type, variety, age, density, T-
Yield map area or other characteristics shown on the actuarial documents see Para.
Block Number
1505B for exception. Contact the RO for additional block instructions. Include
block numbers on the sketch map. Enter these unique block numbers in this
column, to three places i.e., 001.
Month/Year
Month and year trees were planted or the month and year the block was grafted to the
Planted Or
current variety.
Grafted
Number of acres to tenths (0.10). The total acres should match the entries in the
PAIR. Review the APH database to determine if the reported acreage in the acreage
column reflects the insured acreage determined in the inspection. If commingled, the
Acres entire commingled acreage as reported must meet the production minimum. When
commingled, show all acreage as insurable or uninsurable on one addendum
worksheet. Correct the APH database, if necessary. Review the APH database for
possible prior acreage changes.
Variety/Type Name(s) of the variety(ies) which constitute(s) this block.

No. Of Trees Number of living trees that make up this block.

Plant Spacing Average tree spacing observed within the block (e.g.: 18X20).

June 2015 FCIC 18180 709

 Exhibit 18

A. Category C Crop- Apple Crop Addendum Worksheet Procedures (Continued)

ELEMENT REQUIRED INFORMATION

Enter:

“S” for Square Planting Pattern

“B” for Hedgerow or Border Planting Pattern
Plant Pattern
“Q” for Quincunx Planting Pattern
“H” for Hexagonal Planting Pattern
“D” for Double Row Planting Pattern
“O” for Other Planting Pattern
Rootstock Appropriate rootstock designation for each block.
Any appropriate other characteristics from the actuarial documents for each block
Spur/Non Spur
(e.g., spur vs. non spur).

Trellis Type Specify Trellis type for each block (e.g., tatura, slender spindle, etc).

Frost Protection
Type of frost protection used for each block and the average number of times used.
System/Type/ No.
If no frost protection system is in place, enter "None.”
Times

Air Drainage Rate each block for air drainage based on slope, presence of air pockets, presence of
Good/Fair/Poor barriers to the free flow of air, etc. Rate as good, fair or poor based on inspection.

Percent Slope Average percent slope for each block.

Practice NI for non-irrigated blocks. Enter IRR for irrigated blocks and indicate the
IRR/NI Type
type of irrigation system. Elaborate in "remarks" as needed.
Describe current
budwood/bough
vitality and condition. Describe in detail the budwood/bough vitality and condition. Note the differences in
Note the differences in individual blocks, if applicable.
individual blocks, if
applicable.
Has Damage (E.G.,
Disease, Hail, Freeze)
Occurred To
Blocks where damage has occurred in the past that may affect yields for the current
Trees/Vines/Bushes/B
crop year. If damage is noted, explain in detail, showing the month/year and type of
og That Will Reduce
freeze damage.
The Insured Crop’s
Production From
Previous Crop Years?

Additional information such as detailed information on pruning practices,

REMARKS
replacement program. Attach additional sheets as necessary.

June 2015 FCIC 18180 710

 Exhibit 18

A. Category C Crop- Apple Crop Addendum Worksheet Procedures (Continued)

Insurable Acreage Uninsurable

Acreage
PRE-ACCEPTANCE INSPECTION REPORT
APPLE ADDENDUM WORKSHEET
(For illustration purposes ONLY)
INSURED’S NAME: CROP YEAR: UNIT NO.:

Month/Year Spur/ Trellis Frost

Block Number Plant Plant Air Drainage Percent IRR/NI
Planted or Acres Variety/Type Rootstock Non Type Protection
Number of Trees Spacing/ Pattern Good/Fair/Poor Slope Type
Grafted Spur Specify System/Type/
/ No. Times
/
/
/
/
/
/
/
/
EXAMPLE
/
TOTALS:
Describe in detail current budwood/bough vitality and condition. Has Damage (E.G., Disease, Hail, Freeze) Occurred To
Note differences in individual blocks if appropriate. Trees/Vines/Bushes/Bog That Will Reduce The Insured Crop’s
Production From Previous Crop Years?

Remarks:

June 2015 FCIC 18180 711

 Exhibit 18

B. Category C Crop- Peach Crop Addendum Worksheet Procedures

ELEMENT REQUIRED INFORMATION

Designate whether this block has met insurability requirements. Refer to the
policy provisions, the actuarial documents, and this procedure for determining
insurable and uninsurable acreage.

Insurable Or Example: Acreage must be reported as uninsurable when minimum

Uninsurable requirements are not met for:

(a) Age;
(b) Yield per acre; and/or
(c) Age and yield per acre.
Divide the orchard into as many blocks as needed to facilitate collection and
reporting of information. Separate blocks by practice, type, variety, age, density,
TMA or other characteristics shown on the actuarial documents. Contact the RO
Block Number
for additional block considerations. Include block numbers on the map prepared
on the PAIR. Enter these unique block numbers in this column, to three places,
i.e., 001.

Variety Name(s) of the variety(ies) which constitute(s) this block

Type Type or other characteristics (i.e., Early, Mid and Late)

Number of acres to tenths (0.10) determined using RMA approved acreage

measurement methods. The total acres should match the entries on the PAIR.
Review the APH database to determine if the reported acreage in the acreage
column on the APH database reflects the insured acreage determined in the
Acres inspection. If commingled, the entire commingled acreage is reported together
on the APH database, acreage not meeting the age minimum and separate
production is not provided to meet the minimum contained in the CPs must be
reported as uninsurable on a separate CAW. Correct the APH database if
necessary. Review the APH database for possible prior acreage changes

Month/Year Planted
Month and year trees were planted or grafted.
Or Grafted
No. Of Trees Number of living trees that make up this block.
Plant Spacing Average tree spacing observed within the block (Example 18X20).

Completed for tree/vine/bush perennial crops:

Enter:

“S” for Square Planting Pattern

Plant Pattern “B” for Hedgerow or Border Planting Pattern
“Q” for Quincunx Planting Pattern
“H” for Hexagonal Planting Pattern
“D” for Double Row Planting Pattern
“O” for Other Planting Pattern

June 2015 FCIC 18180 712

 Exhibit 18

B. Category C Crop- Peach Crop Addendum Worksheet Procedures (Continued)

ELEMENT REQUIRED INFORMATION

Irrigated/Nonirrigated Enter NI for non-irrigated blocks. Enter IRR for irrigated blocks and indicate the
Irrigation Type type of irrigation system. Elaborate in the "remarks" as needed.

Total number of dead, missing and < 4-year-old trees as the number of skips in
determining percent stand. If 4-years-old or greater are interplanted and
Percent Stand/No. Of
considered to be nonbearing, or the producer indicates they will not be allowed to
Skips
produce, they should also be considered in determining percent stand, detailed
information may be necessary in the ”remarks”.

Fruiting Wood Average length of the fruiting wood (<6", 6-12" or >12").
Percent of Damage
Limbs:
<16% Enter the percent of damage that the limbs have occurred.
16-50%
>50%
Disease: Describe evidence of disease noted in the review by block and rate as: rare;
Rare/Moderate/Severe moderate; or severe, as appropriate.
Average Trunk
Average tree trunk diameter in inches.
Diameter

Pruning: Describe the application of pruning practices as annual, biennial or other. Other
Annual/Biennial/Other should be explained in “remarks” (i.e., winter and summer pruning annually).

Prunning by Block:
Describe the method of pruning as either hand or mechanical.
Hand/Mechanical
Rate each block for air drainage based on slope, presence of air pockets, presence
Air Drainage:
of barriers to the free flow of air, etc. Rate as: good; fair; or poor based on the
Good/Fair/Poor
inspection.
Percent Slope Average percent slope for each block.
Insect, Wildlife Pests: Rate the evidence of insect and wildlife pests by block as: light; moderate; or
Light/Moderate/Severe severe.
Weed Control:
Rate by block the overall weed control management as: good; fair; or poor.
Good/Fair/Poor
Interplanted With If interplanted with another crop, enter the crop other than Peaches, and explain
Another Crop (Crop) in ‘remarks”. Enter "No" if another crop is not interplanted.

Nematode Prevalence:
Rate the nematode prevalence by block as: light; moderate; or severe.
Light/Moderate/Severe
List Blocks
List blocks where major (> 10 percent) interplanting of new peach trees has
Interplanted For
occurred within existing blocks.
Renovation Purposes
Frost Protection -
If frost protection equipment is available, describe the type and amount;
System/Type/No.
otherwise, enter “None”.
Times

June 2015 FCIC 18180 713

 Exhibit 18

B. Category C Crop- Peach Crop Addendum Worksheet Procedures (Continued)

ELEMENT REQUIRED INFORMATION

Has Damage (E.G.,
Disease, Hail, Freeze)
Occurred To
Trees/Vines/Bushes/Bog Note blocks where damage has occurred in the past five years that may affect
That Will Reduce The yields for the current crop year. If damage is noted, explain in detail, showing
Insured Crop’s Production the month/year of freeze damage.
From Previous Crop
Years?

Was The Soil pH Above 6.0 If soil pH may be a problem and you answer no, enter the soil pH or identify
On ALL Blocks? blocks below 6.0 pH., use “remarks” if needed.

List Blocks which are

Listed the blocks which have been terraced.
terraced.

Additional information such as detailed information on pruning practices,

Remarks
replacement program. Attach additional sheets as necessary.

June 2015 FCIC 18180 714

 Exhibit 18

B. Category C Crop- Peach Crop Addendum Worksheet Procedures (Continued)

Uninsurable
Insurable Acreage
Acreage
APPLICANT/INSURED’S CROP
UNIT NO.:
NAME: YEAR:
PRE-ACCEPTANCE INSPECTION REPORT
PEACH ADDENDUM WORKSHEET
TOTALS
Block Number
Variety
Type
Acres
Month/Year Planted or Grafted // / / / /
No. Of Trees
Plant Spacing/Pattern

Irrigated/Nonirrigated Irrigation Type

EXAMPLE
Percent Stand/No. of Skips
Fruiting Wood <6”, 6-12”, or >12”
Percentage of Damage Limbs: <16%, 16-50%, >50%
Disease: Rare/Moderate/Severe
Average Trunk Diameter
Pruning: Annual/Biennial/Other
Pruning by Block: Hand/Mechanical
Air Drainage: Good/Fair/Poor
Percent Slope

Insect, Wildlife Pests: Light/Moderate/Severe

Weed Control: Good/Fair/Poor

Interplanted With Another Crop (Crop)

Nematode Prevalence: Light/Moderate/Severe

List blocks interplanted for renovation purposes

Frost Protection - System/Type/No. Times
HAS DAMAGE (E.G., DISEASE, HAIL, FREEZE) OCCURRED TO
TREES/VINES/BUSHES/BOG THAT WILL REDUCE THE INSURED CROP’S
P RODUCTION FROM PREVIOUS CROP YEARS?
Was the soil pH above 6.0 on ALL blocks? Yes No
List blocks which are terraced
REMARKS:

June 2015 FCIC 18180 715

 Exhibit 18

C. Category C Crop- Pear Crop Addendum Worksheet Procedures

ELEMENT REQUIRED INFORMATION

Designate whether this block has met insurability requirements. Refer to
the policy provisions, the actuarial documents, and this procedure for
determining insurable and uninsurable acreage.

Example: Acreage must be reported as uninsurable when minimum

requirements are not met for:

(a) Age;
Insurable Or (b) Yield per acre; and/or
Uninsurable (c) Age and yield per acre.

When minimum production requirements, age, or a combination of

production and/or age are not met, acreage must be reported as uninsurable.
When prior production or acreage is commingled, the entire commingled
acreage must meet the production minimum requirements for insurability.
Acreage that is combined to meet insurability requirements may require
additional yield adjustment by the AIP or should be submitted as a RO
Determined Yield Request.
Divide the orchard into as many blocks as needed to facilitate collection and
reporting of information. Separate blocks by practice, type, variety, age,
and density, TMA or other characteristics shown on the actuarial
Block Number
documents. Contact the RO for additional block instructions. Include block
numbers on the sketch map prepared in the PAIR. Enter these unique block
numbers in this column, to three places i.e., 001.
Month/Year Planted Or Month and year trees were planted or the year the block was grafted to the
Grafted current variety.
Number of acres to tenths (0.10) determined using RMA approved acreage
methods. The total acres should match the entries on the PAIR. Review the
APH database to determine if the reported acreage on the APH database
reflects the insured acreage determined in the inspection. If commingled,
Acres
the entire commingled acreage is reported must meet the production
minimum, show all acreage as insurable or uninsurable on one addendum
worksheet. Correct the APH database if necessary. Review the APH
database for possible prior acreage changes.
Variety/Type Name(s) of the variety(ies) which constitute(s) this block.
No. Of Trees Number of living trees that make up this block.
Plant Spacing Average tree spacing observed within the block (example: 10X20).
Completed for tree/vine/bush perennial crops:
Enter:

“S” for Square Planting Pattern

Plant Pattern “B” for Hedgerow or Border Planting Pattern
“Q” for Quincunx Planting Pattern
“H” for Hexagonal Planting Pattern
“D” for Double Row Planting Pattern
“O” for Other Planting Pattern
Rootstock Appropriate rootstock designation for each block.

June 2015 FCIC 18180 716

 Exhibit 18

C. Category C Crop- Pear Crop Addendum Worksheet Procedures (Continued)

ELEMENT REQUIRED INFORMATION

Trellis type for each block (e.g., tatura, slender spindle, lincoln canopy,
Trellis Type
etc.).
Frost Protection Type of frost protection utilized for each block and the average number of
System/Type/No. Times times used. If no frost protection system is in place, enter "None".
Rate each block for air drainage based on slope, presence of air pockets,
Air Drainage
presence of barriers to the free flow of air, etc. Rate as: good; fair; or poor
Good/Fair/Poor
based on your inspection.
Percent Slope Average percent slope for each block.
Enter NI for non-irrigated blocks. Enter IRR for irrigated blocks and
IRR/NI Type indicate the type of irrigation system. Elaborate in item 15 "remarks" as
needed.
Develop a row for Acres and Number of Trees and enter the totals from
Totals
each column.
Has Damage (E.G.,
Disease, Hail, Freeze)
Occurred To
Note blocks where damage has occurred in the past that may affect yields
Trees/Vines/Bushes/Bog
for the current crop year. If damage is noted, explain in detail, showing the
That Will Reduce The
month/year of freeze damage.
Insured Crop’s
Production From
Previous Crop Years?
Describe fireblight
Describe fireblight protection methods used for the unit, or if appropriate
protection methods
enter “None”.
used for the unit.
Additional information such as detailed information on pruning practices,
Remarks
disease program. Attach additional sheets as necessary.

June 2015 FCIC 18180 717

 Exhibit 18

C. Category C Crop- Pear Crop Addendum Worksheet Procedures (Continued)

Insurable Acreage Uninsurable Acreage

PRE-ACCEPTANCE INSPECTION REPORT

PEAR ADDENDUM WORKSHEET
(For Illustration Purposes Only)
INSURED’S NAME: CROP YEAR: UNIT NUMBER:

PLAN FROST
Month/Year Plant TRELLIS AIR DRAINAGE
BLOCK NUMBER T ROOTSTO PROTECTION PERCEN IRR/NITYP
Planted or ACRES VARIETY/TYPE Patter TYPE GOOD/FAIR/PO
NUMBER OF TREES SPAC CK SYSTEM/TYPE/NO. T SLOPE E
Grafted n SPECIFY OR
ING TIMES

EXAMPLE
/

TOTALS:
Has Damage (E.G., Disease, Hail, Freeze) Occurred To Trees/Vines/Bushes/Bog
That Will Reduce The Insured Crop’s Production From Previous Crop Years? REMARKS:

IF YES, LIST BLOCK(S) AND EXPLAIN IN DETAIL.

DESCRIBE FIREBLIGHT PROTECTION METHODS USED FOR THE UNIT.

June 2015 FCIC 18180 718

 Exhibit 18

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

ELEMENT REQUIRED INFORMATION

Designate whether this block has met insurability requirements. Refer to the
policy provisions, the actuarial documents, and this procedure for
determining insurable and uninsurable acreage.

Example: Acreage must be reported as uninsurable when minimum

requirements are not met for:

(a) Age;
Insurable Or (b) Yield per acre; and/or
Uninsurable (c) Age and yield per acre.

When minimum production requirements, age, or a combination of

production and/or age are not met, acreage must be reported as uninsurable.
When prior production or acreage is commingled, the entire commingled
acreage must meet the production minimum requirements for insurability.
Acreage that is combined to meet insurability requirements may require
additional yield adjustment by the AIP or should be submitted as a RO
Determined Yield Request.
Divide the vineyard into as many blocks as needed to facilitate collection and
reporting of information. Separate blocks by practice, type, variety, age, and
density, TMA or other characteristics shown on the actuarial documents.
Block Number
Contact the RO for additional block instructions. Include block numbers on
the sketch map prepared on the PAIR. Enter these unique block numbers to
the third numerical place, i.e., 001.
Month and year vines were planted or the month and year the vineyard was
Month/Year Planted Or
grafted to the current variety. Complete item *2 at the bottom of the
Grafted
addendum sheet if vines have been grafted.
Number of acres to tenths (0.10) determined using RMA approved acreage
methods. The totaled acres should match the entries on the PAIR. Review
the APH database to determine if the reported acreage on the APH database
reflects the insured acreage determined during the inspection. If
commingled, the entire commingled acreage is reported together on the APH
Acres database. The entire acreage as reported must meet the production
minimum. All acreage is shown as uninsurable if the minimum production is
not applicable, if the production minimum is meet acreage not meeting the
age minimum must be reported as uninsurable on a separate addendum
worksheet. Correct the APH database, if necessary. Review the APH
database for possible prior acreage changes.
Variety/Type Name(s) of the variety(ies) which constitute(s) this block.
Number Vines/Plant Number of vines planted and the number of bearing vines that make up this
Bearing block.
Plant Spacing Average vine spacing observed within the block.

June 2015 FCIC 18180 719

 Exhibit 18

D. Grape/Table Grape Crop Addendum Worksheet Procedures (Continued)

ELEMENT REQUIRED INFORMATION

Completed for tree/vine/bush perennial crops:
Enter:

“S” for Square Planting Pattern

Plant Pattern “B” for Hedgerow or Border Planting Pattern
“Q” for Quincunx Planting Pattern
“H” for Hexagonal Planting Pattern
“D” for Double Row Planting Pattern
“O” for Other Planting Pattern
Appropriate rootstock designation in this column and indicate the type of
**Rootstock
Phylloxera resistant rootstock (e.g., susceptible, Axr-1, etc.).
Trellis/Type/Condition Type and condition of the trellis system. Elaborate in "remarks" as needed.
Frost Protection Type of frost protection utilized for each block and the average number of
System/No. Times times used. If no frost protection system is in place, enter "None".
Rate each block for air drainage based on slope, presence of air pockets,
Air Drainage
presence of barriers to the free flow of air, etc. Rate as: good; fair; or poor
good/Fair/Poor
based on your inspection.
Percent Slope Average percent slope for each block.
Enter NI for non-irrigated blocks. Enter IRR for irrigated blocks and indicate
IRR/NI Type
the type of irrigation system. Elaborate in “remarks" as needed.
For each block, note any past winter damage that may affect yields for the
***Winter Damage current crop year. If damage is shown indicate the month/year of freeze
damage, and crop year when production resumed.
Totals Enter the totals from each column for Acres and Number of Trees.
Describe Method Of Describe the method of pruning used and note any blocks that have not been
Pruning pruned according to the method reported for the vineyard.
If grafted, on double line
entries:
If grafted, enter the month/year that the crop was originally planted on one
-Month/year originally
line and on another line enter the month/year the crop was grafted.
planted
-Month/year Grafted
Indicate type of phylloxera
resistant rootstock (i.e., Indicate the type of phylloxera resistant rootstock treatment used.
susceptible, AxR-1, etc).”
Has Damage (E.G.,
Disease, Hail, Freeze)
Occurred To
Trees/Vines/Bushes/Bog If damaged, indicate the month and year of the damage and the crop year that
That Will Reduce The the production resumed.
Insured Crop’s Production
From Previous Crop
Years?
Remarks Additional information, attach additional sheets as necessary.

June 2015 FCIC 18180 720

 Exhibit 18

D. Grape/Table Grape Crop Addendum Worksheet Procedures (Continued)

(ITEM 16) Insurable Acreage (ITEM 17) Uninsurable Acreage

PRE-ACCEPTANCE INSPECTION REPORT

INSURED’S NAME: CROP YEAR: UNIT NUMBER:

Month/Year NUMBER VINES/ FROST

BLOCK PLANT Plant TRELLIS/TYPE/ AIR DRAINAGE PERCENT IRR/NI ***WINTER
Planted or ACRES VARIETY/TYPE PLANT **ROOTSTOCK PROTECTIONSYSTEM/NO.
NUMBER SPACING/ Pattern CONDITION GOOD/FAIR/POOR SLOPE TYPE DAMAGE
Grafted BEARING TIMES

/
/
/
/
/
/
/
EXAMPLE
/
/
TOTALS:

* If grafted, on double line entries:

A Month/year originally planted.
DESCRIBE METHOD OF PRUNING (e.g., mechanical, mechanical + hand, mechanical + hand + combining, hand).

B Month/year grafted.

** Indicate type of phylloxera resistant rootstock

(e.g., susceptible, AxR-1, etc.)

REMARKS:

*** Has Damage (E.G., Disease, Hail, Freeze) Occurred To Trees/Vines/Bushes/Bog That Will Reduce The
Insured Crop’s Production From Previous Crop Years?

June 2015 FCIC 18180 721

 Exhibit 18

E. Category C Crop Procedures- Cranberry Crop Addendum Worksheet

ELEMENT REQUIRED INFORMATION

Designate whether this block has met insurability requirements. Refer to the policy
provisions, the actuarial documents, and this procedure for determining insurable
and uninsurable acreage.

Example: Acreage must be reported as uninsurable when minimum requirements

are not met for:

(a) Age;
Insurable Or Uninsurable (b) Yield per acre; and/or
(c) Age and yield per acre.

When minimum production requirements, age, or a combination of production

and/or age are not met, acreage must be reported as uninsurable. When prior
production or acreage is commingled, the entire commingled acreage must meet the
production minimum requirements for insurability. Acreage that is combined to
meet insurability requirements may require additional yield adjustment by the AIP
or should be submitted as a RO Determined Yield Request.
Divide the bog into as many blocks as needed to facilitate collection and reporting
of information. Separate blocks by bog at a minimum. List as a separate block,
Block Number uninsurable or recently renovated acreage within a bog. Contact the RO for
additional block instructions. Include block numbers on the sketch map prepared on
the PAIR. Enter these unique block numbers to the third numerical place, i.e., 001.
Month/Year Established Enter the month and year each bog block was established.
Enter the number of acres to tenths (0.10) determined using RMA approved acreage
methods. Acres indicated on bog maps recorded with the marketing organization
(e.g., Ocean Spray, Cliff Star, etc.). The total acres should match the entries on the
PAIR. Review the APH database to determine if the reported acreage on the APH
Acres database reflects the insured acreage determined in the inspection. If commingled,
the entire commingled acreage is reported together on the APH database. Acreage
not meeting the age minimum must be reported as uninsurable on a separate CAW.
Correct the APH database, if necessary. Review the APH database for possible
prior acreage changes.
Variety/Type Enter the name(s) of the variety(ies) which constitute(s) this block.
Percent Stand Percent stand > 90% - enter yes or no.
Totals Enter the totals from each column for Acres and Number of Trees.

Explain the previous loss history for the last four (4) years. If hail has occurred the
Previous Loss History For The Last 4
last two (2) years or was a secondary cause of loss, describe the severity of the
Years.
damage in the “remarks”, attaching additional sheets as necessary.
Year Enter the year.
Cause Enter the cause.
Extent Enter the extent.

June 2015 FCIC 18180 722

 Exhibit 18

E. Category C Crop Procedures- Cranberry Crop ……….Worksheet Procedures (Continued)

ELEMENT REQUIRED INFORMATION

Complete the specific management questions in the following blocks for each
applicable year for all cranberry bogs with less than four years of records.
Describe in detail any improvements for newly purchased bogs and the prior
manager’s experience.
 Fertilization Program
Specific Management practices  Pruning Program
utilized each year of operation on this  Sanding Program
bog.
 Insect Program
 Weed Program
 Bog Oxygen Program
 Water Supply
 Method of Harvest
Bog manager’s prediction of expected
Enter the expected yield of this bog for the next 4 years.
yield of this bog for the next 4 years,
Explain previous bog managers
Explain the experience of the previous bog’s manager.
experience.
Describe the use of a frost protection warning system for the bog. If frost
Describe The Use Of A Frost Warning
protection equipment is available, describe the type and amount. If equipment
System For The Bog.
is present but does not appear to be useable, note in the “remarks”.
Describe the presence or absence of a
Describe the presence or absence of a backup power source for a irrigation
backup power source for irrigation
system and also identify the type of system.
system and type of system.
Describe the backup security systems
Describe the backup security systems utilized for the irrigation equipment.
utilized for irrigation equipment.
Average number of times the frost
protection system is used each year, if Enter in this block the average number of times the frost protection system is
no frost protection system is in place, used each year, if there is not frost protection system in place enter none.
enter none.
List by Block: Time needed to flood
Enter by block, the time needed to flood bog, and the time needed to remove the
bog, and time needed to remove the
water from the bog.
water from the bog.
Describe the insect detection methods
Describe the insect detection methods used for the bog.
used for the bog.
Describe the general condition of bog
Describe the general condition of bog dikes and banks.
dikes and banks.
Describe The Pruning/Sanding Evaluate and note pruning and sanding of the Cranberry bog. Determine if the
Practices Used: bog is being pruned relative to its management condition.
Describe last year's and next year's harvesting method, wet and/or dry and the
Harvesting Method:
percentage for each method.
Attach a bog map showing each bog as a separate block. If a bog contains
Bog Map uninsurable acreage or is undergoing partial renovation, list these acres as
separate blocks.
Remarks Additional information, attach additional sheets as necessary.

June 2015 FCIC 18180 723

 Exhibit 18

E. Category C Crop Procedures- Cranberry Crop Addendum Worksheet Procedures (Continued)

Insurable Acreage Uninsurable Acreage

PRE-ACCEPTANCE INSPECTION REPORT
CRANBERRY ADDENDUM WORKSHEET
INSURED’S NAME CROP YEAR UNIT NUMBER

Month/Year Complete the following information for Cranberry bogs with less than 4 years of production records:
BLOCK NUMBER Established ACRES VARIETY/TYPE PERCENT STAND A. Improvements implemented since purchasing the bog.

B. Specific management practices utilized each year of operation on this bog.

/
/
/
/
/
/
/
EXAMPLE MANAGEMENT
PRACTICE
FERTILIZATION
PROGRAM
PRUNING PROGRAM

SANDING PROGRAM

INSECT PROGRAM

WEED PROGRAM
YEAR YEAR YEAR YEAR

/ BOG OXYGEN PROGRAM

/ WATER SUPPLY

/ METHOD OF HARVEST
C. Bog manager’s prediction of expected yield of this bog for next 4 years.
/ Explain basis for expectations.
D. Explain previous bog managers experience.
/
/
TOTALS
Previous loss history for the last 4 years.
Describe the insect detection methods used for the bog.
Year: Cause: Extent of Damage:
Describe the general condition of bog dikes and banks.
Year: Cause: Extent of Damage: Describe the pruning/sanding practices used:

Year: Cause: Extent of Damage: A. Percent of bog %; Percent of bog pruned in last 5
pruned last year years %.
Year: Cause: Extent of Damage: B. Percent of bog %; Percent of bog sanded in last 5
Sanded last year? years %.
Describe the use of a frost warning system for the bog. Harvesting method:

Describe presence or absence of backup power A. Method of harvest last year? % or

%
Dry
Wet
source for irrigation system and type of system. A. Method of harvest next year? % or
%
Dry
Wet
Describe backup security systems utilized for irrigation equipment. Attach a bog map showing each bog as a separate block. If a bog contains uninsurable acreage or acreage undergoing partial
renovation, list such acreage as a separate block.
Average number of times the frost protection system is used each year. REMARKS:

If no frost protection system is in place, enter none.

June 2015 FCIC 18180 724

 Exhibit 18

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

ELEMENT REQUIRED INFORMATION

Designate whether this block has met insurability requirements. Refer to the
policy provisions, the actuarial documents, and this procedure for determining
insurable and uninsurable acreage.

Example: Acreage must be reported as uninsurable when minimum requirements

are not met for:

(a) Age;
Insurable Or
(b) Yield per acre; and/or
Uninsurable
(c) Age and yield per acre.

When minimum production requirements, age, or a combination of production

and/or age are not met, acreage must be reported as uninsurable. When prior
production or acreage is commingled, the entire commingled acreage must meet
the production minimum requirements for insurability. Acreage that is combined
to meet insurability requirements may require additional yield adjustment by the
AIP or should be submitted as a RO Determined Yield Request.
Divide the field into as many blocks as needed to facilitate collection and reporting
of information. Separate blocks by practice, type, variety, and age, T-Yield map
Block Number area or other characteristics shown on the actuarial documents. Contact the RO for
additional block instructions. Include block numbers on the sketch map for the
PAIR. Enter these unique block numbers to the third numerical place, i.e., 001.

Month and year bushes were originally planted. If bushes have frozen out or have
Month/Year Planted been mowed or cut off for re-growth, explain in detail in the "Remarks," using
additional sheets as necessary.
Variety Name(s) of the variety(ies) which constitute(s) this block.
Number of acres to tenths (0.10) determined using RMA approved acreage
methods. Total acres should match the entries on the PAIR. Review the APH
database to determine if the reported acreage in the acreage on the APH database
reflects the insured acreage determined in the inspection. If commingled, the
entire commingled acreage is reported together on the APH database. The entire
acreage as reported must meet the production minimum. All acreage is shown as
Acres
uninsurable when the minimum production is not met. If the production minimum
is met, acreage not meeting the age minimum must be reported as uninsurable on a
separate addendum worksheet. In addition, any acreage not meeting requirements
for adaptability or as insurable based upon inspection is reported with any other
uninsurable acreage on a CAW. Correct the APH database if necessary. Review
the APH database for possible prior acreage changes.
Average bush spacing observed within each block. Measure distance between
Plant Spacing
bushes (center to center) in the row and the distance between rows.
Number Bushes Number of bushes that make up this block.

June 2015 FCIC 18180 725

 Exhibit 18

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

ELEMENT REQUIRED INFORMATION

Percent stand - based upon a random row count of missing bushes. See current loss
Percent Stand
adjustment procedures for minimum sampling methods.
Frost Protection System Type of frost protection utilized for each block and the average number of times used.
Type/Average Times Used If no frost protection system is in place, enter "None".
Enter NI for non-irrigated blocks. Enter IRR for irrigated blocks and indicate the type
IRR/NI Type
of irrigation system. Elaborate in the "remarks" as needed.

pH Value Have the operator provide pH values for each block listed.

Totals Enter the totals from each column of Acres and Number of Bushes.

Frost protection backup

system: Describe the type
Describe the type of backup system that is used from frost protection, if no backup
of backup system, if no
system is in place, enter none.
backup system is in place,
enter none.

Describe wildlife control

Describe the wildlife control measures.
measures.

Has Damage (E.G.,

Disease, Hail, Freeze)
Occurred To
Note blocks where past damage has occurred in the past three (3) years that may affect
Trees/Vines/Bushes/Bog
yields for the current crop year. If damage is noted, explain in detail, showing the
That Will Reduce The
month/year of damage.
Insured Crop’s
Production From Previous
Crop Years?

Percent Harvested By
Report the percent harvested by each method listed.
Method
Describe Record Keeping Describe the record keeping system utilized: (roadside, U-Pick, fresh market,
System processing, etc.). Add “remarks” if necessary.

Describe How The Identify how the blueberries are marketed, such as through associations, cooperatives,
Blueberries Are Marketed wholesale, roadside, U-Pick, fresh market, processing, etc.

Does Applicant Own A

If the applicant owns a blueberry harvester, enter Yes; but if not, enter No.
Blueberry Harvester?
Remarks: Additional information, attach additional sheets as necessary.

June 2015 FCIC 18180 726

 Exhibit 18

F. Blueberry (High Bush and Rabbit Eye) Crop Addendum Worksheet Procedures (Continued)
Insurable Acreage Uninsurable Acreage

PRE-ACCEPTANCE INSPECTION REPORT

BLUEBERRY ADDENDUM WORKSHEET
(High Bush and Rabbit Eye)
INSURED’S NAME: CROP YEAR: UNIT NO.:

FROST PROTECTION
BLOCK Month/Year PERCENT
VARIETY ACRES PLANT SPACING NUMBER of BUSHES SYSTEM TYPE/ IRR/NI TYPE pH VALUE
NUMBER PLANTED STAND
AVERAGE TIMES USED

EXAMPLE
/

TOTALS:
COMPLETE THE FOLLOWING INFORMATION FOR BLUEBERRY PLANTATION
Frost protection backup system: Describe the type of backup system. If no backup system in place, enter “none”.

Describe wildlife control measures.

HAS DAMAGE (E.G., DISEASE, HAIL, FREEZE) OCCURRED TO TREES/VINES/BUSHES/BOG THAT WILL REDUCE THE INSURED CROP’S PRODUCTION
FROM PREVIOUS CROP YEARS?

Percent harvested by % U-
% Mechanical Harvest
method: Pick
Describe record keeping system (e.g., roadside, u-pick, fresh market, process, etc.)
% Hand Harvest

Describe how the blueberries are marketed (e.g., associations, cooperatives, wholesale, roadside, u-pick, fresh market, process, etc.)

Does applicant own a blueberry harvester?

Remarks:

June 2015 FCIC 18180 727

 Exhibit 18

G. Blueberry (Low Bush) Crop Addendum Worksheet Procedures

ELEMENT REQUIRED INFORMATION

Designate whether this block has met insurability requirements. Refer to the
policy provisions, the actuarial documents, and this procedure for determining
insurable and uninsurable acreage.

Example: Acreage must be reported as uninsurable when minimum

requirements are not met for:

(a) Age;
(b) Yield per acre; and/or
Insurable Or Uninsurable
(c) Age and yield per acre.

When minimum production requirements, age, or a combination of production

and/or age are not met, acreage must be reported as uninsurable. When prior
production or acreage is commingled, the entire commingled acreage must
meet the production minimum requirements for insurability. Acreage that is
combined to meet insurability requirements may require additional yield
adjustment by the AIP or should be submitted as a RO Determined Yield
Request.
Divide the blueberry farm into as many fields as needed to facilitate collection
and reporting of information. Separate fields by uninsured (vegetative) and
insured (fruit- bearing) acres. Include field numbers and acres on the sketch
map and/or aerial photo prepared on the PAIR. Enter these field identification
numbers to the third numerical place, i.e., 001. If commingled, the entire
commingled acreage is reported together on the APH database. The entire
Field ID
acreage as reported must meet the production minimum. All acreage is shown
as uninsurable if the minimum production is not met. If the production
minimum is met, acreage not meeting the age minimum must be reported as
uninsurable on a separate CAW. In addition, any acreage not meeting
requirements for adaptability or as insurable based upon inspection is reported
with any other uninsurable acreage on CAW.
First Year Insured Year of fruit-bearing for the insured crop (insurable every other year, the
"Fruit Bearing" second growing season following pruning).
Acres Acres insured (fruiting acres).
First Year Uninsured Year of vegetative growth for the uninsured crop (uninsurable the growing
"Vegetative" season immediately following pruning).
Acres Acres uninsured (vegetative acres).
Have the grower provide pH values for each field. (The optimum pH value for
pH VALUE
blueberry soils is between 4.3 and 5.0).
Enter IRR for irrigated fields and NI for non-irrigated fields. Elaborate in the
IRR/NI
“remarks” as needed.
Type Of Irrigation
Type of irrigation utilized in each field and the average number of times used.
System
If no irrigation is in place, enter “None”.
Average Times Used

June 2015 FCIC 18180 728

 Exhibit 18

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

ELEMENT INFORMATION REQUIRED

Type Of Mulch Used Type of mulch used to cover bare areas (for example: hard or softwood bark,
Percent Of Bare Surface sawdust, peat, cedar hair bark, planner shavings, wood chips, paper mill
Covered sludge). If mulch is not used, enter “None”.
Totals Enter the totals from each column of Acres and Number of Bushes.
Describe Wildlife Control
Describe wildlife control measures used.
Measures:

Has Damage (E.G.,

Disease, Hail, Freeze)
Occurred To
Note fields where past damage has occurred in the past (3) years that may
Trees/Vines/Bushes/Bog
affect yields for the current year. If damage is noted, explain in detail, noting
That Will Reduce The
the month/year of damage.
Insured Crop’s Production
From Previous Crop
Years?

Percent Harvested By
Report the percent harvested by each method listed.
Method:
Does the applicant own a
blueberry harvester? If the applicant owns a blueberry harvester, enter Yes; but if not, enter No.
Yes or No
Describe Record Keeping Describe the record keeping system utilized (processing, fresh market,
System roadside, U-pick, etc.).
Describe How The Identify how the blueberries are marketed, such as through cooperatives,
Blueberries Are Marketed associations, processor, fresh market wholesale, roadside, U-pick, etc.
Remarks: Additional information, attach additional sheets as necessary.

June 2015 FCIC 18180 729

 Exhibit 18

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

Insurable Acreage Uninsurable Acreage

PRE-ACCEPTANCE INSPECTION REPORT
LOW BUSH BLUEBERRY ADDENDUM WORKSHEET
(For Illustration Purposes Only)
INSURED’S NAME: CROP YEAR: UNIT NUMBER:

FIRST YEAR TYPE OF IRRIGATION TYPE OF MULCH USED

FIRST YEAR INSURED
FIELD ID ACRES UNINSURED ACRES pH VALUE IRR/NI SYSTEM AVERAGE TIMES PERCENT OF BARE
"FRUIT BEARING
"VEGETATIVE" USED SURFACE COVERED

EXAMPLE
TOTALS:

Describe wildlife control measures:

Has Damage (E.G., Disease, Hail, Freeze) Occurred To Trees/Vines/Bushes/Bog That Will Reduce The Insured Crop’s Production From Previous Crop Years?

Percent harvested by Does applicant own a

method: % Mechanical Harvest Yes No
blueberry harvester?
Describe record keeping system (i.e., processing, fresh market, roadside, u-pick)
% Hand Harvest

Describe how the blueberries are marketed (i.e., cooperatives,

associations, process, fresh market, wholesale, roadside, u-pick)

REMARKS:

June 2015 FCIC 18180 730

 Exhibit 18

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

ELEMENT INFORMATION REQUIRED

Designate whether this block has met insurability requirements. Refer to the policy
provisions, the actuarial documents, and this procedure for determining insurable
and uninsurable acreage.

Example: Acreage must be reported as uninsurable when minimum requirements

are not met for:

(a) Age;
(b) Yield per acre; and/or
(c) Age and yield per acre.

For all crops except FL citrus: When minimum production requirements, age, or
a combination of production and/or age are not met, acreage must be reported as
uninsurable. When prior production or acreage is commingled, the entire
Insurable Or
commingled acreage must meet the production minimum requirements for
Uninsurable
insurability. Acreage that is combined to meet insurability requirements may
require additional yield adjustment by the AIP or should be submitted as a RO
Determined Yield Request.

For FL citrus only: Each homogenous planting pattern of the citrus type is reported
as a plot. A homogenous planting pattern of a type may consist of different tree
age classes (5 years, 6 to 8 years, or 9 years and above).

(1) For age classes within the plot that cannot be separately plotted (subplots), use the
age class with the greatest percentage of insurable trees in the plot to determine
insurable acreage and the amount of insurance.
(2) If the age classes within the plot can be separately plotted, the insurable acreage
and amount of insurance are determined for each age class and reported on that
basis.
Divide the orchard into as many blocks as needed to facilitate collection and
reporting of information. Separate blocks by practice, type, variety, TMA or other
characteristics shown on the actuarial documents, age, and density if practical.
Refer to the applicable crop provisions and/or actuarial document for determining
Block Number
insurable and uninsurable acreage. Review the APH database to determine
commingled production and other addendum worksheet instructions for crops with
similar production, age, or production and age minimums. Enter these unique
block numbers to the third numerical place, i.e., 001.
Year trees were set out, the year the block was grafted to the current variety, or the
year trees were dehorned. For acreage planted on or after July 1 (Florida Citrus, on
Month/Year Planted or after May 1) enter the following year (i.e., planted, grafted or dehorned
September 2003, enter 2004). Separate blocks by P/T, variety, age, and density,
and TMA. Enter these unique block numbers to the third numerical place, i.e., 001.

June 2015 FCIC 18180 731

 Exhibit 18

H. Almonds, Citrus, Figs, Fresh Plums, Macadamia Nuts, Pecans, Prunes, Stonefruit, Walnuts
Crop Addendum Worksheet (Continued)

ELEMENT INFORMATION REQUIRED

Number of acres to tenths (0.10) determined using RMA approved acreage

methods. When totaled, acres should match the entries on the PAIR. Review the
APH database to determine if the reported acreage in the acreage column on the
Acres
Production Report reflects the insured acreage determined in the inspection.
Correct the APH database if necessary. Review the APH database for possible prior
acreage changes.

Variety/Type Name(s) of the variety(ies) which constitute(s) this block.

No. Of Trees/Vines/Bushes Enter the number of living trees/vines/bushes that make up this block.

Plant Spacing Average tree spacing observed within the block (Example 18X20).

Completed for tree/vine/bush perennial crops:

Enter:

“S” for Square Planting Pattern

Plant Pattern “B” for Hedgerow or Border Planting Pattern
“Q” for Quincunx Planting Pattern
“H” for Hexagonal Planting Pattern
“D” for Double Row Planting Pattern
“O” for Other Planting Pattern

Rootstock Appropriate rootstock designation for each block.

Appropriate trellis type for each block (e.g., tatura, slender spindle, etc.). For
Trellis Type Specify Pecans, evaluate each block for light penetration into the canopy to stimulate nut
development and rate: good, fair or poor.

Frost Protection Type of frost protection utilized for each block and the average number of times
System/Type/No. Times used. If no frost protection system is in place, enter "None".

Rate each block for air drainage based on slope, presence of air pockets, presence of
Air Drainage
barriers to the free flow of air, etc. Rate as: good; fair; or poor based on the
Good/Fair/Poor
inspection.

Percent Slope Average percent slope for each block.

June 2015 FCIC 18180 732

 Exhibit 18

H. Almonds, Citrus, Figs, Fresh Plums, Macadamia Nuts, Pecans, Prunes, Stonefruit, Walnuts
Crop Addendum Worksheet (Continued)

ELEMENT INFORMATION REQUIRED

Enter NI for non-irrigated blocks. Enter IRR for irrigated blocks and indicate the
IRR/NI Type
type of irrigation system. Elaborate in the "remarks" as needed.

Totals Enter the totals from each column of Acres and Number of Trees.

For Almonds, determine and enter row-by-row planting pattern by variety within
Describe The Varietal the orchard (first repetition). For example: Carmel/Non-pareil, Non-
Planting Pattern pareil/Mission, Non-pareil/Non-pareil, etc. If there is a mixture of pattern
(Almonds ONLY). because of multiple blocks, enter additional information on another sheet and
attach to the inspection.

Has Damage (E.G.,

Disease, Hail, Freeze)
Occurred To
Note blocks where past damage has occurred which may affect yields for the
Trees/Vines/Bushes/Bog
current crop year. If damage is noted, explain in detail, noting the month/year of
That Will Reduce The
damage.
Insured Crop’s
Production From Previous
Crop Years?

Is Frost Protection
Adequate For Citrus For Citrus, determine if the frost protection system is adequate for the Citrus
(WPF) With Frost (WPF) with frost protection rate.
Protection Rate?
Remarks Additional information, attach additional sheets as necessary.

June 2015 FCIC 18180 733

 Exhibit 18

H. Almonds, Citrus, Figs, Fresh Plums, Macadamia Nuts, Pecans, Prunes, Stonefruit, Walnuts Crop Addendum Worksheet (Cont.)

Insurable Acreage Uninsurable Acreage

PRE-ACCEPTANCE INSPECTION REPORT
ALMOND/CITRUS/FIG/FRESH PLUM/MACADAMIA NUTS/PECAN/PRUNE/STONEFRUIT/WALNUT ADDENDUM
WORKSHEET
INSURED’S NAME: CROP YEAR: UNIT NO.:

Month/Year Number of Plant Plant Frost Protection Air Drainage

Block Number Acres Variety/Type Rootstock Trellis Type Specify Percent Slope IRR/NI Type
PLANTED Trees Spacing/ Pattern System/Type/ No. Times Good/Fair/Poor

/
/
/

EXAMPLE
/
/
/
/
/
/
/
TOTALS:

E
Describe the varietal planting pattern (Almonds ONLY). Is frost protection adequate for citrus (WPF) with frost protection rate?

REMARKS:

X
Has Damage (E.G., Disease, Hail, Freeze) Occurred To Trees/Vines/Bushes/Bog That Will Reduce The Insured Crop’s Production From Previous
Crop Years?

June 2015
A FCIC 18180 734
 Exhibit 18

I. Florida Avocado Crop Addendum Worksheet Procedures

ELEMENT INFORMATION REQUIRED

Designate whether this block has met insurability requirements. Refer to the
policy provisions, the actuarial documents, and this procedure for determining
insurable and uninsurable acreage.

Example: Acreage must be reported as uninsurable when minimum

requirements are not met for:

(a) Age;
Insurable Or (b) Yield per acre; and/or
Uninsurable (c) Age and yield per acre.

When minimum production requirements, age, or a combination of production

and/or age are not met, acreage must be reported as uninsurable. When prior
production or acreage is commingled, the entire commingled acreage must
meet the production minimum requirements for insurability. Acreage that is
combined to meet insurability requirements may require additional yield
adjustment by the AIP or should be submitted as a RO Determined Yield
Request.
The orchard should be divided into as many blocks as needed to facilitate
collection and reporting of information.

Blocks should be separated by type/practice, variety, age, and density if

Block Number
practical. Contact your respective RO for additional block instructions.

The sketch map prepared should include block numbers. These unique block
numbers are entered in this column.
Enter the year trees were set out, the year the block was grafted to the current
Month/Year Set out,
variety, or the year stumped (trees reduced to 4-6 foot height by removing all
Grafted, or Stumped
branches and foliage).

Enter the number of acres to tenths (0.10) determined using RMA approved
acreage methods.

Review the APH database to determine if the reported acreage in the acreage
Acres
column reflects the insured acreage determined in the inspection.

Correct the APH database if necessary and review for possible prior acreage
changes.
Variety/Type Enter the name(s) of the variety(ies) which constitute(s) this block.
Number of Trees Enter the number of bearing trees which make up this block.

June 2015 FCIC 18180 735

 Exhibit 18

I. Florida Avocado Crop Addendum Worksheet Procedures (Continued)

ELEMENT INFORMATION REQUIRED

Rate each block for air drainage based on slope, presence of air pockets,
Air Drainage: Good, Fair, or
presence of barriers to the free flow of air, etc.
Poor
Rate as: Good; Fair; or Poor based on the inspection.
Percent Slope Enter the average percent of slope for each block.

Enter the type of irrigation system.

Type of Irrigation System
Elaborate in the “remarks” as needed.

Has damage (e.g., disease,

Note blocks where tree damage has occurred in the past which may affect
hail, freeze) occurred to
yields for the current crop year.
Trees/Vines/Bushes/Bog that
If damage is noted explain in detail and indicate the month/year of damage.
will reduce the insured
crop’s production from
Also describe any change in cultural practices.
previous crop years?
Have practices or
production methods (e.g.
removal, dehorning,
Report removal of trees or stumping (reducing trees to 4-6 foot height by
grafting, transitioning to
removing all branches and foliage) that could be expected to reduce the
organic) been performed
number of bearing trees by more than 10 percent.
that will reduce the insured
crop’s production from
previous crop years?

Remarks Remarks attach additional sheets as necessary.

June 2015 FCIC 18180 736

 Exhibit 18

I. Florida Avocado Crop Addendum Worksheet Procedures (Continued)

INSURABLE ACREAGE _______ UNINSURABLE ACREAGE ________

FLORIDA AVOCADO PRE-ACCEPTANCE INSPECTION REPORT AND ADDENDUM WORKSHEET
INSURED'S NAME LEGAL DESCRIPTION: CROP YEAR UNIT NO.
MONTH & YEAR: SET OUT, AIR DRAINAGE: TYPE OF IRRIGATION
BLOCK NUMBER. ACRES VARIETY/TYPE NUMBER OF TREES PERCENT SLOPE
GRAFTED, OR STUMPED GOOD, FAIR, OR POOR SYSTEM

EXAMPLE
TOTAL: ` TOTAL:

Remarks
Has damage (i.e., disease, hail, freeze) occurred to trees or have cultural practices been performed that
will reduce the insured crop's production from previous levels?

Yes No If yes, list the blocks and describe the type and extent of damage.

Have practices or production methods (e.g. removal, dehorning, grafting, transitioning to organic) been
performed that will reduce the insured crop’s production from previous crop years?

Yes No If yes, How long? _____Years.

June 2015 FCIC 18180 737

 Exhibit 18

J. Apple PAW Examples

The following are examples of apples and peaches.

The information on the following (PAW and Transitional Yield and YA Substitution Table) are for the Apple examples found in Examples
1-6. The insured has certified information for 7 blocks based on age, variety, and density. However, due to reporting as two blocks for
examples 2, 3, 5 and 6 the blocks numbers 001-006 become block 001 and block 007 becomes block 002.

PAW (Perennial Crops) Name: Policy No.: Unit No.: Crop: State:

PRODUCER’S PRE-ACCEPTANCE I. M. INSURED XXXX 0001-0001 APPLES CO

WORKSHEET)
Legal Description: Crop Year: County: FSA FN/TRACT/FIELD:

Sec. 31 T10N R50W 2011 Montrose 8912

Mo/Year
Planted or
Plant Percent Insurable or
Block No. Grafted Acres Variety Type Number of Plants Plant Spacing Density Practice IRR/NI Spur or Nonspur
Pattern Stand Uninsurable

001

002

003

004
04/1992

04/1992

03/1999

03/1999
2.2

3.2

1.7

0.7
SAMPLE
GOLDEN DEL

RED DEL

GOLDEN DEL

RED DEL
111

111

111

111
475

690

371

153
10X20

10X20

10X20

10X20
S

S
99

99

100

100
218

218

218

218
IRR

IRR

IRR

IRR
INS

INS

INS

INS
N/A

N/A

N/A

N/A

005 05/2000 1.4 GOLDEN DEL 111 305 10X20 S 100 218 IRR INS N/A

006 05/2000 3.8 RED DEL 111 692 12X20 S 100 182 IRR INS N/A

007 04/2006 5.3 GALA 111 1,802 8X16 S 100 340 IRR INS N/A

TOTALS: 18.3 4,488

June 2015 FCIC 18180 738

 Exhibit 18

J. Apple PAW Examples (Continued)

T-Yield

Year: 2011 Commodity: Apples (0054) State: Colorado (08)

Data: Released Plan: APH (90) County: Montrose (085)
Types / Practices
Type Fresh 111
Practice Irrigated 002
Type/Practice # (T/P #) T/P 1

Transitional Yield And YA Substitution Table (BU)

T/P # Density Characteristic Leaf Sub 2011 2010 2009 2008 2007

Low High Name Year County

T/P 1 152 299 6 200.00 200.00 200.00 200.00 200.00

7 225.00 225.00 225.00 225.00 225.00
8 255.00 255.00 255.00 255.00 255.00
9 295.00 295.00 295.00 295.00 295.00
10 345.00 345.00 345.00 345.00 345.00
11 380.00 380.00 380.00 380.00 380.00
12 410.00 410.00 410.00 410.00 410.00
13 445.00 445.00 445.00 445.00 445.00
14 470.00 470.00 470.00 470.00 470.00
15 500.00 500.00 500.00 500.00 500.00
16 500.00 500.00 500.00 500.00 500.00
17 500.00 500.00 500.00 500.00 500.00
18 500.00 500.00 500.00 500.00 500.00
19 500.00 500.00 500.00 500.00 500.00
20+ 500.00 500.00 500.00 500.00 500.00
300 599 5 200.00 200.00 200.00 200.00 200.00
6 335.00 335.00 335.00 335.00 335.00
7 425.00 425.00 425.00 425.00 425.00
8 485.00 485.00 485.00 485.00 485.00
9 520.00 520.00 520.00 520.00 520.00
10 535.00 535.00 535.00 535.00 535.00
11 555.00 555.00 555.00 555.00 555.00
12 575.00 575.00 575.00 575.00 575.00
13 600.00 600.00 600.00 600.00 600.00
14 600.00 600.00 600.00 600.00 600.00
15 600.00 600.00 600.00 600.00 600.00

June 2015 FCIC 18180 739

 Exhibit 18

J. Apple PAW Examples (Continued)

Example 1 In this example the insured has certified 5 years of acreage and production for
blocks 001 - 007. Standard APH rules apply and the approved APH yield is
based on a simple 5-year average of total production divided by total acreage for
each year. A Weighted Average Age/Density Worksheet may be prepared if the
insured elects YA in order to determine the weighted average age and density,
since the blocks are of different ages and densities.

CROP TOTAL
CROP
APPLES SECTION 31 PRODUCTIO AC. YIELD
YEAR
(054) N

PRACTICE
TWNSHP 10N
IRR. (002)

TYPE
RANGE 50W
111

UNIT NO. LAND OTHER COUNTY

0001-0001 YES NO
FSA FARM
OTHER ENTITY (IES)
NO. 8912

NONE

CROP
RECORD
YEAR: CROPLAND 2006 8,346 18.3 A456
TYPE:
2011

2007 9,050 18.3 A495

2008 4,075 18.3 A223

PRODUCTION SOLD/COMMERCIAL TMA
STORAGE 2009 8,750 18.3 A478
ON FARM STORAGE, RECORDED BIN
MEASUREMENT 2010 10,550 18.3 A577
LIVESTOCK FEEDING RECORDED
T-YIELD
APPRAISAL
FSA LOAN RECORD OTHER
445 W TOTAL
NUMBER OF TREES OR VINES 4,488
2,229
PROCESSOR PRELIMINARY YIELD APPROVED
NUMBER/NAME OTHER (AVERAGE) APH YIELD
446
446 446 bu./Acre for
Any Processor PRIOR YIELD 18.3 Acres
(For Verifier use
only)

June 2015 FCIC 18180 740

 Exhibit 18

J. Apple PAW Examples (Continued)

For unit 0001-0001 in Example 1, a Weighted Average Age/Density Worksheet is calculated to

determine the weighted average set out year and average density. A Weighted Average
Age/Density Worksheet may be prepared if the insured elects YA in order to determine the
weighted average age and density, since the blocks are of different ages and densities.

WEIGHTED AVERAGE AGE/DENSITY WORKSHEET

NAME: POLICY NUMBER: UNIT NUMBER:

I. M. INSURED XXXX 0001-0001

CROP: PRACTICE TYPE VARIETY/OTHER STATE: LEGAL DESCRIPTION:

APPLES 002 111 N/A CO Sec. 31 T10S R50W

CROP YEAR: COUNTY: FSA FN/TRACT/FIELD:

2011 MONTROSE w
8912
SET OUT
SET OUT DENSITY
BLOCK MONTH/YEAR ACRES YEAR DENSITY ACRES
YEAR EXTENSIONS
EXTENSIONS

001 04/1992 1992 2.2 4,382.4 218 2.2 479.6

002 04/1992 1992 3.2 6,371.4 218 3.2 697.6
003 03/1999 1999 1.7 3,398.3 218 1.7 370.6
004 03/1999 1999 0.7 1,399.3 218 0.7 152.6
005 05/2000 2000 1.4 2,800.0 218 1.4 305.2
006 05/2000 2000 3.8 7,600.0 182 3.8 691.6
007 04/2006 2006 5.3 10,631.8 340 5.3 1,802.0

TOTALS: 18.3 36,583.2 TOTALS: 18.3 4,499.2

WEIGHTED AVERAGE SET OUT YEAR 1999 W WEIGHTED AVERAGE DENSITY 246
TRANSITIONAL YIELD: Calculation - (2011 – 1999 W +1) = 13th leaf year from the actuarial document 246 trees/acre at 13 th
leaf year = T-Yield of 445 for 2011

June 2015 FCIC 18180 741

 Exhibit 18

J. Apple PAW Examples (Continued)

Example 2: This example demonstrates reporting separate production on immature acreage for
all years in the base period. The insured has certified 5 years of acreage and
production for PAW blocks 001- 006 (APH 001) and PAW block 007 (APH 002).

Since block 001 contains trees of different ages and densities, a Weighted Average
Age/Density Worksheet is calculated to determine the weighted average set out
year and average density. The worksheet may be used to determine the applicable
YA when elected by the insured (i.e., T-Yield Calculation (2011 – 1996 W +1) =
16th leaf then from the actuarial documents 246 trees/acre at 16th leaf year = T-
Yield of 500).

For each preceding year in the APH database, the leaf year must be reduced by one
year and the applicable leaf year T-yield is then used for YA purposes (i.e., 2011
16th leaf T= 500; 2010 15th leaf T = 500; 2009 14th leaf T=470; 2008 13th leaf
T=445; 2007 12th leaf T=410; and 2006 11th leaf T=380).

YA is 60% of the applicable leaf year T-Yield. No actual yield in Block 001 or 002
was below 60% of the applicable T-Yield and eligible for YA. Block 002 contains
trees with a single age and density, thus no Weighted Average Age/Density
Worksheet is necessary and 100% variable T-Yield is used to complete the APH
database.

Note: In the T-Yield calculation for the 16th leaf year above, 500 is the applicable T-Yield
for 2011.

June 2015 FCIC 18180 742

 Exhibit 18

J. Apple PAW Examples (Continued)

APH BLOCK PRODUCTION

REPORT ALL UNINSURABLE BLOCKS SEPARATELY ON THIS FORM.

INCLUDE PRODUCTION THAT IS LESS THAN MINIMUMS AND ZERO PRODUCTION.
NAME POLICY NUMBER UNIT NUMBER
I. M. INSURED XXXX 0001-0001
(a) CROP STATE LEGAL DESCRIPTION
APPLES CO Sec. 31 T10S R50W
CROP YEAR COUNTY FSA FN/TRACT/FIELD w
2009 MONTROSE 8912
(b) PRACTICE 002 (c) TYPE 111 (b) PRACTICE 002 (c) TYPE 111 (b) PRACTICE (c) TYPE
(d)VARIETY/OTHER N/A RED/GOLD (d) VARIETY/OTHER N/A GALA (d) VARIETY/OTHER

SAMPLE
BLOCK NO.: Mo/Yr BLOCK NO.: Mo/Yr BLOCK NO.: Mo/Yr
001 002

SET OUT DENSITY: 207 SET OUT DENSITY: 340 SET OUT DENSITY:
YEAR: YEAR: YEAR:
YEAR PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD

2004 8,346 13.0 A642 0 5.3

2005 9,050 13.0 A696 0 5.3 T335
2006 3,900 13.0 A300 175 5.3 T335
2007 7,960 13.0 A612 790 5.3 T335
2010 8,700 13.0 A669 1,850 5.3 A349
TOTAL 2,919 TOTAL 1,354 TOTAL
T-YIELD ADJ. 500 W T-YIELD ADJ. 335 T-YIELD ADJ.
AVERAGE
AVERAGE YIELD APPROVED YIELD 584 AVERAGE YIELD APPROVED YIELD 339 APPROVED YIELD
YIELD
584 PRIOR YIELD 339 PRIOR YIELD PRIOR YIELD

June 2015 FCIC 18180 743

 Exhibit 18

J. Apple PAW Examples (Continued)

Although not applicable for yield calculation in this example, a weighted average set out year,
and average density must be determined for reporting purposes on block 001. Block 002’s set out
year was changed to 1997. The PAW is corrected to show proper block numbers.

WEIGHTED AVERAGE AGE/DENSITY WORKSHEET

NAME: POLICY NUMBER: UNIT NUMBER:

I. M. INSURED XXXX 0001-0001

(a) CROP: (b) PRACTICE (c) TYPE (d) VARIETY/OTHER STATE: LEGAL DESCRIPTION:

APPLES 002 111 N/A CO Sec. 31 T10S R50W

CROP YEAR: COUNTY: FSA FN/TRACT/FIELD:
w
2011 MONTROSE 8912

SET OUT
BLOCK MONTH/YEAR ACRES EXTENSIONS DENSITY ACRES EXTENSIONS
YEAR

001 04/1992 1992 2.2 4,382.4 218 2.2 479.6

002 04/1997 1997 3.2 6,390.4 218 3.2 697.6

003 03/1999 1999 1.7 3,398.3 218 1.7 370.6
004 03/1999 1999 0.7 1,399.3 218 0.7 152.6
005 05/2000 2000 1.4 2,800.0 218 1.4 305.2
006 05/2000 2000 3.8 7,600.0 182 3.8 691.6

TOTALS: 13.0 25,953 TOTALS: 13.0 2,697.2

WEIGHTED AVERAGE SET OUT YEAR 1996 W WEIGHTED AVERAGE DENSITY 207

TRANSITIONAL YIELD TRANSITIONAL YIELD Calculation - (2011 – 1996 W +1) = 16th leaf then from the actuarial
table 246 trees/acre at 16th leaf year = T-Yield of 500 for 2011

June 2015 FCIC 18180 744

 Exhibit 18

J. Apple PAW Examples (Continued)

Example 3 For this example the insured has certified 2 years of acreage and production (2010
& 2009) for PAW blocks 001- 006 (APH 001) and PAW block 007 (APH 002).

The prior years (2006-2008) were not separated and were certified with APH
block 001. Block 001 still contains trees of different ages and densities. The
worksheet may be used to determine the applicable YA when elected by the
insured.

If the insured elects YA for years prior to the acreage change, a separate Weighted
Average Age/Density Worksheet must be calculated for the current orchard
acreage (13.0 acres) and another Weighted Average Age/Density Worksheet must
be calculated for the previous acreage (18.3 acres) [see notes on each worksheet in
the example].

Block 002 contains trees with a single age and density, thus no Weighted Average
Age/Density Worksheet is necessary and 100% variable T-Yield is used to
complete the APH database.

Note: Block 001 contains acreage changes.

June 2015 FCIC 18180 745

 Exhibit 18

J. Apple PAW Examples (Continued)

APH BLOCK PRODUCTION

REPORT ALL UNINSURABLE BLOCKS SEPARATELY ON THIS FORM.
INCLUDE PRODUCTION THAT IS LESS THAN MINIMUMS AND ZERO PRODUCTION.
NAME POLICY NUMBER UNIT NUMBER
I. M. INSURED XXXX 0001-0001
(a) CROP STATE LEGAL DESCRIPTION
APPLES CO Sec. 31 T10S R50W

CROP YEAR COUNTY FSA FN/TRACT/FIELD w

2011 MONTROSE 8912
(b) PRACTICE 002 (c) TYPE 111 (b) PRACTICE 002 (c) TYPE 111 (b) PRACTICE (c) TYPE

SAMPLE
(d) VARIETY/OTHER N/A RED/GOLD (d) VARIETY/OTHER N/A GALA (d) VARIETY/OTHER

BLOCK NO.: 001 Mo/Yr BLOCK NO.: 002 Mo/Yr BLOCK NO.: Mo/Yr

SET OUT SET OUT SET OUT

DENSITY: 207 DENSITY: 340 DENSITY:
YEAR: YEAR: YEAR:
YEAR PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD

2006 8,346 18.3 A456

2007 9,050 18.3 A495 T335

2008 4,075 18.3 A223 T335

2009 7,960 13.0 A612 790 5.3 T335

2010 8,700 13.0 A669 1,850 5.3 A349

TOTAL 2,455 TOTAL 1,354 TOTAL

T-YIELD ADJ. 500 W T-YIELD ADJ. 335 T-YIELD ADJ.

AVERAGE AVERAGE AVERAGE
APPROVED YIELD 491 APPROVED YIELD 339 APPROVED YIELD
YIELD YIELD YIELD
491 PRIOR YIELD 339 PRIOR YIELD PRIOR YIELD

June 2015 FCIC 18180 746

 Exhibit 18

J. Apple PAW Examples (Continued)

For block 001 in Example 3, a Weighted Average Age/Density Worksheet is calculated to

determine the weighted average set out year and average density. A Weighted Average
Age/Density Worksheet may be prepared if the insured elects YA in order to determine the
weighted average age and density, since the blocks are of different ages and densities. Separate
worksheets are prepared for acreage changes. The following Weighted Average Age/Density
Worksheet is for the 13.0 acres of production in 2009 - 2011(see notes on T-Yields used for YA
when there are acreage changes).

WEIGHTED AVERAGE AGE/DENSITY WORKSHEET

NAME: POLICY NUMBER: UNIT NUMBER:

I. M. INSURED XXXX 0001-0001
(a) CROP: (b) PRACTICE (c) TYPE (d) VARIETY/OTHER STATE: LEGAL DESCRIPTION:

APPLES 002 111 N/A CO Sec. 31 T10S R50W

CROP YEAR: COUNTY: FSA FN/TRACT/FIELD:

2011 MONTROSE 8912

SET OUT
BLOCK MONTH/YEAR ACRES EXTENSIONS DENSITY ACRES EXTENSIONS
YEAR

001 04/1992 1992 2.2 4,382.4 218 2.2 479.6

002 04/1992 1992 3.2 6,374.4 218 3.2 697.6
003 03/1999 1999 1.7 3,398.3 218 1.7 370.6
004 03/1999 1999 0.7 1,399.3 218 0.7 152.6
005 05/2000 2000 1.4 2,800.0 218 1.4 305.2
006 05/2000 2000 3.8 7,600.0 182 3.8 691.6

TOTALS: 13.0 25,954.4 4,378 13.0 2,697.2

WEIGHTED AVERAGE SET OUT YEAR 1996 W WEIGHTED AVERAGE DENSITY 207
TRANSITIONAL YIELD: (2011 – 1996 W +1) = 16th leaf then from the actuarial table 246 trees/acre at 16 th leaf year = T-
Yield of 500 for 2011; T-Yield for 2010 15th leaf = 500; T-Yield for 2009 14th leaf = 47

June 2015 FCIC 18180 747

 Exhibit 18

J. Apple PAW Examples (Continued)

For block 001 in Example 3, a Weighted Average Age/Density Worksheet is calculated to

determine the weighted average set out year and average density. A Weighted Average
Age/Density Worksheet may be prepared if the insured elects YA in order to determine the
weighted average age and density, since the blocks are of different ages and densities. Separate
worksheets are prepared for acreage changes. The following Weighted Average Age/Density
Worksheet is for the 18.3 acres of production in 2006 -2008 (see notes on T-Yields used for YA
when there are acreage changes, item 22 below).

WEIGHTED AVERAGE AGE/DENSITY WORKSHEET

NAME: POLICY NUMBER: UNIT NUMBER:

I. M. INSURED XXXX 0001-0001

(a) CROP: (b) PRACTICE (c) TYPE (d) VARIETY/OTHER STATE: LEGAL DESCRIPTION:

APPLES 002 111 N/A CO XXXX

CROP YEAR: 8 COUNTY: FSA FN/TRACT/FIELD:

2011 MONTROSE w
8912
SET OUT
SET OUT DENSITY
BLOCK MONTH/YEAR ACRES YEAR DENSITY ACRES
YEAR EXTENSIONS
EXTENSIONS

001 04/1992 1992 2.2 4,382.4 218 2.2 479.6

002 04/1992 1992 3.2 6,374.4 218 3.2 697.6
003 03/1999 1999 1.7 3,398.3 218 1.7 370.6
004 03/1999 1999 0.7 1,399.3 218 0.7 152.6
005 05/2000 2000 1.4 2,800.0 218 1.4 305.2
006 05/2000 2000 3.8 7,600.0 182 3.8 691.6
007 04/2006 2006 5.3 10,631.8 340 5.3 1,802

TOTALS: 18.3 36,586.2 TOTALS: 18.3 4,499.2

WEIGHTED AVERAGE SET OUT YEAR 1999 W WEIGHTED AVERAGE DENSITY 246
TRANSITIONAL YIELD Calculation - (2008 - 1999 W +1) = 10 leaf year from the actuarial document 246 trees/acre at 10th leaf year = T-Yield of 345
th

for 2008; T-Yield for 2007 9th leaf =295 ; T-Yield for 2006 8th leaf =255

June 2015 FCIC 18180 748

 Exhibit 18

J. Apple PAW Examples (Continued)

Example 4 The insured has certified 3 years of acreage and production for blocks 001 - 007.
Standard APH procedures apply and the approved APH yield is based on a
simple average consisting of the three actual years (total production divided by
total acreage for each year) and one 100% variable T-Yield. As the blocks are
of different ages and densities a Weighted Average Age/Density Worksheet is
required to determine the applicable T-Yield for mixed age and density.

CROP
CROP TOTAL
SECTION 31 ACRES YIELD
YEAR PRODUCTION
APPLES (054)

PRACTICE
TWNSHP 10N
IRR. (002)

TYPE
50W
111 RANGE

UNIT NO. 0001- LAND OTHER COUNTY YES

0001 NO

OTHER ENTITY (IES) FSA FN

123

NONE

CROP YEAR:
RECORD TYPE: CROPLAND
2011

T445

PRODUCTION SOLD/COMMERCIAL STORAGE 2008 4,075 18.3 A223

ON FARM STORAGE, RECORDED BIN MEASUREMENT
LIVESTOCK FEEDING RECORDED APPRAISAL Area Classification 2009 8,750 18.3 A478

EXAMPLE
FSA LOAN RECORD OTHER

NUMBER OF TREES OR VINES 4,495 2010 10,550 18.3 A577

14
TRANSITIONAL 19 TOTAL
YIELD:
1,723
445 W
(A) PRELIMINARY
YIELD APPROVED APH YIELD
PROCESSOR NUMBER/NAME OTHER (Average)
431 431 bu./Acre for 18.3
445
Acres
(B) PRIOR YIELD
Any Processor
(For Verifier use only)

June 2015 FCIC 18180 749

 Exhibit 18

J. Apple PAW Examples (Continued)

For unit 0001-0001 in Example 4, a Weighted Average Age/Density Worksheet is calculated to

determine the weighted average set out year and average density for reporting purposes. A
Weighted Average Age/Density Worksheet may be prepared if the insured elects YA in order to
determine the weighted average age and density, since the blocks are of different ages and
densities.

WEIGHTED AVERAGE AGE/DENSITY WORKSHEET

NAME: POLICY NUMBER: UNIT NUMBER:

I. M. INSURED XXXX 0001-0001

(a) CROP: (b) PRACTICE (c) TYPE (d) VARIETY/OTHER STATE: LEGAL DESCRIPTION:

APPLES 002 111 N/A CO Sec. 31 T10S R50W

CROP YEAR: COUNTY: FSA FN:

2011 MONTROSE 8912

SET OUT
SET OUT DENSITY
BLOCK MONTH/YEAR ACRES YEAR DENSITY ACRES
YEAR EXTENSIONS
EXTENSIONS
001 04/1992 1992 2.2 4,382.4 218 2.2 479.6
002 04/1992 1992 3.2 6,374.4 218 3.2 697.6
003 03/1999 1999 1.7 3,398.3 218 1.7 370.6
004 03/1999 1999 0.7 1,399.3 218 0.7 152.6
005 05/2000 2000 1.4 2,800.0 218 1.4 305.2
006 05/2000 2000 3.8 7,600.0 182 3.8 691.6
007 05/2006 2006 5.3 10,631.8 340 5.3 1,802.0

TOTALS: 18.3 36,586.2 TOTALS: 18.3 4,499.2

WEIGHTED AVERAGE SET OUT YEAR 1999 W WEIGHTED AVERAGE DENSITY 246
TRANSITIONAL YIELD: Calculation - (2011 – 1999 W +1) = 13 leaf year from the actuarial document 246 trees/acre at 13 th
th

leaf year = T-Yield of 445 for 2011

T-Yield for 2010 12th leaf =410 / T-Yield for 2009 11th leaf =380 / T-Yield for 2009 10th leaf =345

June 2015 FCIC 18180 750

 Exhibit 18

J. Apple PAW Examples (Continued)

Example 5: The insured has certified 3 years of acreage and production for PAW blocks
001- 006 (re-designated as block 001 on the APH) and PAW block 007 (re-
designated as block 002 on the APH). Block 001 contains trees of different ages
and densities.

A Weighted Average Age/Density Worksheet must be calculated to determine

the weighted average set out year and average density, a Weighted Average
Age/Density Worksheet is calculated to determine the weighted average set out
year and average density. The worksheet may be used to determine the
applicable YA when elected by the insured (i.e., T-Yield Calculation - (2011 –
1996 W +1) = 16th leaf from the actuarial document 246 trees/acre at 16th leaf
year = T-Yield of 500).

For each proceeding year in the database the leaf year must be reduced by one
year and the applicable leaf year T-Yield is then used for YA purposes (i.e.,
2011 16th leaf T= 500; 2010 15th leaf T = 500; 2009 14th leaf T=470; 2008 13th
leaf T=445). YA is 60% of the applicable leaf year T-Yield. For Block 001 and
002, no actual yield is below 60% of the applicable T-Yield and eligible for YA.

Block 002 contains trees with a single age and density, thus no Weighted
Average Age/Density Worksheet is necessary and 100% variable T-Yield is
used to complete the APH database.

Note: In the T-Yield calculation for the 16th leaf year above, 500 is the applicable T-
Yield for 2011.

June 2015 FCIC 18180 751

 Exhibit 18

J. Apple PAW Examples (Continued)

APH BLOCK PRODUCTION

REPORT ALL UNINSURABLE BLOCKS SEPARATELY ON THIS FORM.

INCLUDE PRODUCTION THAT IS LESS THAN MINIMUMS AND ZERO PRODUCTION.
NAME POLICY NUMBER UNIT NUMBER
I. M. INSURED XXXX 0001-00100
(a) CROP STATE LEGAL DESCRIPTION
APPLES CO Sec. 31 T10S R50W
CROP YEAR COUNTY FSA FN/TRACT/FIELD w
2009 MONTROSE 8912
(b) PRACTICE 002 (c) TYPE 111 (b) PRACTICE 002 (c) TYPE 111 (b) PRACTICE (c) TYPE
(d)VARIETY/OTHER N/A RED/GOLD (d) VARIETY/OTHER N/A GALA (d) VARIETY/OTHER

SAMPLE
BLOCK NO.: Mo/Yr BLOCK NO.: Mo/Yr BLOCK NO.: Mo/Yr
001 002

SET OUT DENSITY: 207 SET OUT DENSITY: 340 SET OUT DENSITY:
YEAR: YEAR: YEAR:
YEAR PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD

2004 8,346 13.0 A642 0 5.3

2005 9,050 13.0 A696 0 5.3 T335
2006 3,900 13.0 A300 175 5.3 T335
2007 7,960 13.0 A612 790 5.3 T335
2010 8,700 13.0 A669 1,850 5.3 A349
TOTAL 2,919 TOTAL 1,354 TOTAL
T-YIELD ADJ. 500 W T-YIELD ADJ. 335 T-YIELD ADJ.
AVERAGE AVERAGE AVERAGE
APPROVED YIELD 584 APPROVED YIELD 339 APPROVED YIELD
YIELD YIELD YIELD
584 PRIOR YIELD 339 PRIOR YIELD PRIOR YIELD

June 2015 FCIC 18180 752

 Exhibit 18

J. Apple PAW Examples (Continued)

For block 001 in Example 5, a Weighted Average Age/Density Worksheet is calculated to

determine the weighted average set out year and average density. A Weighted Average
Age/Density Worksheet may be prepared if the insured elects YA in order to determine the
weighted average age and density, since the blocks are of different ages and densities.

WEIGHTED AVERAGE AGE/DENSITY WORKSHEET

(For illustration purposes ONLY)

NAME: POLICY NUMBER: UNIT NUMBER:

I. M. INSURED XXXX 0001-0001

(a) CROP: (b) PRACTICE (c) TYPE (d) VARIETY/OTHER STATE: LEGAL DESCRIPTION:

APPLES 002 111 N/A CO Sec. 31 T10S R50W

CROP YEAR: COUNTY: FSA FN/TRACT/FIELD:

2011 MONTROSE 8912

SET OUT
SET OUT YEAR DENSITY
BLOCK MONTH/YEAR ACRES DENSITY ACRES
YEAR EXTENSIONS EXTENSIONS

001 04/1992 1992 2.2 4,382.4 218 2.2 479.6

002 04/1992 1992 3.2 6,374.4 218 3.2 697.6
003 03/1999 1999 1.7 3,398.3 218 1.7 370.6
004 03/1999 1999 0.7 1,399.3 218 0.7 152.6
005 05/2000 2000 1.4 2,800.0 218 1.4 305.2
006 05/2000 2000 3.8 7,600.0 182 3.8 691.6

TOTALS: 13.0 25,954.4 TOTALS: 13.0 2,697.2

WEIGHTED AVERAGE SET OUT YEAR 1996 W WEIGHTED AVERAGE DENSITY 207
TRANSITIONAL YIELD Calculation - (2011 – 1996 W +1) = 16th leaf year from the actuarial document 207 trees/acre at 16 th
leaf year = T-Yield of 500 for 2011

June 2015 FCIC 18180 753

 Exhibit 18

J. Apple PAW Examples (Continued)

Example 6 The insured has certified 3 years of acreage and production for PAW blocks 001-
006 (APH 001) and PAW block 007 (APH 002). Block 001 contains trees of
different ages and densities. A Weighted Average Age/Density Worksheet is
calculated to determine the weighted average set out year and average density.
The worksheet may be used to determine the applicable YA when elected by the
insured. Block 002 is uninsurable as the 2010 yield is below the production
minimum for Colorado of 200/bu ac.

June 2015 FCIC 18180 754

 Exhibit 18

J. Apple PAW Examples (Continued)

APH BLOCK PRODUCTION

REPORT ALL UNINSURABLE BLOCKS SEPARATELY ON THIS FORM.
INCLUDE PRODUCTION THAT IS LESS THAN MINIMUMS AND ZERO PRODUCTION.
NAME POLICY NUMBER UNIT NUMBER
I. M. INSURED XXXX 0001-0001
(a) CROP STATE LEGAL DESCRIPTION
APPLES CO Sec. 31 T10S R50W
CROP YEAR COUNTY FSA FN/TRACT/FIELD
2009 MONTROSE 8912
(b) PRACTICE 002 (c) TYPE 111 (b) PRACTICE 002 (c) TYPE N/A (b) PRACTICE (c) TYPE
(d) VARIETY/OTHER N/A RED/GOLD (d) VARIETY/OTHER N/A GALA (d) VARIETY/OTHER

EXAMPLE
BLOCK NO.: 001 Mo/Yr BLOCK NO.: 002 Mo/Yr BLOCK NO.: Mo/Yr

SET OUT SET OUT SET OUT

DENSITY: 207 DENSITY: 340 DENSITY:
YEAR: YEAR: YEAR:

YEAR PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD
2004
2005 T500
2006 3,900 13.0 A300 175 5.3
2007 7,960 13.0 A612 790 5.3
2008 8,700 13.0 A669 1,049 5.3 198
TOTAL 2,081 TOTAL TOTAL
T-YIELD ADJ. 500 W T-YIELD ADJ. N/A T-YIELD ADJ.
AVERAGE APPROVED AVERAGE APPROVED 19 AVERAGE
520 N/A APPROVED YIELD
YIELD YIELD YIELD YIELD YIELD
520
PRIOR YIELD PRIOR YIELD PRIOR YIELD

June 2015 FCIC 18180 755

 Exhibit 18

J. Apple PAW Examples (Continued)

For block 001 in Example 6, a Weighted Average Age/Density Worksheet is calculated to

determine the weighted average set out year and average density. A Weighted Average
Age/Density Worksheet may be prepared if the insured elects YA in order to determine the
weighted average age and density, since the blocks are of different ages and densities.

WEIGHTED AVERAGE AGE/DENSITY WORKSHEET

(For illustration purposes ONLY)

NAME: POLICY NUMBER: UNIT NUMBER:

I. M. INSURED XXXX 0001-0001

(a) CROP: (b) PRACTICE (c) TYPE (d) VARIETY/OTHER STATE: LEGAL DESCRIPTION:

APPLES 002 111 N/A CO Sec. 31 T10S R50W

CROP YEAR: COUNTY: FSA FN/TRACT/FIELD:

2011 MONTROSE 8912

SET OUT
BLOCK MONTH/YEAR ACRES EXTENSIONS DENSITY ACRES EXTENSIONS
YEAR

001 04/1992 1992 2.2 4,382.4 218 2.2 479.6

002 04/1992 1992 3.2 6,374.4 218 3.2 697.6
003 03/1999 1999 1.7 3,398.3 218 1.7 370.6
004 03/1999 1999 0.7 1,399.3 218 0.7 152.6
005 05/2000 2000 1.4 2,800.0 218 1.4 305.2
006 05/2000 2000 3.8 7,600.0 182 3.8 691.6

TOTALS: 13.0 25,954.4 TOTALS: 13.0 2,697.2

WEIGHTED AVERAGE SET OUT YEAR 1996 W WEIGHTED AVERAGE DENSITY 207
TRANSITIONAL YIELD Calculation - (2011 – 1996 W +1) = 16th leaf year from the actuarial document 207 trees/acre at 16 th
leaf year = T-Yield of 500 for 2011.

June 2015 FCIC 18180 756

 Exhibit 18

K. Peaches PAW Examples

Use the following information from the PAW for Fresh (101) Type Peach examples.

Applicant’s Name: Policy No.: Unit No.: Crop: State:

PAW (Perennial Crops)

I. M. INSURED XXXX 0001-0001 PEACHES AL

PRODUCER’S PRE-ACCEPTANCE
WORKSHEET Legal Description: Crop Year: County: FSA FN/TRACT/FIELD:

XXXXXXXX 2012 AUTAUGA 8912

EXAMPLE
Block Mo/Yr Set Number Plant Percent Practice Insurable or Spur or
Acres Variety Type Density
No. Out/Grafted of Plants Spacing Stand IRR/NI Uninsurable Nonspur

L
001 04/2007 10.0 RED GLOBE 1090 20X20 100% 109 IRR INS N/A
(Late)
HARVESTER M
002 05/2003 20.0 2299 18X20 95% 121 NI INS N/A
(Mid)
E
003 04/2004 15.0 EMPRESS 1422 20X20 87% 109 NI INS N/A
(Early)

TOTALS: 45.0 4,811

June 2015 FCIC 18180 757

 Exhibit 18

K. Peaches PAW Examples (Continued)

Transitional Yield And YA Substitution Table (BU)

T/P # Density Characteristic Leaf Sub 2012 2011 2010 2009 2008
Low High Name Year County
T/P 1 76 150 Early 4 55.00 55.00 55.00 55.00 55.00
5 70.00 70.00 70.00 70.00 70.00
6 100.00 100.00 100.00 100.00 100.00
7 105.00 105.00 105.00 105.00 105.00
8 135.00 135.00 135.00 135.00 135.00
9 135.00 135.00 135.00 135.00 135.00
10 125.00 125.00 125.00 125.00 125.00
11 115.00 115.00 115.00 115.00 115.00
12 105.00 105.00 105.00 105.00 105.00
13 85.00 85.00 85.00 85.00 85.00
14+ 68.00 68.00 68.00 68.00 68.00
Mid 4 120.00 120.00 120.00 120.00 120.00
5 135.00 135.00 135.00 135.00 135.00
6 165.00 165.00 165.00 165.00 165.00
7 170.00 170.00 170.00 170.00 170.00
8 190.00 190.00 190.00 190.00 190.00
9 190.00 190.00 190.00 190.00 190.00
10 180.00 180.00 180.00 180.00 180.00
11 170.00 170.00 170.00 170.00 170.00
12 155.00 155.00 155.00 155.00 155.00
13 140.00 140.00 140.00 140.00 140.00
14+ 112.00 112.00 112.00 112.00 112.00
Late 4 130.00 130.00 130.00 130.00 130.00
5 155.00 155.00 155.00 155.00 155.00
6 185.00 185.00 185.00 185.00 185.00

June 2015 FCIC 18180 758

 Exhibit 18

K. Peaches PAW Examples (Continued)

Example 1: This example demonstrates peaches reporting less than the required five years
base period and added land with less than four years of the prior producer’s
hard copy records of production and acreage available.

A Peach insured has certified peach production and acreage (insurable and
uninsurable acreage separately) by block on three blocks. Block number 001
has met policy minimums for two years with four years certified, block number
002 has four years of data certified, block number 003 was recently acquired
and only two years of data are available.

The APH approved yield is based on individual blocks. The yields reported by
block do not qualify for YA (i.e., block 001 2012-2007 = 5 + 1 = 6 age for
2012 T-Yield 185 X .60) = 111 substitute yield; for 2011 6 – 1 = 5, T-Yield
155 X .60 = 93 substitute yield; in 2010 6 -2 = 4, T-Yield 130 X .60 = 78
substitute yield; etc.) (T-Yield for block number 003 added land yield
descriptor “NX” is applicable).

Actuarial documents do not show T-Yield adjustments for percent stand on

peaches in Alabama; however, acreage reduction for percent of stand does
apply. The reported 87% stand on block 003 contains no adjustment in acreage
based upon age and condition of orchard.

The insurable acreage in 2012 for block 003 is 13.1 acres (15.0 X 0.87 = 13.1)
which is reflected in subsequent years APH database(s) and production reports.

June 2015 FCIC 18180 759

 Exhibit 18

K. Peaches PAW Examples (Continued)

APH BLOCK PRODUCTION

NAME: I. M. INSURED POLICY NUMBER XXXX UNIT NUMBER: 0001-0001

(a) CROP STATE LEGAL DESCRIPTION
PEACHES AL XXXXXXXX
CROP YEAR COUNTY FSA FN/TRACT/FIELD
W
2012 AUTAUGA 8912
(b) PRACTICE 997 c) TYPE 101 L (b) PRACTICE 997 c) TYPE 101 M (b) PRACTICE 997 (c) TYPE 101 E

YEAR
2007
BLOCK NO.:
SET OUT
YEAR:
PRODUCTION
EXAMPLE
(d) VARIETY/OTHER LATE

001

2007 DENSITY:

ACRES
Mo/Yr

109

YIELD
04/
2007

YEAR:
(d) VARIETY/OTHER

BLOCK NO.:
SET OUT
2003

PRODUCTION
002
DENSITY:

ACRES
MID

Mo/Yr

121

YIELD
05/
2003
(d) VARIETY/OTHER EARLY

BLOCK NO.:
SET OUT
YEAR:
2004

PRODUCTION
003
DENSITY:

ACRES
Mo/Yr

109
YIELD
04/
2004

2008 0 10.0 T185 3,380 20.0 A169 NX122

2009 1000 10.0 T185 3,560 20.0 A178 NX122
2010 1,600 10.0 A160 3,600 20.0 A180 1,530 15.0 A102
2011 2,000 10.0 A200 3,700 20.0 A185 1,635 15.0 A109

TOTAL 730 TOTAL 712 TOTAL 455

T-YIELD ADJ. 185 T-YIELD ADJ. 180 T-YIELD ADJ. 135

APPROVED APPROVED APPROVED
183 178 114
YIELD YIELD YIELD

June 2015 FCIC 18180 760

 Exhibit 18

K. Peaches PAW Examples (Continued)

Example 2: This example is similar to example 1, except: only two years were reported; no
added land; Block 003 was planted in April 2000; and the number of trees
reported is 1308, making the percent stand 80%.

Production is commingled for other characteristics on the actuarial documents;

however, separate acreage information is available. This example demonstrates
separation and reporting of commingled production and yield descriptors
following procedure in Para. 1088 B

A peach insured has certified total production and acreage for two years.
Variable T-Yields (90 percent because the insured provided two years of
records) determined on other characteristics age, density, percent stand for each
block of acreage certified on the PAW (block 003 was adjusted for 80 percent
stand see Para. 1803).

The APH database is based on individual blocks required for other

characteristics (Early, Mid, and Late) using Para. 1088 B for commingled
production. Using the current T-Yields and adjusting by year, using the
commingled worksheet, the 2011 and 2010 production was separated. The
applicable acreage certified by block is shown, yields reported do not qualify for
YA, and two 90% T-yields “N”.

June 2015 FCIC 18180 761

 Exhibit 18

K. Peaches PAW Examples (Continued)

APH BLOCK PRODUCTION WORKSHEET)

NAME POLICY NUMBER UNIT NUMBER

I. M. INSURED XXXX 0001-0001

(a) CROP STATE LEGAL DESCRIPTION
PEACHES AL XXXXXXXX

CROP YEAR COUNTY FSA FN/TRACT/FIELDw

2012 AUTAUGA 8912
(b) PRACTICE 997 (c) TYPE 101 L (b) PRACTICE 997 (c) TYPE 101 M (b) PRACTICE 997 (c) TYPE 101 E

EXAMPLE
(d) VARIETY/OTHER LATE (d) VARIETY/OTHER MID (d) VARIETY/OTHER EARLY
04/ 05/ 04/
BLOCK NO.: 001 BLOCK NO.: 002 Mo/Yr BLOCK NO.: 003 Mo/Yr
Mo/Yr 2007 2003 2000
SET OUT SET OUT SET OUT
2007 109 2003 DENSITY: 121 2000 DENSITY:
YEAR: DENSITY: YEAR: YEAR: 109
YEAR PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD PRODUCTION ACRES YIELD

2008 N167 N162 N61

2009 N167 N162 N61
2010 10.0 AC158 20.0 AC194 15.0 AC87
2011 10.0 AC209 20.0 AC203 15.0 AC77
TOTAL 701 TOTAL 721 TOTAL 286
T-YIELD ADJ. 185 T-YIELD ADJ. 180 T-YIELD ADJ. 68
APPROVED YIELD 175 APPROVED YIELD 180 APPROVED YIELD 72

June 2015 FCIC 18180 762

 Exhibit 18

K. Peaches PAW Examples (Continued)

Due to the percent stand being determined for the current crop year and the age of this block, an acreage adjustment will be applicable for
the following crop year for the APH database and on the current acreage report. When reporting acreage the following year the prior year
reported acreage (adjusted based upon stand) is reported and any additional adjustment in acreage for the current year is reported on the
acreage report.

MULTI-PURPOSE PRODUCTION AND YIELD WORKSHEET

CROP YEAR COL. 1 COL. 2 COL.3 COL. 4 COL. 5 COL. 6

2011 LATE 10.0 185 1,850 1.13 209

2011 MID 20.0 180 3,600 1.13 203

2011 EARLY 15.0 68 1,020 1.13 77

7,330÷6,470 1.13

2010 LATE 10.0 155 1,550 1.02 158

2010 MID 20.0 190 3,800 1.02 194

2010 EARLY 15.0 85 1,275 1.02 87

6,750÷6,625 1.02

June 2015 FCIC 18180 763

 Exhibit 18

K. Peaches PAW Examples (Continued)

Example 3: Similar to information contained in prior examples, except: all years

were certified by the insured; block 003 meets criteria for downtrending
Para. 1861 and has acreage changes; an adjustment in the acres is no
longer applicable.

Block 003 was planted in April of 2000 and this block meets the
selection criteria for high variability of actual yields. The PAW shows
changes in acreage and tree counts by year for block 003. AIP did a
PAIR and determined the present measured acres of 12.9 on block 003.

This is also shown on PAW. Units or blocks were reviewed and

determinations made for meeting the selection criteria shown in Para.
1561.

After completing reviews, block 003 continues to show that the most
recent three-year average (123+102+66=291/3=97) is less than 75% of
the APH average yield (97 / 133 = 0.73).

The adjusted yield is calculated using the applicable adjustment, 80% of

the average yield (133 X .80 = DF 106). It is coded with yield indicator
“DF” to show adjustment made according to formula.

June 2015 FCIC 18180 764

 Exhibit 18

K. Peaches PAW Examples (Continued)

APH BLOCK PRODUCTION WORKSHEET

NAME POLICY NUMBER UNIT NUMBER

I. M. INSURED XXX 0001-0001

(a) CROP STATE LEGAL DESCRIPTION
PEACHES AL
XXXXXXXX
CROP YEAR COUNTY FSA FN/TRACT/FIELD
2009 AUTAUGA 8912
(b) PRACTICE 997 (d) TYPE 101 (b) PRACTICE 997 (c) TYPE 101 (b) PRACTICE 997 (c) TYPE 101
(d) VARIETY/OTHER LATE (d) VARIETY/OTHER MID (d) VARIETY/OTHER EARLY

YEAR
BLOCK NO.:

SET OUT
YEAR: EXAMPLE
PRODUCTION
2007
001

DENSITY:

ACRES
Mo/Yr

109

YIELD
04/
2007
BLOCK NO.:

SET OUT
YEAR:

PRODUCTION
2002
002

DENSITY:

ACRES
Mo/Yr

121

YIELD
05/
2003
BLOCK NO.:

SET OUT
YEAR:

PRODUCTION
2000
003

DENSITY:

ACRES
Mo/Yr

109

YIELD
04/
2000

2007 0 10.0 2,880 20.0 A144 3,100 15.0 A207

0 10.0 T185 3,380 20.0 A169 2,500 15.0 A167

2008
1,000 10.0 T185 3,560 20.0 A178 1,850 15.0 A123
2009
1,600 10.0 A160 3,600 20.0 A180 1,470 14.4 A102
2010
2,000 10.0 A200 3,700 20.0 A185 900 13.6 A66
2011
TOTAL 730 TOTAL 856 TOTAL 665

T-YIELD ADJ. 185 T-YIELD ADJ. 180 T-YIELD ADJ. 68

APPROVED YIELD 183 APPROVED YIELD 171 APPROVED YIELD DF 106

June 2015 FCIC 18180 765

 Exhibit 18

L. Shelling Percentage Chart for Clean Unshelled Almonds

The varietal shelling percentages applicable to unshelled almonds for APH purposes are as follows:

VARIETY AVERAGE SHELLING

PERCENT

Aldrich................................................................................................................................................................................. 60
Avalon ................................................................................................................................................................................ 64
Ballico ................................................................................................................................................................................ 55
Butte ................................................................................................................................................................................... 60
Carmel ................................................................................................................................................................................ 65
Carrion................................................................................................................................................................................ 60
Davey ................................................................................................................................................................................. 55
Dottie Won ......................................................................................................................................................................... 50
Drake .................................................................................................................................................................................. 40
Durango .............................................................................................................................................................................. 59
Fritz .................................................................................................................................................................................... 55
Harvey ................................................................................................................................................................................ 65
IXL ..................................................................................................................................................................................... 50
Jeffries ................................................................................................................................................................................ 70
Jordanolo ............................................................................................................................................................................ 65
Kapareil .............................................................................................................................................................................. 68
Le Grand ............................................................................................................................................................................. 60
Livingston .......................................................................................................................................................................... 65
Merced................................................................................................................................................................................ 70
Milow ................................................................................................................................................................................. 65
Mission ............................................................................................................................................................................... 50
Monarch ............................................................................................................................................................................. 48
Mono .................................................................................................................................................................................. 50
Monterey ............................................................................................................................................................................ 55
Morley ................................................................................................................................................................................ 50
Ne Plus Ultra ...................................................................................................................................................................... 65
Non Pariel........................................................................................................................................................................... 70
Norman ............................................................................................................................................................................... 60
Padre................................................................................................................................................................................... 55
Pearle .................................................................................................................................................................................. 55
Peerless ............................................................................................................................................................................... 45
Planada ............................................................................................................................................................................... 58
Plateau ................................................................................................................................................................................ 50
Price.................................................................................................................................................................................... 65
Ripon .................................................................................................................................................................................. 45
Rosetta ................................................................................................................................................................................ 50
Ruby ................................................................................................................................................................................... 55
Sauret I ............................................................................................................................................................................... 65
Sauret II .............................................................................................................................................................................. 65
Savana ................................................................................................................................................................................ 65
Solano ................................................................................................................................................................................. 65
Sonora ................................................................................................................................................................................ 70
Thompson ........................................................................................................................................................................... 70
Tokyo ................................................................................................................................................................................. 55
Valenta ............................................................................................................................................................................... 55
Vesta ................................................................................................................................................................................... 51
Winters ............................................................................................................................................................................... 55
Woods Colony .................................................................................................................................................................... 65
Yosemite ............................................................................................................................................................................ 47
Example: 54,688 pounds of unshelled Norman almonds, which have a conversion factor of 60
percent. 54,688 x .60 = 32,813 pounds of shelled Norman almonds.

June 2015 FCIC 18180 766

 Exhibit 18

M. APH Block Production Worksheet

ELEMENT INFORMATION REQUIRED

Enter the name of the insured crop, practice, type, variety or other characteristics shown
Crop Practice/Type
on the AD on each applicable block.
Year Appropriate crop year(s) for the base period.
Appropriate block number from the PAW, shown to three places (e.g., 001). Multiple
Block Number
blocks reported together as a single block must show the same number.
Month Year Month and year planted.
Set Out Year for the block is calculated as follows:

(a) Prior to July 1 (May 1 for Florida Citrus) of the coming leaf year
- 1st full leaf year following setting.

For example, for trees set out in February of 2010 (2/10), the correct set out year is
2010.

(b) On or after July 1 (May 1 for Florida Citrus) of the coming leaf year
- 1st full year following setting.

For example, for trees set out in November of 2010 (11/10), the correct set out year
is 2011.

If mixed age, density and/or multiple blocks are being reported as a single
Set out Year block, yield indicator “W” is applicable.

Use the Weighted Average T-Yield Worksheet to determine the weighted average set
out year and leave the month and year blank. If AD contain only one T-Yield, the set
out year and completion of block production may not be required, unless separate
P/T/V/TMA or other characteristics shown on the AD are applicable.

If the exact month and year are not known, or the number of plants for each
year in a range are not known, to determine the set out year or to do weighted average
set out year, than use the most recent known year.

Unless variable yields with declining yields for mature are shown in the AD that result
in lower yields. In that case use the most distant or recent year in the range (i.e., within
a range of 2005-2009, use 2009 for fresh freestone peaches in Washington where T-
Yields increase and then remain constant after maturity, use 2005 for peaches in
Alabama where T-Yields are on a bell curve as age increases).

If the block has mixed age or plant density, enter the weighted average density see the
Density Weighted Average T-Yield Worksheet in the DSSH, or leave blank if the block is
mixed and the AD contain a single T-Yield.

Crop Year of History Enter the appropriate crop year(s) for the base period.
Total production for the block as adjusted for production reporting purposes when
Production
actual yields are reported.

June 2015 FCIC 18180 767

 Exhibit 18

M. APH Block Production Worksheet (Continued)

ELEMENT INFORMATION REQUIRED

Planted acreage for the block in acres to tenths for each year an actual yield is
ACRES
reported.

YIELD Appropriate yield and yield descriptor for each crop year.

T-Yields are adjusted for the following situations (if mixed ages or density,
enter yield indicator “W”):

(a) Less than three years of actual production records.

(b) Published T-Yield Factors.

Apply applicable T-Yield factor(s) to the T-Yield obtained from the appropriate
T-Yield table for the crop (e.g., Apples and Peaches: T-Yield of 270 boxes per
acre multiplied by a T-Yield Factor of .80 = final T-Yield of 216 boxes per
acre).

T-YIELD  Percent stand.

ADJUSTMENT
Apply any applicable percent stand adjustment: (e.g., peaches: as provided
in the actuarial documents “If a block has less than a 90 percent stand,
reduce the T-Yield by the percent of missing trees and/or percent trees not
of bearing age.”), adjustments also apply to YA See Para. 1857.

 Grafting (or dehorning).

For crop acreage modified by grafting (or dehorning) the month and year it
was completed must be used to determine the applicable leaf-year (age) and
T-Yield (unless an alternative T-Yield and procedures for approving a RMA
RO Determined Yield is provided, shown on the actuarial documents or
RMA RO Underwriting Guidelines).

Determine the average yield for the block by totaling the yields in column 17 and
AVERAGE YIELD
dividing by the number of years of actual, assigned, and/or T-yields used.

Determine the approved yield for the block by totaling the yields in column
17 and dividing by the number of years of actual, assigned and/or T-Yields used
with any applicable cups, or YA. If special cases apply, the proper code(s) must
APPROVED YIELD also be shown see Exh. 15 O and P. Blocks with prior assigned yields must be
recalculated at the block level see Part 18, Sec. 7, Para. 1859. YA are not
applicable when blocks contain prior commingled production from immature
acreage; yield descriptor “AY” must be shown.

PRIOR YIELD Producer’s prior approved yield, if applicable.

June 2015 FCIC 18180 768

 Exhibit 18

N. Weighted Average Density Worksheet

ELEMENT INFORMATION REQUIRED

BLOCK NUMBER Appropriate block number from the PAW, shown to three places (e.g., 001).

Month and year planted; if mixed enter “00” for the month when yield
MONTH YEAR
indicator “W” or yield indicator “F” is utilized.
Set Out Year for the block is calculated as follows:

(a) Prior to July 1 (May 1 for Florida Citrus) of the coming leaf year
- 1st full leaf year following setting.

For example, for trees set out in February of 2010 (2/10), the correct set
SET OUT YEAR out year is 2010.

(b) On or after July 1 (May 1 for Florida Citrus) of the coming leaf year
- 1st full year following setting.

For example, for trees set out in November of 2010 (11/10), the correct
set out year is 2011.
ACRES Acres for the block.

SET OUT YEAR

Multiply the set out year by the acres and enter the total.
EXTENSIONS

DENSITY Density for the block.

ACRES Acres for the block.

DENSITY EXTENSIONS Multiply the density by the acres and enter the total.
TOTALS Totals for columns of Acres and Set Out Year Extensions.

TOTALS Totals for columns of Density and Density Extensions.

WEIGHTED AVERAGE Calculate the weighted average set out year by dividing Total Set Out Year
SET OUT YEAR Extension by Total Acres.
WEIGHTED AVERAGE Calculate the weighted average set out year by dividing Total Density
DENSITY Extensions by Total Acres.
Transitional yield (T-Yield) for the block or unit, using the weighted average
set out year and weighted average density to obtain the T-Yield from the
appropriate actuarial document. The T-Yield is then transferred to the
appropriate block of the APH database for the unit or worksheet for the block.
TRANSITIONAL YIELD When grafting (or dehorning) is applicable the month and year completed
must be used to determine the leaf-year (age) and substituted to determine the
weighted average age and T-Yield (unless an alternative adjusted T-Yield and
procedures for approving a RO Determined Yield is provided, shown on the
actuarial documents or RO Underwriting Guidelines).

June 2015 FCIC 18180 769

 Exhibit 18

N. Weighted Average Density Worksheet (Continued)

WEIGHTED AGE/DENSITY WORKSHEET

(For illustration purposes ONLY)

NAME: POLICY NUMBER: UNIT NUMBER:

I. M. INSURED XXXX 0001-0001

(a) CROP: (b) PRACTICE (c) TYPE (d) VARIETY/OTHER STATE: LEGAL DESCRIPTION:

CROP YEAR: COUNTY: FSA FN:

SET OUT YEAR

SET OUT DENSITY
BLOCK MONTH/YEAR ACRES EXTENSIONS DENSITY ACRES
YEAR EXTENSIONS

Example

TOTALS: TOTALS:

WEIGHTED AVERAGE SET OUT YEAR WEIGHTED AVERAGE DENSITY

TRANSITIONAL YIELD Crop Year – Weighted Average set out year + 1

June 2015 FCIC 18180 770

 Exhibit 18

O. Tree/Vine/Bush Measurement

Perennial crop acres are based on land acres and/or tree/vine/bush acres see Part 18 Section 2.
Acreage for Perennial crops must be measured using one of the items listed in Para. 1808.
However, in order to determine tree/vine/bush acres, measurements in this section must be used
in conjunction with, see Para. 1808(6).

Note: The symbols (☼, x,) in the planting pattern diagrams herein, represent a single
tree/vine/bush, unless otherwise stated. Planting pattern diagrams and number of
trees/vines/bushes contained herein are for illustration purposes only and are not to scale.

P. Planting Patterns

Planting crops in patterns such as single rows, squares, rectangles, orchards, hedgerow, border,
hexagonal, quincunx, double row, and interplanted are traditional planting styles for most crops.

Note: For the planting patterns mentioned above, the references below to 43,560 are the
number of square feet per acre.

(1) Square/ Rectangle Planting Pattern

(a) Number of Trees per Acre Formula:

To calculate the numbers of trees/vines/bushes per acre use the formula below:

T= Trees/Vines/Bushes per acre

L= Average distance between trees/vines/bushes
W= Average distance between tree/vine/bush rows

Formula: 43,560 sq. ft. /acre ÷ (L x W) = T

Example: 43,560 sq. ft. /acre ÷ (20.0 ft. x 20.0 ft.) = 108.9 rounded to 109 trees/acre

June 2015 FCIC 18180 771

 Exhibit 18

P. Planting Patterns (Continued)

(2) Planting Diagram

Square Planting Pattern

1 ☼ ☼ ☼ ☼ ☼ ☼

Row 2 ☼ ☼ ☼ ☼ ☼ ☼

3 ☼ ☼ ☼ ☼ ☼ ☼

4 ☼ ☼ ☼ ☼ ☼ ☼

(3) Orchard Acreage Formula

To calculate the acreage for an orchard that is classified as a square/rectangle planting

pattern use the formula below:

A= Acres
N= Number of trees in the orchard
T= Number of trees per acre

Formula: N÷T=A

Example: 42 ÷ 109 = 0.385 rounded to 0.4 acres

Q. Hedgerow/Border Planting Pattern

(1) Trees per Acre Formula

To calculate the acreage for trees/vines/bushes per acre planted in a hedgerow/border

pattern use the formula below:

W= Average row width (Average width of the distance between trees in the row not to
exceed the distance from the center of the tree to the middle of the road, boundary, or
ditch).

L= Length between trees in a row (L is only used when the trees/vines/bushes are planted
along a road, boundary or ditch row to designate the length of the row of trees).

A= Trees/vines/bushes per acre.

June 2015 FCIC 18180 772

 Exhibit 18

Q. Hedgerow/Border Planting Pattern (Continued)

Formula: 43,560 ÷ (L x W) = trees/vines/bushes per acre (T).

Example: 43,560 ÷ (20.0 ft. x 20.0 ft.) = 108.9 rounded to 109 trees per acre.

Divide the total number of trees counted in a single row (R) by the trees per acre (T).

Calculate acreage occupied by this row of trees using the formula below.

(2) Acreage Occupied by a Row of Trees/Vines/Bushes Formula:

R ÷ T = acres

Example: 20 ÷ 109 = 0.18 rounded to 0.2 acres.

If two or more rows, multiply result by the number of rows.

(3) Planting Diagram

Trees/vines/bushes planted in a hedgerow/border planting pattern in the diagram below.

Hedgerow or Border Planting Pattern

☼ ☼ ☼ ☼ ☼ ☼ ☼ ☼ ☼ ☼

Road, Boundary, or Ditch

☼ ☼ ☼ ☼ ☼ ☼ ☼ ☼ ☼ ☼ W
L

R. Hexagonal/Quincunx Planting Pattern

(1) Hexagonal/Quincunx Planting Formula

To calculate the trees per acre for Hexagonal/Quincunx use the formula below:

T= Trees/Vines/Bushes per acre

L= Distance between trees
W= Distance between rows

Formula: 87,120 ÷ (L x W) = T

Example: 87,120 ÷ (20.0 ft. x 20.0 ft.) = 217.8 rounded to 218 trees/acre

June 2015 FCIC 18180 773

 Exhibit 18

R. Hexagonal/Quincunx Planting Pattern (Continued)

Note: For hexagonal/quincunx planting patterns, double the number of trees per acre
for a square pattern from the trees per acre chart. For example, for a 20.0 ft. x
20.0 ft planting pattern from the chart, doubled is 218 trees per acre.
Additionally, 87,120 represents the number of square feet per acre (43,560)
doubled.

(2) Planting Diagram

To identify a quincunx/hexagonal planting pattern see the descriptions and diagram

below.

(a) A quincunx planting pattern is defined as trees/vines/bushes planted in corners of a

rectangle with one tree in the middle of the rectangle (illustrated on the left in the
diagram below).

(b) A hexagonal planting pattern is defined as six adjoining trees/vines/bushes planted

equidistant from any one plant in the orchard (illustrated on the right in the diagram
below).

Quincunx/Hexagonal Planting Patterns

1 ☼ ☼ ☼ ☼ ☼ ☼ ☼
Row 2 ☼ ☼ ☼ ☼ ☼ ☼ ☼
3 ☼ ☼ ☼ ☼ ☼ ☼ ☼
4 ☼ ☼ ☼ ☼ ☼ ☼ ☼
5 ☼ ☼ ☼ ☼ ☼ ☼ ☼
6 ☼ ☼ ☼ ☼ ☼ ☼ ☼

(3) Orchard Acreage Calculation

To calculate acreage for an orchard that is classified as a Hexagonal/Quincunx planting

pattern use the formula below:

A= Acres
N= Number of trees in the orchard
T= Number of trees per acre

Formula: N÷T=A

Example: 435 ÷ 218 = 1.995 rounded to 2.0 acres

June 2015 FCIC 18180 774

 Exhibit 18

S. Double Row Planting Pattern

(1) Double Row Plating Pattern

To calculate the number of trees in the orchard for double planting patterns use the
following formula below:

T= Actual number of trees in each row

R= Number of rows
N= Number of trees in the orchard

Formula: T x R = N

Example: 22 x 14 = 308

(2) Planting Diagram

Tree/vines/bushes planted in a double row pattern in diagram below.

Double Row Planting Pattern

         
         

         
         

(3) Square Feet per Orchard

To calculate the numbers of square feet in an orchard for the double row planting pattern
use the formula below.

L= Length of the orchard boundary

W= Width of the orchard boundary
S= Square feet/orchard

Formula: LxW=S

Example: 240.0 ft. x 200.0 ft. = 48,000 sq. ft.

Note: Measure the length (L) and width (W) of the orchard boundary in accordance
with [see LAM PAR 80 G].

June 2015 FCIC 18180 775

 Exhibit 18

S. Double Row Planting Pattern (Continued)

(4) Orchard Acreage

To calculate the total acreage in the orchard, use the following formula:

L= Length of the orchard boundary

W= Width of the orchard boundary
S= Square feet/orchard
A= Acres in the orchard

Formula: S* ÷ 43,560= A

Example: 48,000 sq. ft. ÷ 43,560 sq. ft. = 1.102 rounded to 1.1 acres

Note: Use the formula in (c) above to determine the square feet/orchard or (S) in
the equation. Additionally, Orchard dimensions are 320.0 ft. by 80.0 ft.,
which includes the boundary that extends 10.0 ft. beyond the outside rows
and 10.0 ft. beyond the ends.

(5) Trees per Acre

To calculate the number of trees per acres, use the following formula:

N= Number of Trees in orchard

A=Acreage
T=Trees/acre

Formula: N ÷ A* = T

Example: 308 ÷ 1.1 = 280 trees/acre

Note: Use the formula in (d) above to determine the acres in the orchard or (a) in
the equation.

T. Interplanted Crop Planting Pattern

(1) Interplanted Crop Planting Pattern

To calculate the acreage for the orchard, use the following formulas:

L= Length of the orchard boundary

W= Width of the orchard boundary
S= Square feet in the orchard
A=Acres in the orchard

June 2015 FCIC 18180 776

 Exhibit 18

T. Interplanted Crop Planting Pattern (Continued)

Formula for S: LxW=S

Formula for A: S ÷ 43, 560 Sq. ft. /acre= A

Example of S: 320.0 ft. L x 80.0 ft. W = 25,600.0 sq. ft. in the orchard

Example of A: 25,600 sq. ft. ÷ 43,560 sq. ft. = 0.588 rounded to 0.6 acres

(2) Planting Diagram

In the diagram below, two separate tree/vine/bush crops are interplanted in the same
orchard.

Orchard Dimensions: 320.0 ft. L x 80.0 ft. W

A P A P A P A P A P A P A P A

P A P A P A P A A P A P A P

A P A A P A P A P A P A P A

P A P A P A A P A P A P A P

Actual tree counts: A = 30 Apple trees, P = 27 Pear trees, 3 missing Pear trees. Original
stand was 60 trees.

(3) Orchard Crop Percentage Calculation.

To calculate the percent of each tree crop in the orchard use the formulas below:

D= Actual number of trees from the desired** crop which is to be calculated

B= Total number of orchard trees
X=Original Stand
Y= Missing trees
C= Percent of the desired** crop

Formula for B: X–Y=B

Formula for C: D÷B=C

Example of B: 60 – 3 = 57

Example of C: 30 apple trees ÷ 57 total orchard trees = 0.53 or 53% apple trees

June 2015 FCIC 18180 777

 Exhibit 18

T. Interplanted Crop Planting Pattern (Continued)

(a) To calculate the actual acres in the orchard for the desired crop use the formula below:

A= Acres in the orchard

C= Percent of the desired** crop
E= Actual acres in the orchard for the desired** crop

Formula: A* X C* = E

Example: 0.6 acres X 0.53 = 0.3 apple tree acres

(b) To calculate the total acres of remaining crops use the formula below:

A= Acres in the orchard

E= Actual acres in the orchard for the desired** crop
F= Acres of the remaining crops

Formula: A* – E* = F

Example: 0.6 acres − 0.3 apple acres = 0.3 pear tree acres

Note: The desired crop is designated as the primary crop for which the percentage
is to be calculated for. Use the formula in (1), (3) and (a) above to
determine the acres in the orchard or (A), the percent of the desired crop or
(C) and the actual acres in the orchard for the desired crop or (E) in the
equation.

U. Missing and Partial Tree Formulas

(1) Number of trees per acre

To calculate the number of trees per acre, use the following formula:

L= Average distance between the trees

W= Average distance between the tree rows
T= Trees/acre

Formula: 43,560 sp ft/ acre ÷ (L x W) = T

Example: 43,560 sq. ft/acre ÷ (20.0 ft. x 20.0 ft.) = 108.9 rounded to 109 trees/acre

June 2015 FCIC 18180 778

 Exhibit 18

U. Missing and Partial Tree Formulas (Continued)

(2) Diagram for Orchard with Missing and/or Partial Trees

The following diagram illustrates an orchard that contains full trees, trees with two scaffold
limbs, trees with one scaffold limb, and skips. The tree spacing in this diagram is 20.0 ft. x
20.0 ft.

Orchard Dimensions: 320.0 ft. L x 80.0 ft. W

X X X X X X X X V X
X V X X X X X X \ X X X X X
X X X X X / X X X X X X
X X X X X X X X X X X V

Actual tree counts: X = 43 full trees, V = 3 two-scaffold limb trees, \ or / = 2 one-scaffold

trees, 11 skips (dead or missing trees). Original stand was 59 trees.

(3) Orchard Acreage

To calculate acres in the orchard use the following formulas:

L= Length of the orchard boundary

W= Width of the orchard boundary
S= Square feet in the orchard
A=Acres in the orchard

Formula for S: LxW=S

Formula for A: S ÷ 43, 560 Sq. ft. /acre = A

Example of S: 320.0 ft. L x 80.0 ft. W = 25,600.0 sq. ft. in the orchard

Example of A: 25,600 sq. ft. ÷ 43,560 sq. ft. = 0.588 rounded to 0.6 acres

June 2015 FCIC 18180 779

 Exhibit 18

U. Missing and Partial Tree Formulas (Continued)

(4) Insurable acres

To calculate the insurable acres use the following formulas:

F = Full Trees
X = Two-Scaffold Limb Trees
Y = One-Scaffold Trees
N = Total number of Insurable Trees
P = Percent Stand
I = Insurable Acres

Formula for N: F+X+Y=N

Formula for P: N ÷ (T* x A*) = P

Formula for I: A* x P = I

Example of N: 43 + 3 + 2 = 48

Example of P: 48 trees ÷ (109 trees/acre x 0.6 acres) =

0.733 rounded to 0.73 percent stand

Example of I: 0.6 tree acres X 0.73 percent stand =

0.438 rounded to 0.4 acres

Note: Use the formula in (a) and (c) above to determine the trees per acre or (T) and the
acres in the orchard or (A) in the equation.

V. Additional Information

Refer to the SP, CP and BP for additional information on acreage adjustments for orchards (e.g.,
orchards with less than a 90% percent stand, etc.).

June 2015 FCIC 18180 780

 Exhibit 18

W. Database Administration for Fresh and Processing Apples

The 11-0054, Apple Crop Insurance Provisions requires insureds to have verifiable production records supporting that in one or more
of the four most recent crop years, at least 50 percent of the production from the acreage reported as fresh apple acreage, by unit, was
sold as fresh. However, effective for the 2012 and succeeding crop years, insureds who do not have separate records, by unit, of fresh
apple production in one or more of the last four years but do have records of total fresh apple production, may still qualify for the fresh
apple price.

AIPs may consider records of total production (rather than by unit) from one of the four most recent crop years that reflect fresh apple
sales to determine if acreage qualifies for the fresh apple price. To illustrate the appropriate APH database construction, the following
examples have been provided:

Example 1: In this example the insured has certified 5 years of acreage and production for 10 acres of Apples (0054) in Fresno
County, California. The insured has marketed at least 50 percent (minimum policy requirement) of their production in
2008 (one of the four most recent crop years) as fresh. The insured has elected to insure their Apples as Fresh for CY
2012.

2012 CROP: APPLES (0054)

UNIT # Practice: Irrigated (002)

0001 -0001 Type: Fresh (111)

YEAR PRODUCTION ACRES YIELD

2007 10,650 10 A 1,650
2008 9,850 10 A 985
2009 11,000 10 A 1100
2010 9,600 10 A 960
2011 10,050 10 A 1005
5700/5
AVERAGE YIELD: 1140
APPROVED APH: 1140

June 2015 FCIC 18180 781

 Exhibit 18

W. Database Administration for Fresh and Processing Apples (Continued)

Example 2 In this example, the insured has certified 5 years of acreage and production for 10 acres of Apples (0054) in Fresno
County, California. In CY 2007 more than 50 percent of the unit was sold as Fresh. In CY 2008 through 2011, more
than 50 percent was sold as Processing. An AIP transmitted the APH database for the unit of apples as Fresh in CY
2011. In CY 2011, the requirement to market the crop as Fresh was met in 2007 when during one or more of the four
most recent years, 50 percent of the Apples in the unit were sold as Fresh.

For CY 2012, the insured elected to insure the crop as Fresh, however the unit did not meet the requirements of having
more than 50 percent of the crop was sold as fresh within the last four years, therefore the acreage would be reported as
processing in CY 2012. If in subsequent years (e.g., CY 2013, CY 2014, etc.) more than 50 percent of the crop is
successfully marketed as Fresh, the data contained in the Processing APH database would be moved to a Fresh APH
database and the acreage could be insured as Fresh.

PRIOR YEAR CURRENT YEAR

2011 CROP: APPLES (0054) 2012 CROP: APPLE (0054)
UNIT # Practice: Irrigated (002) UNIT # Practice: Irrigated (002)

0001-0001 Type: Fresh (111) 0001-0001 Type: Processing (112)

PRODUCTIO
YEAR N ACRES YIELD YEAR PRODUCTION ACRES YIELD
2007 10,650 10 A 1065 2007 10,650 10 A 1065
2008 9,850 10 A 985 2008 9,850 10 A 985
2009 11,000 10 A 1100 2009 11,000 10 A 1100
2010 9,600 10 A 960 2010 9,600 10 A 960
2011 10,050 10 A 1050
4110/4 5160/5
AVERAGE YIELD: 1028 AVERAGE YIELD: 1032
APPROVED APH 1028 APPROVED APH 1032

June 2015 FCIC 18180 782

 Exhibit 18

W. Database Administration for Fresh and Processing Apples (Continued)

Example 3: In this example, the insured has certified 5 years of acreage and production for 10 acres of Apples (0054) in Fresno
County, California. The insured wants to establish separate blocks for their acreage so that the portion of their apples
marketed from the 5 acre block qualify to be insured as fresh.

The insured has a 5 acre block of Gala Apples designated as Fresh (111) (that have met the requirements of selling
greater than 50 percent of the production as fresh within one of the last four years) and a 5 acre block designated as
Processing (112). In order to establish separate blocks for their Fresh acreage, the insured has to recertify their
acreage and production for at least the most recent year see Para. 1853 and establish their actual/assigned yields see
Para. 1856.

2012 CROP: APPLES (0054) 2012 CROP: APPLE (0054)

UNIT # Practice: Irrigated (002) UNIT # Practice: Irrigated (002)

0001-0001 Type: Fresh (111) 0001-0002 Type: Processing (112)

PRODUCTIO
YEAR N ACRES YIELD YEAR PRODUCTION ACRES YIELD
2007 10650 10 A 1065 2007 10650 10 A 1065
2008 9850 10 A 985 2008 9850 10 A 985
2009 5200 5 A 1040 2009 5800 5 A 1160
2010 4200 5 A 840 2010 5400 5 A 1080
2011 4500 5 A 900 2011 5550 5 A 1110
4830/5 5400/5
AVERAGE YIELD: 966 AVERAGE YIELD: 1080
APPROVED APH: 966 APPROVED APH: 1080

June 2015 FCIC 18180 783

 Exhibit 18

W. Database Administration for Fresh and Processing Apples (Continued)

Example 4: In this example, a carryover insured has previously certified 5 years of production for 100 acres of Apples (0054) in
Fresno County, California. For CY 2012, the insured had a 20 acre BU (unit 0001-0000) of Gala Apples designated as
Processing (112) and two 40 acre BUs designated as Processing (112) (units 0002-0000 and 0003-0000), that the
insured would like to insure as fresh for CY 2013. The insured sold 50,000 total bushels from all three units.

Although the insured has supporting evidence for production in CY 2012 for each unit, the insured did not keep Fresh
apple production records by unit. Therefore the insured does not meet the CP requirement of verifiable production
records supporting at least 50 percent of the production from the acreage reported as Fresh apple acreage, by unit, was
sold as Fresh in one or more of the four most recent crop years. However, of the 50,000 total bushels sold in CY 2012,
the insured has production records verifying that at least 26,000 bushels were sold as Fresh (meeting the exception of at
least 50 percent of the total apple production was sold as Fresh). Thus, the insured has met the requirement to insure
the BUs as Fresh for CY 2013 see Para. 1943.

50,000 Total
Bushels sold

26,000 Bushels
20 Acres 40 Acres 40 Acres sold as Fresh
BU 0001-0000 BU 0002-0000 BU 0003-0000 (ALL UNITS)
10,000 Bushels 20,000 Bushels 20,000 Bushels
26,000 Fresh /
50,000 total
= 52% sold as
Fresh.

All BUs may be

insured as Fresh.

June 2015 FCIC 18180 784

 Exhibit 18

W. Database Administration for Fresh and Processing Apples (Continued)

Example 5: In this example, a carryover insured has previously certified 5 years of production for 100 acres of Apples (0054) in
Fresno County, California. For CY 2012, the insured had a 20 acre BU (unit 0001-0000) of Gala Apples designated as
Processing (112) and two 40 acre BUs of Gala Apples designated as Processing (112) (BU 0002-0000 and BU 0003-
0000) that the insured would like to insure as Fresh for CY 2013. In CY 2012, the insured sold 50,000 total bushels
from all three BUs; however, the insured did not keep production records by BU for the Fresh apple production.

In order for the insured to insure the BUs as Fresh in CY 2013, at least 50 percent of the total production from all of the
apple acreage must have been sold as Fresh within one of the last four years. Of the 50,000 total bushels sold, the
insured has production records verifying 4,000 bushels were sold as Fresh in CY 2012. The insured has not met the
requirements to insure the BUs as Fresh in CY 2013 based on CY 2012 production. Since the insured does not have
production records supporting 50 percent of the total production was sold as Fresh in any of the four most recent crop
years see Sec. 19J(2), all the acreage must be reported as Processing in CY 2013.

50,000 Total
Bushels sold
20 Acres 40 Acres
BU 0001-0000 40 Acres 4,000 Bushels sold
BU 0002-0000
10,000 Bushels BU 0003-0000 as Fresh
20,000 Bushels
20,000 Bushels (ALL UNITS)

4,000 Fresh /
50,000 Total
= 8% sold as
Fresh.

June 2015 FCIC 18180 785

 Exhibit 18

W. Database Administration for Fresh and Processing Apples (Continued)

Example 6: In this example, a carryover insured has previously certified 5 years of production for 100 acres of Apples (0054) in
Fresno County, California. The insured has recertified their acreage and production for the most recent year see
Sec.19G (3)(f) and has elected to insure 20 acres of their Fresh apple acreage as Fresh for CY 2013. For CY 2012,
the insured had a 20 acre block of Gala Apples designated as Fresh (111) (that met the requirements of selling greater
than 50 percent of the production as Fresh within one of the last four years) and two 40 acre blocks designated as
Processing (112) within one BU. The insured sold 40,000 total bushels from both of the Processing blocks (Blocks 2
and 3), and 10,000 total bushels from their Fresh block (Block 1) in 2012.

The insured did not keep production records designating the Fresh production by block; however, the insured has
production records for the BU for 50,000 total bushels sold (from all the blocks within the BU), of which 6,000
bushels were sold as Fresh. The BU does not meet the requirements to be insured as Fresh for CY 2013. However,
the 20 acre block designated as Fresh (Block 1) has met the requirement to be insured as Fresh in CY 2013 based on
the total amount of bushels sold as Fresh within the BU (Block 1 consisted of 10,000 bushels and 6,000 bushels were
sold as Fresh for the BU. Since 6,000 bushels is greater than 5,000 bushels (50 percent of 10,000), Block 1 may be
designated as Fresh in 2013).

50,000 Total
Bushels sold

6,000 Bushels sold

40 Acres 40 Acres as Fresh
20 Acres
Block 2 Block 3 (ALL UNITS)
Block 1 (Fresh)
(Processing) (Processing)
10,000 Bushels
20,000 Bushels 20,000 Bushels 6,000 Fresh /
10,000 Total in
Block 1
= 60%. Block 1
may be insured as
Fresh.

June 2015 FCIC 18180 786

 Exhibit 19

Reserved

June 2015 FCIC 18180 787

 Exhibit 19

Reserved (continued)

June 2015 FCIC 18180 788

 Exhibit 20

A. Hybrid Seed Corn or Sorghum Seed Notice of Loss

Hybrid Seed Corn or Hybrid Sorghum Seed Notice of Loss and Approved Yield Processes

Insured Provides Notice of Loss

Agent Completes A Hybrid Seed Yield

Request. The request and Notice of Loss are
forwarded to the AIP.

Indemnity calculated
The AIP forwards the Hybrid Seed Yield by AIP using the
Request to the RO and assigns a loss approved hybrid
adjuster. yield.

The RO calculates and issues approved

hybrid yields back to the AIP.

Hybrid seed company completes and

provides the Hybrid Seed Corn/Hybrid
Sorghum Seed Yield History Report to
Hybrid Seed Coordinator/appropriate the RO for each hybrid produced in the
RO calculates the Yield Base Factor current crop year.
from yield data provided by the
hybrid seed company and issues to
the RO. Hybrid seed company provides the
appropriate RO with yield histories for all
hybrids grown in previous crop years.

June 2015 FCIC 18180 789

 Exhibit 20

B. Florida Citrus Fruit Producer’s Pre-Acceptance Worksheet

PRODUCER’S PRE-ACCEPTANCE WORKSHEET (FLORIDA CITRUS FRUIT) and BLOCK MAP

Applicant/Insured’s Name Approved Insurance Provider’s Name Policy Number Legal Description (may enter here or individually in “Legal Description”
below):
Section Township Range FSA
Farm/Tract/Field
Applicant/Insured’s Address & AIP’s Street or Mailing Address County Number
Telephone Number

Crop Year Unit Number Other Land Identifier (e.g., Spanish land grants, metes and bounds, etc.)

Month & Number

Citrus Number of
Planting Tree Number of Year of Trees Insurable or Date Set Percent Organic
Fruit Block Number Acres in Trees Per Est. Prod. (Boxes)
Pattern Spacing Trees Tpwkd or Tpwkd Uninsurable Out/Grafted Stand Practice
Group Block Acre
Bkhd or Bkhd

TOTALS

Date of Last Inspection Has the dollar amount of insurance for the insured crop been previously adjusted due to a reduction
in the crop’s production potential? Yes No
Has an adjustment been applied to the crop’s insurable acres resulting in a comparable reduction in Has damage (e.g., disease, hail, freeze) occurred to the trees that will reduce the crop’s production
yield? Yes No potential?  Yes  No
Have cultural practices or production methods (e.g., buckhorning, transitioning to organic) been Have trees been removed, buckhorned, topworked or replaced with uninsurable trees resulting in a
performed that will reduce the insured’s crop’s production? change of the original plant stand for any reported insurable acreage?
 Yes  No  Yes No
Insured’s Signature:

Insured’s Signature: Date

June 2015 FCIC 18180 790

 Exhibit 20

C. Macadamia Orchard Inspection Report

MACADAMIA ORCHARD INSPECTION REPORT

Applicant or Insured Country or Island Contract Number

I.M. Insured HAWAII XX-XXX-XXXXX

Applicant/Insured Address Note condition of other Macadamia orchard owned or

managed by applicant or insured
RR ONE
HILO, HAWAII N/A

Telephone Number (808) XXX-XXX

Is Orchard Managed by Owner? X Is orchard located in an established Macadamia area?
NO YES YES
If “No” who manages it?
Telephone Number:
(808)XXX-XXXX
UNIT ACRES IN TREE TREE RATE WEED CONTROL
VARIETY YEAR SET TREE CONDITION
NUMBER PLOT SPACING COUNT AREA MEASURES

EXAMPLE
00101 KAU 10.0 15 X 25 1920 MM/YYYY ACCEPTABLE D05 NONE
00102 MAKAI 10.3 15 X 25 1980 MM/YYYY ACCEPTABLE D05 NONE
00103 KAKEA 5.2 15 X 25 987 MM/YYYY ACCEPTABLE D05 NONE

18 EXCLUDED ACREAGE
LOT 11 KAU 6.4 15 X 25 1235 MM/YYYY EXCLUDED N/A NONE

The Acreage Covered By The Above Contract Was Inspected On Date Shown Below With 20 REMARKS
The Following Results:
UNIT 00101: Trees on moderate slope, leeward exposure.
A. X Nothing Found To Require A Change In The Data Reported. UNIT 00102: Some trees on windward exposure.
LOT 11: Trees uninsurable. Does not meet minimum age
B. Data Reported Was Found To Be Such That Was requirements of crop provisions.
Prepared.

Is application/acreage report recommended for acceptance? Code Number Orchard Inspector’s Signature Date

X YES NO XXXX I. M. INSPECTOR MM/DD/YYYY

June 2015 FCIC 18180 791

 Exhibit 20

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

First, determine the number of measured insurable land acres in the grove. Next, make percent
stand adjustments to determine the adjusted insurable acres. See the illustration and examples
below for determination of number of trees per acre and percent stand of groves with replanting
at a higher number of trees per acre.

To determine measured land acres:

(1) measure the perimeter of the citrus block or sub-block to be insured and
(2) subtract unplanted areas within the perimeter, field roads, canals and/or other unplanted
areas not part of the planting pattern.

Determine the percent stand based on the planting pattern as illustrated below. The large circles
are insurable trees (DO3), the small circles are new interplanted trees, and the circles with an “X”
are either dead or missing trees.

Example 1: Based upon the original planting 25’ X 20’ the number of trees per acre is 28.

Only insurable trees are counted, using the current CIH procedure.

 The interplanted trees are not insurable trees, and

 The dead or missing trees shown in the lower right corner are in a
separate sub-block and excluded from measurements in determining
acres.

Therefore, the total trees for determining a 100 percent stand would now be 28
which is the original planting pattern excluding the sub-block.

June 2015 FCIC 18180 792

 Exhibit 20

D. Florida Citrus, Dollar Plan of Insurance, Percent Stand Example (continued)

The number of insurable trees is 23. Percent stand is 82% (23 ÷ 28) and is used
to adjust the new measured acres.

Example 2: If the interplanted trees are insurable, the number of insurable trees is 31 trees
(23 original trees + 8 replanted insurable trees) and 5 trees are dead/missing.

 The dead/missing trees shown in the lower right corner of the illustration
above are in a separate sub-block and excluded from measurements in
determining acres. The total trees for determining a 100 percent stand
would be 32 (23 original trees + 8 replanted + 1 dead tree).

 The percent stand is 97 percent (31 ÷ 32).

Since the insurable interplanted trees are the same crop type, acreage is not
prorated as provided in the Florida Citrus Fruit Crop Provisions Section 7 or
CIH Part 20.

June 2015 FCIC 18180 793

 Exhibit 20

E. Summary of Revenue History (SRH)

ELEMENT REQUIRED INFORMATION

Crop Year Appropriate crop year(s) for revenue being reported.

Net Acres Applicable acreage of pecans multiplied by insureds share.

Total pounds of harvested and/or appraised pecans, insured’s share

Pounds Production
only, (in-shell basis rounded to the nearest whole pound).

Pounds harvested and/or appraised pecans times the applicable in-

shell average price (may be shown as fixed price, Agricultural
Gross Sales Marketing Service (AMS) of the USDA prices only are applicable
for direct market that is insurable), reported in dollars and cents,
insured’s share only.
Enter the yield descriptor (A or B), followed by the Average Gross
Average Gross Sales Sales, the Gross Sales (item 4) divided by the Net Acres (item 2)
rounded to whole dollars.
Pre-Harvest Check this block if a Pre-Harvest Appraisal was completed (required
Appraisal if direct marketed or a loss was reported).
Total Number of
Enter the applicable total number of years.
Years
Total Average
Gross Sales per Enter the total of the Average Gross Sales in column 5.
Acre

Approved Average Average Gross Sales Per Acre (item 8) divided by the Total Number
Revenue per Acre of Years (item 7) rounded to whole dollars.

June 2015 FCIC 18180 794

 Exhibit 20

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

SUMMARY OF REVENUE HISTORY

CROP YEAR(s): INSURED’S NAME & ADDRESS: AGENCY OR SERVICING OFFICE:

PHONE: PHONE: AGENT CODE:

CONTRACT NUMBER: OTHER PERSON: INSURANCE PROVIDER:

PHONE: COMPANY CODE:

UNIT NUMBER: FSA FN: LEGAL DESCRIPTION: PRACTICE:
SECTION TOWNSHIP RANGE

INSURABLE or NUMBER COUNTY: STATE: PRE-ACCEPTANCE

UNINSURABLE OF TREES: PERENNIAL CROP
INSPECTION REPORT DATE:
AVERAGE PRE-
YEAR NET ACRES POUNDS PRODUCTION GROSS SALES GROSS HARVEST
1 2 3 4 SALES APPRAISAL
5 6

EXAMPLE

7. TOTAL NUMBER 8 TOTAL AVERAGE GROSS 9. APPROVED AVERAGE

OF YEARS SALES PER ACRE REVENUE PER ACRE

June 2015 FCIC 18180 795

 Exhibit 20

F. Hybrid Seed Corn Yield Request Required Information

ELEMENT REQUIRED INFORMATION

Hybrid Identification Enter the appropriate hybrid identification number/code.

Type of Cross

□ Single
Indicate the applicable type of cross.
□ Modified Single
□ Three Way
□ Four Way

Planting Method
Identify the appropriate planting method used.
□ Straight-Away
□ Split

Are the male

(pollinators) rows
Indicate whether the male rows are inter-plated.
inter-planted?
Yes or No
Expected or
Anticipated Enter the expected or anticipated production yield.
Production Yield
Yield must be on the
basis as the yields Enter the yield based on the growing area/counties.
provided below
Growing
Enter the growing area/counties.
Area/Counties
Actual Yield data for Enter the applicable: “Non-Irrigated Production and Acreage” and
all growers about “Irrigated Production and Acreage”. To each column add the following
hybrid identification sub-columns: “Total Female Field Production (Bu.)”, “Total Female
at this specific plant Acres Planted (Acres)”, “Yield=Female Production/Female Acres
location Planted”, and “Crop Year”.
Non-Irrigated
Average Gross Sales Per Acre divided by the Total Number of Years
Production and
rounded to whole dollars.
Acreage
Irrigated production
Enter the irrigated production and acreage.
and Acreage
Total Female Field
Enter the total female field production.
Production (Bu.)
Total Female Acres
Enter the total female acres planted.
Planted (Acres)
Yield=Female
Enter the yield. The yield equals the female production divided by the
Production/Female
female acres planted.
Acres Planted

June 2015 FCIC 18180 796

 Exhibit 20

F. Hybrid Seed Corn Yield Request Required Information (Continued)

ELEMENT REQUIRED INFORMATION

Crop Year Enter the crop year.

On the created table Include the following note:

The field production data must be based on determinations obtained and

calculated on harvested production delivered to the plant prior to any
production entering the seed conditioning process. Hence, the field
production data and the bushels per total planted female acre yield are
accepted by FCIC as harvested production leaving the field and
Field Production Data
delivered to the seed company’s plant prior to entering any of the seed
conditioning process (i.e., drying, shelling, screening, etc.) only. The
reported amount of harvested production must be adjusted by you for
moisture, shelling factor, and foreign material (i.e., husks, stalks, etc.) as
necessary. When applicable, the production data reported must include
the production figures determined for calculating any prior indemnified
losses.
One of the following letters that describes the manner in which the
requested information and yield data have been determined and/or
calculated must be checked.

For the purpose of determining the quantity of mature field production:

Check one of the
following letters that
(1) Shelled corn was adjusted .12 percent for each .1 percentage point of
describe the manner
moisture to 15.0;
in which the
requested
(2) Ear corn was measured at 70 pounds of ear corn equaling 56 pounds
information and data
(one bushel) of shelled corn. The weight of ear corn required to equal
were
one bushel of shelled corn was increased 1.5 pounds for each percentage
determined/calculated
point of moisture in excess of 14 percent; or

(3) All records of harvested field seed production provided by the seed
company were adjusted to a shelled corn basis of 15.0 percent moisture,
and 56 - pound test weight.

June 2015 FCIC 18180 797

 Exhibit 20

G. Hybrid Sorghum Seed Yield Request Required Information

ELEMENT REQUIRED INFORMATION

Hybrid Identification Enter the appropriate hybrid identification number/code.

Type of Sorghum Seed

□ Grain Indicate the appropriate sorghum seed type.

□ Sudan
□ Forage

Type of Cross

□ Single
Indicate the applicable type of cross.
□ Modified Single
□ Three Way
□ Four Way
Planting Method
Identify the appropriate planting method used.
□ Straight-Away
□ Split
Are the male
(pollinators) rows
Indicate whether the male rows are inter-plated.
inter-planted?
Yes or No
Expected or
Anticipated Enter the expected or anticipated production yield.
Production Yield
Yield must be on the
basis as the yields Enter the yield based on the growing area/counties.
provided below
Growing
Enter the growing area/counties.
Area/Counties
Actual Yield data for
all growers about Enter the applicable “Crop Year”, “Total Female Field Production (Bu.)”,
hybrid identification at “Total Female Acres Planted (Acres)”, and “Yield=Female
this specific plant Production/Female Acres Planted”.
location
Crop Year Enter the crop year.
Total Female Field
Enter the total female field production.
Production (Bu.)
Total Female Acres
Enter the total female acres planted.
Planted (Acres)
Yield=Female
Enter the yield. The yield equals the female production divided by the
Production/Female
female acres planted.
Acres Planted

June 2015 FCIC 18180 798

 Exhibit 20

G. Hybrid Sorghum Seed Yield Request Required Information (Continued)

ELEMENT REQUIRED INFORMATION

On the created table, include the following note:

The field production data must be based on determinations obtained

and calculated on harvested production delivered to the plant prior to
any production entering the seed conditioning process.

Hence, the field production data and the bushels per total planted
female acre yield are accepted by FCIC as harvested production
Field Production Data leaving the field and delivered to the seed company’s plant prior to
entering any of the seed conditioning process (i.e., drying, shelling,
screening, etc.) only.

The reported amount of harvested production must be adjusted by you

for moisture, shelling factor, and foreign material (i.e., husks, stalks,
etc.) as necessary. When applicable, the production data reported
must include the production figures determined for calculating any
prior indemnified losses.
One of the following letters that describes the manner in which the
requested information and yield data have been determined and/or
calculated must be checked.
Check one of the following
For the purpose of determining the quantity of mature field
letters that describe the
production:
manner in which the
requested information
(1) Harvested seed production was adjusted to .12 percent for each .1
and data were
percentage point of moisture to 13.0; or
determined/calculated
(2) All records of harvested seed production provided by the seed
company were adjusted to a basis of 13.0 percent moisture and 56 -
pound test weight.

June 2015 FCIC 18180 799

 Exhibit 21

Reserved

June 2015 FCIC 18180 800

 Exhibit 21

Reserved (continued)

June 2015 FCIC 18180 801

 Exhibit 22

Reserved

June 2015 FCIC 18180 802

 Exhibit 22

Reserved (continued)

June 2015 FCIC 18180 803

 Exhibit 23

Production Report and APH Database Flowchart

June 2015 FCIC 18180 804