Risk Management Agency Program Announcement

USDA ANNOUNCES NEW AND EXPANDED CROP INSURANCE PROGRAM

Contact: Eric Edgington (202) 690-2539
Eric.Edgington@rma.usda.gov

WASHINGTON, Aug 5, 1999 - Risk Management Agency (RMA) Administrator Ken Ackerman announced approval of five new and five expanded pilot crop insurance programs by the Board of Directors of the Federal Crop Insurance Corporation, including two firsts: an aquatic crop insurance program and an innovative pricing mechanism for feed barley and canola-the first commodities with pricing to be determined by a Canadian futures exchange, because U.S. exchanges do not sell these commodity futures.

"Producers have requested these new ventures and we have responded," said Ackerman. "The bottom line is that more producers-growing a wide range of commodities-will have more financial security available to them."

The new products to be offered include:

The expanded Revenue Assurance Program developed by the American Farm Bureau Insurance Services, Inc. (AFBIS), will add corn and soybeans in Indiana; spring wheat in Idaho, Minnesota, and South Dakota; feed barley and canola/rapeseed in Idaho and North Dakota; and sunflowers in North Dakota. The feed barley and canola pricing will be determined by Canadian futures, since U.S. exchanges do not sell these commodities. The maximum coverage levels for whole-farm units will rise from 80 to 85 percent and for enterprise units, from 75 to 85 percent.

The pilot Cultivated Clam Crop Insurance Program will provide coverage for clam producers who harvest hardshell clams. Covered counties include Brevard, Dixie, Indian River, and Levy in Florida; Barnstable, Bristol, Dukes, Nantucket, and Plymouth in Massachusetts; Charleston in South Carolina; and Accomack and Northampton in Virginia. The program will provide a dollar amount of insurance based on inventory value. Covered losses will include oxygen depletion, disease, freeze, hurricane, salinity variations, tidal wave, storm surge, or windstorm.

The pilot California Citrus Dollar Crop Insurance Program will offer citrus producers in Fresno and Tulare Counties an alternative from traditional production-based crop insurance.

The pilot Onion Crop Insurance Stage Removal Option will be offered in Allegan, Arenac, Barry, Bay, Calhoun, Cass, Clinton, Eaton, Ingham, Ionia, Isabella, Jackson, Lapeer, Mecosta, Montcalm, Muskegon, Newaygo, Ottawa, St. Clair, Tuscola, and Washtenaw Counties in Michigan; Cayuga, Genesee, Madison, Oneida, Ontario, Orange, Orleans, Oswego, Seneca, Steuben, Wayne, and Yates Counties in New York; and in other counties in Michigan and New York where onion insurance is not currently offered. Stage guarantees are intended to prevent over-insurance when crops are lost early in the growing season with minimal production costs incurred and make policy premiums more affordable and this pilot will test whether a viable program can be operated without their stages. The endorsement will be available only with buy-up policies.

The pilot Processing Chile Pepper Crop Insurance Program for processing chile pepper producers will be introduced in Hidalgo and Luna Counties in New Mexico and Cochise County in Arizona. The dollar plan program will provide pre-harvest production costs aimed to cover a maximum of 75 percent of pre-harvest fixed and variable costs.

The pilot Processing Cucumber Crop Insurance Program for processing cucumber producers will be effective in Gratiot and St. Joseph Counties in Michigan; Columbus, Duplin, Franklin, Greene, and Robeson Counties in North Carolina; Clarendon County in South Carolina; and Frio, Medina, and Uvalde Counties in Texas. The dollar plan insurance will provide income protection without depending on individual records. Coverage will range from 50 to 75 percent of yield.

The current pilot Cherry Crop Insurance Program will be expanded to include Grand Traverse and Leelanau Counties in Michigan; Utah County in Utah; Stanislaus County in California; Marian, Polk, Umatilla, and Yamhill Counties in Oregon; and Grant, Klickitat, Okanogon, and Walla Walla Counties in Washington. Coverage is for the on-tree value of marketable production with a pre-determined maximum dollar amount. NOTE: Congress must pass legislation by Nov. 20, 1999, for the expansion to be in effect.

The pilot Blueberry Crop Insurance Program will be expanded to include Baldwin County in Alabama; Appling, Bacon, and Ware Counties in Georgia; Alachua and Highlands Counties in Florida; Horry County in South Carolina; and Knox, Lincoln, Penobscot, Piscataquis, and Waldo Counties in Maine. The program is based on actual production history. NOTE: Congress must pass legislation by Nov. 20, 1999, for the expansion to be in effect.

The pilot Cabbage Crop Insurance Program will be expanded to include producers in Matanuska-Susitna County in Alaska; Gallatin, Kankakee, and White Counties in Illinois; Bay and Macomb Counties in Michigan; Lucas and Sandusky Counties in Ohio; Clackamas, Marion, and Multnomah Counties in Oregon; King and Pierce Counties in Washington; Outagamie County in Wisconsin; and Monterey and Santa Barbara Counties in California. The model will use actual production history to determine coverage.

Pending authorizing legislation by the program's cancellation date of Nov. 30, 1999, the pilot California Avocado Revenue Crop Insurance Program will be continued in Ventura County and expanded to include Orange, Riverside, San Diego, San Luis Obispo, and Santa Barbara Counties in California.