WASHINGTON, Oct 23, 2000 - Risk Management Agency Administrator Ken Ackerman announced that apple growers in six states will have a new quality option to enhance their insurance protection. The option was approved by the Federal Crop Insurance Corporation's Board of Directors and is available immediately. As a result, apple growers in California, Michigan, New York, Pennsylvania, Virginia, and Washington have until November 20, 2000 to consider whether to purchase this option.

"By providing higher prices for apples grading Fancy or better and expanding the insurable causes of loss, insurance protection has increased," said Ackerman. "Increased protection, combined with lower premiums in 2001, means good value for apple growers."

The new Apple Pilot Quality Option:

• Provides additional quality-based coverage for growers that are able to provide acceptable records of annual packout for the insurable acreage for the apples grading Fancy or better. This historical packout percentage will be used to determine an amount of insurance on the acreage.
• Defines two grades of apples for insurance purposes. The amount of liability per acre is established by the grade of apples. Fancy and All-Other apples will comprise the majority of the liability and these appropriate grades will have associated pricing levels. There is a provision to account for a minimum value of apples that are marketable but unsold.
• Pays losses when damage to the grower's production or packout percentage exceeds the deductible, as compared to the calculated liability.

Premiums the producers pay will be reduced in 2001 due to the increased subsidies authorized by the Agricultural Risk Protection Act of 2000.

*Applied to major crops under APH coverage plan. For revenue plans, subsidy applied to yield portion of premium only. Rates of subsidy also could differ for price elections less than 100%.

** Applies to all plans of insurance and all price levels within a coverage level.

Growers should contact a crop insurance agent immediately to discuss their options. A list of crop insurance agents is available at all USDA Service Centers or at www.rma.usda.gov/tools/agents/.