Macadamia Trees

Macadamia trees are insurable if:

• They are grown for the production of macadamia nuts;
• The rootstock is adapted to the area;
• They are at least a year old when the insurance period begins; and
• If RMA inspects and approves the orchard.

Macadamia trees are insurable in Hawaii, Kauai, and Maui counties. Macadamia trees in other counties may be insurable by written agreement if specific criteria are met. Contact a crop insurance agent for more details.

You are protected against the following:

• Adverse weather conditions;
• Earthquake;
• Failure of irrigation water supply, if caused by an insured peril during the insurance year;
• Fire;
• Insects or plant disease, but not damage due to insufficient or improper application of control measures;
• Volcanic eruption; or
• Wildlife.

Coverage begins on January 1 of each crop year, except for the year of the application. If your application is received after December 22 but before January 1, insurance will begin 10 days after your properly completed application is received in our local office, unless we inspect the acreage during the 10-day period and determine that it does not meet insurability requirements. You must provide any information that we require for the crop or to determine the condition of the orchard. Insurance is provided for trees by age of plant. Coverage ends on December 31.

Sales Closing/Cancellation………… December 31, 2015

Acreage Reporting………… February 15, 2016

Premium Billing………… August 15, 2016

Termination………… December 31, 2016

You can select a coverage level ranging from 50 to 75 percent of the maximum value established for the age of the tree. Crop insurance premiums are subsidized as shown in the following table. For example, if you choose the 65 percent coverage level, your premium share would be 41 percent of the base premium.

Catastrophic Risk Protection (CAT) coverage is fixed at 50 percent of your approved yield and 55 percent of the price election. CAT is 100 percent subsidized with no premium cost to you. There is, however, an administrative fee of $300 per crop per county, regardless of the acreage.

The price used to calculate your premium and indemnity. Dollar amounts vary with the age of the tree. Contact a crop insurance agent for more details.

Assume 65 percent coverage level, 100 percent share, for 9-year-old trees in Hawaii County. The amount of coverage is $5,850.

Price used above is for example only. Contact a crop insurance agent for current information.

All multi-peril crop insurance, including CAT policies, are available from private insurance agents. A list of crop insurance agents is available at all USDA service centers and on the RMA website.