Department of Agriculture
Risk Management Agency Fact Sheet
Washington National Office — Washington,DC
Pecan Revenue Insurance
- Crop Insured
Pecans are insurable in Alabama, Arizona, Florida, Georgia, Mississippi, New Mexico, Oklahoma, and Texas.
For pecan acreage to be insured, the trees must be grown in an orchard that is a minimum of 1 contiguous acre. Insurable trees must have produced a minimum of 600 pounds of in-shell pecans per acre in at least 1 of the previous 4 crop years, except that some states may allow a lower minimum production amount for native pecan trees through the special provisions. You must also insure all the pecan acreage (in which you have a share) in the county where your pecans are grown for harvest. If pecan revenue insurance is not available in your county or your acreage does not meet the minimum insurability requirements, you may be able to get insurance through a written agreement. Please contact an insurance agent or your RMA regional office for more information.
- Causes of Loss
You are protected against the following:
- Adverse weather conditions from natural perils such as hail, frost, freeze, wind, drought, and excess moisture;
- Decline in price;
- Failure of irrigation water supply, If caused by an insured peril during the insurance period;
- Fire, unless weeds and undergrowth are not controlled or unmulched pruning debris is not removed;
- Insects, but not damage due to insufficient or improper application of control measures;
- Plant disease, but not damage due to insufficient or improper application of control measures; or
- Wildlife, unless wildlife control measures have not been taken.
- Insurance Period
Pecan insurance coverage is available only in two year modules. You must stay in the program for at least two consecutive years. You must apply for coverage with a crop insurance agent before January 31 to insure the crop you plan to harvest in both years. Coverage begins on February 1 of each crop year. In the year that you apply, we will inspect all your pecan acreage and will notify you if we accept or reject your application no later than 30 days after the sales closing date.
All policies automatically renew after the end of each two year coverage module unless you notify your crop insurance agent in writing that you want to cancel coverage by the January 31, cancellation date.
- Important Dates
Sales Closing/Cancellation ….…………….. January 31
Acreage Report Due ……………...………… March 15
- Insurance Guarantees, Coverage Levels and Premium Subsidies
The coverage level, premium rate, and insurance amount (guarantee) remain the same for each year in the two year coverage module. The guarantee is based on your approved average revenue per acre. Your approved average revenue per acre is determined from your average gross sales of pecans per acre for the most recent four to six years. If you do not have production records for at least four years, you will be assigned a transitional revenue yield (T-Revenue).Indemnity payments are calculated for each year individually.
You can choose a coverage level from 50 to 75 percent of your approved average revenue, or Catastrophic Risk Protection (CAT) coverage based on 27.5 percent of your approved average revenue.
For CAT coverage, you pay an administrative fee of $300, and 100 percent of the premium is subsidized. Higher coverage levels are subsidized at lower rates, and USDA pays at least 50 percent of the premium. Premium and administrative fees are due annually for each year of the two year module. For more information about coverage levels and premiums, please contact a crop insurance agent or your local county USDA Farm Service Agency office for an agent listing.
- Unit Division
Enterprise Units - Generally, include all insured crop acreage in a county. Premium discounts apply. To qualify for an enterprise unit, you are required to have at least two parcels of non-contiguous land and at least two of the parcels must contain at least the lesser of 20 acres or 20 percent of the insured crop acreage in the enterprise unit.
Basic Units - Include all of your insurable pecan acreage in the county by share arrangement. Premiums are reduced for a basic unit.
Optional Units - If a basic unit consists of two or more parcels of non-contiguous land, you provide separate production records for at least the most recent consecutive two crop years, and you meet record keeping requirements, you may apply for optional units. Optional units must be chosen and identified on the acreage report by the acreage reporting date of the first year of the two year coverage module. Premium discounts will not apply.
Certain pecan varieties may be excluded from insurability through the Special Provisions of Insurance if they are found to be unproductive or an incompatible pollinator. Direct-marketed pecans and pecans grown on trees that have been hedged are not insurable unless allowed by the Special Provisions or written agreement. Please talk to your insurance agent for more details.
Revenue-to-count is determined using the price you receive for your pecans. Excluding pecans sold under contract, the price you receive will be equal to or greater than 95 percent of the lowest USDA Agricultural Marketing Service (AMS) price, or if AMS prices are not published for the week you sold your pecans, the price you receive will be equal to or greater than 95 percent of the lowest price offered by buyers in the area you normally market your pecans. However, if the price you received is not verifiable by sales receipts or you directly marketed your pecans, the market price will be used. The market price is based on the average price published by AMS, or if AMS prices are not available for the week you sold your pecans, the market price will be based on the average price offered by buyers in the area you normally market your pecans.
- Loss Example
Assume you have chosen a 65 percent coverage level and you have average approved revenue of $1,280. Due to an insured cause of loss, you only produced 800 pounds per acre in the 2014 crop year with an average price of $0.75 per pound equaling $600 per acre.
$1,280 Average gross sales
$832 Amount of Insurance per acre
$600 Value of production per acre
$232 Indemnity per acre
- Where to Buy Crop Insurance
All multi-peril crop insurance, including CAT policies, are available from private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and on the RMA website at Agent Locator.
This fact sheet gives only a general overview of the crop insurance program and is not a complete policy. For further information and an evaluation of your risk management needs, contact a crop insurance agent
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at 202-720-2600 (voice and TDD). To file a complaint of discrimination, complete, sign and mail a program discrimination complaint form, (available at any USDA office location or online at www.ascr.usda.gov), to: United States Department of Agriculture; Office of the Assistant Secretary for Civil Rights; 1400 Independence Ave., SW; Washington, DC 20250-9410. Or call toll free at (866) 632- 9992 (voice) to obtain additional information, the appropriate office or to request documents. Individuals who are deaf, hard of hearing, or have speech disabilities may contact USDA through the Federal Relay service at (800) 877-8339 or (800) 845-6136.