Department of Agriculture
Risk Management Agency Fact Sheet
Washington National Office — Washington,DC
Quality Loss Option
The Quality Loss Option (QL) is a new crop insurance option that you can elect starting with the 2021 crop year. The Risk Management Agency implemented the QL in response to the 2018 Farm Bill to carry out research and development that establishes an alternative method for adjusting quality losses that will not impact your Actual Production History (APH). The QL allows exclusion of quality loss from an APH database in circumstances where a quality loss occurs. The QL will be offered at an actuarially sound premium rate.
Like yield exclusion, the QL must be elected by the sales closing date. When elected, the QL will replace post-quality adjusted (QA) production with the pre-QA production for any year the insured filed a Notice of Loss (NOL). Quality adjustment to production will be based on the applicable quality statements contained in the Special Provisions, or on applicable quality requirements allowed by Crop Provisions or endorsements, for the crop.
The QL may apply if you filed a NOL, regardless of whether you received an indemnity for that crop year. You are eligible to replace the post-QA production in your APH database with pre-QA production.
The QL is an available option under Yield Protection, Revenue Protection, Revenue Protection with Harvest Price Exclusion, and APH plans of insurance. The QL is available for the following crops:
Barley Oats Buckwheat Peanuts Canola Rice Corn Rye Cotton Safflower Flax Soybean Grain Sorghum Sunflower Malting Barley Wheat
- How this Option Works
Crop Year Pre – QA PTC Post – QA PTC 2015 80 bu/ac 80 bu/ac 2016 120 bu/ac 120 bu/ac 2017 100 bu/ac 30 bu/ac 2018 110 bu/ac 110 bu/ac 2019 90 bu/ac 60 bu/ac Average 100 bu/ac 80 bu/ac
When the QL is elected, you can choose to substitute your pre-QA production amount for both 2017 and 2019 crop years. This example increases your APH to 100 bu/ac.
- 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 on the RMA website at www.rma.usda.gov/Information-Tools/Agent-Locator-Page.
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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.
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