Department of Agriculture
Risk Management Agency Fact Sheet
2017 Crop Year
Oklahoma City Regional Office — Oklahoma City,OK
October 2016
Grain Sorghum
New Mexico
- Crop Insured
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All grain sorghum grown in the county is insurable if:
- Premium rates are provided;
- You have a share;
- Adapted to the area with agronomic and weather;
- That is not interplanted with another crop;
- That is not planted into an established grass or legume;
- Planted for harvest as grain;
- Planted as a combine-type hybrid grain sorghum; and
- Is not a dual-purpose type of grain sorghum.
Insurance shall not attach or be considered to have attached to a planted non-irrigated crop on acreage from which, in the same calendar year:
- A perennial hay crop that was harvested; or
- A crop (other than a cover crop) reached the headed or budded stage prior to termination, regardless of the percentage of plants that reached the headed or budded stage; and
- Not including FAC practice.
- Counties Available
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Grain Sorghum is insurable in multiple counties in New Mexico. For a list of insurable counties visit RMA’s website at the Web Actuarial Information Browser. Coverage in other counties may be available by written agreement if certain criteria are met. Please contact your insurance agent for insurance availability.
- Causes of Loss
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You are protected against the following:
- Adverse weather conditions;
- Fire;
- Insects, but not damage due to insufficient or improper application of pest control measures;
- Plant disease, but not damage due to insufficient or improper application of disease control measures;
- Wildlife;
- Earthquake;
- Volcanic eruption;
- Failure of irrigation water supply, if due to an insured cause of loss within the insurance period; or
- For revenue protection a change in harvest price from the projected price.
- Insurance Period
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Insurance coverage begins on the later of the date we accept your application or the date when the grain sorghum is planted.
Insurance coverage ends at the earliest of:
- Total destruction of the crop;
- Harvest of the unit;
- Final adjustment of a loss;
- December 10; or
- Abandonment of the crop.
- Important Dates
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Sales Closing/Cancellation Date……....March 15, 2017
Earliest Planting Date…..Multiple Dates, See Actuarial
Final Planting Date…………………...….June 30, 2017
Acreage Report Date………………...…...July 15, 2017
Premium Billing………………………August 15, 2017
End of Insurances………….………December 10, 2017
- Reporting Requirements
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You must file a report of planted acreage with your crop insurance agent by the acreage reporting date established for your county. Since acreage reporting dates vary by crop and county, consult your agent.
- Definitions
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Yield Protection Plan - A plan of insurance that only provides protection against a production loss and is available only for crops for which revenue protection is available.
Revenue Protection Plan - A plan of insurance that provides protection against loss of revenue due to a production loss, price decline or increase, or a combination of both. If the harvest price exclusion is elected, the insurance coverage provides protection only against loss of revenue due to a production loss, price decline, or a combination of both.
- Coverage Levels and Premium Subsidies
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Grain sorghum may be insured at the coverage levels shown in the following table. Crop insurance premiums are subsidized as shown. If you choose the 75 percent coverage level and enterprise units, your coverage will be 75 percent of your approved actual production history (APH) yield, the premium subsidy is 77 percent, and your premium share is 23 percent of the base premium.
Coverage Level 0.50 0.55 0.60 0.65 0.70 0.75 0.80 0.85 Subsidy Factors Enterprise Unit 0.80 0.80 0.80 0.80 0.80 0.77 0.68 0.53 Basic Unit 0.67 0.64 0.64 0.59 0.59 0.55 0.48 0.38 Optional Unit 0.67 0.64 0.64 0.59 0.59 0.55 0.48 0.38 Whole Farm Unit 0.80 0.80 0.80 0.80 0.80 0.80 0.71 0.56 Coverage level 0.85 is available where applicable.
Whole Farm is not available for yield protection.
- Price Elections
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Prices are calculated according to the Commodity Exchange Price Provisions. New Mexico grain sorghum prices are based on the December futures market price for grain sorghum. The projected price discovery period is February 1 through February 28. The harvest price discovery period is October 1 through October 31. These prices will be released no later than three business days following the end of the price discovery period. Depending on the insurance plan, these prices will be used for compensation per bushel in case of loss. Contact your agent for more information or see Price Discovery Tool.
- Replant Provisions
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A replanting payment is allowed only if the crop is damaged by a covered cause of loss so the remaining stand will not produce at least 90 percent of your bushel guarantee and it is practical to replant. The maximum replanting payment will be the lesser of 20 percent of the bushel guarantee, or seven bushels multiplied by your price election. No replanting payment will be made on acreage initially planted before the earliest planting date. A replanting provision is not available with Catastrophic Risk Protection coverage.
- Late and Prevented Planting
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These provisions provide protection on acreage that is planted after the final planting date or that cannot be planted. The late planting period begins the day after the final planting date for the insured crop and ends 25 days after the final planting date.
- Loss Example
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Under the yield protection option, a loss occurs when the bushels of grain sorghum produced for the unit fall below the production guarantee because of damage from a covered cause of loss. Under the revenue protection option, a loss occurs when the value of production-to-count is less than the revenue protection guarantee due to a production loss and/or a revenue loss. Assume a 70 bushel per acre APH yield, 75-percent coverage level, 100 percent of the price, projected price of $3.50, harvest price of $3.00 and basic unit coverage.
Revenue Protection APH yield bushels/acre 70 Coverage level 0.75 Bushel guarantee 52.50 Projected Price $3.50 Insurance guarantee $183.75 Bushels/acre produced 40 Price to determine value $3.00 Value of production $120.00 Insurance guarantee $183.75 Value of guarantee $120.00 Gross indemnity $63.75 Yield Protection APH yield bushels/acre 70 Coverage level 0.75 Bushel guarantee 52.50 Projected Price $3.50 Insurance guarantee $183.75 Bushels/acre produced 40 Price to determine value $3.50 Value of production $140.00 Insurance guarantee $183.75 Value of production $140.00 Gross indemnity $43.75
- Where to Buy Crop Insurance
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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.
Regional Office Visit
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215 Dean A. McGee Avenue
Suite 342
Oklahoma City, OK 73102-3423 - Phone: 405-879-2700
- Fax: 405-879-2741
- Email: rsook@rma.usda.gov
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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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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.