Grain Sorghum

New Mexico

Crop Insured

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

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

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

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

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

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

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

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

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

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

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
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
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

  • 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
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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