Pecans

The crop insured will be all the pecans in the county for which a premium rate is provided by the actuarial documents:

• In which you have a share;
• That are grown for harvest as pecans;
• That are grown in an orchard that, if inspected, is considered acceptable by us;
• That are grown on trees that have produced at least 600 pounds of pecans in-shell per acre (or an amount provided in the Special Provisions) in at least one of the previous four crop years, unless we inspect and allow insurance by written agreement. This amount of production must be achieved subsequent to any top work that occurs within a unit;
• That are grown in varieties or a grouping of varieties within a unit that are not designated as uninsurable in the Special Provisions;
• That are in an orchard that consists of a minimum of one contiguous acre, unless allowed by written agreement; and
• That are not (unless allowed by Special Provisions or written agreement) grown on trees that are or have been hedged or are direct marketed to consumers.

Pecans are insurable in Bastrop, Bowie, Comanche, Culberson, El Paso, Gaines, Gonzales, Guadalupe, Lavaca, Lubbock, Maverick, Mills, Pecos, San Saba, Wharton, and Zavala counties. Coverage in other counties may be available by written agreement if certain criteria are met. Please contact your insurance agent for insurance availability.

You are protected against the following:

• Adverse weather conditions, including hail, frost, freeze, excess precipitation and drought;
• Fire, unless weeds and other forms of undergrowth have not been controlled or unmulched pruning debris has not been removed from the orchard;
• Insects, but not damage due to insufficient or improper application of pest control measures;
• Plant disease, but not 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
• Decline in market price.

If damage occurs before the beginning of the crop year, coverage is only provided if and to the extent the crop was insured the previous crop year. In addition to the causes of loss excluded in section 12 of the Basic Provisions, we will not insure against damage or loss of production due to the inability to market the pecans for any reason other than actual physical damage from an insurable cause specified in this section.

Coverage begins for each crop year on February 1. However, for the year of application we will inspect all pecan acreage and will notify you of the acceptance or rejection of your application not later than 30 days after the sales closing date. For each subsequent two-year coverage module that the policy remains continuously in force, coverage begins on the day immediately following the end of the insurance period for the prior two-year coverage module. The calendar date for the end of the insurance period is January 31 of the crop year.

Sales Closing/Cancellation Dates…….January 31, 2017

Acreage Report Date…………………..March 15, 2017

Premium Billing……...……………….August 15, 2017

End of Insurance……...........................January 31, 2018

In addition to the requirements of section 14 of the Basic Provisions, The following will apply: 

• You must notify us within 3 days of the date harvestshould have started if the crop will not be harvested.
• If the Special Provisions permit or you have a writtenagreement authorizing direct marketing, you must notifyus at least 15 days before harvest begins if anyproduction from any unit will be sold by directmarketing. We will conduct an appraisal that will beused to determine your production to count forproduction that is sold by direct marketing. If damageoccurs after this appraisal, we will conduct an additionalappraisal. These appraisals, and any acceptable recordsprovided by you, will be used to determine the dollarvalue of your production to count. Failure to give timelynotice that production will be sold by direct marketingwill result in an appraised dollar value of production tocount that is not less than the amount of insurance peracre for the direct-marketed acreage if such failureresults in our inability to make the required appraisal.
• If you intend to claim an indemnity, you must notify usat least 15 days prior to the beginning of harvest orimmediately if a loss occurs during harvest, so we mayinspect the damaged production.
• You must not sell, destroy, or dispose of the damagedcrop until after we have given you written consent.
• If you fail to meet the requirements of this section, and such failure results in our inability to inspect the damaged production, all such production will be considered undamaged and included as production to count.
• You may be required to harvest a sample, selected by us,to be used for appraisal purposes.

Approved average revenue per acre - The total of your average gross sales per acre based on the most recent consecutive four years of sales records building to six years and dividing that result by the number of years of average gross sales per acre. If you provide more than four years of sales records, they must be the most recent consecutive six years of sales records. If you do not provide at least four years of gross sales records, your approved average revenue will be: (1) The average of the two most recent consecutive years of your gross sales per acre and two years of the T-revenue; or (2) If you do not provide any gross sales records, the T-revenue.

Two-year coverage module - A two-crop-year subset of a continuous policy in which you agree to insure the crop for both years of the module, and we agree to offer the same premium rate, amount of insurance per acre, coverage level, terms and conditions of insurance for each year of coverage except for legislatively mandated changes, as long as all policy terms and conditions are met for each year of the coverage module, including the timely payment of premium, and you have not done anything that would result in a revision to these terms, as specified in this policy.

Crop insurance premiums are subsidized as shown in the following table. For example, if you select the 75-percent coverage level for an Enterprise Unit, the premium subsidy is 77 percent and your premium share is 23 percent of the base premium.

Assume you have chosen a 65-percent coverage level and you have average gross sales of $1,280. You produced 800 pounds per acre in 2016 with an average price of $1.00 per pound equaling $800 per acre.