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  • Q The sugar beet unit of measure changed from standardized tons to pounds of raw sugar. How is that calculated?

    A

    Pounds of raw sugar is calculated by multiplying the insured’s net paid tons by 2,000 pounds by the insured’s average percent of sugar (determined from processor test).

    Example:  The insured has 100 net paid tons with a percent sugar of 18 percent.
    [(100 net tons * 2,000 pounds) * 0.180 insured’s percent of sugar] = 36,000 pounds of raw sugar

  • Q What happens to the insured’s existing Actual Production History (APH)?

    A

    The insured’s existing APH must be converted from standardized tons to pounds of raw sugar. The conversion calculation for pounds of raw sugar is the insured’s actual production in standardized tons multiplied by 2,000 pounds multiplied by the county’s percent sugar factor located in the actuarial documents (AD).

    Example:  The insured has 100 standardized tons and the county’s percent sugar factor is 15 percent.
    [(100 standardized tons * 2,000 pounds) * 0.150 county’s percent of sugar factor] = 30,000 pounds of raw sugar

  • Q What is the early harvest adjustment?

    A
    The early harvest adjustment increases the current crop year’s early harvested yield by one percent per day for each day the sugar beets were harvested prior to the date the sugar beets would have reached full maturity, to the higher of the producer’s approved actual production history yield or the actual yield of the sugar beets harvested after full maturity from the unit. The factor is only applied when early harvest is requested by the processor. The purpose of the early harvest adjustment is to accommodate processor requests for early harvest of sugar beets and to provide a yield increase to insureds who harvest early before the crop has potentially reached its full yield capacity.
  • Q How will an insured’s production be determined if harvested early?

    A
    If the percentage of insured acreage in the unit, that is requested by the processor to be harvested early, exceeds the threshold specified in the actuarial documents, production to count from such acreage will be increased by one percent per day for each day the sugar beets were harvested prior to the date the sugar beets would have reached full maturity. However, the adjustment (cap) cannot exceed a yield greater than the higher of the insured’s approved APH yield or the actual yield of the production harvested after full maturity from the unit. The AIP may allow the producer to self-certify the number of acres harvested early. The date the sugar beets would have reached full maturity is considered to be 45 days prior to the calendar date for the end of the insurance period, unless otherwise specified in the actuarial documents. This adjustment will not be made if the sugar beets are damaged by an insurable cause of loss (COL) and leaving the crop in the field would reduce production.
  • Q If the early harvested production exceeds the adjustment (cap) how is the production determined?

    A

    If the early harvested production exceeds the adjustment (cap), the yield will be limited to the higher of the insured’s approved APH yield or the actual yield of the production harvested after full maturity from the unit.

    Example: An insured early harvested 20 acres of a 100 acre unit, and the adjusted early harvest yield was 13,420 pounds of raw sugar. The insured has an approved APH yield of 11,886 pounds of raw sugar, and the remaining 80 acres of the 100 acre unit are harvested at full maturity and had a yield of 11,995 pounds of raw sugar. In this example, the early harvested production exceeds the adjustment (cap). The yield will be limited to the higher of approved APH yield or the actual yield of the production harvested after full maturity from the unit. In this case it would be equal to production harvested after full maturity, which would be 11,995 pounds of raw sugar because the actual yield of 11,995 pounds of raw sugar is greater than the approved yield of 11,886 pounds of raw sugar.

  • Q What if an insured wants to convert their net paid tons to pounds of raw sugar based on their average percent of sugar over each of the past individual years, if they have this information available to do so, rather than the factor from the 2018 Actuarial Documents?

    A
    The insured may recertify prior years’ APH production instead of converting standardized tons to pounds of raw sugar; however, the insured will be required to submit acceptable production reports for prior years by the applicable production reporting date for the current year and maintain continuity of the production reports for the prior years. All production reports are subject for APH field reviews.
  • Q When an insured reports their 2018 sugar beet production, on their 2019 crop year production report, should they report tons of sugar beets or pounds of raw sugar?

    A
    The insured will report their 2018 sugar beet production in 2019 as pounds of raw sugar.  Except for Imperial county in California; the policy will be in effect for the 2020 crop year and insured’s will report their 2018 production in standardized tons for the 2019 crop year. 
  • Q If we had late season loss after full maturity, do we still add pounds to the production that was taken in early harvest?

    A

    Yes, section (13)(f) of the Sugar Beet Crop Provisions (CP) states that only production lost due to harvest prior to full maturity qualifies for the early harvest adjustment. Production harvested after full maturity will not be adjusted using this factor.

    Example: There is no insurable COL BEFORE the full maturity date and the early harvest acreage exceeds the threshold for the unit.

    • Production from those acres will have the early harvest adjustment applied (increasing production to count).

    Then AFTER the full maturity date, the unharvested beets experience an insurable COL.

    • Production from those acres is documented accordingly.

    Unit production to count will be the total of the early harvested adjusted production and later harvested actual production.

  • Q Who will make the determination for paragraph 16(3) of the 2019 Sugar Beet Loss Adjustment Standards Handbook (LASH), which states the early harvest adjustment will not be made if the sugar beets are damaged by an insurable COL and leaving the crop in the field would reduce production?

    A
    Per paragraph 16(3) of the 2019 Sugar Beet LASH, “The adjuster should consult with agricultural experts in the area to make this determination,” which must be made on a case-by-case basis.
  • Q What is an “Agricultural Expert”?

    A
    RMA defines “Agricultural Expert” as person(s) who are employed by the Cooperative Extension System or the agricultural departments of universities, or other persons approved by FCIC, whose research or occupation is related to the specific crop or practice for which such expertise is sought.
  • Q Who will collect truckload records for the insured’s production for the days prior full maturity?

    A
    The insured will need to obtain and provide the truckload records to their AIP. The amount of production harvested early will be determined from production records provided to the insured from the processor.
  • Q Will the application of the early harvest adjustment be considered loss adjustment and require a Notice of Loss (NOL) to be submitted and an adjuster to do the field inspection?

    A
    The application of the early harvest adjustment will not be considered a loss adjustment function. The insured will not be required to submit a notice of loss to the AIP prior to the beginning of early harvest, provided there is no damage to the crop. If there is damage to the acreage intended to be early harvested, Section 12 of the Sugar Beet Crop Provisions will be applicable. The loss adjuster should work with agricultural experts in the area to make the case-by-case determination as to the condition of the sugar beets in the field, whether the beets will be accepted for processing, and if they should be harvested early to avoid further damage.
  • Q Will AIPs need to enter production adjusted for early harvest on the Production Worksheet (PW)? If so, will there be guidelines in the 2019 Sugar Beet LASH on how to make these entries on the PW?

    A

    Yes, a new item has been added in Exhibit 4, item 56 addressing early harvest.

    “For sugar beets harvested prior to full maturity, increase the amount of harvested production by 1 percent per day for each day the sugar beets were harvested prior to the date the sugar beets would have reached full maturity.  Refer to paragraph 16 for more information on adjustments made to production harvested prior to full maturity, including when this type of adjustment will not be made.”

  • Q Who determines the 10-percent (threshold) early harvested acreage of the unit requirement is met? If the processor is not considered a disinterested third party, can they measure the fields since they are not a company whose sole purpose is a measurement service?

    A
    The threshold percentage will be specified in the actuarial documents (not necessarily 10-percent). Any time the threshold may be exceeded, and the insured is intending to have the early harvest adjustment applied, the AIP will need to verify that the processor requested early harvest, the amount of acreage that was requested to be harvested early, and the amount of acreage harvested early. The AIP may allow the insured to self-certify the number of early harvested acres.
  • Q If the processor starts full harvest prior to full maturity (full maturity will be considered to be 45 days prior to the calendar date for the end of the insurance period as shown in the actuarial documents, unless otherwise specified in the Special Provisions), would the early harvest apply to units that meet the 10-percent harvested acres threshold?

    A
    Assuming the actuarial documents specify 10-percent, the early harvest adustment applies to production lost due to harvest prior to full maturity, as outlined in section (13)(f) of the Sugar Beet CPs.
  • Q Would the early harvest adjustment be applied if a producer early harvests 5 percent of their unit acreage, all of which has a loss that would result in further deterioration, if left unharvested until full maturity? The threshold established in the Actuarial Documents is 10 percent.

    A

    No, the early harvest adjustment would not be applied for two reasons: 1) the threshold was not met and 2) the policy states that the early harvest adjustment will not apply if the sugar beets are damaged by an insurable cause and leaving the crop in the field will reduce production.

    Example: 100 acre unit; 5 acres harvested early (5 percent of the acreage in their unit). The insured did not early harvest enough acres to meet the 10 percent threshold to receive an early harvest adjustment. In addition, the early harvested acres were damaged and thus do not qualify for the early harvest adjustment.

  • Q What if my sugar beets are rejected by the processor?

    A

    For sugar beets damaged due to an insurable COL that are rejected by the processor, but are purchased by a salvage buyer at a reduced price, compute pounds of raw sugar using the following example:

    • The insured harvested 100 tons of damaged sugar beets that were rejected by the processor.
    • The salvage buyer paid $10.00 per ton for such damaged sugar beets.
    • 100 tons x $10.00/ton. = $1,000.00 gross dollar amount for the damaged beets.
    • The established price in the actuarial documents for raw sugar is $.18* per pound.
    • $1,000.00 ÷ $.18/lb. = 5,556 raw sugar equivalent. 

    *The established price referenced is for example purposes only; refer to the actuarial documents for current established price.

    For sugar beets that are damaged due to an insurable COL to the extent the processor will not accept the beets and there are no salvage markets for the sugar beets, or acreage is bypassed due to an insurable COL, there will be no value for such beets and there will be no production to count.
  • Q Parts of an unharvested field are frozen in and considered bypassed acreage according to MGR 19-027 for the 2019 crop year. Will the early harvest adjustment still apply?

    A
    No. The early harvest adjustment will only apply to production that is harvested early.
  • Q For APH purposes if more than 50 percent of acreage is harvested, can the average yield be used for APH purposes? How will it be handled if the production is over the guarantee with less than 50 percent harvested?

    A
    In non-loss situations where there is harvested and unharvested acreage in the unit, if over 50 percent of a unit is harvested, the per acre production of the harvested acreage can be applied to the unharvested acreage. If under 50 percent of the acreage is unharvested than an appraisal is required to determine the APH production from the unharvested acreage. If it is a claim situation and the acres are bypassed, the bypassed acres would have a zero appraisal applied to those acres. The APH yield for the unit would reflect the zero yield.
  • Q The policy states that the early harvest adjustment will not apply if the sugar beets are damaged by an insurable cause and “leaving the crop in the field will reduce production.” How will this determination be made?

    A

    The determination if there is an insurable Cause of Loss (COL) will be made by the loss adjuster on a case-by-case basis. The loss adjuster should work with agricultural experts in the area, if needed, to make the case-by-case determination as to the condition of the sugar beets in the field, whether the beets will be accepted for processing, and if they should be harvested early to avoid further damage.

    The loss adjuster is not required to obtain input from local agricultural experts in order to make the determination if the sugar beets are damaged by an insurable COL and leaving the crop in the field will reduce production. If the loss adjuster is uncertain or is unable to make these determinations, they should consult local agricultural experts.

  • Q Does a loss adjuster determine if the early harvest adjustment applies?

    A

    If there is a Cause of Loss (COL)/Notice of Loss (NOL)*, Yes.

    The loss adjuster will:

    • Determine if damage is due to an insurable COL and leaving the crop in the field will reduce production. In such cases, the early harvest adjustment is not applied, and normal loss adjustment procedures apply.
    • Determine if damage is due to an insurable COL and leaving the crop in the field will not reduce production. In such cases, the early harvest adjustment will apply. The early harvest adjustment procedures as outlined in Section 13(f) of the Sugar Beet Crop Provisions apply, and adjustments will be made to production to count and APH.

    Early Harvest Factor (EHF) Decision Flow Chart

  • Q Can a loss adjuster determine when a sugar beet is considered fully mature if they have contractual documentation that identifies the early harvest period, or are they bound by the period identified by the crop provisions?

    A
    The loss adjuster is bound by the early harvest period identified by the crop provisions. Per the Sugar Beet Crop Provisions, the date the sugar beets would have reached full maturity will be considered to be 45-days prior to the calendar date for the end of the insurance period, unless otherwise specified in the Special Provisions.
  • Q Does the early harvest adjustment apply if the sugar beet processor did not request early harvest?

    A
    The factor is only applied when early harvest is requested by the processor. The purpose of the early harvest adjustment is to accommodate processor requests for early harvest of sugar beets and to provide a yield increase to insureds who harvest early before the crop has potentially reached its full yield capacity.
  • Q Can a loss adjuster determine the early harvest adjustment does not apply without agricultural expert documentation when the beets are harvested before full maturity as outlined in the crop provisions?

    A
    Yes. The loss adjuster is allowed to make the determination of whether or not leaving the crop unharvested will further reduce production without input from local agricultural experts. If the loss adjuster is uncertain or unable to make the determination, they should consult agricultural experts in the area.