PRODUCT MANAGEMENT BULLETIN: PM16-43




1400 Independence Avenue, SW
Stop 0801
Washington, DC  20250-0801

Date

August 25, 2016

To:

All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties

From:

Thomas W. Worth, Acting Deputy Administrator /s/ Thomas W. Worth    8/25/2016

Subject:

Texas Citrus Fruit Crop Provisions for the 2018 and Succeeding Crop Years
Background

The Risk Management Agency (RMA) has revised the Texas Citrus Fruit Crop Provisions (18-0226) for the 2018 and succeeding crop years. The provisions were revised to standardize terminology; clarify provisions; expand insurable causes of loss for fruit damaged by insects and disease (unless excluded through the Special Provisions and provided damage is not due to insufficient or improper application of control measures); and implement new calculations for fruit insured with an intended use of fresh, with production adjusted using a Fresh Fruit Factor contained in the Special Provisions.

As part of the effort to standardize terminology, the definition of “crop” has been replaced by a definition of “citrus fruit commodity.” Under this new definition, some of the “citrus fruit commodities” have been given new designations, which have resulted in several of the previous “crops” being combined under the new “citrus fruit commodities.” Table 1 lists the previous “crop” names for the 2017 and prior crop years in the first column, while the second column lists the new “citrus fruit commodity” names for the 2018 and succeeding crop years.

The “citrus fruit commodities” have been divided into “citrus fruit groups” through the Special Provisions. The “citrus fruit groups” are now the basis for electing coverage levels and determining the insured crop. The “citrus fruit groups” have been established in order to keep the basis for coverage levels, basic units, and administrative fees for the 2018 and succeeding crop years as similar as possible to the basis for the 2017 and prior crop years. Table 2 lists the “citrus fruit groups” under the new citrus fruit commodities.

Please refer to the Texas Citrus Fruit Crop Provisions and Special Provisions for more information.

Action

RMA will place, by close of business today, the new Texas Citrus Fruit Crop Provisions and Summary of Changes on the RMA Web site at http://www.rma.usda.gov/policies. Carryover policyholders are not required to complete a new application as a result of the changes in terminology. Policy documents (e.g., acreage report) issued subsequent to this memorandum must include the new Citrus Fruit Group and Citrus Fruit Commodity name.

If you have any questions, please contact Bill Bing or Shaun Collins, Product Administration and Standards Division, at (816) 926-3406.

DISPOSAL DATE:
December 31, 2016

USDA is an Equal Opportunity Employer and Provider