PRODUCT MANAGEMENT BULLETIN: PM–18-056
United States Department of Agriculture
Farm and Foreign Agricultural Services
Risk Management Agency
1400 Independence Avenue, SW
Washington, DC 20250-0801
All Risk Management Agency Field Offices
All Other Interested Parties
White and Waxy Specialty Corn is a privately developed product that was approved under section 508(h) of the Federal Crop Insurance Act by the Federal Crop Insurance Corporation Board of Directors on August 15, 2018.
White and Waxy Specialty Corn insurance allows policyholders to insure their specialty type corn at a more favorable contract price if grown under contract in specific counties. This program is available for both Yield Protection and Revenue Protection plans of insurance.
The actuarial documents, effective for crop year 2019, now provide separate insurance offers for corn types as: white (341) and waxy (381).
White and waxy specialty corn insurance is available through the Special Provisions for specific counties listed in the actuarial documents. White corn insurance is available in 608 counties within California, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, Tennessee, and Texas, beginning with the 2019 crop year. Waxy corn insurance is available in 451 counties within Illinois, Indiana, Iowa, Kansas, Missouri, and Nebraska, beginning with the 2019 crop year.
The Crop Insurance Handbook (CIH), CIH Para. 1523 provides instructions on establishing or dividing Actual Production History (APH) databases when actuarial documents specify new practices/types (P/T), or otherwise modify existing P/T’s. For white and waxy specialty corn, separate APH databases may be required, depending on the policyholder’s elections, for each P/T listed on the actuarial documents when the P/T has been produced in previous crop years or the policyholder plans to plant for the current crop year.
Where the actuarial documents provide for the following types:
(A) corn type white (341); or
(B) corn type waxy (381); and
the policyholder produces one of these specialty types, the insured may:
(1) For conventional practices:
(i) Elect to insure as white or waxy type, using the specialty contract price, in which case the insured must establish separate APH databases for each separate type; or
(ii) Elect to insure as grain type (016), without using the specialty contract price, in which case the insured will not be required to establish a separate APH database.
(2) For organic certified and transitional practices:
(i) Elect to insure under corn type grain (016), using the specialty contract price, available under the Contract Price Addendum, as allowed by Section I(2)(j) of the Commodity Exchange Price Provisions, in which case the insured will not be required to establish a separate APH database; or
(ii) Elect to insure as white or waxy type, without using the specialty contract price, and establish separate APH databases for each separate type.
(3) When separate APH databases are established for a specialty type according to CIH Para. 1523, where the T-yields for corn type grain (016), corn type white (341), and/or corn type waxy (381) are the same; the order of the highest yielding type will be corn type grain (016) and then corn type white (341) if insured must attribute acres and production to the highest yielding type when establishing separate APH databases.
(4) To determine a loss, all corn types must be segregated. Each corn type will have a separate loss line on the production worksheet.
The White and Waxy Specialty Corn insurance program will be released by close of business today in the actuarial documents at: https://webapp.rma.usda.gov/apps/actuarialinformationbrowser.
If you have any questions, please contact Francie Tolle, Director, Product Administration and Standards Division at (816) 926-7387.
December 31, 2019