Background

The Risk Management Agency (RMA) has discovered that, due to a computer programming error, the 2018 crop year Stacked Income Protection premium rates in the actuarial documents are incorrect and are much lower than is actuarially sound. In accordance sections 506(o) and 508(d) of the Federal Crop Insurance Act, RMA is mandated to maintain actuarial soundness; therefore, action must be taken to correct and reissue the actuarially appropriate rates for the 2018 crop year.

The Risk Management Agency (RMA) has revised the Nursery Crop Provisions to incorporate changes made in the Final Rule correcting amendment published in the Federal Register on March 23, 2018. The Nursery Crop Provisions (19-0073) are effective for the 2019 and succeeding crop years.

Background

Risk Management Agency (RMA) has received questions regarding the impact to an insured’s crop insurance policy when changes are made in a farming operation’s business entity after the sales closing date. For example, the insured is a corporation and the shareholders form a partnership after the sales closing date. The partnership leases land, equipment and other assets from the existing corporation to produce the crop and the corporation does not have a share in the crop.

Background

In accordance with Section 8 of the Rainfall and Vegetation Index Plan Common Policy Basic Provisions, final grid indices and payment calculation factors have been determined and approved for the following:

• 2018 Crop Year Rainfall Index December – January Index Interval Final Grid Indices for Annual Forage

 Action

By close of business today, final grid indices and payment calculation factors will be available in the Actuarial Information Browser and Actuarial Data Master in the following formats:

As of March 13, 2018 the following information is now available on the FTP site:

• 2018 Actuarial Data Master for the 4/30, 11/30 Filing Date, YTD, and Daily Files.
• 2018 Special Provisions for the 11/30 Filing Date.

Users can find this information in the following directories:

• 2018 Actuarial Data Master are in the References/Actuarial_Data_Master/2018 directory.
• 2018 Special Provisions are in the Special_Provisions/2018 directory.

Additional notes and details regarding this data release:

The Risk Management Agency (RMA) has released the 2019 Standard Reinsurance Agreement (SRA) and Appendices I, II, and IV, and the 2019 Livestock Price Reinsurance Agreement (LPRA) and Appendices I, II, and IV, which become effective July 1, 2018. The documents are located on the RMA website at www.rma.usda.gov/policy-procedure/reinsurance-agreements. The draft Appendix III that provides standards, procedure and instructions for reporting data to RMA will be issued by May 2018.

The following revisions/additions were made:

As of March 05, 2018 the following information is now available on the FTP site:

• 2018 Actuarial Data Master for the 6/30, 11/30 Filing Date, YTD, and Daily Files.

Users can find this information in the following directories:

• 2018 Actuarial Data Master are in the References/Actuarial_Data_Master/2018 directory.

Additional notes and details regarding this data release:

Dry Pea and Dry Bean Crop Provisions and Revenue Endorsement

The approved 2018 CY projected prices shown below are for the Yield Protection, Revenue Protection, and Revenue Protection with Harvest Price Exclusion plans of insurance. The approved 2018 CY volatility factors shown below are for the Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance. The projected prices and volatility factors are applicable for the states, crops, and types indicated in the subsequent tables.

As of March 01, 2018 the following information is now available on the FTP site:

• 2018 Actuarial Data Master for the 6/30, 11/30 Filing Date, YTD, and Daily Files.

Users can find this information in the following directories:

• 2018 Actuarial Data Master are in the References/Actuarial_Data_Master/2018 directory.

Additional notes and details regarding this data release:

Common Crop Insurance Policy & Area Risk Protection Insurance ¹

The 2018 CY projected prices shown below are approved for the following plans of insurance: Yield Protection, Area Yield Protection, Revenue Protection, Area Revenue Protection, Revenue Protection with Harvest Price Exclusion, and Area Revenue Protection with the Harvest Price Exclusion.