Presentation on theme: "2001 Added Land & Added P/T/V for Category B APH Crops"— Presentation transcript:
1 2001 Added Land & Added P/T/V for Category B APH Crops
2 2001 Added Land/P/T/V New Procedures Crop Insurance Handbook Revision Category B CropsDetailed in MGRCrop Insurance Handbook RevisionExhibit 36 (9/00)
3 2001 Added Land/P/T/V First Step Rework all 2000 APHs in which “added land” was implemented using a reference yield.Use of the “L” descriptor to identify those situations where land was added in the crop year 2000.Great American can identify crop year 2000 added land situations with system reports.
4 2001 Added Land/P/T/V Wait! Remember! Do NOT restructure added land: That used variable “T” Yields in 2000; orThat was added using existing unit’s APH (no averaging); orThat another person’s records were properly used.
5 2001 Added Land/P/T/V 2000 APH Rework Examine the added land for 50% & 640-acre limits.The added land must not exceed a total of 640 acres, andThe added land acreage must not be greater than 50% of the existing acreage, or the basic unit, to which the land is added using a reference database.
6 2001 Added Land/P/T/V 2000 APH Rework When checking for the 50% & 640 acre rule, use planted acreage.If exceeded, use variable “T” Yield or request a RMA RO review.If acceptable, replace the existing reference yield with the added land “T” Yield.Simple average of existing APH’s in 2000
7 2001 Added Land/P/T/V 2000 APH Rework Steps 2001 Updates Apply acreage limits.Yield limitations do not apply.2001 UpdatesAdd most recent year’s history.Apply yield limitations & Added Land limits.
9 2001 Added Land/P/T/V 2000 Method Reworking 2000 APH For 2000 Unit Acres Approved YieldExisting:***********************************************Added: L164L16400102 was the reference unit for the added units.
10 2001 Added Land/P/T/V Rework Reworking 2000 APH For 2000 Unit Acres Approved YieldExisting:450 totalacres***********************************************Added: > 50% of 450< 50% of 450Examine the planted acres.
11 2001 Added Land/P/T/V Rework Reworking 2000 APH For 2000 Unit Acres Approved YieldExisting:450 totalacres_______________________________________________Take the simple average of the APH yields.= /3 = 149
12 2001 Added Land/P/T/V Rework Reworking 2000 APH For 2000 Unit Acres Approved YieldExisting:450 totalacres_______________________________________________Can I apply the 149 simple average to:??
13 2001 Added Land/P/T/V Rework Reworking 2000 APH For 2000 Unit Acres Approved YieldExisting:450 totalacres_______________________________________________> 50% of 450 or 225Request RO review or use variable “T” Yield.
14 2001 Added Land/P/T/V Rework Reworking 2000 APH For 2000 Unit Acres Approved YieldExisting:450 totalacres_______________________________________________< 50% of 450 or 225149 is the simple average of Units 00101, 00102, & 00103Use the “higher of” the added land “T” Yield (L149) or the variable “T” Yield.
15 2001 Added Land/P/T/V 1st Step New Example Existing units for 2000 Approved APH Yield00104 added within acreage limitsAdded in 2000 as L124Reworked in 2001 as L110 ( /3) = 110
16 2001 Added Land/P/T/V 2nd Step New Example Existing units for 2000 00104 updated: L110L110A 0330 / 4 = 83Prior Yield (restructured): 110Cupped Yield: 110 X .90 = 99
17 2001 Added Land/P/T/V Added Land Special Yields Added land will not always have “special yields”:Other person’s recordsVariable “T” YieldsSeparate basic unitSeparate optional unit not eligible for Added Land “T” Yield.Higher than Added Land “T” YieldSeparate optional unitNot eligible for existing unit’s APHLower “T” Yield map area
18 2001 Added Land/P/T/V Definitions Added Land - Cropland acreage: Added to operation for current crop yearNot crop specificAdded P/T/VFirst time anywhere in operationBy crop, by countyNew DatabaseFirst time crop/P/T/V on particular unit
19 2001 Added Land/P/T/V Definitions Added Land “T” Yield Simple average of approved APH yields for ALL EXISTING optional units within the same basic unitby P/T/VUse for added separate optional unit:Within 50%/640 acre limits, ORApproved RMA RO review.
20 2001 Added Land/P/T/V Definitions Added Land “T” Yield Insured must certify as “Added Land”Yield descriptor “L” for Added Land “T” Yield.“Set” in subsequent yearsUntil replaced by actual/assigned yields.Unless correction or change to yields on which the Added Land “T” Yield was initially based.
21 2001 Added Land/P/T/V “T” Yields for Yield Floors Published “T” Yields (Actuarial)Added Land or New P/T/V “T” YieldsDetermined Irrigated “T” YieldsSimple/Weighted average “T” YieldsRO-assigned “T” Yields
22 2001 Added Land/P/T/V Land Added to Existing Unit To use existing unit’s (basic or optional) APH, added land must:Be in the same or higher “T” Yield map area (if applicable)Meet 50%/640-acre limits:Approved by RMA RO review.< = 50% of existing unit’s cropland acres< = 640 total acres (all units) added to operation, or
23 2001 Added Land/P/T/V Land Added to Existing Unit If eligible to use the existing APH:One database for added land and existing land.No added land yield indicator.If NOT eligible (exceeds limits or RMA RO review rejected):Separate database with variable “T” YieldYield indicator will be “B”Maintain until all “T” Yields are replaced
24 2001 Added Land/P/T/VExample of land added to existing unit but separate database required:00100-Existing (“B”Indicator)Year Acres Yield Acres YieldA40Z T17P T17A T17A T17Approved APH:
25 2001 Added Land/P/T/V Example - Updates for the following year. 00100-Existing (“B”Indicator)Year Acres Yield Acres YieldA40Z T17P T17A T17A T17A A22Approved APH:
26 2001 Added Land/P/T/VIf separate units are requested in subsequent years when separate databases are required:Use only the added land’s yield history for the new unit.Complete with variable “T” Yields if needed.When existing databases are used:Use CIH Exhibit 15
27 50% / 640 LimitsFor Yields other than variable “T” Yields, added land must be:Within limits:less than or equal to 50% of the existing cropland acreageEach added optional unit divided by the existing basic unitAcreage added divided by the existing unit, ANDless than or equal to 640 total cropland acres (irrespective of crop) being added to entire farm operation.OR RO review requested & approved.
28 50% / 640 Limits Cropland acres (CA) Owned, leased, cash or share rentedNot crop-specificAdded CA divided by existing CA (<=50%)Existing Cropland Acreage:Includes CRP land previously in operation.Does not include areas absent from the operation.
29 50% / 640 Limits Example 1 Existing cropland acres FSN in FSN in operation# (owned)# (500 acres leased)# (cash leased)Existing Cropland Acres = 650
30 50% / 640 Limits Example 2 “Previous” vs. “Existing” FSN# Cropland Acres - existingFSN# Cropland Acres - existingFSN# Cropland Acres - lost for 2001FSN# Cropland Acres - new for 2001Existing Cropland Acres = (310>50%)
31 50% / 640 Limits Example 3 Total Cropland Acres Added 2 existing units: acres acres1000 acres3 new units: acres / acres / acres / 1000Each new unit’s cropland acreage divided by 1000 is less than 50% of the existing cropland acreage.= However 680>640 !
32 50% / 640 Limits Example 3 50% limit Total Cropland Acres Added 2 existing units: acres acres1000 acres3 new FSNs: # acres # acres # acres= <64050% depends on the decided unit structure.
33 50% / 640 Limits Example 3 50% limit Total Cropland Acres Added 2 existing units: acres acres1000 acres3 new units acres / acres / acres / 1000Each new unit’s Cropland acres divided by 1000 is less than 50% of 1000 acres.Eligible for Added Land “T” Yield.
34 50% / 640 Limits Example 3 50% limit Total Cropland Acres Added 2 existing units: acres acres1000 acresAll 3 FSNs in new FSN#1 200 acres unit FSN#2 320 acres FSN# acres600 acres of added Cropland Acreage divided by 1000 is greater than 50%.Variable “T” Yield or request RO review.
35 50% / 640 Limits Example 3 50% limit Total Cropland Acres Added 2 existing units: acres acres1000 acresNew FSN #1 520 acres New FSN # acres00103 (520 is greater than 50% of 1000): Variable “T” Yield or request RMA RO review.00104 (80 is less than 50% of 1000): Eligible for Added Land “T” Yield.
36 2001 Added Land/P/T/V 50%/640 Limits Apply to Land Added for current crop year, beginning with the 2000 databases.Land added as a separate optional unit.Land added to an existing unit.New crop for unit IF LAND added in 2000 (restructured) or later.
37 2001 Added Land/P/T/V 50%/640 Limits Do NOT apply (unless on added land) to:Added P/T/V (first time grown within county)Practice, type, varietyNew database for P/T/VFirst time grown on unit.
38 2001 Added Land/P/T/V Great American’s Responsibilities Notify insureds of new Added Land Procedures by production reporting date.Calculate APH for added land within 50%/640 acre limits.Forward Underwriting Review Requests to RMA’s RO.Verify Added Land “T” Yield eligibilityFor APH review.Before paying indemnity.
39 2001 Added Land/P/T/VRMA RO REVIEWSThe insured may request an RMA RO underwriting review if:Added land exceeds 50% / 640 acre limits (review unit structure)The insured wishes to have something other than the variable “T” Yield, Added Land “T” Yield or existing APH.Productivity documentation is provided by the insured.
40 2001 Added Land/P/T/V Remember: RMA RO REVIEWSRemember:If the insured’s request is secured for a special underwriting review of added land, and RMA accepts the documentation and grants a higher “T” Yield value:The insured will have no choice but to accept the RMA RO recommendation for the added land “T” Yield.
41 2001 Added Land/P/T/V Documentation Requirements RMA RO REVIEWSDocumentation RequirementsThe productivity of the added land must be 85% of existing unit’s (or overall basic unit), based on one or more of the following:FSA program yield (crop or reference crop)APH from previous operatorSoil survey maps or other dataNatural Conservation Service projected yields by soil types
42 2001 Added Land/P/T/V Requests must include: RMA RO REVIEWSRequests must include:Statement on signed requestAPH for current crop yearCropland acreage (578 or other documentation)Aerial photos or legal descriptionsProgram yield (if available)APH from previous operator (if available)
43 2001 Added Land/P/T/V Required Statement: RMA RO REVIEWS “I hereby request an RMA RO underwriting review to determine the appropriate APH calculation method(s) to calculate my insurance guarantee for land added to my farming operation. Insured crops for which this request is being made are as follows: ________ ________ ________”“I understand that crop(s) not included on the request will use variable “T” Yields for added land unless acceptable acreage and production records are provided.”
44 2001 Added Land/P/T/VRMA RO REVIEWSAdded Land FormsGreat American will supply agents with appropriate forms to request underwriting reviews for added land.
45 2001 Added Land/P/T/V Deadlines Apply for Requests RMA RO REVIEWSDeadlines Apply for RequestsProduction Reporting DateMost scenariosAcreage Reporting DateIf land is added after Production Reporting DateThe Following Year if too late for initial year.
46 2001 Added Land/P/T/V Deadlines Apply for Requests RMA RO REVIEWSDeadlines Apply for RequestsGreat American must provide information to RMA RO by the Acreage Reporting Date + 20 calendar days. (postmarked)Received within 10 days thereafter.RMA RO will reply within 20 days of receipt.
47 2001 Added Land/P/T/V Example of other crops in later years: RMA RO REVIEWSExample of other crops in later years:Added land in Corn PlantedSame land in Soybeans PlantedEligibility for added land “T” Yield (or existing APH) based on initial year land was added.If eligible, added land “T” Yield is the simple average of approved APH yields that existed in 2000.INCLUDE ALL CROPS IN RMA RO REQUEST
48 2001 Added Land/P/T/V Yield Descriptors L: Added Land “T” Yield C: Only change previously referenced yields.C:Added P/T/V “T” YieldDetermined IRR YieldS, E, N, & T: Variable “T” Yields
49 2001 Added Land/P/T/V Yield Indicators New identifiers for separate added APHsA Added Land “T” Yield usedB Variable “T” Yield because:Not eligible for Added Land “T”Separate Optional UnitNot eligible for Existing Unit’s APHLower “T” Yield map area (all or part)
50 2001 Added Land/P/T/V Yield Indicators New identifiers for separate added APHsC Variable “T” Yield because:Separate Basic UnitHigher than Added Land “T” YieldSeparate Optional Unit
51 2001 Added Land/P/T/V Yield Indicators Added Land without Yield Indicators:Land added to existing unit and using existing APH.Land added as a separate unit using production history from the person sharing.
52 2001 Added Land/P/T/V Yield Indicators Goal is to Track Added Land Set up on separate database (not if added to and using existing unit’s APH)Retain while Added Land or variable “T” Yields are present in database.
53 2001 Added Land/P/T/V Yield Indicators Example Separate APH required YearY Ind B B B BN T T T A110N T T A A120N T A A A 50N A A A A105May combine with other APH in Year 5.
54 2001 Added Land/P/T/V Added P/T/V Not previously produced anywhere in existing operation.Not on added land.APH options:Other person’s records (standard)If IRR: Determined IRR YieldIF Summerfallow: SF-CC APHVariable “T” Yields (standard)
55 2001 Added Land/P/T/V Added P/T/V If new P/T/V for unit/legal: NOT on added land; &Other databases for P/T/V within the same overall basic unit.Use the higher of:New P/T/V “T” Yield50%/640 acre limits DO NOT apply.Simple average of current year’s APH.Variable “T” Yield
56 2001 Added Land/P/T/V Added P/T/V Simple average of approved APH yields for P/T/V “T” Yield Map Area of ALL EXISTING optional units within the same basic unit.Yield descriptor “C”; indicator “A”“Set” until replaced by actual/assigned yields.
57 2001 Added Land/P/T/V If new crop for unit/legal: Use higher of: New Crop in Later YearsIf new crop for unit/legal:On land in operation before 2000, &Other databases within same overall basic unitUse higher of:Added Land “T” Yield50%/640 acre limits do not applySimple average of current year’s APHVariable “T” Yield
58 2001 Added Land/P/T/V If new crop for unit/legal: Use higher of: New Crop in Later YearsIf new crop for unit/legal:On land in operation in 2000 or later, &Other databases within same overall basic unit for the initial year land addedUse higher of:Added Land “T” Yield50%/640 acre limits apply (initial year).Simple average of initial year’s APH.Variable “T” Yield
59 2001 Added Land/P/T/V New Crop in Later Years If land originally added in 2000 or later, we must determine if:Limits met or exceeded initial year?RO review requested (which crops)?RO review approved or rejected?RO review may be required.If new crop is eligible, use simple average of approved APH yields that existed the initial year added.
60 Determined Irrigated Yields 2001 Added Land/P/T/VDetermined Irrigated YieldsSame procedure as before:Initial time IRR on unit/legal, &NI APH higher than IRR “T” YieldLessor of factored IRR “T” or IRR Yield“C” Yield descriptor
62 2001 Added Land/P/T/V Summary Restructure 2000 reference yield databases.Apply 50%/640 acre limits to qualify for Added Land “T” Yield or existing unit’s APH50% on individual unit basis640 acres on total operation basis
64 2001 Added Land/P/T/V Summary Determine Added Land’s Unit Structure Added separate basic unitVariable “T” Yield with “C” indicatorAdded separate optional unitAdded Land “T” Yield & “A” indicator if appropriateVariable “T” Yield“B” indicator if it does not qualify for Added Land “T” Yield or in lower “T” Yield Map Area.“C” indicator if better than Added Land “T” Yield.
65 2001 Added Land/P/T/V Summary Determine Added Land Unit Structure Added to existing unit (Basic or Optional)Existing APH (no indicator) if qualifiesIf it does not qualify(exceeds limits or is in lower “T” yield map area):Separate DatabaseVariable “T” Yield & “B” Indicator
66 2001 Added Land/P/T/V Summary New Database (After Land Added) New crop for unit if land added:Pre-2000 : P/T/V “T” Yield (no limits)2000 and later:P/T/V “T” Yield if within limits - per initial year land added; orVariable “T” YieldNew P/T/V for unit:P/T/V “T” Yield (no limits)
67 2001 Added Land/P/T/V Summary RMA RO Request To use Added Land “T” Yield or existing APHMay involve multiple crops (with existing databases)Signed statement by Production Reporting Date/Acreage Reporting DateProductivity Comparisons85% Documentation