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2001 Added Land & Added P/T/V for Category B APH Crops

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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 Crops Detailed in MGR Crop Insurance Handbook Revision Exhibit 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; or That was added using existing unit’s APH (no averaging); or That 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, and The 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 Updates Add most recent year’s history. Apply yield limitations & Added Land limits.

8 2001 Added Land/P/T/V Let’s review the examples.

9 2001 Added Land/P/T/V 2000 Method Reworking 2000 APH
For 2000 Unit Acres Approved Yield Existing: *********************************************** Added: L164 L164 00102 was the reference unit for the added units.

10 2001 Added Land/P/T/V Rework Reworking 2000 APH
For 2000 Unit Acres Approved Yield Existing: 450 total acres *********************************************** Added: > 50% of 450 < 50% of 450 Examine the planted acres.

11 2001 Added Land/P/T/V Rework Reworking 2000 APH
For 2000 Unit Acres Approved Yield Existing: 450 total acres _______________________________________________ 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 Yield Existing: 450 total acres _______________________________________________ Can I apply the 149 simple average to: ? ?

13 2001 Added Land/P/T/V Rework Reworking 2000 APH
For 2000 Unit Acres Approved Yield Existing: 450 total acres _______________________________________________ > 50% of 450 or 225 Request RO review or use variable “T” Yield.

14 2001 Added Land/P/T/V Rework Reworking 2000 APH
For 2000 Unit Acres Approved Yield Existing: 450 total acres _______________________________________________ < 50% of 450 or 225 149 is the simple average of Units 00101, 00102, & 00103 Use 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 Yield 00104 added within acreage limits Added in 2000 as L124 Reworked in 2001 as L110 ( /3) = 110

16 2001 Added Land/P/T/V 2nd Step New Example Existing units for 2000
00104 updated: L110 L110 A 0 330 / 4 = 83 Prior Yield (restructured): 110 Cupped 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 records Variable “T” Yields Separate basic unit Separate optional unit not eligible for Added Land “T” Yield. Higher than Added Land “T” Yield Separate optional unit Not eligible for existing unit’s APH Lower “T” Yield map area

18 2001 Added Land/P/T/V Definitions Added Land - Cropland acreage:
Added to operation for current crop year Not crop specific Added P/T/V First time anywhere in operation By crop, by county New Database First 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 unit by P/T/V Use for added separate optional unit: Within 50%/640 acre limits, OR Approved 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 years Until 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” Yields Determined Irrigated “T” Yields Simple/Weighted average “T” Yields RO-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” Yield Yield indicator will be “B” Maintain until all “T” Yields are replaced

24 2001 Added Land/P/T/V Example of land added to existing unit but separate database required: 00100-Existing (“B”Indicator) Year Acres Yield Acres Yield A40 Z T17 P T17 A T17 A T17 Approved APH:

25 2001 Added Land/P/T/V Example - Updates for the following year.
00100-Existing (“B”Indicator) Year Acres Yield Acres Yield A40 Z T17 P T17 A T17 A T17 A A22 Approved APH:

26 2001 Added Land/P/T/V If 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 Limits For Yields other than variable “T” Yields, added land must be: Within limits: less than or equal to 50% of the existing cropland acreage Each added optional unit divided by the existing basic unit Acreage added divided by the existing unit, AND less 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 rented Not crop-specific Added 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 - existing FSN# Cropland Acres - existing FSN# Cropland Acres - lost for 2001 FSN# Cropland Acres - new for 2001 Existing Cropland Acres = (310>50%)

31 50% / 640 Limits Example 3 Total Cropland Acres Added
2 existing units: acres acres 1000 acres 3 new units: acres / acres / acres / 1000 Each 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 acres 1000 acres 3 new FSNs: # acres # acres # acres = <640 50% depends on the decided unit structure.

33 50% / 640 Limits Example 3 50% limit Total Cropland Acres Added
2 existing units: acres acres 1000 acres 3 new units acres / acres / acres / 1000 Each 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 acres 1000 acres All 3 FSNs in new FSN#1 200 acres unit FSN#2 320 acres FSN# acres 600 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 acres 1000 acres New FSN #1 520 acres New FSN # acres 00103 (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, variety New database for P/T/V First 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 eligibility For APH review. Before paying indemnity.

39 2001 Added Land/P/T/V RMA RO REVIEWS The 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 REVIEWS Remember: 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 REVIEWS Documentation Requirements The 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 operator Soil survey maps or other data Natural Conservation Service projected yields by soil types

42 2001 Added Land/P/T/V Requests must include:
RMA RO REVIEWS Requests must include: Statement on signed request APH for current crop year Cropland acreage (578 or other documentation) Aerial photos or legal descriptions Program 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/V RMA RO REVIEWS Added Land Forms Great 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 REVIEWS Deadlines Apply for Requests Production Reporting Date Most scenarios Acreage Reporting Date If land is added after Production Reporting Date The Following Year if too late for initial year.

46 2001 Added Land/P/T/V Deadlines Apply for Requests
RMA RO REVIEWS Deadlines Apply for Requests Great 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 REVIEWS Example of other crops in later years: Added land in Corn Planted Same land in Soybeans Planted Eligibility 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” Yield Determined IRR Yield S, E, N, & T: Variable “T” Yields

49 2001 Added Land/P/T/V Yield Indicators
New identifiers for separate added APHs A Added Land “T” Yield used B Variable “T” Yield because: Not eligible for Added Land “T” Separate Optional Unit Not eligible for Existing Unit’s APH Lower “T” Yield map area (all or part)

50 2001 Added Land/P/T/V Yield Indicators
New identifiers for separate added APHs C Variable “T” Yield because: Separate Basic Unit Higher than Added Land “T” Yield Separate 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
Year Y Ind B B B B N T T T A110 N T T A A120 N T A A A 50 N A A A A105 May 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 Yield IF Summerfallow: SF-CC APH Variable “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” Yield 50%/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 Years If new crop for unit/legal: On land in operation before 2000, & Other databases within same overall basic unit Use higher of: Added Land “T” Yield 50%/640 acre limits do not apply Simple average of current year’s APH Variable “T” Yield

58 2001 Added Land/P/T/V If new crop for unit/legal: Use higher of:
New Crop in Later Years If 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 added Use higher of: Added Land “T” Yield 50%/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/V Determined Irrigated Yields Same procedure as before: Initial time IRR on unit/legal, & NI APH higher than IRR “T” Yield Lessor of factored IRR “T” or IRR Yield “C” Yield descriptor

61 2001 Added Land/P/T/V Summary Let’s Summarize Added Land!

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 APH 50% on individual unit basis 640 acres on total operation basis

63 2001 Added Land/P/T/V Summary If exceeded acre limits:
Variable “T” Yield, or Request RMA RO review

64 2001 Added Land/P/T/V Summary Determine Added Land’s Unit Structure
Added separate basic unit Variable “T” Yield with “C” indicator Added separate optional unit Added Land “T” Yield & “A” indicator if appropriate Variable “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 qualifies If it does not qualify(exceeds limits or is in lower “T” yield map area): Separate Database Variable “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; or Variable “T” Yield New 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 APH May involve multiple crops (with existing databases) Signed statement by Production Reporting Date/Acreage Reporting Date Productivity Comparisons 85% Documentation


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