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    Crop Insurance News and Analysis – August 27, 2020 – Florida Citrus Actual Production History Insurance Program

    September 1, 2020 By //  by Kim Arrigo

    On August 27, 2020, the Risk Management Agency (RMA) issued Production Management Bulletin: PM-20-057, announcing the Federal Crop Insurance Corporation Board of Directors’ approval of the Florida Citrus Actual Production History (APH) Insurance Program for the 2022 and succeeding crop years. https://www.rma.usda.gov/en/Policy-and-Procedure/Bulletins-and-Memos/2020/PM-20-057. RMA also published the Florida Citrus Fruit Crop Provisions, the APH Florida Citrus Fruit Crop Insurance Standards Handbook, and the APH Florida Citrus Fruit Loss Adjustment Standards Handbook. https://www.rma.usda.gov/-/media/RMAweb/Policies/Citrus/2022/Florida-Citrus-Fruit-Crop-Provisions-22-0026.ashx; https://www.rma.usda.gov/-/media/RMAweb/Handbooks/Privately-Developed-Products—20000/Florida-Citrus-Fruit/2022-20650U-APH-Florida-Citrus-Fruit-Crop-Insurance-Standards-Handbook.ashx; https://www.rma.usda.gov/-/media/RMAweb/Handbooks/Privately-Developed-Products—20000/Florida-Citrus-Fruit/2022-20650L-APH-Florida-Citrus-Fruit-Loss-Adjustment-Standards-Handbook.ashx. On September 4, 2020, RMA also issued a Regional Press Release announcing the new policy. https://www.rma.usda.gov/en/RMALocal/Field-Offices/Regional-Offices/Valdosta-Georgia-Regional-Office-Page/Region-News/2020-News/FL-Citrus-Actual-Production-History-Policy

    RMA states that the Florida Citrus Fruit APH policy will be offered in the same counties as the Dollar Plan of Insurance program. RMA states that separate coverage levels will be available by type within each citrus fruit group and will range from CAT to the 85% coverage level. RMA states that optional and enterprise units will be available as specified in the Crop Provisions. RMA states that Grapefruit, Lemons, Mandarins/Tangerines, Oranges, Tangelos, and Tangors will be insurable under the new Florida Citrus APH plan.

    ANALYSIS – The policy seems consistent with the coverages RMA states is being provided, although nothing in the Florida Citrus Fruit APH Crop Provisions refers to, or authorizes, 85 percent coverage. Presumably this coverage level is stated in the Special Provisions or actuarial documents. Enterprise and optional units are available although optional and enterprise units are excluded for irrigated and non-irrigated practices. A cursory examination of the other provisions appear that they are standard to other APH crops insured. Interesting that limes are not included as a covered citrus fruit.

    All statements made are opinions of the author and are not intended to provide legal opinions or legal advice.

    Filed Under: Blog

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