Kiwifruit Crop Insurance

All commercially grown kiwifruit are insurable if:

• You have a share in the crop;
• Varieties are adapted to the area;
• Grown under irrigated practice;
• Grown on vines that have reached at least the fifth leaf year after being set out, unless otherwise provided in the Special Provisions;
• Grown for the production of fresh kiwifruit; and
• Grown in a vineyard that, if inspected, is considered acceptable by us.

You are protected against the following:

• Adverse weather conditions;
• Earthquake;
• Failure of irrigation water supply, if caused by an insured peril that occurs during the insurance period;
• Fire, unless weeds and other forms of undergrowth have not been controlled or pruning debris has not been removed from the vineyard;
• Insect damage and/or plant disease, unless you have insufficiently or improperly applied pest or disease control measures;
• Volcanic eruption; and
• An insufficient number of chilling hours to effectively break dormancy.

For new insureds, coverage begins on or after December 1.

For carryover insureds coverage begins on the day immediately following the end of the insurance period for the previous crop year.

For all insureds, coverage ends with the earliest occurrence of one of the following:

• Total destruction of the crop;
• Harvest of the insured crop;
• Final adjustment of loss;
• Abandonment of the crop;
• November 30 for Varietal Groups A and C; or
• November 15 for Varietal Group B.

Coverage levels range from 50 to 85 percent of your approved yield. Crop insurance premiums for basic and optional units are subsidized as shown in the table below. For example, if you have basic units or optional units and choose the 65 percent coverage level, your premium share would be 41 percent of the base premium.

Catastrophic Risk Protection (CAT) coverage is fixed at 50 percent of your approved yield and 55 percent of the price election. CAT is 100 percent subsidized with no premium cost to you. There is, however, an administrative fee of $655 per crop per county, regardless of the acreage.

Basic units, optional units, and enterprise units are available. Additional premium subsidy is available for enterprise units.

Assume a 100 percent share in a unit containing 200 acres with a production guarantee per acre of 8,450 pounds at 65% coverage level. The applicable price election is $0.91 per pound. Your production guarantee for the unit at 100% price election is 1,690,000 pounds. Due to adverse weather your production to count is 1,400,000. Your total indemnity would be calculated as follows:

Coverage

             200   Acres
x        8,450   Pounds
   1,690,000   Pounds guarantee

   1,690,000   Pounds
×        $0.91   Price election
 $1,537,900   Dollar guarantee

Loss Calculation

   1,400,000   Pounds
×        $0.91   Price election
 $1,274,000   Value of production

  $1,537,900  Total dollar guarantee
- $1,274,900  Total value production-to-count
     $263,000  Total indemnity payment

Price used above is for example only. Contact a crop insurance agent for current information.