Peanut Revenue Federal Crop Insurance Policy

All of your peanuts are insurable in the county if:

• The actuarial documents provide premium rates;
• They are a type designated in the special provisions;
• They are planted for marketing as farmers’ stock peanuts; and
• You have a share in the crop.

Unless allowed by written agreement, the policy does not cover peanuts that are:

• Planted to harvest as green peanuts;
• Interplanted with another crop; or
• Planted into an established grass or legume.

You may buy crop insurance coverage under one of three insurance plans offered.

Yield Protection - Insurance coverage providing protection only against a production loss.

Revenue Protection - Insurance coverage providing protection against loss of revenue due to a production loss, price decline/increase, or a combination of both.

Revenue Protection with Harvest Price Exclusion - Insurance coverage providing protection only against revenue loss due to a production loss, price decline, or a combination of both. Harvest price is not excluded for determining value of production in loss determination.

You are protected against the following if due to natural causes:

• Adverse weather conditions;
• Earthquake;
• Failure of irrigation water supply, if caused by an insured peril during the insurance year;
• Fire;
• Insects or plant disease, but not damage due to insufficient or improper application of control measures;
• Price change (for revenue protection);
• Volcanic eruption; or
• Wildlife.

Coverage begins when the crop is planted and ends with the earliest occurrence of one of the following:

• Total destruction of the crop;
• Harvest;
• Final adjustment of a loss;
• Abandonment of the crop;
• November 30 in all states except New Mexico,Oklahoma, and Texas; or
• December 31 in New Mexico, Oklahoma, and Texas.

Sales Closing/Cancellation:

Texas …………………………... (Dates differ by county)
New Mexico, Oklahoma, Virginia ……... March 15, 2015
Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina … February 28, 2015

Initial Planting …………… (Dates differ by state/county)

Final Planting ……………. (Dates differ by state/county)

Acreage Reporting …….……....….……..... July 15, 2015

Premium Billing ….………..…....……… August 15, 2015

Termination:

Texas …………………………… (Dates differ by county)
New Mexico, Oklahoma, Virginia ……... March 15, 2015
Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina ... February 28, 2015

Talk to your crop insurance agent for specific dates in your state and county.

Average Price Per Pound – The average Commodity Credit Corporation loan price per pound, by type.

Base contract price – For the purpose of determining the weighted average projected price for peanuts insured under the yield protection plan or revenue protection plans of insurance, the base contract price for farmers’ stock peanuts grown for sale under a sheller contract is either:

(a) The price per pound stipulated in the sheller contract if the sheller contract has a fixed price or a formula that would permit the price to be determined at the time the sheller contract is executed by you and the sheller; or

(b) The stated option price (converted to a price per pound) stipulated in the sheller contract plus the Marketing Assistance Loan rate per pound if the sheller contract does not contain a fixed price or contains a formula that will not allow the price to be determined at the time the sheller contract is executed by you and the sheller.

The base contract price will be established without regard to any discounts or incentives that may apply and will not exceed the projected price contained in the actuarial documents times a 1.20 price factor unless otherwise provided in the Special Provisions.

Commodity Exchange Price Provisions (CEPP-PEANUTS) – Instead of the definition in the common Crop Policy Basic Provisions (Basic Provisions), a part of the policy that is used for peanuts for which revenue protection is available, regardless of whether you elect revenue protection or yield protection for your peanut crop. This document includes the information necessary to find the projected price and the harvest price for the insured crop, as applicable.

Harvest price – Instead of the definition in the Basic Provisions, the price for each insurable type of peanuts determined in accordance with the CEPP-PEANUTS and used to value production to count for revenue protection. The harvest price will be used for the insured crop unless you elect the weighted average projected price. If you elect to use the weighted average projected price, the harvest price will be the sum of the harvest price determined in accordance with the CEPP-Peanuts and the difference between the projected price and the weighted average projected price. Example:

CEPP projected price = $0.20/lb.
Weighted average projected price = $0.21/lb.
Price difference = $0.01/lb. ($0.21 - $0.20)
CEPP harvest price = $0.22/lb.
Harvest price = $0.23/lb. ($0.22 + $0.01)

Projected Price – Instead of the definition in the Basic Provisions, the price for each insurable peanut type determined according to CEPP-PEANUTS. The projected price is used for the insured crop regardless of whether you elect revenue protection or yield protection for the crop, unless you elect the weighted average projected price for peanuts grown for sale under a sheller contract. Projected prices can be determined by contacting your crop insurance agent or by going to: The Web Actuarial Information Browser.

Revenue protection guarantee (per acre) – For revenue protection only, the amount determined by multiplying the production guarantee (per acre) by the greater of your projected price/weighted average projected price or your harvest price. If you elect harvest price exclusion, the production guarantee (per acre) is only multiplied by your projected price.

Sheller Contract – A written agreement between you and the sheller or handler containing, at least:

• Your commitment to plant, grow, and deliver peanuts to the sheller or handler;
• The sheller or handler’s commitment to purchase all production stated in the sheller contract; and
• A base contract price.

Value per pound – A price determined by USDA as shown on the USDA "Inspection Certificate and Calculation Worksheet."

Weighted average projected price – The price that applies for each insurable type of peanuts:

• Grown for sale under a sheller contract;
• That you elect; and
• Determined, as provided in section 3(c) of the Peanut Crop Provisions.

Yield protection guarantee (per acre) – Instead of the definition in the Basic Provisions, when yield protection is selected for a crop that has revenue protection available, the amount determined by multiplying the production guarantee by your projected price or weighted average projected price, as applicable.

Coverage levels range from 50 to 85 percent of your approved yield. For example, an approved yield of 3,600 pounds per acre would result in a guarantee of 2,700 pounds per acre at the 75 percent coverage level. Crop insurance premiums are subsidized as shown in the following table. Your share of the premium is 100 percent minus the subsidy amount. For example, if you choose the 75 percent coverage level, the premium subsidy is 55 percent. Your premium share is 45 percent of the base premium for optional or basic units (100 - 55 = 45 percent). An administrative fee of $30 per crop per county applies regardless of the acreage.

Basic Units - A basic insurance unit includes all your insurable peanut acreage in the county in which you have 100 percent share and includes any cash-rented land. If you also grew peanuts on shares with another entity, that acreage would be a separate basic unit. A premium discount applies.

Optional Units - A basic unit may be divided into two or more optional units by Farm Service Agency farm serial number, irrigated and non-irrigated acreage, or organic practice. No premium discount applies.

Enterprise unit - All insurable acreage of the same insured crop in the county in which you have a share on the date coverage begins for the crop year. You must:

• Insure under yield or revenue protection; and
• Have at least two farm serial numbers, each having the lesser of 20 acres or 20 percent of the insured crop acreage in the enterprise unit; or
• Have one farm serial number with at least 660planted acres.

A variable premium discount and increased premium subsidy apply.

Prevented planting coverage is 50 percent of your production guarantee for timely planted acreage. For an additional premium, you may increase your prevented planting coverage.

You may receive a replanting payment if your peanuts are damaged by an insurable cause of loss so that the remaining stand will not produce at least 90 percent of the production guarantee and it is practical to replant. The replanting payment per acre is $95 multiplied by your share. Replanting payments are not available with CAT coverage.

Quality adjustment is based on a comparison of the grade value of the peanuts to the USDA loan price. The grade value is found on the Farm Service Agency Inspection Certificate and Calculation Worksheet (Form 1007). Quality adjustment may apply when the value per pound of damaged peanuts (by type) found on Form 1007 is less than 90 percent of the average price per pound (based on the loan price). The amount of such production is reduced by:

• Dividing the value per pound for the insured type of peanuts by the applicable average price per pound;and
• Multiplying this result by the number of pounds of such production.

A yield protection loss occurs when peanut production for the unit falls below the production guarantee because of damage from a covered cause of loss. A revenue protection loss occurs when the value of production-to- count is less than the revenue protection guarantee due to a production loss and/or revenue loss.

Assume non-irrigated peanuts insured with an approved yield of 3,000 pounds per acre, 75 percent coverage level, a 100 percent share and one basic unit. The projected election is $0.245 and the harvest price is $0.260. Due to an insurable cause of loss, the production-to-count is 950 pounds.