Pistachio Crop Insurance

Pistachios are insurable in Arizona, California, and New Mexico.

Arizona: Cochise and Graham counties.

California: Alameda, Butte, Colusa, Contra Costa, Fresno, Glenn, Kern, Kings, Madera, Merced, Riverside, Sacramento, San Bernardino, San Joaquin, San Luis Obispo, Santa Barbara, Stanislaus, Sutter, Tehama, Tulare, Yolo, and Yuba counties.

New Mexico: Otero county.

Pistachio insurance is based on a two-year coverage period, during which you are agree to insure the crop for both years of the period, stay with the same Approved Insurance Provider (AIP) for both years, as long as you have and retain an insurable interest in the orchard. You must apply for coverage with a crop insurance agent on or before December 31 to insure the crop you plan to harvest in that year and the following year. Coverage begins on January 1 of each crop year. In the year that you apply, we will inspect all your pistachio acreage and will notify you if we accept or do not accept your application no later than 30 days after the sales closing date.

All policies automatically renew after the end of each two-year coverage period unless you notify your crop insurance agent in writing that you want to cancel coverage by the December 31 cancellation date.

The amount of insurance (guarantee) is determined from your production records. The coverage level and price election percentage remain the same for each year in the two-year coverage period. Indemnity payments are calculated for each year individually. Approved yields are based on years of production records and may need to be adjusted if found to be alternate bearing.

Growers can select a coverage level from 50 to 85 percent of their approved yield and 55 to 100 percent of the price election. Crop insurance premiums are subsidized as shown in the following table. For example, if you choose the 65-percent coverage level, your premium share would be 41 percent of the base premium.

You are protected against the following:

• Adverse weather conditions;
• Earthquake;
• Failure of irrigation water supply if caused by an insured peril during the insurance year;
• Fire, unless weeds and undergrowth have not been controlled or pruning debris has not been removed from the orchard;
• Insects or plant disease, but not damage due to insufficient or improper application of control measures;
• Volcanic eruption; or
• Wildlife.

If a loss occurs, you must:

• Protect the crop from further damage by providing sufficient care;
• Notify your crop insurance agent within 72 hours of your initial discovery of damage, but not later than 15 days after the end of the insurance period;
• Provide notice at least 15 days prior to the beginning of harvest, or immediately if damage is discovered during harvest and you intend to claim an indemnity on any unit; and
• Not destroy the damaged crop until you are given written consent to do so.

 Assume 65 percent coverage, 100 percent price election of $2.10 per pound, an average yield of 2,400 pounds per acre, and 100 percent share.

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

             2400   Pounds per acre average yield
x            0.65   Coverage level percentage
            1,560   Pounds per acre guarantee
-              500   Pounds per acre actually produced
            1,060   Pounds per acre loss
×          $2.10   Price election
          $2,226   Gross indemnity per acre

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