USDA Announces Enhancements to Potato Crop Insurance Provisions
1/22/2008

USDA’s Risk Management Agency (RMA) recently announced crop policy improvements to the Potato Federal Crop Insurance Corporation’s (FCIC) Multi-Peril Crop Insurance (MPCI) Potato crop insurance provisions.

Dave Paul, Director of U.S. Department of Agriculture's Risk Management Agency (RMA) Spokane Regional Office, shared “This is a good time for producers to contact their crop insurance agent to see how these changes may benefit their insurance package.” according to Paul. "Policy changes and endorsement selections must be made on or before the sales closing date for the crop in a county."

Specifics of the potato crop provisions, which provide flexibility to tailor insurance protection to a grower’s individual needs, are listed below including some of the recent changes.

Northern Potato Crop Provisions (Basic Coverage): Provides quality adjustment for tuber production damaged by freeze, or other insurable causes that result in tuber soft rot. The additional tuber freeze and soft rot coverage is also applicable for producers insuring at the catastrophic (CAT) level. Late and prevented planting protection is also provided. In the new crop provisions, the portion of indemnity paid on for un-harvested production was changed from 80 to 90 percent. Also, a single set of quality adjustment factors will now be used for damage from rot and freeze; the new factors are a balance between those previously used in the potato program.

Northern Potato Quality Endorsement (Optional): Provides quality protection for production with internal defects that cannot be sorted from undamaged production, as well as external defects. Producers have choices of: U.S. Number 1 or better; U.S. Number 2 or better (Fresh); or U.S. Number 2 or better (Processing) Grade Standards. Coverage on acreage grown for the production of seed is excluded. Production harvested or appraised by an insurance company adjuster prior to reaching full maturity that does not meet the U.S. Grade selected by an insured, solely as a result of size, will be considered to have met the U.S. Grade.

Northern Potato Processing Quality Endorsement (Optional): Provides additional quality protection for unacceptable levels of specific gravity, sugar ends, as well as poor fry or chip color. A new quality standard for chipping potatoes using the Agtron rating of 58 was added. The processing quality endorsement, when elected by the insured, attaches to and amends the standard quality endorsement. In the new crop provisions, the 'rejection clause' within the endorsement has been replaced by a value comparison to the maximum price election. Appraised and harvested production is adjusted in proportion to the crop’s relative value of the MPCI price. As a condition of eligibility, a producer may also have a contract executed with a broker, in addition to a contract direct with a processor. Coverage under this endorsement is available in many counties, check with a local crop insurance agent for availability.

Northern Potato Certified Seed Potato Endorsement: Loss of production as well as loss of certification is covered. Certified seed coverage is limited to no greater than 125 percent of the average number of acres entered into, and passing state certification during the three previous years (unless a written agreement allows more acreage to be insured). Rotation requirement and standards for parent seed are according to state certification regulations. An additional value of protection is applicable to seed producers with acreage within state sanctioned seed management areas or isolation districts. Coverage under this endorsement is available in many counties, check with your crop insurance agent for availability.

Northern Potato Storage Coverage Endorsement: This endorsement extends the discovery period for damage that occurs within the insurance period, but that does not become evident until a later time (up to 60 days, following harvest) if damage results in Tuber rot; certain internal defects (applicable only if the producer elected coverage under the northern potato crop insurance quality endorsement); or unacceptable specific gravity, sugar ends or poor fry or chip color (applicable only if the insured elected coverage under the Northern Potato Processing Quality Endorsement).

Paul added “We appreciate the involvement of the Pacific Northwest potato grower organizations, who were instrumental in providing feedback as the Northern potato crop insurance provisions were updated.”

We strongly encourage producers to contact their local crop insurance agent to see how these and other changes may affect their insurance package ahead of the sales closing date, which is March 15 (since March 15 is on a Saturday sale can continue through COB March 17) for growers throughout the Pacific Northwest and Alaska.

Crop insurance is sold and delivered solely through private crop insurance companies. A list of crop insurance agents is available at all USDA Service Centers throughout the United States or on the RMA Web site at http://www3.rma.usda.gov/tools/agents/.

USDA is an equal opportunity provider and employer.