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2001 Added Land & Added P/T/V for Category B APH Crops

2001 Added Land & Added P/T/V for Category B APH Crops. 2001 Added Land/P/T/V. New Procedures Category B Crops Detailed in MGR-00-019.1 Crop Insurance Handbook Revision Exhibit 36 (9/00). 2001 Added Land/P/T/V. First Step

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2001 Added Land & Added P/T/V for Category B APH Crops

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  1. 2001 Added Land & Added P/T/V for Category B APH Crops

  2. 2001 Added Land/P/T/V • New Procedures • Category B Crops • Detailed in MGR-00-019.1 • Crop Insurance Handbook Revision • Exhibit 36 (9/00)

  3. 2001 Added Land/P/T/V • First Step • Rework all 2000 APHs in which “added land” was implemented using a reference yield. • Use of the “L” descriptor to identify those situations where land was added in the crop year 2000. • Great American can identify crop year 2000 added land situations with system reports.

  4. 2001 Added Land/P/T/V Wait! • Remember! • Do NOT restructure added land: • That used variable “T” Yields in 2000; or • That was added using existing unit’s APH (no averaging); or • That another person’s records were properly used.

  5. 2001 Added Land/P/T/V • 2000 APH Rework • Examine the added land for 50% & 640-acre limits. • The added land must not exceed a total of 640 acres, and • The added land acreage must not be greater than 50% of the existing acreage, or the basic unit, to which the land is added using a reference database.

  6. 2001 Added Land/P/T/V • 2000 APH Rework • When checking for the 50% & 640 acre rule, use planted acreage. • If exceeded, use variable “T” Yield or request a RMA RO review. • If acceptable, replace the existing reference yield with the added land “T” Yield. • Simple average of existing APH’s in 2000

  7. 2001 Added Land/P/T/V • 2000 APH Rework Steps • Apply acreage limits. • Yield limitations do not apply. • 2001 Updates • Add most recent year’s history. • Apply yield limitations & Added Land limits.

  8. 2001 Added Land/P/T/V • Let’s review the examples.

  9. 2001 Added Land/P/T/V 2000 Method • Reworking 2000 APH For 2000 Unit AcresApproved Yield Existing: 00101 200 150 00102 100 164 00103 150 132 *********************************************** Added: 00104 250 L164 00105 185 L164 00102 was the reference unit for the added units.

  10. 2001 Added Land/P/T/V Rework • Reworking 2000 APH For 2000 Unit AcresApproved Yield Existing: 00101 200 150 450 total 00102 100 164 acres 00103 150 132 *********************************************** Added: 00104 250> 50% of 450 00105 185< 50% of 450 Examine the planted acres.

  11. 2001 Added Land/P/T/V Rework • Reworking 2000 APH For 2000 Unit AcresApproved Yield Existing: 00101 200 150 450 total 00102 100 164 acres 00103 150 132 _______________________________________________ Take the simple average of the APH yields. 150+164+132=446 446/3 = 149

  12. 2001 Added Land/P/T/V Rework • Reworking 2000 APH For 2000 Unit AcresApproved Yield Existing: 00101 200 150 450 total 00102 100 164 acres 00103 150 132 _______________________________________________ Can I apply the 149 simple average to: 00104 ? 00105 ?

  13. 2001 Added Land/P/T/V Rework • Reworking 2000 APH For 2000 Unit AcresApproved Yield Existing: 00101 200 150 450 total 00102 100 164 acres 00103 150 132 _______________________________________________ 00104 250 > 50% of 450 or 225 Request RO review or use variable “T” Yield.

  14. 2001 Added Land/P/T/V Rework • Reworking 2000 APH For 2000 Unit AcresApproved Yield Existing: 00101 200 150 450 total 00102 100 164 acres 00103 150 132 _______________________________________________ 00105185 < 50% of 450 or 225 149 is the simple average of Units 00101, 00102, & 00103 Use the “higher of” the added land “T” Yield (L149) or the variable “T” Yield.

  15. 2001 Added Land/P/T/V 1st Step • New Example • Existing units for 2000 00101 124 Approved APH Yield 00102 96 00103 110 00104 added within acreage limits Added in 2000 as L124 Reworked in 2001 as L110 (124+96+110/3) = 110

  16. 2001 Added Land/P/T/V 2nd Step • New Example • Existing units for 2000 00104 updated: L110 L110 L110 A 0 330 / 4 = 83 Prior Yield (restructured): 110 Cupped Yield: 110 X .90 = 99

  17. 2001 Added Land/P/T/V • Added Land Special Yields • Added land will not always have “special yields”: • Other person’s records • Variable “T” Yields • Separate basic unit • Separate optional unit not eligible for Added Land “T” Yield. • Higher than Added Land “T” Yield • Separate optional unit • Not eligible for existing unit’s APH • Lower “T” Yield map area

  18. 2001 Added Land/P/T/V Definitions • Added Land - Cropland acreage: • Added to operation for current crop year • Not crop specific • Added P/T/V • First time anywhere in operation • By crop, by county • New Database • First time crop/P/T/V on particular unit

  19. 2001 Added Land/P/T/V Definitions • Added Land “T” Yield • Simple average of approved APH yields for ALL EXISTING optional units within the same basic unit • by P/T/V • Use for added separate optional unit: • Within 50%/640 acre limits, OR • Approved RMA RO review.

  20. 2001 Added Land/P/T/V Definitions • Added Land “T” Yield • Insured must certify as “Added Land” • Yield descriptor “L” for Added Land “T” Yield. • “Set” in subsequent years • Until replaced by actual/assigned yields. • Unless correction or change to yields on which the Added Land “T” Yield was initially based.

  21. 2001 Added Land/P/T/V • “T” Yields for Yield Floors • Published “T” Yields (Actuarial) • Added Land or New P/T/V “T” Yields • Determined Irrigated “T” Yields • Simple/Weighted average “T” Yields • RO-assigned “T” Yields

  22. 2001 Added Land/P/T/V • Land Added to Existing Unit • To use existing unit’s (basic or optional) APH, added land must: • Be in the same or higher “T” Yield map area (if applicable) • Meet 50%/640-acre limits: • Approved by RMA RO review. • < = 50% of existing unit’s cropland acres • < = 640 total acres (all units) added to operation, or

  23. 2001 Added Land/P/T/V • Land Added to Existing Unit • If eligible to use the existing APH: • One database for added land and existing land. • No added land yield indicator. • If NOT eligible (exceeds limits or RMA RO review rejected): • Separate database with variable “T” Yield • Yield indicator will be “B” • Maintain until all “T” Yields are replaced

  24. 2001 Added Land/P/T/V Example of land added to existing unit but separate database required: 00100-Existing 00100(“B”Indicator) Year Acres Yield Acres Yield 1996 55.0 A40 1997 0.0 Z T17 1998 40.5 P15 T17 1999 60.0 A42 T17 2000 50.0 A20 T17 Approved APH: 29 17

  25. 2001 Added Land/P/T/V Example - Updates for the following year. 00100-Existing 00100(“B”Indicator) Year Acres Yield Acres Yield 1996 55.0 A40 1997 0.0 Z T17 1998 40.5 P15 T17 1999 60.0 A42 T17 2000 50.0 A20 T17 2001 40.0 A32 150 A22 Approved APH: 30 18

  26. 2001 Added Land/P/T/V • If separate units are requested in subsequent years when separate databases are required: • Use only the added land’s yield history for the new unit. • Complete with variable “T” Yields if needed. • When existing databases are used: • Use CIH Exhibit 15

  27. 50% / 640 Limits • For Yields other than variable “T” Yields, added land must be: • Within limits: • less than or equal to 50% of the existing cropland acreage • Each added optional unit divided by the existing basic unit • Acreage added divided by the existing unit, AND • less than or equal to 640 total cropland acres (irrespective of crop) being added to entire farm operation. • OR RO review requested & approved.

  28. 50% / 640 Limits • Cropland acres (CA) • Owned, leased, cash or share rented • Not crop-specific • Added CA divided by existing CA (<=50%) • Existing Cropland Acreage: • Includes CRP land previously in operation. • Does not include areas absent from the operation.

  29. 50% / 640 Limits • Example 1 • Existing cropland acres FSN in FSN in operation #1 300 300 (owned) #2 700 200 (500 acres leased) #3 150 150 (cash leased) Existing Cropland Acres = 650

  30. 50% / 640 Limits • Example 2 • “Previous” vs. “Existing” FSN#1 300 Cropland Acres - existing FSN#2 200 Cropland Acres - existing FSN#3 150 Cropland Acres - lost for 2001 FSN#4 310 Cropland Acres - new for 2001 Existing Cropland Acres = 500(310>50%)

  31. 50% / 640 Limits • Example 3 • Total Cropland Acres Added 2 existing units: 00101 400 acres 00102 600 acres 1000 acres 3 new units: 00103 200 acres / 1000 00104 300 acres / 1000 00105 180 acres / 1000 Each new unit’s cropland acreage divided by 1000 is less than 50% of the existing cropland acreage. 200+300+180= 680 However680>640 !

  32. 50% / 640 Limits • Example 3 50% limit • Total Cropland Acres Added 2 existing units: 00101 400 acres 00102 600 acres 1000 acres 3 new FSNs: #1 200 acres #2 300 acres #3 80 acres 200+300+80= 600 600<640 50% depends on the decided unit structure.

  33. 50% / 640 Limits • Example 3 50% limit • Total Cropland Acres Added 2 existing units: 00101 400 acres 00102 600 acres 1000 acres 3 new units 00103 200 acres / 1000 00104 300 acres / 1000 00105 80 acres / 1000 Each new unit’s Cropland acres divided by 1000 is less than 50% of 1000 acres. Eligible for Added Land “T” Yield.

  34. 50% / 640 Limits • Example 3 50% limit • Total Cropland Acres Added 2 existing units: 00101 400 acres 00102 600 acres 1000 acres All 3 FSNs in new FSN#1 200 acres unit 00103 FSN#2 320 acres FSN#3 80 acres 600 acres of added Cropland Acreage divided by 1000 is greater than 50%. Variable “T” Yield or request RO review.

  35. 50% / 640 Limits • Example 3 50% limit • Total Cropland Acres Added 2 existing units: 00101 400 acres 00102 600 acres 1000 acres New 00103 FSN #1&#2 520 acres New 00104 FSN #3 80 acres 00103 (520 is greater than 50% of 1000): Variable “T” Yield or request RMA RO review. 00104 (80 is less than 50% of 1000): Eligible for Added Land “T” Yield.

  36. 2001 Added Land/P/T/V • 50%/640 Limits • Apply to Land Added for current crop year, beginning with the 2000 databases. • Land added as a separate optional unit. • Land added to an existing unit. • New crop for unit IF LAND added in 2000 (restructured) or later.

  37. 2001 Added Land/P/T/V • 50%/640 Limits • Do NOT apply (unless on added land) to: • Added P/T/V (first time grown within county) • Practice, type, variety • New database for P/T/V • First time grown on unit.

  38. 2001 Added Land/P/T/V • Great American’s Responsibilities • Notify insureds of new Added Land Procedures by production reporting date. • Calculate APH for added land within 50%/640 acre limits. • Forward Underwriting Review Requests to RMA’s RO. • Verify Added Land “T” Yield eligibility • For APH review. • Before paying indemnity.

  39. 2001 Added Land/P/T/V RMA RO REVIEWS • The insured may request an RMA RO underwriting review if: • Added land exceeds 50% / 640 acre limits (review unit structure) • The insured wishes to have something other than the variable “T” Yield, Added Land “T” Yield or existing APH. • Productivity documentation is provided by the insured.

  40. 2001 Added Land/P/T/V RMA RO REVIEWS • Remember: • If the insured’s request is secured for a special underwriting review of added land, and RMA accepts the documentation and grants a higher “T” Yield value: • The insured will have no choice but to accept the RMA RO recommendation for the added land “T” Yield.

  41. 2001 Added Land/P/T/V RMA RO REVIEWS • Documentation Requirements • The productivity of the added land must be 85% of existing unit’s (or overall basic unit), based on one or more of the following: • FSA program yield (crop or reference crop) • APH from previous operator • Soil survey maps or other data • Natural Conservation Service projected yields by soil types

  42. 2001 Added Land/P/T/V RMA RO REVIEWS • Requests must include: • Statement on signed request • APH for current crop year • Cropland acreage (578 or other documentation) • Aerial photos or legal descriptions • Program yield (if available) • APH from previous operator (if available)

  43. 2001 Added Land/P/T/V RMA RO REVIEWS • Required Statement: “I hereby request an RMA RO underwriting review to determine the appropriate APH calculation method(s) to calculate my insurance guarantee for land added to my farming operation. Insured crops for which this request is being made are as follows: ________ ________ ________” “I understand that crop(s) not included on the request will use variable “T” Yields for added land unless acceptable acreage and production records are provided.”

  44. 2001 Added Land/P/T/V RMA RO REVIEWS • Added Land Forms Great American will supply agents with appropriate forms to request underwriting reviews for added land.

  45. 2001 Added Land/P/T/V RMA RO REVIEWS • Deadlines Apply for Requests • Production Reporting Date • Most scenarios • Acreage Reporting Date • If land is added after Production Reporting Date • The Following Year if too late for initial year.

  46. 2001 Added Land/P/T/V RMA RO REVIEWS • Deadlines Apply for Requests • Great American must provide information to RMA RO by the Acreage Reporting Date + 20 calendar days. (postmarked) • Received within 10 days thereafter. • RMA RO will reply within 20 days of receipt.

  47. 2001 Added Land/P/T/V RMA RO REVIEWS • Example of other crops in later years: • Added land in 2000 - Corn Planted • Same land in 2001 - Soybeans Planted • Eligibility for added land “T” Yield (or existing APH) based on initial year land was added. • If eligible, added land “T” Yield is the simple average of approved APH yields that existed in 2000. • INCLUDE ALL CROPS IN RMA RO REQUEST

  48. 2001 Added Land/P/T/V Yield Descriptors • L: Added Land “T” Yield • Only change previously referenced yields. • C: • Added P/T/V “T” Yield • Determined IRR Yield • S, E, N, & T: Variable “T” Yields

  49. 2001 Added Land/P/T/V Yield Indicators • New identifiers for separate added APHs • A Added Land “T” Yield used • B Variable “T” Yield because: • Not eligible for Added Land “T” • Separate Optional Unit • Not eligible for Existing Unit’s APH • Lower “T” Yield map area (all or part)

  50. 2001 Added Land/P/T/V Yield Indicators • New identifiers for separate added APHs • C Variable “T” Yield because: • Separate Basic Unit • Higher than Added Land “T” Yield • Separate Optional Unit

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