Department of Agriculture
Risk Management Agency Fact Sheet
2017 Crop Year
Davis Regional Office — Davis,CA
- Crop Insured
Cotton planted for harvest as cotton lint is insurable if:
- The crop is grown on insurable acreage;
- Premium rates are provided by the actuarial documents;
- You have a share; and
- It is not colored cotton lint planted in an established grass or legume, or interplanted with another spring crop, unless allowed by special provisions or by written agreement.
- Counties Available
Cotton is insurable in Colusa, Fresno, Glenn, Imperial, Kern, Kings, Madera, Merced, Riverside, San Bernardino, Tulare, and Yolo counties. Cotton may be insurable in other counties by written agreement if specific criteria are met. Contact a crop insurance agent for more details.
- Causes of Loss
You are protected against the following:
- Adverse weather;
- Failure of irrigation water supply;
- Insect damage and/or plant disease; unless you have insufficiently or improperly applied pest or disease control measures;
- Volcanic eruption; or
- Insurance Period
Coverage begins when the crop is planted and ends at the earliest occurrence of one of the following:
- Total destruction of the crop on a unit;
- Abandonment of the crop;
- Final adjustment of a loss on a unit; or
- January 31.
- Important Dates
Sales Closing/Cancellation...........February 28, 2017
Acreage Reporting…………….……..…July 15, 2017
Premium Billing..……................…...August 15, 2017
Termination………..…........…...…February 28, 2018
Approved Yield - Your actual production history (APH) yield, approved by the insurance company, and used to determine your production guarantee. The APH yield is based on up to 10 years of actual and/or assigned yields.
Harvest Price - A price determined in accordance with the Commodity Exchange Price Provisions and used to value production for revenue protection.
Projected Price - The price used to calculate your premium or indemnity. Only one price may be selected for all your cotton in a county.
Production Guarantee (per acre) - Number of pounds determined by multiplying your approved yield by the coverage level percentage you elect.
Revenue Protection - An insurance plan providing protection against loss of revenue due to production loss, price decline or increase, or a combination of the two.
Yield Protection - An insurance plan that provides protection against a loss of production only.
- Coverage Levels and Premium Subsidies
The guarantee is production measured in pounds of cotton. Insurance amounts are based on your production history. Your approved average yield is calculated from four to ten years of production records you give to your insurance agent. Coverage levels range from 50 to 85 percent of your approved yield. 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.
Item Percent Coverage Level
50 55 60 65 70 75 80 85 Premium Subsidy
67 64 64 59 59 55 48 38 Your Premium Share
33 36 36 41 41 45 52 62
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 $300 per crop per county, regardless of the acreage.
Cottonseed Pilot Endorsement - Offers yield coverage for cottonseed as an optional endorsement applicable to cotton policies at coverage levels other than CAT. It is designed to integrate seamlessly with the cotton lint program rules and procedures. The cottonseed guarantee is set as a ratio of the cotton lint guarantee on the policy.
- Late and Prevented Planting
These provisions provide reduced protection on acreage that is planted late, that cannot be planted by the final planting date, or within the late planting period.
- Loss Example
A claim can be filed whenever production falls short of the guarantee you select. The amount of a loss is determined by multiplying the production shortfall by the pre-selected price.
Assume an APH yield of 1,500 pounds per acre, 75 percent coverage level on 100 acres of cotton, selected price of $0.81 per pound, one basic unit, and 100 percent share.
1,500 Pounds per acre approved yield
0.75 Coverage level 1,125
Pounds per acre guarantee
500 Pounds per acre actually produced
625 Pounds per acre loss
$0.81 Projected Price
$506.25 indemnity per acre
Price used is for example only. Contact a crop insurance agent for current information.
- Where to Buy Crop Insurance
All multi-peril crop insurance, including CAT policies, are available from private insurance agents. A list of crop insurance agents is available at all USDA service centers and on the RMA website at Agent Locator.
This fact sheet gives only a general overview of the crop insurance program and is not a complete policy. For further information and an evaluation of your risk management needs, contact a crop insurance agent
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at 202-720-2600 (voice and TDD). To file a complaint of discrimination, complete, sign and mail a program discrimination complaint form, (available at any USDA office location or online at www.ascr.usda.gov), to: United States Department of Agriculture; Office of the Assistant Secretary for Civil Rights; 1400 Independence Ave., SW; Washington, DC 20250-9410. Or call toll free at (866) 632- 9992 (voice) to obtain additional information, the appropriate office or to request documents. Individuals who are deaf, hard of hearing, or have speech disabilities may contact USDA through the Federal Relay service at (800) 877-8339 or (800) 845-6136.