Shellfish Pilot Crop Insurance Program

Shellfish is available in select counties in Alabama, California, Delaware, Florida, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia.

Coverage is only available in the counties listed in the actuarial documents. Written agreements are not available at this time. You may be eligible for a Farm Service Agency (FSA) program, such as Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP) or Non-insured Crop Disaster Assistance Program (NAP). Contact your local FSA office.

We focused on areas that met the following criteria:

• Predominantly container-grown production methods;
• Provided data that supported an actuarially sound program; and
• Perils covered under the program were of greatest concern.

For future crop years, we will consider expansion to additional areas and production methods.

We insure containerized oyster that are expected to be harvested in the current crop year for the fresh, half-shell market.

You must submit:

For the first year of coverage:

• At least the most recent four crop years of annual production reports for mature harvested oysters. Your production reports must include the following information:

  • The total seed purchased by seed size and seed source.

    • These numbers must be supported by your seed purchase receipts and, if applicable, producer nursery system records.

    • The seed purchase receipts must include the name of the private or commercial shellfish nursery or hatchery, for each year for the growing interval.

    • For example, if the most recent four years of harvested production records are provided for 2021-2024, you must report your seed information for at least the:

      • Total dollar sales of your mature oysters; and
      • Total sold production of the mature oysters.
        • These numbers must be supported by your seed purchase receipts and, if applicable, producer nursery system records.
        • The seed purchase receipts must include the name of the private or commercial shellfish nursery or hatchery, for each year for the growing interval.
        • For example, if the most recent four years of harvested production records are provided for 2021-2024, you must report your seed information for at least the:
          • 2020-2023 years for Growing Interval I;
          • 2019-2022 years for Growing Interval II; and
          • 2018-2021 years for Growing Interval III.

For subsequent crop years:

• All information detailed above for the most recent crop year. If you do not provide this information to your agent, you will receive and assigned yield.

Growing intervals are determined by the time between the calendar year  the seeds were placed in containers and the crop year you plan to harvest your mature oysters. The growing interval must be based on the majority of the seeds in your operation.

• Growing Interval I – You placed the majority of your seeds in containers one calendar year prior to the year you plan to harvest (e.g., for crop year 2025, seeds are placed in containers in 2024).
• Growing Interval II – You placed the majority of your seeds in containers two calendar years prior to the year you plan to harvest (e.g., for crop year 2025, seeds are placed in containers in 2023).
• Growing Interval III – You placed the majority of your seeds in containers three calendar years prior to the year you plan to harvest (e.g., for crop year 2025, seeds are placed in containers in 2022).

You must submit, for your basic unit and growing interval:

• A list of all your oyster growing locations in the county. For each location, you must provide the:
• Lease identification numbers (or other applicable identification numbers); and
• Global Positioning System (GPS) coordinates (latitude and longitude).
• The number and size of seed you placed in containers for the current crop year. The information you provide must be supported by your seed purchase receipts and, if applicable, producer nursery system records, as specified in the Special Provisions.

You must submit:

• A pre-acceptance worksheet (PAW). Your agent will be able to provide this form to you and may assist in the completion of this form. The PAW is the current assessment of your operation.
• Seed purchase receipts for the current crop year. The seed purchase receipts required will be determined by the growing interval you choose for your operation.

The seed purchase receipts you provide to your agent must include:

• Your name (operation name);
• Commodity (oysters);
• Date of purchase (MM/DD/YYYY);
• Number of seeds purchased by seed size; and
• The name of the private or commercial shellfish nursery or hatchery from which you purchased your seeds.

A producer nursery system is a system used by you to grow shellfish seed purchased at an uninsurable size to an insurable size. Producer nursery systems include upwellers, downwellers, raceways, field nurseries, and other systems recognized by the industry as acceptable. Your insurance provider may inspect your producer nursery system.

Producer nursery system records are records that support the seeds you place in and remove from your producer nursery system. Producer nursery system records include the following:

• The number of seed, by seed size, you removed from your producer nursery system and placed in containers for each year (corresponding to your production records of the harvested mature commodity based on the applicable growing interval); and
• The number of seed, by seed size, you removed from your producer nursery system and placed in containers for harvest in the current crop year.

In both scenarios, you must submit a revised PAW by the January 15 CRD.

No, you must submit lease identification numbers (or other applicable identification numbers) and GPS coordinates (latitude and longitude of the shellfish location) on the commodity report.

Purchasing seeds from universities meets this requirement.

If you expand into a country where the Shellfish crop insurance program is available, you may use your records from an adjacent county to establish coverage in the country where you expanded. Refer to the Special Provisions for county adjacency exceptions.

You must:

• Have a share in the oyster production;
• Submit an application that is accepted by the insurance provider;
• Grow your oysters for the half-shell market;
• Grow your oysters in containers;
• Place oyster seed that are at least 4mm in size in containers;
• Provide your seed purchase receipts from a private or commercial shellfish nursery or hatchery that:
  • Show the purchase of 4mm or larger seed; or
  • If you purchased seed at a size smaller than 4mm, you must provide producer nursery system records that contain the number of seed, by size, you removed from your producer nursery system and placed in containers:
    • For each year (corresponding to your production records of the harvested mature commodity based on the applicable growing interval); and 
    • For harvest in the current crop year.
• Have grown oysters or participated in managing an oyster operation for at least four crop years in the county where the oysters will be insured or an adjacent county;
• Grow your oysters using generally acceptable production methods; and
• Grow your oysters in an operation that, if inspected, is acceptable to your insurance provider.

No, oysters grown in nurseries, hatcheries, and producer nursery systems during the crop year are not insurable under this program. Insurable oysters must be grown in open water by containerized methods.

The approved yield for the basic unite is the lesser of:

• The capped yield, which is the average yield for the basic unit multiplied by 1.25; or

• The expected yield, which is the result of the number of seeds purchased from a private or commercial nursery or hatchery or the number of seed removed from a producer nursery system that are placed into containers for the crop year (as determined by the applicable growing interval) multiplied by the adjusted mean survival rate.

The adjusted mean survival rate is the simple average of the standardized survival rates for the APH base period for the applicable growing interval that is used to determine your expected yield for the current crop year.

The standardized survival rate is the observed survival rate for the applicable seed size for each crop year in the APH base period multiplied by the standardized survival factor for that seed size.

The observed survival rate is the percentage determined by dividing the harvested production for each crop year by the number of seed placed in containers in the calendar year corresponding to the growing interval (e.g., for Growing Interval II, divide the harvested production from the 2025 crop year by the number of seed placed in containers in 2023).

The standardized survival factor is a percentage established by the Federal Crop Insurance Corporation (FCIC) based on different seed sizes that are used to calculate your standardized survival rate. The seed size factors are shown below and contained in the Special Provisions.

Assume you select Growing Interval II.

You purchased 110,000 seeds during the 2023 crop year for expected harvest during the 2025 crop year. All seeds purchased in 2023 were 10mm, but all seeds purchased in 2019 through 2022 were 6mm. Using the Standardized Survival Factor Conversion Table (in prior question), the 6mm seed size purchased in 2019 through 2022 will apply a 107% standardized survival factor.

       (1) Adjusted Mean Survival Rate Calculation

Adjusted Mean Survival Rate                                                                                                                     69%

The annual observed survival rates are calculated using at least the most recent four calendar years of harvested records. The corresponding seed purchase record period is equal to the harvest record calendar year minus 2, because the average time between planting and harvest in Growing Interval II is approximately two years. For harvest years 2021-2024, the corresponding seed purchase record period 2019-2022.

Additional harvest and seed purchase records may be submitted, not to exceed a maximum of ten crop years. Once the observed survival rates are calculated, they are converted to standardized survival rates using the standardized survival factor. The adjusted mean survival rate is the simple average of standardized survival rates. In this example, the adjusted mean survival rate used to determine the 2025 expected yield is 69%.

(2)  Expected Yield

The expected yield is calculated by applying the adjusted mean survival rate to the seeds which are expected to be harvested during the 2025 crop year. For Growing Interval II, the 2023 seed purchased would be used to calculate the 2025 expected yield.

      (3) Harvested Average Yield Used in the Capped Yield Calculation

(4)  Approved Yield Steps:

Adjusted Mean Survival Rate = 0.69 (Average of Standardized Survival Rates)

Expected Yield = 75,900 of the commodity (0.69 Adjusted Mean Survival Rate × 110,000 Seeds (10mm) purchased in 2022)

Capped Yield = 93,945 of the commodity (75,156 Four-Year Harvested Average Yield × 1.25)

Approved Yield = 75,900 of the commodity (Lesser of 75,900 Expected Yield or 93,945 Capped Yield)

The Producer Price Option is the average price received by you for each year in the most recent four crop years. Your average will be determined by your total dollar sales of mature oysters divided by the total number of mature oysters sold, for each crop year. You can elect a Producer Price Option that is no greater than the maximum over established price provided for your county in the actuarial documents.

Example:

Maximum over established price published in the actuarial documents is $0.73.

The Producer Price Option will be $0.70.

No. If you place seeds in containers after the beginning of the crop year, they will be reported on a subsequent crop year's commodity report and be factored into the approved yield for a subsequent crop year depending on the growing interval.

Your coverage is based on the number of mature oysters you expect to harvest in the current crop year.

In Growing Interval I, it would have been expected that the oysters placed in container in 2022 were to be harvested in 2023. In 2024, all mature oysters that were harvested, regardless of the year they were placed in containers, will be considered in production to count. This will be reflected in the subsequent crop years' survival rates.

No, there are no maximum size requirements. However, you cannot place seeds smaller than 4mm in containers.

You are required to provide seed purchase receipts from a private or commercial shellfish nursery or hatchery.

Seeds purchased at a size smaller than 4mm may be insurable once they have been in containers at a minimum size of 4mm. You will need to provide seed purchase receipts from a private or commercial shellfish nursery or hatchery and producer nursery system records.

Yes. Beginning with the 2025 crop year, seeds purchased at a size smaller than 4mm and placed in producer nursery systems (such as upwellers) may be insurable once they reach the insurable size and are placed in containers.

We are researching how this program might be tailored to allow coverage for bottom culture; however, we need additional data to provide adequate and appropriate coverage for this practice.

If you place multiple seed sizes in containers, your seed purchase receipts must show that multiple sizes were purchased and the associated quantities. This information will be used to determine the approved yield.

There are four insurable causes of loss. You will only be paid for a production loss if there is a county loss trigger for any of the insurable causes of loss.

1. Named storms:
   1. Hurricanes (including adjacent county triggers); and
   2. Nor'easters
2. Excessive heat during a low tide event;
3. Freeze during a low tide event; or
4. Low salinity caused by excessive rainfall.

Hurricane triggers are determined by the U.S. Census county boundaries, which can exist over water. However, there could be instances where a hurricane damages your operation but doesn't result in a county loss trigger..

You must:

• Protect the commodity from further damage by providing sufficient care;
• Establish that damage to the insured commodity occurred during the insurance period;
• Provide notice to your approved insurance provider within 72 hours of your initial discovery of damage or loss (but not later than 15 days after the end of the insurance period). Such notices must be given without regard to the insured county meeting the county loss trigger; and
• Submit a claim not later than 60 days after the date the insurance period ends.

An indemnity will be payable when:

• Your county meets the county loss trigger determined in accordance with the SDP; and
• You have an insurable loss of production.

We will pay any indemnity you are owed for your loss under these Commodity Provisions within 30 days after the later of the date:

• FCIC releases the list of counties identified as meeting the county loss trigger and your insured county is contained on the list;
• We determine your production to count for the unit under these Commodity Provisions for the insured crop; or
• Any applicable determinations are made under section 14(f) of the Basic Provisions.

The presentation is available on RMA's website at www.rma.usda.gov.

You can determine the premium associated with this policy by using the Cost Estimator tool on RMA’s website: ewebapp.rma.usda.gov/apps/costestimator/. Select the APH-PC (plan 91) plan of insurance and then enter the details of your operation.

Shellfish is available for purchase from a crop insurance agent. You can find a crop insurance agent at the following link on the RMA website: https://www.rma.usda.gov/tools-reports/agent-locator.

To ensure eligibility for premium subsidy (including for oysters), you must complete the FSA form AD-1026 (Conservation Compliance). You must complete and sign this form on or before the RMA crop insurance premium billing date of August 15. Oyster-only growers should mark Box 5A, which will minimize any additional paperwork.

You should contact the applicable FSA County Office to discuss Form AD-1026. You can find your FSA office at the following link: offices.sc.egov.usda.gov/locator/app.