Sugar Beet
UPDATED November 30, 2022

For crop year 2023, the Sugar Beet Crop Provisions are being updated to reinstate stage guarantees and a Stage Removal Option. For Imperial County, California, the changes take effect in the 2024 crop year.

Prior to the 2019 crop year, stage guarantees were included in the Crop Provisions. A separate endorsement provided a Stage Removal Option. Stage guarantees were removed for the 2019 crop year, which took away the stage removal endorsement. Effective for the 2023 crop year (except Imperial County, CA where this change will be effective for the 2024 crop year), RMA is reinstating stage guarantees into the Crop Provisions. The Stage Removal Option will be a permanent and codified new section of the Crop Provisions.

If a producer does not elect the Stage Removal Option, stage guarantees will provide lower coverage for a reduced premium. If a producer elects the Stage Removal Option, their premium and coverage will be similar to crop years 2019-2022.

By default, the policy will include the stage guarantees at a reduced premium and reduced coverage. If an insured wants the Stage Removal Option, it must be elected by the applicable Sales Closing Date.

Pounds of raw sugar is calculated by multiplying the insured’s net paid tons by 2,000 pounds by the insured’s average percent of sugar (determined from processor test).

Example: The insured has 100 net paid tons with a percent sugar of 18 percent.
[(100 net tons × 2,000 pounds) × 0.180 insured’s percent of sugar] = 36,000 pounds of raw sugar

The insured’s existing APH must be converted from standardized tons to pounds of raw sugar. The conversion calculation for pounds of raw sugar is the insured’s actual production in standardized tons multiplied by 2,000 pounds multiplied by the county’s percent sugar factor located in the actuarial documents.

Example:  The insured has 100 standardized tons and the county’s percent sugar factor is 15 percent.
[(100 standardized tons * 2,000 pounds) * 0.150 county’s percent of sugar factor] = 30,000 pounds of raw sugar

The early harvest adjustment increases the current crop year’s early harvested yield by one percent per day for each day the sugar beets were harvested prior to the date the sugar beets would have reached full maturity, to the higher of the producer’s approved actual production history yield or the actual yield of the sugar beets harvested after full maturity from the unit. The factor is only applied when early harvest is requested by the processor. The purpose of the early harvest adjustment is to accommodate processor requests for early harvest of sugar beets and to provide a yield increase to insureds who harvest early before the crop has potentially reached its full yield capacity.

If the percentage of insured acreage in the unit, that is requested by the processor to be harvested early, exceeds the threshold specified in the actuarial documents, production to count from such acreage will be increased by one percent per day for each day the sugar beets were harvested prior to the date the sugar beets would have reached full maturity. However, the adjustment (cap) cannot exceed a yield greater than the higher of the insured’s approved APH yield or the actual yield of the production harvested after full maturity from the unit. The Approved Insurance Provider (AIP) may allow the producer to self-certify the number of acres harvested early. The date the sugar beets would have reached full maturity is considered to be 45 days prior to the calendar date for the end of the insurance period, unless otherwise specified in the actuarial documents. This adjustment will not be made if the sugar beets are damaged by an insurable Cause of Loss (COL) and leaving the crop in the field would reduce production.

If the early harvested production exceeds the adjustment (cap), the yield will be limited to the higher of the insured’s approved APH yield or the actual yield of the production harvested after full maturity from the unit.

Example: An insured early harvested 20 acres of a 100 acre unit, and the adjusted early harvest yield was 13,420 pounds of raw sugar. The insured has an approved APH yield of 11,886 pounds of raw sugar, and the remaining 80 acres of the 100 acre unit are harvested at full maturity and had a yield of 11,995 pounds of raw sugar. In this example, the early harvested production exceeds the adjustment (cap). The yield will be limited to the higher of approved APH yield or the actual yield of the production harvested after full maturity from the unit. In this case it would be equal to production harvested after full maturity, which would be 11,995 pounds of raw sugar because the actual yield of 11,995 pounds of raw sugar is greater than the approved yield of 11,886 pounds of raw sugar.

Yes, section (13)(f) of the Sugar Beet Crop Provisions (CP) states that only production lost due to harvest prior to full maturity qualifies for the early harvest adjustment. Production harvested after full maturity will not be adjusted using this factor.

Example: There is no insurable Cause of Loss (COL) before the full maturity date and the early harvest acreage exceeds the threshold for the unit.

• Production from those acres will have the early harvest adjustment applied (increasing production to count).

Then after the full maturity date, the unharvested beets experience an insurable COL.

• Production from those acres is documented accordingly.

Unit production to count will be the total of the early harvested adjusted production and later harvested actual production.

Per paragraph 16(3) of the 2023 Sugar Beet LASH (or successor), “The adjuster should consult with agricultural experts in the area to make this determination,” which must be made on a case-by-case basis.

RMA defines “Agricultural Expert” as person(s) who are employed by the Cooperative Extension System or the agricultural departments of universities, or other persons approved by FCIC, whose research or occupation is related to the specific crop or practice for which such expertise is sought.

The insured will need to obtain and provide the truckload records to their AIP. The amount of production harvested early will be determined from production records provided to the insured from the processor.

The application of the early harvest adjustment will not be considered a loss adjustment function. The insured will not be required to submit a notice of loss to the AIP prior to the beginning of early harvest, provided there is no damage to the crop. If there is damage to the acreage intended to be early harvested, Section 12 of the Sugar Beet Crop Provisions will be applicable. The loss adjuster should work with agricultural experts in the area to make the case-by-case determination as to the condition of the sugar beets in the field, whether the beets will be accepted for processing, and if they should be harvested early to avoid further damage.

Yes, a new item has been added in Exhibit 4, item 56 addressing early harvest.

“For sugar beets harvested prior to full maturity, increase the amount of harvested production by 1 percent per day for each day the sugar beets were harvested prior to the date the sugar beets would have reached full maturity. Refer to paragraph 16 for more information on adjustments made to production harvested prior to full maturity, including when this type of adjustment will not be made.”

The threshold percentage will be specified in the actuarial documents (not necessarily 10-percent). Any time the threshold may be exceeded, and the insured is intending to have the early harvest adjustment applied, the AIP will need to verify that the processor requested early harvest, the amount of acreage that was requested to be harvested early, and the amount of acreage harvested early. The AIP may allow the insured to self-certify the number of early harvested acres.

Assuming the actuarial documents specify 10-percent, the early harvest adjustment applies to production lost due to harvest prior to full maturity, as outlined in section (13)(f) of the Sugar Beet Crop Provisions (CP).

No, the early harvest adjustment would not be applied for two reasons: 1) the threshold was not met and 2) the policy states that the early harvest adjustment will not apply if the sugar beets are damaged by an insurable cause and leaving the crop in the field will reduce production.

Example: 100 acre unit; 5 acres harvested early (5 percent of the acreage in their unit). The insured did not early harvest enough acres to meet the 10 percent threshold to receive an early harvest adjustment. In addition, the early harvested acres were damaged and thus do not qualify for the early harvest adjustment.

For sugar beets damaged due to an insurable COL that are rejected by the processor, but are purchased by a salvage buyer at a reduced price, compute pounds of raw sugar using the following example:

• The insured harvested 100 tons of damaged sugar beets that were rejected by the processor.
• The salvage buyer paid $10.00 per ton for such damaged sugar beets.
• 100 tons × $10.00/ton = $1,000.00 gross dollar amount for the damaged beets.
• The established price in the actuarial documents for raw sugar is $.18* per pound.
• $1,000.00 ÷ $.18/lb. = 5,556 raw sugar equivalent.

*The established price referenced is for example purposes only; refer to the actuarial documents for current established price.

For sugar beets that are damaged due to an insurable COL to the extent the processor will not accept the beets and there are no salvage markets for the sugar beets, or acreage is bypassed due to an insurable COL, there will be no value for such beets and there will be no production to count.

No. The early harvest adjustment will only apply to production that is harvested early.

In non-loss situations where there is harvested and unharvested acreage in the unit, and more than 50 percent of a unit is harvested, the per acre production of the harvested acreage can be applied to the unharvested acreage. If under 50 percent of the acreage is unharvested than an appraisal is required to determine the APH production from the unharvested acreage. If it is a claim situation and the acres are bypassed, the bypassed acres would have a zero appraisal applied to those acres. The APH yield for the unit would reflect the zero yield.

The determination if there is an insurable Cause of Loss (COL) will be made by the loss adjuster on a case-by-case basis. The loss adjuster should work with agricultural experts in the area, if needed, to make the case-by-case determination as to the condition of the sugar beets in the field, whether the beets will be accepted for processing, and if they should be harvested early to avoid further damage.

The loss adjuster is not required to obtain input from local agricultural experts in order to make the determination if the sugar beets are damaged by an insurable COL and leaving the crop in the field will reduce production. If the loss adjuster is uncertain or is unable to make these determinations, they should consult local agricultural experts.

If there is a Cause of Loss (COL)/Notice of Loss (NOL)*, Yes.

The loss adjuster will:

• Determine if damage is due to an insurable COL and leaving the crop in the field will reduce production. In such cases, the early harvest adjustment is not applied, and normal loss adjustment procedures apply.
• Determine if damage is due to an insurable COL and leaving the crop in the field will not reduce production. In such cases, the early harvest adjustment will apply. The early harvest adjustment procedures as outlined in Section 13(f) of the Sugar Beet Crop Provisions apply, and adjustments will be made to production to count and APH.

The loss adjuster is bound by the early harvest period identified by the Crop Provisions. Per the Sugar Beet Crop Provisions, the date the sugar beets would have reached full maturity will be considered to be 45-days prior to the calendar date for the end of the insurance period, unless otherwise specified in the Special Provisions.

The factor is only applied when early harvest is requested by the processor. The purpose of the early harvest adjustment is to accommodate processor requests for early harvest of sugar beets and to provide a yield increase to insureds who harvest early before the crop has potentially reached its full yield capacity.

Yes. The loss adjuster is allowed to make the determination of whether or not leaving the crop unharvested will further reduce production without input from local agricultural experts. If the loss adjuster is uncertain or unable to make the determination, they should consult agricultural experts in the area.