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Farm and Ranch Insurance in North Central United States

Actual Production History (APH)

About Nursery Coverage
The program provides coverage for plants that are container grown, field grown or both. The plants must be produced by a business enterprise that derives at least 50% of its gross income from the wholesale marketing of plants. Plants are insurable if they are listed on the Eligible Plant Listing and meet hardiness zone requirements. Eligible plants may include plants producing edible fruits and nuts, provided the plants are made available for sale (harvest of fruit or nut does not affect the insurability).

You may insure at a Catastrophic (CAT) or buy-up level for each insured practice (container or field-grown). CAT (50/55) provides coverage at 50% of the insurable plant inventory and 55% of either the lesser of the wholesale price or the price listed on the Plant Price Schedule. Buy-up levels vary from 50% to 75%, in 5% increments, of the insurable plant inventory at 100% of either the lesser of the wholesale price or the price listed on the Plant Price Schedule. Different coverage levels may be elected for each plant type. Additionally, the crop year deductible also varies with the chosen. For example, at the 65% level, the deductible is 35% (100 minus the coverage level).

Tailored Coverage
Unlike traditional crop insurance policies, the nursery policy allows the insured to customize coverage to meet specific risks.
Coverage Level by Plant Type* - Allows the insured to insure each plant type at a different buy-up coverage level according to his/her needs.
Peak Inventory Endorsement* - Provides coverage for additional values as a result of increases in inventory without paying a full year's premium (e.g., leading up to holidays, spring sales, etc.). Coverage under this endorsement is limited to 200% of the amount of insurance under the base policy. This endorsement allows the insured to pay a premium on a declared additional value only for a specified period. The limit on this endorsement is one per crop year, per basic unit; however, in the event of a loss, the insured may purchase an additional Peak Season Endorsement above and beyond the limit.
Rehabilitation Endorsement* - This endorsement for field grown plants covers rehabilitation costs, up to 7.5% of the plants' value, including pruning, setup labor and material costs.
Pilot Nursery Grower's Price Endorsement* (2006) - This endorsement allows growers with buy-up coverage to insure specific plants at prices higher than those shown on the Eligible Plant List/Plant Price Schedule. This endorsement is available in limited areas.

Covered Perils
Covered perils include adverse weather, fire, wildlife, earthquake/volcanic eruption, frost/freeze (if required protection is used), disease/insect (for which there is no effective control), failure of power/irrigation supply (caused by a covered peril) and delay in marketability if such a delay results in the reduction in the value of the plants (due to a covered peril that occurs within the insurance period).

Insurance Period
Insurance begins 30 days after the application is signed by the insured and ends at 11:59 p.m., May 31. Coverage may end earlier in the event that all plant material is removed from the field or nursery or when total indemnities due equal the amount of insurance. Applications submitted after May 1 will only apply to the next crop year.

Amount of Insurance
Coverage is based on the value reported, times the coverage level elected, times the price level (CAT only), times the share. The insured may increase the insurable value by revising the Plant Inventory Report. Any revision request must be made by May 1 of the current crop year. A 30-day acceptance period applies before the revised coverage attaches. An insured can make up to two revisions per basic unit, per year.

Insurance Units
A unit is the value of the insurable inventory that will be considered for a claim calculation. CAT coverage - A basic unit will consist of all the insurable plant types in which the insured has a share in the county for the practice (container grown or field grown). Buy-up coverage - A basic unit may be divided into additional basic units by plant type, therefore allowing the plant types to be adjusted separately in the event of a loss.

Loss Payment
Indemnities will be determined for any unit by subtracting Field Market Value B1 from Field Market Value A2, multiplying this result by the Under Report Factor3, subtracting the Occurrence Deductible4 from this result, times the price level (CAT only) and times the insured's share. Total indemnities will not exceed the amount of insurance including any peak amount of insurance during the coverage term of the peak inventory endorsement.

Availability
Coverage is available nationwide; however, plant insurability may vary by location. Plants are insurable if they are listed on the Eligible Plant Listing, and meet hardiness zone requirements.

Contact Us today at ( or visit the location nearest you, and let us find the right coverage for your farm and ranch needs. We can provide an free, exploratory quote that gives you a fast, accurate picture of rates and coverages.

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