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Crop Insurance Glossary

Do you want to know some of the most commonly used acronyms in crop insurance? ProAg provides a great list of acronyms and common terms defined in simple language to help you better understand the basics of crop insurance. Learn the most important crop insurance terms today by clicking on the links below, in alphabetical order.

Acronyms A to B

A&O – See Administrative & Operating Payments

Administrative & Operating Payments – A&O

Money the Federal government / the Risk Management Agency (RMA) pays approved insurance providers (AIPs) to cover the administrative and operating expenses of providing crop insurance.

Acreage

An area of land typically used for agricultural purposes.

Acreage Report – AR

A form the insured uses to report the number of acres planted, the percent share he/she has in those acres, and the plant dates. This report is required each year.

Acreage Reporting Date – ARD

The deadline by which an insured must report the number of acres planted, the percent of share he/she has in those acres and the date(s) the acreage was planted.

ACS – See Area Claims Supervisor

Actual Production

The amount the crop produced before any adjustment is subtracted. Adjustments include reasons such as moisture, quality, or uninsurable events. For example, a field of corn might yield or produce 110 bushels per acre.

Actual Production History – APH

Refers to either the historical data regarding how many acres were planted and how much a crop produced or the database containing this information. Numerous years of APH data is collected to determine averages and premiums. For additional information, see proag.com/products/mpci/individual-plans/

Actual Production History (APH) Database

The electronic record-keeping system for a farmer’s production history. This information is transmitted to USDA. The agent takes the number of acres and how much the crop produced from the farmer and enters it into the computer into this electronic database, similar to a spreadsheet.

Actual Revenue History – ARH

A plan of insurance which uses revenue history. It is only available for specific crops such as cherries and strawberries.

Actual Yield – AY

The amount a specific crop produces.

Actuarial Documents or Actuarials

These documents are published annually by RMA and list crops insured in a particular state and county.

Actuarial Information Browser – AIB

A tool found on the RMA website displaying crop insurance information for each commodity, crop, county and plan.

Added Land

Acreage added to a farming operation.

Adjusted Gross Revenue – AGR

No longer available, the Adjusted Gross Revenue (AGR) pilot provided protection against low revenue due to unavoidable natural disasters and market fluctuations occurring during the insurance year.

AF – See Annual Forage

AGR – See Adjusted Gross Revenue

Agricultural Marketing Service – AMS

An agency within the United States Department of Agriculture with programs in five commodity areas: cotton and tobacco, dairy, fruit and vegetable, livestock and seed, and poultry. These programs provide testing, standardization, grading and market news services for those commodities. In addition, they oversee marketing agreements and orders, administer research and promotion programs, and purchase commodities for federal food programs.

AIB – See Actuarial Information Browser

AIP – See Approved Insurance Provider

AMS – See Agricultural Marketing Service

Annual Crops – Category B

Crops planted every year.

Annual Forage – AF

A program providing coverage to land planted each year and used as feed and fodder for livestock. This pilot program utilizes the amount of rainfall within a specific area to calculate losses.

APH – See Actual Production History

API – See Apiculture / Beekeeping

Apiculture / Beekeeping – API

Insurance protecting a beekeeper’s primary income sources – honey, pollen collection, wax and breeding stock. The program uses rainfall indices to estimate local rainfall. For additional information see proag.com/apiculture/

Appraisal

Performed by an adjuster, this process is used to calculate the amount of crop remaining after damage.

Appraised Production

This is the total amount of the crop/commodity produced. It is calculated by taking counts in the field and following RMA procedures. This amount is used for claim calculation when the crop is not harvested, or other circumstances apply as outlined in the applicable handbooks. This calculation method is called an “appraisal”.

Approved Insurance Provider – AIP

A private crop insurance company that enters into the Standard Reinsurance Agreement with FCIC. ProAg is an approved insurance provider. The current list of approved insurance providers is located here: https://www3.rma.usda.gov/tools/agents/companies/indexCI.cfm.

AR – See Acreage Report

ARD – See Acreage Reporting Date

Area Claims Supervisor – ACS

A supervisor over loss adjusters. ProAg agents: check the ProAgPortal® intranet for the Claims Territory Map.

Area Revenue Protection – ARP

A plan of insurance where the average revenue for insureds in the county determines the loss. It is not based on an individual’s revenue history.

Area Revenue with Harvest Price Exclusion (ARP-HPE)

The ARP-HPE is similar to the ARP plan except the guarantee is not adjusted up by the Harvest Price. The guarantee is always based on the projected price, but losses are calculated using the harvest price. This plan is very similar to the RPE-HPE plan except it is based on the experience of the county, rather than the individual producer.
For additional information, see https://www.proag.com/mpci-area-plans/

Area Yield Protection – AYP

The AYP plan provides coverage based on the experience of the county, rather than an individual farm. A loss may occur if the final county yield falls below the insured’s expected (or trigger) yield. FCIC issues the final county yield in the calendar year following the insured crop year. Since this plan is based on a county yield and not a producer’s individual yield, it is possible for a producer to have a low yield on their farm and not receive any payment under this plan.
For additional information, see proag.com/mpci-area-plans/

ARH – See Actual Revenue History

ARP – See Area Revenue Protection

ARP-HPE – See Area Revenue with Harvest Price Exclusion

Assigned Yield – AY

A reduced yield is assigned to the producer if the insured does not provide the required information by the production reporting date (PRD). This reduced yield is used to calculate the guarantee, called an Assigned Yield. The yield is reduced to 75% of what was reported the year before.

AY – See Actual Yield or Assigned Yield

AYP – See Area Yield Protection

Basic Provisions – BP

In most cases, the basic provisions for a plan may be called the “policy” and may refer to numerous documents providing general rules and requirements. Examples include: Common Crop Insurance Policy Basic Provisions (BP), Livestock Policy, Whole-Farm Revenue Protection Pilot Policy, etc.

Basic Unit – BU

A unit is how land is divided or grouped for insurance coverage. Basic units include all insurable acreage of a crop in a county the insured has a share. Each share arrangement (different shareholders) is a different basic unit.

Basic Unit Discount – BUD

The discount associated with choosing basic units as a way to group land for insurance coverage.

Beginning Farmer and Rancher – BFR

An individual who has not actively operated and managed a farm or ranch in any county, in any state, with an insurable interest in a crop or livestock for more than five crop years. Premium discounts and production history benefits are available for those who qualify.

BFR – See Beginning Farmer and Rancher

BIA – See Bureau of Indian Affairs

BP – See Basic Provisions and Common Crop Insurance Policy Basic Provisions

BU – See Basic Unit

BUD – See Basic Unit Discount

Bureau of Indian Affairs – BIA

A Federal agency who works with American Indians, Indian tribes and Alaska Natives.

Acronyms C

Cancellation Date

The last day to request a cancellation of the policy for the next year.

Carryover Insured

An insured who had crop insurance the previous year, regardless of the specific insurance company he/she used.

CAT – See Catastrophic Risk Protection

Cat B – See Annual Crops

CAT C – See Perennial Crops

CAT D – See Dollar Plan Crops

CAT G – See Nursery

CAT LAE – See Catastrophic Loss Adjustment Expense

Catastrophic Loss Adjustment Expense – CAT LAE

The reimbursement paid by the federal government for eligible crop insurance contracts at the catastrophic (CAT) level.

Catastrophic Risk Protection – CAT

The lowest level of coverage available. It pays 55% of the price of the commodity established by RMA on crop losses in excess of 50%. The premium is subsidized by the Federal government, but an administrative fee must be paid for each crop insured in each county.

Category B – Annual Crops

Crops planted every year.

Category C – Perennial Crops

Crops not planted every year.

Cause of Loss – COL

The reason for damage to the crop.

CBOT – See Chicago Board of Trade

CC – See Continuous Cropping

CCD – See Contract Change Date

CCIP – See Common Crop Insurance Policy

CEPP – See Commodity Exchange Price Provisions

CES – See Cooperative Extension Service

CFR – See Code of Federal Regulations

CH – See Crop Hail

Chicago Board of Trade – CBOT

A commodity exchange is an organized market where both agricultural and financial contracts are traded. Initially, it was a way for producers to manage risks by removing price uncertainty. As time progressed, futures contracts were added.

CIH – See Crop Insurance Handbook

CIMS – See Comprehensive Information Management System

CIVR – See Crop Inventory Valuation Report

Claim

Required information sent to the agent within 72 hours (no longer than 15 days after the end of insurance) of discovering damage.

CLU – See Common Land Unit

CLU ID – See Common Land Unit ID

Code of Federal Regulations – CFR

General and permanent rules and regulations published by the executive departments and agencies of the federal government of the United States.

COI – See Conflict of Interest

COL – See Cause of Loss

Commodity

Crop and commodity have essentially the same meaning. In the early years, insurance was only available for actual crops like corn and soybeans, but now there is coverage for commodities such as cattle, swine, and clams. The term commodity broadens the area of coverage to include more than crops.

Commodity Exchange

An organized market trading in agricultural products, other raw materials and contracts based on them. These contracts can include spot prices, forwards, futures and options on futures. The Yield and Revenue Protection plans (as well as ARPI) use regional commodity exchanges to come up with the projected and harvest prices. These prices are determined in accordance with the Commodity Exchange Price Provisions (CEPP) based on commodity exchanges (for example, the Chicago Mercantile Exchange (CME) Group, Kansas City Board of Trade (KCBOT), Minneapolis Grain Exchange (MGE) and Portland Grain Exchange.)

Commodity Exchange Price Provisions – CEPP

This document contains the information necessary to derive the projected price and the harvest price for the insured crop. These provisions apply to the following types of coverage: Revenue Protection, Revenue Protection with Harvest Price Exclusion and Yield Protection.

Common Crop Insurance Policy – CCIP

Also referred to as the Basic Provisions, this document contains the rules and requirements for most common crops.

Common Crop Insurance Policy Basic Provisions – BP

Also referred to as the Basic Provisions, this document contains the rules and requirements for most common crops.

Common Land Unit – CLU

A field or shape consisting of farmed fields, pastures or homesteads. Crop insurance providers work specifically with cropland CLUs. A CLU is the smallest unit of land with a permanent, contiguous boundary, a common land core and land management, a common owner and a common producer. CLU can refer to the field as well as the number associated with it. See Common Land Unit ID.

Common Land Unit ID – CLU ID

A 36-character number identifying a specific shape or field. CLU IDs are unique to each individual field across the country, whereas the same Farm Serial Number (FSN) may exist from county to county and/or state to state.

Compliance Department

A group of people who review data to verify that approved insurance providers follow the rules and regulations associated with the SRA (the contract between the crop insurance company and the Federal government).

Comprehensive Information Management System – CIMS

A system of computer programs and databases used to collect producer, program and land information collected by FSA, RMA and/or the Approved Insurance Providers. This system standardizes reported data; for example, acres contained within the CLU, so it can be used throughout the industry.

Conflict of Interest – COI

A conflict arises when a person is in a position to derive personal benefit from actions or decisions made in his/her official capacity. This term is also used to refer to the required annual form which reports any potential conflicts.

Conservation Reserve Program – CRP

The land conservation program administered by the Farm Service Agency (FSA). farmers agree to remove land from agricultural production in exchange for a yearly rental payment. They also agree to plant species that improve environmental health and quality for 10-15 years.

Continuous (Policy / Coverage)

Each year crop insurance policies “roll” from one year to the next so an insured’s coverage renews automatically.

Continuous Cropping – CC

Growing a single crop on the same land year after year. See crop rotation.

Contract Change Date – CCD

The deadline for any changes made to the insurance provisions from one year to the next. Information is posted for viewing on RMA’s website.

Contract Price Addendum – CPA

Available for organic and transitional-to-organic practices only. The CPA allows the insured the choice to elect and use his/her personal contract price as his/her price election or to use the published RMA price, so the coverage is closer to the actual value when there is a higher contract price.

Cooperative Extension Service – CES

An agency within the U.S. Department of Agriculture which promotes understanding and use of cooperative-based businesses to market and distribute agricultural products.

Cover Crop

When land cannot be used to plant an insured crop, another crop can be grown to add nutrients to the soil and control erosion and weeds.

Coverage Level

A crop may be insured at a percentage of the producer’s yield, or a percentage of the amount of coverage. The percentage the insured chooses is called the coverage level.

CP – See Crop Provisions

CPA – See Contract Price Addendum

Crop Hail – CH

Insurance covering hail damage which is most likely to totally destroy a part of the crop and leave the rest undamaged. A crop hail policy may also provide coverage for perils other than hail such as fire and lightning, transit, reimbursement of replanting costs, carry over coverage, vandalism and stored grain coverage. For additional information, see proag.com/crop-hail/

Crop Insurance Handbook – CIH

This is one of most widely used handbooks in the industry for agents and approved insurance provider’s (AIP) underwriting staff. It contains valuable procedures and underwriting standards as well as instructions for Federal Crop Insurance policies.

Crop Inventory Valuation Report – CIVR

A detailed plant inventory list establishing the value of insurable nursery plant inventory by plant type. These values are then reported by plant type on the Plant Inventory Value Report.

Crop Provisions – CP

Written and provided by RMA, these documents contain crop specific information such as the unit of measure, insurability requirements, cancellation and termination dates and more.

Crop Rotation

Growing different types of crops on the same land each year so the nutrients in the soil are changed.

Crop Year – CY

The time period between one harvest to the next harvest, or a growing season. The number referred to is the calendar year the crop is harvested. For example, wheat planted and harvested in 2017 would be referred to as the 2017 crop year. Orange trees planted in a prior year but not harvested until 2019 would be referred to as the 2019 crop year.

CRP – See Conservation Reserve Program

CY – See Crop Year

Acronyms D to G

Dairy-RP – See Dairy Revenue Protection

Dairy Revenue Protection – Dairy-RP or DRP

An area risk management tool protecting dairy farmers against quarterly revenue losses caused by declines in the value of milk or milk components, or unexpected declines in milk production that uses the state-level milk prices. For additional information see proag.com/dairyrevenue

Discovery Period

During this period of time, commodity prices are tracked on RMA’s website. There are two discovery periods: projected price, released near sales closing and harvest price, released near harvest and the end of the insurance period. After the discovery period, the price is published in the actuarial documents.

Discovery Price

Prices tracked during the discovery period before publishing in the actuarial documents. Discovery prices are available using RMA’s Price Discovery Reporting tool located in the Information Browser link: http://www.rma.usda.gov/tools/

DO – See Dollar Amount of Insurance

Document and Supplemental Standards Handbook – DSSH

This document provides the form standards insurance providers use to create branded forms such as an application and acreage report.

Dollar Amount of Insurance – DO

A per acre dollar amount of insurance determined separately for each commodity type, which results in the premium amount.

Dollar Plan Crops – Category D

Crops insured by a plan providing protection against declining value due to damage causing a yield shortfall. The amount of insurance is based on the cost of growing a crop in a specific area. A loss occurs when the annual crop value is less than the amount of insurance. The maximum dollar amount of insurance is stated in the actuarial document.

Double Crop

When two or more crops are planted in the same field within in the same growing season.

DRP – See Dairy Revenue Protection (DRP)

DSSH – See Document and Supplemental Standards Handbook

ECY – see Expected County Yields

EIN – See Employer Identification Number

Election

The options an insured selects when setting up his/her crop insurance policy.

ELS – See Extra Long Staple Cotton

Employer Identification Number – EIN

A unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. On an insurance application, this number takes the place of the social security number (SSN) and is also used for tax purposes for an entity. Any entity other than an individual must provide this number.

End of Insurance Period – EOIP

Date when the crop insurance coverage ceases for the year. It can be the date the crop is destroyed or harvested, the final loss adjustment, abandonment, or the calendar date contained in the Crop Provisions or Special Provisions for the end of the insurance period, or as otherwise specified in the Crop Provisions.

Endorsements

Additional options which can be added to a crop insurance policy, providing additional coverage specific to the crop.

Enterprise Unit – EU

Units refer to a location of land, specifically, how an insured chooses to divide or group his/his land for insurance coverage. The enterprise unit structure allows an insured to group all insurable acreage of the same crop, in the county he/she has a share.

Enterprise Unit by Practice – EP

When insurance coverage is elected, the insured chooses a unit structure which details how his/her land is grouped. If both non-irrigated (NI) and irrigated (IRR) practices exist on the policy for the crop in which enterprise unit structure was elected.

Entity

An organization with a legal identity separate from those of its members, for example, a corporation.

EOIP – See End of Insurance Period

EP – See Enterprise Unit by Practice

Estimated Production

This is an estimated amount of yield or how much a crop produces, recorded at the time a claim is worked for each land grouping (or unit) that is not damaged.

EU – See Enterprise Unit

Expected County Yields – ECY

Expected county yields are established by RMA using years of historical NASS data. They are adjusted for trends caused by new technology, improved farming practices, and other factors affecting yield.

Extra Long Staple Cotton – ELS

Cotton has both short fibers (or “staple”) and long fibers. Fabrics made of long-staple cottons fray less, pill less, wrinkle less, and even fade less than fabrics made with short-staple cotton.

FAC – See Following Another Crop

FAD – See Final Agency Determination

Farm Number – FN – See Farm Serial Number

Farm Serial Number – FSN

Farm Serial Number is a number assigned to a group of fields. It can be further broken down into tracts, then individual field numbers.

Farm Service Agency – FSA

A United States Department of Agriculture agency formed to support farmers by offering loans, payments, and disaster relief programs. The Farm Service Agency (FSA) administers the conservation reserve program and assigns farm numbers (FSA FN) to farms for certain farm programs such as farm loan programs or disaster assistance programs.

FCIC – See Federal Crop Insurance Corporation

Federal Crop Insurance Corporation – FCIC

Located within the USDA, the FCIC enters into a contract called the standard reinsurance agreement (SRA) with insurance companies, allowing private companies to provide crop insurance.

Final Agency Determination – FAD

A system which responds to requests for interpretation of any portion of the Federal Crop Insurance Act or any regulation made under the Federal Crop Insurance Act within 90 days.

Final Planting Date – FPD

The last day an insured can plant his/her crop.

FN – See Farm Number

Following Another Crop – FAC

Also known as a double crop, when two or more crops are planted in the same field within in the same growing season.

FPD – See Final Planting Date

FSA – See Farm Service Agency

FSN – See Farm Serial Number

Future Price

A contract which sets the delivery price of a commodity in the future.

General Standards Handbook – GSH

This handbook contains general administrative procedures. It includes general information such as definitions, entity types, and signature requirements. Approved insurance providers refer to the GSH along with the Crop Insurance Handbook for procedures and rules.

Geographical Information System – GIS

A system designed to capture, store, analyze and manage all types of geographical data.

GFP – See Good Farming Practice

GIS – See Geographical Information System

Good Farming Practice – GFP

The production methods utilized to produce the insured crop which allows it to make normal progress toward maturity and produce at least the yield used to determine the production guarantee or amount of insurance, including any adjustments for late-planted acreage.

GPA – See Guarantee Per Acre

Growing Season Inspection – GSI

An inspection completed before harvest as part of quality assurance.

GSH – See General Standards Handbook

GSI – See Growing Season Inspection

Guarantee

The amount of production (how much the crop yields) or revenue (income) a producer is “promised” to receive under his policy. If a farmer doesn’t produce this “guaranteed amount” he/she receives a claim payment for the difference.

Guarantee Per Acre – GPA

The amount per acre an insured is guaranteed in the event of damage to his/her crop.

Acronyms H to L

Harvest Price

The commodity or crop price released closer to harvest time.

HELC – See Highly Erodible Land Conservation

High Risk Alternate Coverage Endorsement – HR-ACE

High-risk (HR) land is a classification of land determined by RMA. Insurability and rates vary according to the risk / likelihood of producing the crop.

Highly Erodible Land Conservation – HELC

Provisions aimed at reducing soil loss on erosion-prone land and protecting wetlands. Producers or entities who participate in most programs administered by the Farm Service Agency (FSA), the Natural Resources Conservation Service (NRCS), and the Risk Management Agency (RMA) are required to comply with these provisions.

HR-ACE – See High Risk Alternate Coverage Endorsement

Indemnify

To insure or protect. A crop insurance policy indemnifies or protects the insured from losing revenue or yield on a crop, based on the level of coverage he/she chose.

Indemnity

This is the amount the farmer is paid if he/she has a loss, or damage, resulting in an eligible insurance claim.

Indemnity Payment

The amount paid to the insured for crop damage or loss.

Individual Tax Identification Number – ITIN

A number issued by the Internal Revenue Service for federal tax reporting for those not eligible for a Social Security Number (SSN).

Ineligible Tracking System – ITS

A system used to track producers who cannot participate in crop insurance programs. A producer is placed on the ITS list if they have unpaid debt.

Insurance Per Acre – IPA

Premium is often set in dollar per acre.

Insured

The farmer, producer or grower who purchases a crop insurance policy. The insured is also the name that the insurance is under. It could be a person, a married couple, or an entity such as a corporation or a partnership.

IPA – See Insurance Per Acre

IRR – See Irrigated

Irrigated – IRR

Crops watered using pipes, sprinklers or ditches.

ITIN – See Individual Tax Identification Number

ITS – See Ineligible Tracking System

Kansas City Board of Trade – KCBOT

A commodity futures and options exchange located in Kansas City.

KCBOT – See Kansas City Board of Trade

LAF – See Loss Adjustment Factor

LAM – See Loss Adjustment Manual

LASH – See Loss Adjustment Standards Handbook

Late Planting Period – LPP

The late planting period begins after the final plant date, and it lasts for 25 days. During this time, the guarantee (or amount insured) is reduced since the yield may be reduced due to the later plant date.

Late Reporting Reduction – LRR

The contract between insurance companies and the government states data is submitted by specific dates. If this data is transmitted after a deadline, a late reported reduction (LRR) can be applied, meaning the approved insurance provider (AIP) is penalized.

Level of Coverage

When selecting the level of coverage, the producer is choosing a percentage of the Expected Ending Value price to create a Coverage Price.

LGM – See Livestock Gross Margin

Livestock Gross Margin – LGM

LGM provides protection against the loss of gross or finishing margins caused by a decline in animal prices or an increase in feed prices. Dairy cattle are covered under this insurance.  For additional information, see proag.com/livestock

Livestock Risk Protection – LRP

LRP protects an insured’s investment should prices drop before the livestock get to market while preserving the upside potential. Livestock covered under this insurance are: fed cattle, feeder cattle, swine and lamb. For additional information, see proag.com/livestock

LMP – See Local Market Price

Local Market Price – LMP

The current price that a commodity can be purchased or sold.

Loss

The payment the insured receives if the crop produced is less than what was guaranteed by the crop insurance policy.

Loss Adjustment

The steps a loss adjuster takes when a loss or damage is reported by the insured. During a claim, an adjuster gathers facts, follows procedures, applies factors and formulas to calculate the indemnity or amount the farmer receives.

Loss Adjustment Factor – LAF

A factor used when the dollar claim (determined) liability is greater than the dollar acreage report liability. The LAF must be applied to the replant payment, preventive plant payment or indemnity payment calculation to hold the liability to the liability initially reported. Exhibit 14 of the Loss Adjustment Manual (LAM) provides examples.

Loss Adjustment Manual – LAM

This document provides procedures relating to claims / loss adjustment for determining the amount of damage to a crop. This handbook is also widely used by both loss adjustment and underwriting personnel.

Loss Adjustment Standards Handbook – LASH

This crop specific document provides procedures relating to claims / loss adjustment for determining the amount of damage to a crop.

LPP – See Late Planting Period

LRP – See Livestock Risk Protection

LRR – See Late Reporting Reduction

Acronyms M to O

Margin Protection – MP

Margin Protection provides coverage against an unexpected decrease in operating margin (revenue less input costs). Margin Protection is area-based, so it uses county-level estimates of average revenue and input costs to establish the amount of coverage and payments rather than a specific operation’s data. For additional information, see proag.com/marginprotection

Master Yield – MY

If an insured, due to the way his land is managed, does not have four years of production or yield history in a ten-year period, this optional yield calculation method can be chosen. It is for select crops, practice and locations by crop/state.

MCEU – See Multi-County Enterprise Units

MGE – See Minneapolis Grain Exchange

Minneapolis Grain Exchange – MGE

MGE or MGEX has been the principal market for Hard Red Spring Wheat (HRSW) since 1881, offering futures and options contracts.

MP – See Margin Protection

MPCI – See Multiple Peril Crop Insurance

Multi-County Enterprise Units – MCEU

A unit is how land is divided or grouped for insurance coverage. Multi-county enterprise units (MCEU) combine the acreage in two contiguous counties into one enterprise unit (EU). MCEU can be elected by crop, or by irrigated/non-irrigated practices in two counties.

Multiple Peril Crop Insurance – MPCI

Federal Crop Insurance, commonly referred to as Multi-Peril Crop Insurance (MPCI) throughout the industry.

MY – See Master Yield

NASS – See National Agricultural Statistics Service

National Agricultural Statistics Service – NASS

The statistical branch of the U.S. Department of Agriculture which provides timely, accurate, and useful statistics.

National Crop Insurance Service – NCIS

A liaison with the government on crop insurance issues, this is a non-profit trade association representing all authorized crop insurance providers. NCIS creates handbooks, forms, training materials, and conducts research for new and existing products.

NCIS – See National Crop Insurance Service

NDS – See Non-Disclosure Statement

New Producer – NP

A person who has not been actively engaged in farming a crop in a county for more than two years. If no production records are available due to not planting the insured crop, the applicable T-Yield (100%) is the approved APH yield identified with an ‘I” yield descriptor.
NOTE: If the new producer has produced the insured crop for one or two APH crop years, production report must be provided for such crop years to qualify for use of the applicable T-Yields (100%).

NFAC – See Not Following Another Crop

NI – See Non-Irrigated

NIBR – See Not Inter-Tilled Between Rows

NIRR – See Non-Irrigated

No Practice Specified – NPS

When a practice (for example, irrigated, non-irrigated, or organic) is not listed.

NOL – See Notice of Loss

Non-Disclosure Statement – NDS

Everyone who is involved in the marketing and service of the Federal Crop Insurance program has access to protected Personally Identifiable Information (PII). A statement must be signed each year acknowledging this and agreeing to not disclose this information.

Non-Irrigated – NI or NIRR

Crops which are not watered using pipes, sprinklers or ditches.

Non-Loss Unit

This is a unit/area of ground/location that did not sustain a loss.

Not Following Another Crop – NFAC

When a crop is planted as a first crop (typically soybeans), not behind another crop, for example, wheat or barley.

Not Inter-Tilled Between Rows – NIBR

The practice of NOT planting a fall crop (typically soybeans) between the rows of a spring crop, for example, wheat or barley to gain two crops in one year.

Notice of Loss – NOL

Notification of damage to a crop by the insured to the insurance company.

NP – See New Producer

NPS – See No Practice Specified

NRCS – See USDA Natural Resources Conservation Service

Nursery – Category G

Crop insurance covering young plants and trees, grown in a field or a container, for sale or for planting elsewhere. A nursery that receives more than 60 percent of its gross income of plant sales from retail plant sales is not eligible for coverage under the nursery crop provisions.

Optional Unit – OU

Unit refers to a specific field or group of fields on a farm. Optional unit structure allows land to be divided based on location, type of crop or method of farming practice. This could vary by crop and region. See also Basic Unit.

OU – See Optional Unit

Acronyms P

P/T – See Practice/Type

P/T/TMA – See Practice/Type/T-Map Area

PAIR – See Pre-Acceptance Inspection Report

Pasture, Rangeland, Forage – PRF

An insurance program designed to provide insurance coverage on pasture, rangeland or forage acres. PRF is an area-based plan of insurance using a rainfall index within a grid or specific area of land to determine losses and trigger indemnities. For additional information, see proag.com/prf

PAW – See Producer’s Pre-Acceptance Worksheet

Payment Due Date

Last day to pay the premium without being charged interest.

PEAK – See Peak Inventory Value Report

Peak Inventory Value Report – PEAK

A report that increases the value of insurable plants over the value reported on the PIVR, declares the coverage commencement and coverage termination dates, and the other requirements of section 6 of the Nursery Crop Insurance Provisions. When needed, an approved insurance provider (AIP) will request documentation to support a peak inventory value report

Perennial Crops – Category C

Crops not planted every year.

Peril

The specific natural hazards which can cause damage to a crop or commodity, for example, flood.

Personal Transitional Yield – PTY

Transitional Yield (T-Yield) is calculated using the insured’s actual yields and, if applicable, assigned yields. The PTY is used instead of the applicable T-Yield.

PIVR – See Plant Inventory Value Report

Plan of Insurance

A specific type of insurance coverage that is offered, including all of the rules associated with it.

Plant Inventory Value Report – PIVR

A report nurseries use to declare the value of insurable plants.

PLSS – See Public Land Survey System

POA – See Power of Attorney

Policy

This term can be used in a variety of ways. A policy is the contract between the producer and the insurance company. Sometimes the document containing all the rules is referred to as the policy or policy provisions. Sometimes the farmer’s individual policy number is also referred to as the policy.

Power of Attorney – POA

A legal document which grants legal authority to one person to act on their behalf or sign for another person. Insureds may grant a third-party the authority to sign crop insurance documents on their behalf if a legally executed POA is provided. For example, in crop insurance, it is important a POA is in place when a person signs the acreage report on behalf of his/her spouse.

PP – See Prevented Planting

Practice

A method of production an insured uses on his crop. Some examples of practices are: irrigated, non-irrigated, and organic.

Practice/Type – P/T See Individual Definitions: Practice, Type

Practice/Type/T-Map Area – P/T/TMA See Individual Definitions: Practice, Type

PRD – See Production Reporting Date

Pre-Acceptance Inspection Report – PAIR

A form used by an adjuster inspecting perennials before insurance attaches.

Precision Ag

Farming using technologies such as global positioning system (GPS) and geographic information systems (GIS) management tools for the purpose of improving crop management. It may include the combination of variable seeding and fertilizer rates, minimizing seed and chemical overlaps, and the use of GPS/GIS yielding mapping technology.

Premium

The dollar amount paid to purchase crop insurance. This amount is often subsidized by the government meaning the government pays part of the bill and the insured pays part of the bill.

Prevented Planting – PP

This occurs when an insured is unable to plant the crop by the final plant date (FPD).

PRF – See Pasture, Rangeland, Forage

Producer’s Pre-Acceptance Worksheet – PAW

A questionnaire answered by an insured while filling out a perennial application. Specific answers may trigger a pre-acceptance inspection report (PAIR).

Production

Also referred to as “Actual Production”, this is the actual amount of the crop produced before any adjustment is subtracted due to moisture, quality or uninsurable events.

Production Reporting Date – PRD

Typically, 45 days after the sales closing date (SCD), this is the date the insured must report his/her actual production/amount a crop produced to the agent.

Production to Count – PTC

This is the net amount of crop produced after all of the loss adjustment calculations, such as reductions due to moisture or quality are applied. The resulting production to count is the amount of production used to calculate the loss payment / indemnity.

Production Worksheet – PW

A form an adjuster uses during a claim including: production counts, cause of loss and verification of acres.

Projected Price

The estimated price the crop will be sold for in the future. This price is available at the time the insured purchases insurance and it is used to determine coverage for revenue protection policies.

PTC – See Production to Count

PTY – See Personal Transitional Yield

Public Land Survey System – PLSS

This system is used in 30 southern and western states as a means to divide land into a series of rectangles, which is commonly referred to as Section, Township and Range. It can also include but is not limited to, areas such as Texas Surveys, Spanish Land Grants and Railroad Blocks. There are a few more that are specific to a state and/or a region.

PW – See Production Worksheet

Acronyms Q to S

QAF – See Quality Adjustment Factor

Quality Adjustment Factor – QAF

Quality adjustment factor is part of the loss adjustment process when quality issues are present due to plant pathogens, such as vomitoxin or aflatoxin. This factor reduces the production to count, meaning the amount of crop used to calculate the claim.

Rainfall Index – RI

A plan of insurance designed to insure against a decline in rainfall in a designated area called a grid. The coverage is based on the rainfall within a specific grid rather than specific farm locations. Pasture Rangeland, Forage (PRF), Annual Forage (AF) and Apiculture (Beekeeping) are covered using this type of insurance.

RAN – See RMA Assigned Number

Regional Office Exception – ROE

A website where approved insurance providers (AIPs) submit and retrieve documents for actuarial change and determined yield requests. It also houses reports for hybrid seed yields, misreported sub county records and scorecard reports.

Reinsurance

An insurance policy obtained by insurance providers, assisting in the management of risks associated with the policies they provide. RMA also provides reinsurance to the Approved Insurance Providers (AIPs) assisting in managing risk.

Reinsurance Year – RY

The reinsurance year begins July 1 of the preceding calendar year and ends June 30 of the current calendar year. For example, the 2019 Reinsurance year began July 1, 2018 and ends June 30, 2019 with the 2019 reinsurance year beginning July 1, 2018.

Replant

When an insured must plant the crop again on the same acreage for harvest in the same year.

Resource Land Unit – RLU

Similar to a CLU, it is an RMA created number used to identify a specific field location. Crop insurance companies or agents can request an RLU for areas where a CLU does not exist, or where the existing CLU is not representative of the current farmed area.

Revenue

This is the dollar value guaranteed to the insured. If the price of the crop/commodity declines causing the insured to receive less than the amount of money he/she was promised (dollar guarantee), a claim is paid regardless of the amount of the crop / commodity he/she produced.

Revenue Protection – RP

An insurance plan protecting or guaranteeing the price the insured receives for the insured commodity/crop. For additional information, see proag.com/mpci-individual-plans

Revenue Protection with Harvest Price Exclusion – RPHPE or RP-HPE

This plan is similar to revenue protection, except the amount of protection is based on the projected price only. (If the harvest price is greater than the projected price, insurance protection is not increased). For additional information, see proag.com/mpci-individual-plans

Revenue to Count

This is the net amount of revenue produced after all of the loss adjustment calculations, such as reductions due to moisture or quality are applied. The resulting revenue to count is the amount of revenue used to calculate the loss payment / indemnity.

RI – See Rainfall Index

Risk Management Agency – RMA

A division of the United States Department of Agriculture (USDA) that manages the Federal Crop Insurance Corporation (FCIC) to provide crop insurance products.

RLU – See Resource Land Unit

RMA – See Risk Management Agency

RMA Assigned Number – RAN

If an applicant is ineligible to obtain a social security number (SSN) or an employer identification number (EIN), a RAN may be requested from RMA. A RAN is issued by RMA to those individuals who demonstrate that they are entitled to Federal benefits in accordance with the Personal Responsibility and Work Opportunity Act of 1996 (PRWORA).

RMA Insurance Services Regional Office – RO

A regional office of the Risk Management Association.

RO – See RMA Insurance Services Regional Office

ROE – See Regional Office Exception

RP – See Revenue Protection

RPHPE or RP-HPE – See Revenue Protection with Harvest Price Exclusion

RY – See Reinsurance Year

SA or SA-T – See Simple Average T-Yield

Sales Closing Date – SCD

The date an insured must submit his/her application.

SBI – See Substantial Beneficial Interest

SCD – See Sales Closing Date

Schedule of Insurance – SOI

Once coverage is complete, this document is generated summarizing insurance coverage.

SCO – See Supplemental Coverage Option

SCP – See Simplified Claims Process

Section

A piece of land which is one-square-mile and contains 640 acres.

SF – See Summer Fallow

Shapefiles

Shapefiles can be imported and exported from different GIS programs and contain field information. A file bundle (.shp, .dbf, .shx) is necessary to capture all the data elements (the polygon, the records, the position of the field).

Share

The amount of interest a farmer has in the insured commodity is called the share. For example, in an equal partnership, generally, each partner has a 50% share. Another example would be a landlord/tenant situation where the landowner acts as the landlord with a 25% share and the tenant is the farmer who actually farms the crop and has a 75% share.

Simple Average T-Yield – SA or SA-T

Yields calculated from an individual insured’s yield data by determining a simple average of all approved APH yields and adjusted yields if yield exclusion, trend adjustment or cups apply to an APH database by Practice/Type/T-Yield Map Area for existing units’ APH databases that contain at least one actual or assigned yield for the crop for the insured’s farming operation for the county/crop policy.

Simplified Claims Process – SCP

A faster, streamlined process for adjusting specific claims. Claims are completed electronically and an adjuster is not required to make a trip to the field.

Social Security Number – SSN

A nine-digit number issued by the government to U.S. citizens, permanent residents, and temporary (working) residents.

SOI – See Schedule of Insurance

SP or SPOI – See Special Provisions of Insurance

Special Provisions of Insurance – SP or SPOI

Documents provided by RMA containing specific rules for each crop down to the county level and covering items such as: dates, late planting and rotation requirements.

SRA – See Standard Reinsurance Agreement

SSN – See Social Security Number

Stacked Income Protection Plan – STAX

This plan of insurance provides protection against county-wide revenue losses for upland cotton. It can be purchased as a stand-alone policy or to supplement the federal crop insurance / MPCI cotton policy.

Standard Reinsurance Agreement – SRA

The contract between the insurance provider and the Federal Crop Insurance Corporation (FCIC) (within USDA). This agreement allows the insurance provider to write crop insurance. All crop insurance providers work under the same contract/agreement.

STAX – See Stacked Income Protection Plan

Substantial Beneficial Interest – SBI

An individual or entity who has at least a 10% legal interest in the named insured (the entity on the application). For example, Jones Farms is a 50/50 partnership made up of a father and a son. Since each person has more than a 10% share in the partnership, they would both be considered SBIs and would need to be listed on the crop insurance application.

Summer Fallow – SF

Land kept out of production for the purpose of allowing time for the ground to rest and for crop residues to break down and return nutrients to the soil for the subsequent crop.

Supplemental Coverage Option – SCO

An endorsement providing additional coverage for a portion of an underlying crop insurance policy deductible.

Acronyms T to V

T-Yield – See Transitional Yield

T-Yield Map Area – TMA

An area of defined land where an average yield is established. It is used to calculate county yields.

TA – See Trend Adjusted APH Yield Option

Tax Identification Number – TIN

A general term for an identifying number used for tax purposes in the United States. For example, a social security number or an employee identification number.

Third Party Damage (TPD) (see Uninsured Unavoidable Fire (UUF))

Situations by a third party, which are outside the control of the insured and result in losses. The insured may choose to not include an actual yield or acres for the damaged acreage in the APH database, so the reduced yields will not impact the averages.

TIN – See Tax Identification Number

TMA – See T-Yield Map Area

Township

An approximately six-mile-square area of land.

TPD – See Third Party Damage (TPD) (See Uninsured Unavoidable Fire (UUF))

Tract

A tract of land usually one-mile square and usually containing approximately 640 acres.

Transfer of Coverage

When an insured transfers his/her share of the crop to someone else during the crop year.

Transitional Yield – T-Yield

A county average yield used to make up the required four years of history in the actual production history (APH) database.

Trend Adjusted APH Yield Option – TA

An option the insured can elect if it is available per the Actuarial documents.TA adjusts yields in APH databases to reflect increases in yields through time in the county. This option is available for eligible crops on a crop/county basis.

Type

A crop classification including its unique traits and uses, for example, grain, hay and silage.

UA – See Unit Structure Code for WUA (Written Unit Agreement)

UD or UDO – See Unit Division Option

UH – See Un-Harvested

Unavoidable Uninsurable Fire – UUF (See Third Party Damage (TPD))

Since production history databases use averages, an insured may choose to exclude an actual yield or acres for acreage damaged due to a fire caused by actions outside of the control of the insured and are unavoidable. If yields are reduced due to UUF/Third Party Damage, this option protects the insured’s overall average / approved APH yield.

Underwriting/Underwriters

Verify policy data meets all of the insurability requirements set by the Risk Management Association (RMA).

Un-Harvested – UH

Refers to acreage that is left unharvested.

Uninsurable

This is a term used when a specific crop or specific land cannot be insured under the terms of the policy.

Uninsured Cause of Loss

Damage caused by something other than a covered peril, for example, abandonment or failure to irrigate on irrigated acres.

Unit

Unit refers to a location made up of a specific field or group of fields on a farm. A farm can be insured in a variety of ways. It could be insured as one location (unit), or if the farmer meets the criteria to qualify, it could be divided up into more than one “unit” or location. By dividing up the land, there may be better coverage in the event of isolated damage.

Unit Division Option – UD or UDO

When optional units, or areas of land are established using section equivalents instead of FSA farm numbers. This option combines two or more shapes, or contiguous legally identifiable parcels of land, into “section equivalents” instead of using FSA farm numbers. UDOs are only applicable to select states/counties.

Unit of Measure

This is how a crop’s production is measured (EXAMPLE: bushels, pounds, tons, etc.)

Unit Structure Code for WUA (Written Unit Agreement) – UA

Identifier used to indicate a unit has a written agreement associated with it.

United States Department of Agriculture – USDA

Also known as the Agriculture Department, a federal entity responsible for laws related to farming, forestry, and food.

USDA – See United States Department of Agriculture

USDA Natural Resources Conservation Service – NRCS

Provides technical and financial assistance to farmers and ranchers who want to make improvements regarding conservation.

UUF – See Unavoidable Uninsurable Fire (See also Third-Party Damage (TPD))

Variety

Varieties refer to the different types of a crop. For example, apples have varieties of red delicious, granny smith or honey crisp. For grain crops, varieties are referred to with a specific seed company generated number that is tied back to the length of maturity, the year the crop was developed and genetic package.

Vegetation Index – VI

No longer used in crop insurance, an index which measures vegetation greenness used to estimate plant conditions.

VI – See Vegetation Index

Acronyms W to Z

WA – See Written Agreement

WAH – See Written Agreement Handbook

WFRP – See Whole-Farm Revenue Protection

Whole-Farm Revenue Protection – WFRP

An insurance policy which protects the entire farming operation under one policy based on the historical revenue of the entire operation. It allows farmers and ranchers to insure commodities not traditionally covered under other plans such as honey, dairy and eggs. For additional information, see proag.com/wfrp

Whole Farm Unit – WU

A unit structure chosen based on how an insured decides to group his/her areas of land for insurance coverage. This is not related to Whole-Farm Revenue Protection (WFRP) which is a plan of insurance.

Written Agreement – WA

A contract between an insured and Federal Government (RMA) allowing an insured to take out crop insurance on a crop in an area that is not typically available according to the Actuarial documents.

Written Agreement Handbook – WAH

This handbook contains the rules and regulations surrounding written agreements. Written agreements allow an insured to take out crop insurance on a crop in an area that is not available according to the Actuarial documents.

Written Unit Agreement – WUA

A contract between an insured and Federal Government (RMA) allowing an insured to use a unit structure not typically allowed in his/her area.

WU – See Whole Farm Unit

WUA – See Written Unit Agreement

YA – See Yield Adjustment

YC – See Yield Cup

YE – See Yield Exclusion Option

Yield – See Actual Production

The amount the crop produced or the production of a crop before any adjustment is subtracted due to moisture, quality, or uninsurable events. For example, a field of corn might yield, or produce, 110 bushels per acre.

Yield Adjustment – YA

Since production numbers are averaged within an APH (actual production history) database, a catastrophic year can bring down the overall averages. When an insured elects the YA option on an Application or Policy Change form by the applicable deadline, a yield adjustment is allowed to reduce the effect of a catastrophic year. An insured can choose to substitute 60 percent of the T-Yield, or his/her specific county’s average yield for years where he/she has low actual yields caused by drought, flood, or other natural disasters.

Yield Cup – YC

Since production numbers are averaged with the APH (actual production history) database, a catastrophic year can bring down the overall averages. When an insured elects the YC option on an application or Policy Change form by the applicable deadline, a yield cup helps reduce the effect of a catastrophic year on an approved actual production history (APH) yield by preventing a yield from decreasing the average yield by more than 10 percent compared to the prior year’s approved APH yield.

Yield Exclusion Option – YE

Since production numbers are averaged with the APH (actual production history) database, a catastrophic year can bring down the overall averages. When an insured elects the YE option on an application or Policy Change form by the applicable deadline, this option allows the insured to exclude eligible crop year actual yields. The crop year(s) available for this option are determined by RMA and are based on the county’s averages.

Yield Floor

Limitations designed to reduce the effect of catastrophic years on approved yields by preventing the yield from falling below a percentage of the T-Yield (county average) based on the number of years of records provided by the insured.

Yield Protection – YP

An insurance plan protecting the amount of production (how much the crop yields) the crop produces. If the crop produces/yields less than the guarantee or guaranteed amount, a claim is paid. For additional information, see proag.com/mpci-individual-plans

YP – See Yield Protection