Crop Insurance Acronym Guide

Annual forage insurance is a type of insurance coverage designed for farmers who grow crops such as hay, pasture, and silage. It protects them from potential financial losses caused by events like natural disasters, disease, or drought, by providing compensation for reduced yields or complete crop failure.

An approved insurance provider is a company or organization that has been authorized by the government to offer crop insurance to farmers. These providers must meet certain criteria and standards, including financial stability, ability to provide coverage to a wide range of crops and geographic regions, and compliance with all regulations and laws. Approved insurance providers offer a variety of crop insurance products and services, and work with farmers to help them choose the best coverage for their specific needs and operations.

Actual Production History (APH) is a record of a farmer's past crop yields, which is used to determine the coverage and premium for their crop insurance. The APH is a key factor in determining the amount of insurance a farmer can purchase, as well as the amount of compensation they would receive in the event of a loss. This historical data helps to establish a baseline for expected yields, which can then be used to estimate potential losses and set the appropriate premium for the insurance coverage

An Acreage Report is a document that farmers are required to file with their approved insurance provider before the start of each crop season. This report provides information about the total number of acres that a farmer intends to plant for each crop, as well as the intended planting date and any other relevant information. The Acreage Report is used to determine the amount of insurance coverage that a farmer is eligible for, and to establish the premium for their insurance policy.

The Acreage Reporting Date is the deadline by which farmers must file their Acreage Report with their approved insurance provider for each crop season.

Classification given to farmers and ranchers who are new to the industry and have less than a certain number of years of experience. This designation is often used in government programs and initiatives aimed at supporting and encouraging new and young farmers. In the context of crop insurance, the Beginning Farmer and Rancher designation may qualify these farmers for special benefits or discounts on insurance premiums, or for additional assistance in selecting and obtaining insurance coverage.

A basic unit is the smallest unit of land and production that can be insured under a crop insurance policy. In crop insurance, the basic unit is used to determine the amount of insurance coverage that a farmer is eligible for and to calculate the premium for their policy. A basic unit can be a single field or a group of fields that are managed together and have similar production practices.

Catastrophic Risk Protection (CAT) is a type of crop insurance coverage that provides a minimum level of protection to farmers at an affordable premium. CAT coverage is intended to protect farmers against large and unexpected losses due to natural disasters and other events that are beyond their control. This coverage typically provides a high level of indemnity for a low premium

A Common Land Unit (CLU) is a unit of land that is used in the crop insurance program to determine the amount of coverage a farmer is eligible for and to calculate their premium. CLUs are established by the approved insurance provider and the government and are based on the geography, topography, and soil type of the land.

Crop provisions are specific conditions and requirements that are included in a crop insurance policy. These provisions outline the terms and conditions of the coverage, including the types of losses that are covered, the amount of indemnity, and any exclusions or limitations.

The Conservation Reserve Program (CRP) is a federal program administered by the United States Department of Agriculture (USDA) that provides incentives to farmers to voluntarily take land out of agricultural production and implement conservation practices. The program is designed to conserve soil, water, and wildlife resources and to reduce soil erosion and other forms of land degradation. Farmers who enroll in the CRP agree to remove environmentally sensitive land from production and establish conservation practices.

The end of the insurance period is the date when the coverage under a crop insurance policy ends. This date is typically determined by the expected date of harvest for the crop, and is used to determine the length of the policy.

An enterprise unit is a unit of land and production that is used in crop insurance to determine the amount of coverage a farmer is eligible for. An enterprise unit can be a single field or multiple fields that are managed together and have similar production practices.

The final planting date is the last date by which a farmer must have their crop planted in order to be eligible for insurance coverage for that growing season. This date is established by the government and varies depending on the type of crop and location.

The Farm Service Agency (FSA) is a federal agency within the USDA that provides a range of programs and services to support farmers, including the administration of the crop insurance program. The agency works with approved insurance providers to offer insurance coverage and to assist farmers in selecting the right policy for their needs.

A farm serial number is a unique identifier assigned to a farm by the USDA. This number is used to keep track of the farm's history and production information, and to identify the farm in government programs such as the crop insurance program.

The guarantee per acre is the maximum amount of compensation that a farmer can receive per acre under their crop insurance policy. This amount is determined by the policy, and is based on the coverage level selected by the farmer and the expected yield for the crop.

Income protection is a type of crop insurance that provides coverage for a farmer's expected income from their crop. This type of coverage compensates the farmer for any decrease in revenue from the expected income, due to factors such as lower yields, lower prices, or other losses.

Insurance per acre is a measurement of the insurance coverage that a farmer has for each acre of their crop. This measurement is used to determine the amount of compensation that a farmer can receive in the event of a loss.

Insurance per field is a measurement of the insurance coverage that a farmer has for each field of their crop. This measurement is used to determine the amount of compensation that a farmer can receive in the event of a loss, and is based on the coverage level selected by the farmer and the expected yield for the crop.

A loss adjustment manual is a guide used by insurance adjusters to determine the amount of compensation that a farmer is eligible for in the event of a loss. The manual outlines the procedures for determining the extent of the loss, calculating the compensation amount, and settling the claim.

The late planting period is a period of time after the final planting date during which a farmer can still plant their crop and be eligible for insurance coverage. The length of the late planting period varies depending on the type of crop and location, and is established by the government.

Margin protection is a type of crop insurance that provides coverage for a farmer's expected profit margin from their crop. This type of coverage compensates the farmer for any decrease in profit margin from the expected profit, due to factors such as lower yields, lower prices, or other losses.

Type of crop insurance that provides coverage for multiple types of losses that can occur to a crop, such as from natural disasters, pests, or diseases. This type of coverage helps farmers protect their investments and ensure stability in their business.

The Non-Insured Assistance Program is a program offered by the USDA that provides financial assistance to farmers who do not have access to crop insurance. The program compensates farmers for losses due to natural disasters or other causes, and is available for crops that are not eligible for coverage under traditional crop insurance programs.

The National Crop Insurance Service is a division within the USDA that is responsible for the administration of the federal crop insurance program. The service works with approved insurance providers to offer insurance coverage and to assist farmers in selecting the right policy for their needs.

Non-irrigated refers to land or crops that are not irrigated, or not provided with a controlled amount of water for the purpose of growing crops. Non-irrigated crops are typically more susceptible to drought and other weather-related losses, and may be eligible for special coverage under a crop insurance policy.

No practice specified refers to a category of land or crops that do not have a specified type of production practice, such as irrigation or tillage method. This category may be used in crop insurance to determine the amount of coverage a farmer is eligible for, and may result in a lower coverage level.

The USDA Natural Resources Conservation Service is a division within the USDA that is responsible for conserving and enhancing natural resources on private lands. The service provides technical and financial assistance to farmers and landowners to help improve the health of their land and to protect the environment.

An optional unit is a unit of land and production that a farmer can choose to include in their crop insurance policy. Optional units can be a single field or multiple fields that are managed together and have similar production practices, and can provide the farmer with additional coverage options.

Practice/type refers to the production practices used by a farmer in growing their crop, such as the type of irrigation system or tillage method used. The practice/type of a crop can affect the amount of coverage a farmer is eligible for under a crop insurance policy, and may also impact the expected yield for the crop.

A power of attorney is a legal document that gives someone the authority to act on behalf of another person. In the context of crop insurance, a power of attorney may be used to give a third party the authority to act on behalf of a farmer in the administration of their insurance policy, such as in the processing of a claim.

Prevented planting refers to a situation in which a farmer is unable to plant their crop due to factors such as adverse weather conditions, soil conditions, or other causes. Prevented planting coverage is available under some crop insurance policies and provides compensation to the farmer for their loss of expected income.

The date by which a farmer must report the total production of an insured crop. This date is specified in the insurance policy and is typically near the end of the growing season.

A type of crop insurance that provides coverage for losses of pasture, rangeland, or forage crops due to natural causes such as drought, excessive moisture, or fire. This type of insurance is designed to help farmers protect their livestock operations.

A method of determining crop insurance indemnities based on the amount of rainfall that occurs in a specific region, rather than on the actual yield of a particular farm. The rain index is used as a proxy for crop yield when actual yield data is not available.

The federal government agency within the USDA that provides leadership and oversight for the federal crop insurance program. RMA is responsible for setting policies and regulations for the program, as well as for providing educational and outreach services to farmers.

A type of crop insurance that provides coverage against losses in expected revenue due to a decrease in the price of an insured commodity, as well as a decrease in yield. This type of insurance helps farmers manage the financial risk associated with fluctuations in both commodity prices and yields.

The power to sign contracts and legally bind an organization or individual. In the context of crop insurance, signature authority is usually granted to a designated individual within a farm operation who is authorized to sign insurance contracts and other related documents on behalf of the farm.

An ownership interest in a farm or other agricultural operation that is sufficient to give the owner the right to make significant decisions regarding the operation, such as choosing crops to grow, managing employees, and making investments. In the context of crop insurance, having a substantial beneficial interest in a farm is a requirement for participation in the federal crop insurance program.

The date by which a farmer must purchase a crop insurance policy for the upcoming growing season. This date is specified by the insurance company and may vary by crop and region. After the sales closing date, farmers are typically not able to purchase insurance for the upcoming season.

The Supplemental Coverage Option (SCO) is a county-level crop insurance option that provides additional coverage for a portion of a producer's underlying crop insurance policy deductible.

The Schedule of Insurance is a document that lists the specific crops, coverage levels, insurance period, and other important details for a crop insurance policy. It acts as a contract between the insured and the insurance company.

The Standard Reinsurance Agreement (SRA) is a contract between the insurance company and the federal government, outlining the terms and conditions of the government's role in providing insurance coverage to farmers. The SRA helps ensure that insurance companies have the financial resources to pay claims if necessary.

Crop insurance option that adjusts a farmer's APH yield data to reflect changes in production practices and technology over time. This helps provide more accurate and up-to-date coverage options for farmers.

Whole Farm Revenue Protection (WFRP) is a crop insurance program that provides coverage for the revenue of a whole farm, rather than just individual crops. This allows farmers to have protection for their overall farm income, rather than just for specific crops.

A Yield Adjustment is a process used in crop insurance to adjust the expected yield of a crop to account for factors such as weather conditions, disease, or other unexpected events. The adjusted yield is used to determine the amount of insurance coverage provided to the farmer.

The Yield Exclusion Option is a crop insurance option that allows farmers to exclude specific acres from their insurance coverage, either for personal reasons or because the acres are not being used for crops. This option can provide farmers with more flexibility in

A type of crop insurance that provides coverage against losses in expected yield due to a decrease in the price of an insured commodity.