QLO is a new option that allows exclusion of quality losses from APHs in circumstances where a quality loss occurs. Similar to YE, you will be charged a premium rate based on how much your yield increases by using the endorsement. Every farm will be different. QLO will replace post-quality adjusted production with the pre-QA production for any year the insured filed a Notice of Loss(NOL). The QL may apply if you filed a NOL, regardless of whether you received an indemnity for that crop year.
Trend Adjusted Yield
SCO provides additional coverage for a portion of your underlying policy deductible. Coverage depends on the liability, coverage level, and yield of your underlying policy; however, SCO losses are triggered by area losses, not your individual production. SCO covers from your
underlying coverage level (ex. 70%) up to 86%. It is subsidized at 65% of the premium cost.
APH Yield Exclusion – a yield can be excluded in your APH database when the county average yield is at least 50 percent below the previous consecutive 10 crop years’ average yield. These are by county, by crop, by practice. This is a policy election that is made at Sales Closing.
Stacked Income Protection Plan
Supplemental Coverage Option
*NEW* Quality Loss Option
APH Yield Exclusion
Prevented Planting +5%
TA adjusts historical production to reflect increases in trend-line yields. Trend adjustments are made on each eligible yield based on the county’s historical yield trend.
YE allows a producer to exclude actual yields from an eligible crop year for the county (such as a year in which a natural disaster or other extreme weather event occurs). When RMA determines the county yield was at least 50% percent below the 10-year simple average yield in the county (or a contiguous county), yield exclusion is available.
SE adds coverage for a loss of seed income when a yield loss occurs on the lint portion of a cotton policy.
Here are some helpful screenshots on how to navigate the RMA website. Here you are able to find plant dates, rates, etc.
STAX provides coverage up to 20% of expected area revenue, and loss payments begin when area revenue falls below 90 percent of its expected level. Losses are triggered on an areawide basis, not individual production. The expected yield for STAX will be based on the
historical yields in the county reported to RMA. In areas where yield data is limited, counties will be combined. It is subsidized at 80% of the premium cost. STAX can only be purchased on farms, identified by FSA farm number, that have zero cotton base or where the producer chooses not to participate in PLC/ARC for that production year.
You can elect an additional 5% to prevented plant coverage. If a the cause of loss is evident when your application for increased coverage is submitted, the additional coverage may not apply.
EU allows you to insure all acres of a crop in a county (regardless of share) as one unit. A premium discount up to 80% is offered to recognize the lower risk associated with averaging all production together for claim purposes. To qualify for EU, you must plant acreage on at least two sections, and each parcel must contain the lesser of 20 acres, or 20% of the insured crop acreage. EU can be used by practice, and can extend across county lines in specific circumstances.