Production & Revenue History

Overview

Production & Revenue History (PRH) is a new pilot program insuring Strawberries in select counties within the states of Florida and California and replaces the ARH plan. PRH provides protection for Strawberries against loss of production and revenue that the insured expects to earn or will obtain from commodities produced during the insurance period.

Coverage is based on individual historical production and revenue of the insured crop and is eligible to persons who have either grown strawberries commercially or have participated in managing a commercial strawberry farming operation in at least three of the last five previous years.

Insureds will have a choice of yield-based plan or one of two revenue-based plans with PRH coverage: Revenue or Revenue Plus.

• Yield Protection (Plan 21): The yield plan accounts for production shortfalls due to adverse weather, fire, earthquake, volcanic eruption, failure of irrigation supply, wildlife, insects and plant disease.
• Revenue Protection-Plus (Plan 22) & Revenue Protection (Plan 23): The revenue plans will account for loss of revenue due to a production shortfall previously described, a price decline, or both. Uninsured causes of loss include crop injury due to equipment or poor handling, failure to market or harvest in a timely manner, unless due to a covered cause of loss, or soil salinity in California only.

The difference between the Protection and Protection Plus plans is how production is calculated:

• Revenue Protection: Production is valued at the revised weighted average harvest price
• Revenue Protection Plus: Production is valued at the lesser of the approve projected price or the revised weighted average harvest price.

Under the three types of coverages, the Yield guarantee will be the same as APH and the price will be based on the producer’s own revenue history, which will require additional reporting to generate more tailored guarantees.

The Contract Change Date is June 30th, Sales Closing/Cancellation dates is August 31 for Florida. California will follow for 2022 with a July 1 SCD for Summer Planting Season and September 30 SCD for the Winter Planting Season.

For additional specifics regarding this plan, see the RMA handbook for PRH.

• PRH will be offered under the Common Crop Insurance Policy Basic Provisions.
• CAT is available under Plan 21 only.
• OU and BU are applicable but Enterprise and Whole Farm units are not.
• Master Yields and Written Agreements are not allowed.
• The Approved Yield guarantee is based on the insured’s marketable production.
• The Expected Revenue Factor (ERF) is published when it is determined the historical price will not reflect the likely revenue for the crop year. This value will be published in the actuarial documents no later than 15 days prior to the SCD.

NOTE: The ERF is published when it is determined the historical price will not reflect the likely revenue for the crop year.

• The yield and revenue protection guarantees per acre are calculated for each unit by multiplying the approved yield by the approved projected price for applicable crop, crop type, planting period, and organic practice combination, the percentage of the approved projected price elected, the coverage level, Expected Revenue Factor (ERF), and the guarantee limitation factor (Yield Conversion Factor).
• The approved projected price is the lesser of the personal projected price, the Adjusted Personal Projected Price, or the projected price published in the actuarial documents.
• Production and Revenue Reports are used for PRH. Production reports will be used to establish the APH database and the approved yield per acre. The revenue reports will be used to establish the revenue history. Both the APH database and revenue history will be used to calculate the approved projected price used in establishing the protection guarantee per acre.
• Different revenue reports are required for each buyer type.

Add New Policy, Add New/Maintain Coverage, & View Coverage

To accommodate the PRH plan, the following changes were made to the Add New Policy, Add New/Maintain Coverage, and View Coverage pages. Depending on the page and user permissions, these options may or may not be editable.

a. When electing PRH coverage, the plans are displayed in the Crop Plan dropdown as:
• PRH-Y (21): PRH Yield Protection
• PRH-P (22): PRH Revenue-Plus Protection
• PRH-R (23): PRH Revenue Protection
b. You want to have different coverage levels by planting season, select the Planting Season for the Coverage Level indicated in the next field (c). Only make a selection is using different coverage levels.
c. The Coverage Level is designated by planting periods: Florida has only one; California has two. The Coverage Level range is ranges from 50-85% in 5% increments.
d. When Plan 21, 22, or 23 is elected, the label for this Price Election % will be changed to % of Projected Price with an available range from 1% to 100%. If less than 100% is elected, the amount of insurance and indemnity will be reduced accordingly.

Revenue History Tab

For PRH (Strawberries), Revenue History Reports are due by the Production Reporting Date. Revenue History is maintained by Buyer Type, Type, Practice, and Elected % of Sales.

When you select the Revenue History tab, the View Revenue Histories page displays with all revenue histories on the coverage and allows you to add and maintain records.

To add a Revenue History

To add revenue history, select the Buyer Type, Type, Practice, and Elected % of Sales. Click Add to open the Revenue History record (the Maintain Revenue page) for the selected criteria.

On the Maintain Revenue History page, grids display to enter the Revenue Details for each Buyer Type, Type, Practice, and Elected % of Sales, Buyer Type Summary, and Production & Revenue Summary Information.

• The Revenue Details by Buyer Type grid(s) displays history for each Buyer Type (A, B, or C) and allows you to enter values from the Revenue History Report for the Production Sold, Gross Total, Revenue Actual, and Total Revenue. The Actual Price is calculated for each year(Actual Total Revenue/Production Sold).
• The Buyer Type Summary grid displays historical values for the last 5 years.
• The Production & Revenue Summary Information grid displays summary information from the standard CAT B APH as well as the Revenue History, which are needed to determine the Personal Projected Price for the Type and Practice. Only the Previous Year Average Revenue field is editable as the others are system calculations.

To edit a Revenue History

In the View Revenue Histories grid, select the record you want to edit by clicking the Buyer Type hyperlink.

To delete a Revenue History

In the View Revenue Histories grid, select the checkbox that corresponds with the record you want to delete and click Delete.