1. USDA/Risk Management Agency St. Paul Regional Office December 17, 2013 Crop Insurance Update

2. Basic Provisions - Definitions: “Cover Crop - A crop generally recognized by agricultural experts as agronomically sound for the area for erosion control or other purposes related to conservation or soil improvement. ……….” “Double Crop – producing two or more crops for harvest on the same acreage in the same crop year.” Cover Crop Definition

3. “Insurance shall not attach or be considered to have attached to a planted crop on acreage from which, in the same calendar year: 1. A crop (other than a cover crop) reaches the headed or budded stage prior to termination, regardless of the percentage of plants that reach the headed or budded stage; or 2. A crop, including a cover crop, is hayed, grazed or otherwise harvested past May 10; or 3. A crop, including a cover crop is not terminated prior to planting. For purposes of insurability under this Special Provision, a cover crop is one that meets the definition of a cover crop in the Basic Provisions and was planted within the last 12 months. Termination means growth has ended.” 2013 Cover Crop Special Provisions Changes to May 22

4. 2014 Cover Crop Statement Insurance shall attach to a crop following a cover crop when the cover crop meets the definition provided in the Basic Provisions, was planted within the last 12 months, and is managed and terminated according to NRCS guidelines. If growing conditions warrant a deviation from the guidelines, producers should contact either Extension or the local NRCS for management guidance. For information on cover crop management and termination guidelines, refer to the Cover Crop Termination Guidelines published at http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/landuse/crops/.

6. Watch for the update

7. Cover Crop Termination Zones

8. Termination Zones

9. Area Risk Protection Insurance - ARPI Yield and Loss experience based on entire County More efficiency in administrating One set of policy provisions for all plans Flexibility in the data sources Now requires yield reports to improve accuracy (not Forage Production) New for 2014

10. Area Risk Protection Insurance - ARPI Replaces GRP Group Risk Protection and GRIP Group Risk Income Protection Coverage in MN for: Corn, Soybeans, Wheat and Forage Production 3 Plans: Yield (only one for Forage) Revenue Revenue w/HPE

11. Determine County Yield and Price Expected and Final yield derived from county: Crop Insurance data NASS (fewer reports published) Any other data source Price from the same grain exchanges as the individual plans: CBOT and MGE

12. Forage Premium Costs Wabasha County, Expected and Approved yield of 4.3 T/Ac, $180/Ton, Protection Factor of 120% ARPI Yield only Protection $929/Ac Coverage at 85% Coverage Level $6.65/Ac Producer Paid Premium APH Yield only (basic unit) $504/Ac Coverage at 65% Coverage Level $15.42/Ac Producer Paid Premium

13. Production Reporting February 15 for corn, soybean and wheat No report required for forage Unharvested crops: no report required New for ARPI

14. April 2012 FSA-RMA Consultation Ag Risk Protection Act 2000 Required: -Work together for Compliance and Integrity of Crop Insurance - Develop plan to Implement

15. This is a Referral Process FSA Referrals to RMA Complaint of Crop Ins. Fraud, Waste, Abuse received in County Office Observation by County Office Internal Review findings RMA Referrals to FSA Assist RMA Compliance in spot checks of high losses, good farming practices Policy updates, county crop expansions/deletion, date changes

16. Homepage of Application

18. Example from August 2013 -Application doesn’t interface with FSA -Stand-alone system File with e-mails and other backup Information.

19. Fact Sheets updated on the St Paul RO web-site.

20. 2014 MINNESOTA ACTUARIAL UPDATE 11/30 FILING 11/30 MN Crops/Programs: Combo Barley, APH Buckwheat, Combo Canola, Combo/ARPI Corn, Dry Beans, APH Dry Peas, APH Flax, Dollar Forage Seeding, APH Green Peas, YBD Hybrid Corn Seed, APH Oats, Popcorn, APH Potatoes, APH Processing Beans, Combo/ARPI Soybeans, APH Sugar Beets, Combo Sunflowers, APH Sweet Corn, Combo/ARPI Wheat COUNTY CROP EXPANSION: None COUNTY CROP DELETIONS: FLAX: Program has been deleted from Becker, Big Stone, Clearwater, Douglas, Grant, Mahnomen, Swift, and Traverse counties. DATES: CORN: Under ARPI plans, Final Planting Date for “Grain” and “Seed” types is June 25, 2014. FPD for “Silage” type is June 30, 2014. SOYBEANS: Under ARPI plans, Final Planting Date for “Commodity” soybeans is July 5, 2014. WHEAT: Under ARPI plans, Final Planting Date is set at 25 days after the FPD of Wheat for Plans 01, 02, and 03. For example, the FPD for Plan 01 Wheat in northern Minnesota is June 5 so the ARPI FPD for Wheat is June 30. Under ARPI plans, the Production Reporting Date for Corn, Soybeans, and Wheat is February 15, 2015. RATES: Full rate review completed for BARLEY with new target rates established. Contract Pricing (CP) option has been added for most crops and is shown under the Rates tab in the Actuarial Information Browser (AIB). The CP option for most crops applies only to certified organic practices. Specialty types for corn and soybeans also have the CP option available for conventional practices.