1. Pecan Revenue Insurance Program Kelly Pope Asst. Vice-President Insurance Services Farm Credit of NM

2. Areas Covered by Program –Dona Ana County, NM –El Paso County, TX –Culbertson County, TX 600 lb/acre Average Production (No acreage min or max) 4 Years Gross Income History Qualifications

3. Perils Covered - Adverse weather - Fire - Earthquake - Volcanic eruption -Failure of irrigation water system (if caused by natural disaster) - Decline in market price - Insects (properly managed) - Disease (properly managed) Basis of Program

4. Two Year Coverage Module - Insurance period is in two year blocks - Annual income is used in two yr increments (from a minimum of 4 yrs continuous income history to a maximum of 10 yrs income history) Levels of Coverage - 50% to 75% of income history in 5% increments - CAT coverage level at 27.5% coverage (cost = $100) Basis of Program (cont’d)

5. Determination of Guarantee

6. Levels of Coverage Premium Calculation at Each Coverage Level Note: All figures are estimates. Example #2:

7. Setting Up Insured Acres Unit Determination (All acres within the county considered one unit) Mapping of Acreage –GPS –Tree umbrella –Deduct Ditches Roads Areas w/structures Areas without trees

8. Reporting Annual Acreage & Production Report State acreage annually Report income by crop year Possible estimate of income (when pecans are pooled) When estimated, follow-up income reporting when sold Any policy changes must occur before sign-up deadline!

9. Loss Procedure Reporting of Loss –Report claim within 72 hours of damage –Any claim must be submitted before beginning of harvest Settling Loss Claim –Provide pecan sales receipts Claim Calculations Guarantee - Gross Income = Loss Payment Example #3:2002 crop yr $172,800 - $130,250 = $42,550

10. Possible Changes Down the Road Permanent status Expand areas covered Dates