1. RISK MANAGEMENT Fruit Policy Provisions 2003

2. 2003 Price Elections Apples – Fresh$6.95/bushel Apples – Processing$1.85/bushel Blueberries$0.47/pound Grapes – Concord$220/ton Grapes – Niagara$350/ton Peaches – Fresh$12.25/bushel Peaches – Processing$6.25/bushel

3. Insurability Requirements ApplesMust have produced a minimum of 150 bushels per acre PeachesMinimum of 4 th growing season after being set or by special written agreement if producing 100 bu per acre GrapesMinimum of 4 th growing season after being set out. BlueberriesMust have produced a minimum of 1000 lbs per acre

4. Deadlines & Responsibilities Sales Closing Date is November 20 th Production and Acreage Reporting Date is January 5 th Premium Due Date is September 15 th Production Report Update the Pre-Acceptance Worksheet

5. Coverage Available CAT – Minimum level available at 50% of Average Production and 55% of Price Election (Cost is $100/county/crop) BuyUp – 50%, 55%, 60%, 65%, 70% & 75% of Average Production and 100% of Price Election

6. Actual Production History (APH) Basis from which coverage and premium is calculated Uses up to 10 years of production history (depending upon crop) Can be broken down by unit (section) for buyup policies (except blueberries)

7. How Coverage is Calculated Producer’s APH x Level of Coverage = Guaranteed Production Example: 500 bu APH (Apples) x 65% level = 325 bu guarantee overall Indemnity payment is bushels below guarantee x price election Example: 275 bu overall harvested = 50 bu x $6.95 = $347.50 indemnity/acre

8. Perils Insured Against Adverse weather conditions Fire, unless from uncontrolled weeds or debris Insects, unless from insufficient pest control Plant disease, unless from insufficient disease control Wildlife, unless control measures were not taken Failure of irrigation supply if caused by an above named peril

9. Perils Excluded (All Fruits) Inability to market the fruit for any reason other than actual physical damage from an insurable cause. Example: quarantine, boycott, or refusal of any person to accept production Mechanical damage (including limb rub, scars, and puncture for apples)

10. Uninsured Perils (By Crop) Apples: Failure to size, color, or shape properly and russeting Blueberries: Failure to install and maintain a proper draining system and failure to harvest timely Grapes: Phylloxera, regardless of cause Peaches: Split pits, regardless of cause

11. What Is Counted as Production? Appraised Production: Direct marketing acreage must be appraised prior to harvest to determine production to count Marketable harvested and non-harvested production. If all counted production is below the guarantee, an indemnity payment is made.

12. Need More Information? Contact an Agent at Spartan Insurance 800 888-2767 Or Your Local GreenStone Farm Credit Services branch office