(1 of 9)

24-1020

(Released September 2023)

UNITED STATES DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

Controlled Environment Pilot Crop Provisions

In return for your payment of premium and administrative fee for the coverage, these Crop Provisions will be attached to 

and made part of the Common Crop Insurance Policy, Basic Provisions (Basic Provisions) subject to the terms and 

conditions described herein.

1. Definitions

Amount of insurance – Your selected value (SV) 

multiplied by the coverage percentage you elect, by 

your price election percentage, and by your insurable 

share. The amount of insurance for any loss event 

after the first loss will be reduced by subtracting the 

amount included on any prior claim for indemnity 

made under these Crop Provisions during the crop 

year. If you elect additional coverage for a plant 

production practice and restock after a loss, the 

remaining amount of insurance may be increased by 

adding an amount equal to the coverage percentage 

multiplied by your declared value of new plants 

introduced into the CE if a revised Controlled 

Environment Value Report (CEVR) is submitted.

Approved sales value – A dollar amount that we 

determine in order as follows:

(a) The average weighted wholesale price (net of all 

discounts) you received for each specific plant 

within each plant category, not to exceed 1.5 

times your catalog price, unless otherwise 

specified in the Special Provisions, determined 

for:

(1) The 60-day period immediately preceding 

the date of the insured cause of loss; or

(2) If no sales occurred in the 60-day period 

immediately preceding the date of the 

insured cause of loss, the 12 calendar 

months immediately preceding the date of 

the insured cause of loss; or

(b) If no wholesale sales occurred for the specific 

plant during the 12 calendar months immediately 

preceding the date of the insured cause of loss, 

the average contract price (net of all discounts), 

not to exceed 1.5 times your catalog price, 

unless otherwise specified in the Special 

Provisions, for all future wholesale deliveries of 

the specific plant insured during the insurance 

period; or

(c) If no wholesale sales occurred for the specific 

plant during the 12 calendar months immediately 

preceding the date of the insured cause of loss 

and there is no contract price for future 

wholesale deliveries of the specific plant, then 

your current wholesale catalog price for that 

specific plant multiplied by the difference 

between 1.00 and the largest percentage 

discount (calculated as a percentage if the 

discount is recorded as a dollar amount), that 

you provide to any buyer for any quantity of any 

specific plant.

(1) If your catalog does not contain all 

applicable discounts, your wholesale 

catalog price for the specific plant will be 

decreased by 10 percent; and

(2) A discount stated as a dollar value relative 

to a specific dollar amount or a range of 

dollar amounts for a purchase will be 

converted to a percentage rate by dividing 

the dollar amount of such discount by the 

dollar amount to which such discount 

applies.

(d) Discounts will not be applied to prices for plants 

grown under license from the holder of a patent 

issued by the US Patent and Trademark Office 

provided the license specifically establishes the 

required sales price.

(e) If a specific plant was not sold in the 12 calendar 

months immediately preceding the date of the 

insured cause of loss and no current wholesale 

catalog price or any unfulfilled contracted sales 

exist, the approved sales value for that specific 

plant will be determined by prorating the 

approved sales values of the nearest size of that 

specific plant species and variety (if variety is 

available) using first (a), then (b).

Average weighted wholesale price – The value 

obtained by summing each quantity of specific plants

sold multiplied by the applicable sales price 

(excluding all discounts and shipping charges as well 

as any similar amounts that do not directly relate to 

the wholesale value of the specific plants) obtained 

from verifiable sales records for a defined period of 

time stated in the definition of “approved sales value”

and dividing by the total quantity sold of the same 

specific plant.

Average contract price – For a specific plant, the 

sum of the sales for future delivery under a written 

contract (excluding all discounts and shipping 

charges, as well as any other similar amounts that do 

not directly relate to the wholesale value of the 

specific plant) divided by the total quantity of that 

same specific plant.

Basic unit – In addition to the definition in the Basic 

Provisions, a basic unit consists of all insurable 

specific plants within all insured plant categories 

within each plant production practice that you elect to 
(2 of 9)

insure. Refer to section 2(b) for further unit division 

requirements.

Biosecurity self-certification – A document you 

complete, that certifies your implementation of good 

production practices regarding phytosanitary and 

biosecurity processes.

Catalog – Any document in a format that meets the 

requirements set forth in section 6(k) issued by your 

CE and used to advise actual and/or potential 

wholesale buyers of the amount you are charging for 

the purchase of each specific plant that you offer for 

sale, including all applicable discounts. Such 

documents may be by season or any other basis 

consistent with your CE’s practices. If you have 

plants in an insured plant category in your CE that 

are not yet available for sale and are not included in 

your catalog, you must submit a supplement to the 

catalog that meets the requirements of section 6(k).

Controlled environment (CE) – A technologybased approach to production that:

(a) Uses fully enclosed structures throughout the 

entirety of the crop year to produce specific 

crops with the aim of providing protection and 

maintaining optimal growing conditions 

throughout the development of the plants; and

(b) Grows CE plants and derives at least 40 percent 

of its gross income from the wholesale marketing 

of such plants.

Controlled Environment Value Report (CEVR) –

Your declaration on our form of the insurance 

choices you elect in accordance with section 6.

Coverage percentage – The percentage of the SV 

you elect to insure. For additional level of coverage,

you may select from 50 percent to 75 percent in 5 

percent increments. For CAT level of coverage, the 

coverage percentage is 50 percent.

Crop year –

(a) For the 2024 crop year, the crop year begins on 

January 1, 2024, and ends on May 31, 2024, or 

September 30, 2024, as stated in actuarial 

documents.

(b) For the 2025 and subsequent crop years, a 12-

month period identified by the sales closing date 

in the actuarial documents that begins June 1 

and extends until the immediately following May 

31 (May 1 sales closing date) or begins October 

1 and extends until the immediately following 

September 30 (September 1 sales closing date), 

as applicable. The crop year is designated by 

the calendar year in which it ends.

Damage factor – A value of 1.00 that we use to 

determine the post-loss damage value of dead/zero 

market value plants.

Dead/zero market value plant – A specific plant 

that, due to an insured cause of loss, must be 

destroyed pursuant to a destruction order.

Destruction Order – An Emergency Action 

Notification or other order issued by an official

authorized to enforce the terms of the Plant 

Protection Act or similar regulations established by a 

State requiring destruction of plants.

Emergency Action Notification – A notice from a 

government regulatory organization, such as APHIS, 

that states the actions a controlled environment must 

take when a disease outbreak or contamination is 

identified by that government regulatory agency.

Expected value of sales – The expected quantity of 

marketable product that will be harvested during the 

crop year from specific plants that are subsequently 

destroyed multiplied by the average weighted 

wholesale price.

Good production practices – In addition to the 

definition of “good farming practices” contained in 

section 1 of the Basic Provisions, the CE production 

methods generally used in the area for the insured 

specific plant and production methods to make 

normal progress toward the stage of growth at which 

marketing of the harvested production can occur 

and:

(a) For conventional production methods, generally 

recognized by agricultural experts as compatible 

with the CE plant production practices and 

weather conditions in the county; or

(b) For organic production methods, generally 

recognized by the NOP as compatible with the 

CE plant production practices and weather 

conditions in the county.

We may, or you may request us to, contact FCIC to 

determine whether production methods will be 

considered “good production practices.”

Harvest – Removal of specific plants from the CE.

Harvested production – The quantity of specific 

plants harvested.

Inventory – A compilation of all specific plants and 

their quantities for all plant categories, whether 

insured, uninsured, or uninsurable, contained in your 

CE.

Maximum value – For each insured plant category, 

the highest total dollar value for all specific plants you 

anticipate will be in your CE or during each month of 

the insurance period.

Monthly unit value plan (MUVP) – Your declaration 

for each basic unit, by month from the first month to 

the last month within the insurance period, of the 

maximum value. This declaration must be on our 

form and is made as part of the CEVR.

NOP – The National Organic Program administered 

by the Agricultural Marketing Service, USDA.

Plant category – A grouping of plants as identified 

below and defined in the Special Provisions:

(a) All Cut Flowers and Greenery;

(b) Vegetable and Other Food Crops;

(c) Food and Flower Seed Plants;

(d) Annual Bedding and Garden Plants;

(e) Perennial Bedding and Garden Plants;

(f) Bulbs, Rhizomes, Corms, and Tubers;

(g) Foliage and Tropical Plants;

(h) Trees and Shrubs Seedlings and Grafts;
(3 of 9)

(i) Propagative Horticultural Materials, including 

Cuttings and Tissue Cultured Plantlets; and

(j) Other groupings of plants as identified in the 

actuarial documents.

Plant production practice – A method of plant 

production as identified below or defined in the 

Special Provisions:

(a) Soil;

(b) Hydroculture; or

(c) All other growing media.

Post-loss damage value – The total dollar value of 

all insurable specific plants lost in a basic unit due to 

an insured cause of loss as determined in section 12 

using FCIC approved procedures and the damage 

factor.

Pre-loss actual unit value – The total dollar value 

of all insurable specific plants in a basic unit, 

immediately prior to the occurrence of the loss event,

determined for each specific plant by multiplying the 

approved sales value by the quantity of each specific 

plant and summing the results for that basic unit.

Price election percentage – A value equal to 1.00 

if you elect additional coverage or 0.55 if you elect 

CAT coverage.

Quantity – For specific plants sold by the count, the 

actual number of such plants. For specific plants that 

are harvested, and the production is sold by weight, 

the number of pounds. The number of cartons or 

other containers will be converted to an equivalent 

number of pounds if such measures are used for 

sale.

Restock – Replacement of lost or dead plants that 

increases the SV of the insurable inventory to an 

amount not greater than the amount that existed prior 

to the date destruction occurred.

Sales closing date – In addition to the definition in 

the Basic Provisions, the date shown in the Special 

Provisions by which an application or any changes to 

coverage must be submitted to us. All applications 

and changes to coverage are subject to the terms of 

sections 3, 6, and 9 of these Crop Provisions.

Selected value (SV) – The value you declare on 

your CEVR of the insurable specific plants in each 

insured plant category in the basic unit. You may be 

required at any time we perform an inspection, or at 

any time upon our request, to provide documentation 

supporting the maximum values reported.

(a) For additional coverage, The SV may not exceed 

the highest maximum value for the same plant 

category reported on your MUVP.

(b) For CAT level of coverage, your SV for each 

insured practice cannot exceed the lesser of:

(1) 110 percent of the maximum value for all 

plant categories in any given month during 

any of the preceding three crop years; or

(2) The maximum of the monthly values 

reported on the MUVP.

Specific plant – A plant identified by the complete 

botanical or common name as listed in your catalog, 

or as otherwise defined in the Special Provisions. 

The products of plants being grown solely for harvest 

of buds, flowers, greenery, or any portion of the plant 

are also considered specific plants.

Stock plants – Specific plants used solely for 

propagation during the insurance period, that you do 

not sell and do not include in your catalog.

Supporting documentation – Records that support 

your CEVR and any claim for indemnity that include, 

but are not limited to, verifiable sales records, 

inventory records, and a biosecurity self-certification

of your CE.

Verifiable sales records – Records that show the 

sales of specific plants to disinterested third party 

purchasers during a period specified in these Crop 

Provisions containing:

(a) The name and address of the purchaser;

(b) The date of sale; and

(c) The complete botanical or common name of the 

specific plant(s) sold, quantity of each specific 

plant(s) sold, and the actual wholesale price 

(excluding all discounts and shipping charges as 

well as any other similar amounts that do not 

directly relate to the wholesale value of the 

specific plants) received for each specific plant.

Wholesale – The sale of specific plants to retailers 

for resale and not directly to the end-user, except to 

end-users including but not limited to landscape 

contractors, government entities or organizations,

restaurants, grocers, and commercial fruit and 

vegetable producers.

2. Unit Division

(a) Section 34 of the Basic Provisions is not 

applicable.

(b) If you elect additional coverage, the basic unit as 

defined will be divided into additional basic units 

for each plant category you choose to insure 

within each insured plant production practice.

3. Insurance Guarantees, Coverages, and Prices

(a) The production reporting requirements 

contained in section 3(f) of the Basic Provisions 

are not applicable.

(b) In addition to the terms of section 3(b)(2)(i) of the 

Basic Provisions:

(1) You may elect either CAT or additional 

coverage for each insured plant production 

practice. You will owe an administrative fee 

established in accordance with section 7I of 

the Basic Provisions for each insured plant 

production practice for CAT level of 

coverage and for each insured plant 

category under each insured plant 

production practice for additional coverage;

(2) If you elect additional coverage for an 

insured plant production practice you may 

select a different coverage percentage for 

each insured plant category; and

(3) For the purpose of establishing the pre-loss 

actual unit value and the post-loss damage 

value, you are deemed to have selected 100 
(4 of 9) 

percent of the approved sales value for each 

specific plant. 

(4) You may insure a specific plant under a CE 

policy and under a Nursery Value Select or 

Nursery (Field Grown & Container) policy, 

unless restricted by the Special Provisions, 

however: 

(i) Both policies must be insured with the 

same insurance company; and 

(ii) You cannot receive an indemnity on the 

same specific plant under both policies.

(c) Section 3(e) of the Basic Provisions is amended 

as follows:

(1) Section 3(e)(1) is not applicable.

(2) In addition to section 3(e)(2), if you request 

an increase in the coverage percentage or 

an increase in the SV for the crop year 

following the currently insured crop year, we 

may reject such request at any time we 

discover that damage occurred before 

insurance was scheduled to attach.

(3) In lieu of section 3(e)(3), your amount of 

insurance will be as defined in these Crop 

Provisions. 

(4) In addition to section 3(e)(4), if you submit a 

new CEVR by the applicable sales closing 

date, but we notify you in writing the CEVR 

or documentation is unacceptable, you must 

provide an acceptable CEVR or 

documentation within 30 days after the date 

of notice of such rejection. If you submit a 

new CEVR which is acceptable, insurance 

will attach on the 31st day after we receive 

all documents required for an acceptable 

CEVR. If the CEVR is still not acceptable to 

us, insurance will not attach for the crop 

year.

4. Contract Changes

In accordance with section 4 of the Basic Provisions, 

the contract change date is:

(a) January 31 immediately preceding the crop year 

for counties with a May 1 sales closing date; and

(b) April 30 immediately preceding the crop year for 

counties with a September 1 sales closing date.

5. Cancellation and Termination Dates

In accordance with section 2 of the Basic Provisions, 

the cancellation and termination dates are May 31 for 

counties with a May 1 sales closing date, and 

September 30 for counties with a September 1 sales 

closing date.

6. Controlled Environment Value Report (CEVR)

(a) Section 6 of the Basic Provisions is not 

applicable.

(b) A CEVR that includes the following 

documentation must be submitted to us on or 

before the sales closing date, except as provided 

in section 6(e), for each insured plant production

practice and basic unit:

(1) Your SV consistent with these Crop 

Provisions, for each insured plant category; 

(2) Your elected coverage percentage and your 

share;

(3) Two printed copies or one electronic copy of 

your most recent catalog;

(4) The MUVP; and

(5) A copy of your biosecurity self-certification. 

(c) In subsequent crop years, in lieu of section 

6(b)(4), you may certify on the CEVR there is no 

material change in the information reported on 

the MUVP. 

(d) You will be notified in writing on or before the end 

of the 30-day waiting period if your application 

for insurance is rejected because our inspection 

determines your CE does not meet insurability 

requirements, or the CEVR or any other 

supporting documentation (if requested by us) is 

not acceptable to us.

(e) For the year of application, if you fail to provide 

the CEVR required by subparagraph (b) on or 

before the applicable sales closing date, 

insurance will not attach until the 31st day after 

we have received all CEVR documents, unless 

we reject your application in accordance with 

section 6(d). We will not be liable for any 

damage or loss that occurs before insurance has 

attached. After insurance attaches, we will 

provide coverage through the end of the 

insurance period. Your premium will be adjusted 

according to the proration factor contained in the 

actuarial documents for the month insurance 

attached.

(f) Your CEVR, including any revised CEVR, will be 

used to determine your premium and amount of 

insurance.

(g) You must provide all the documentation required 

by these Crop Provisions by the applicable sales 

closing date if you wish to increase your 

coverage percentage or SV for the next crop 

year.

(h) At our discretion, we may perform an inspection 

of the CE at any time to determine good 

production practices are followed, and that 

adequate, acceptable facilities exist to 

accommodate the inventory.

(i) You may increase your SV for each basic unit no 

more than twice during the crop year by 

submitting a revised CEVR, except as provided 

in section 6(i)(6).

(1) Any requested increase must be made in 

writing and meet all the requirements for a 

CEVR described in section 6(b).

(2) We will perform an inspection of the CE to 

determine good production practices are 

followed, and that adequate, acceptable 

facilities exist to accommodate the 

requested increase in the SV when the total 

of all SVs reported on the revised CEVR is 

increased 50 percent or more from the 

previous total of all SVs on the original 
(5 of 9)

CEVR, and the increase is not due to 

restocking subsequent to an insured loss.

(3) Your revised CEVR will be accepted by us 

and insurance will attach on any requested 

increase in SV 31 days after your written 

request is received, unless we reject the 

proposed increase in your SV in writing.

(4) We will reject any requested increase in the 

SV if any damage occurs within 30 days of 

the date you make such request. (Rejection 

can occur at any time we discover such 

damage has occurred.)

(5) You cannot revise your CEVR to decrease 

the SV after insurance attaches.

(6) You may increase your SV one additional 

time if you have suffered an insured cause 

of loss on a unit and have restocked the CE. 

You must submit a revised CEVR in writing 

that meets all the requirements for a CEVR 

described in section 6(b). Insurance will 

attach on the increased SV 31 days after 

your written request is received, unless we 

reject the requested increase in your SV in 

writing.

(j) Specific plants we determine were dead/zero 

market value plants prior to the attachment of 

insurance coverage are not insurable.

(1) These plants will not be included on the 

CEVR.

(2) You must maintain the identity of the 

uninsurable dead/zero market value plants 

using a method approved by us prior to 

destroying the plants.

(k) Your catalog must meet the following minimum 

standards:

(1) Be typewritten or printed and legible;

(2) Show an issue date on the cover page (may 

be handwritten);

(3) Contain the complete name, address, and 

phone number of your CE;

(4) Be provided to customers and used in the 

sale of your plants or, for the purposes of a 

supplement, be intended for use in the sale 

of your plants once they are available for 

sale; and

(5) List each insurable specific plant name 

(botanical or common), plant or container 

size, and wholesale price.

7. Premium

(a) In lieu of section 7(c) of the Basic Provisions, we 

will determine your premium by multiplying the 

amount of insurance by the appropriate premium 

rate, and the proration factor contained in the 

actuarial documents.

(b) In addition to section 7 of the Basic Provisions, 

we will prorate your premium based on:

(1) For the year of application, the time 

remaining in the crop year if you submit the 

documentation required by section 6(b) after 

the applicable sales closing date.

(2) For a revised CEVR submitted by you and 

accepted by us, the time remaining in the 

crop year after insurance attaches on the 

revised CEVR.

(c) You will owe premium for an entire month for any 

calendar month or portion thereof during which 

coverage is provided under these Crop 

Provisions.

(d) In lieu of section 7(a) of the Basic Provisions:

(1) If you apply for insurance before the 

premium billing date listed in the actuarial 

documents, the premium is earned and 

payable when coverage attaches. You will 

be billed for the premium and administrative 

fee no earlier than the premium billing date 

listed in the actuarial documents.

(2) If you apply for insurance or submit your 

CEVR or any other required documents 

contained in section 6 on or after the 

premium billing date listed in the actuarial 

documents, the premium for the remainder 

of the crop year will be due and must be paid 

at the time of application or submission of 

your CEVR. Failure to pay the premium at 

the time of application or when you submit 

your CEVR will result in no insurance and no 

indemnity for the crop year.

8. Insured Crop and Plants

In lieu of sections 8 and 9 of the Basic Provisions, the 

insured crop will be all specific plants grown in a CE

within each insured plant production practice for CAT 

level of coverage, and each plant category you 

choose to insure within each insured plant production 

practice for additional level of coverage and that:

(a) You have an insurable share;

(b) Are specific plants determined by us to be 

acceptable;

(c) Are grown in a county for which a premium rate 

is provided in the actuarial documents;

(d) Are grown in a CE determined by us to be 

acceptable;

(e) Are irrigated unless otherwise provided by the 

Special Provisions (you must have adequate 

irrigation equipment and water to irrigate all 

insurable plants at the time coverage attaches 

and throughout the insurance period);

(f) Are grown in accordance with the plant 

production practices for which premium rates 

have been established;

(g) Are grown in an appropriate medium (e.g., soil, 

hydroculture/water, air);

(h) Are not grown solely as stock plants;

(i) May produce edible fruits, nuts, buds, flowers, or 

greenery for sale; and

(j) Are not any plant classified by a federal, state or 

county as illegal to grow or sell in the county in 

which the CE is located. For example, growing 

or selling plants classified as invasive species is 

illegal in many states and counties.

9. Insurance Period
(6 of 9)

(a) In lieu of section 11 of the Basic Provisions:

(1) For the 2024 crop year, for the year of 

application, if you provide the CEVR 

required in section 6:

(i) On or before the sales closing date, 

insurance attaches on January 1,

unless we notify you in writing that your 

application is rejected because the 

documentation you provided is not 

accepted by us;

(ii) After the sales closing date, insurance 

attaches on the 31st day after we 

receive all documents required in 

section 6, unless we notify you in writing 

that your application is rejected 

because the documentation you 

provided is not accepted by us;

(2) For the 2025 and subsequent crop years, for 

the year of application, if you provide the 

CEVR required in section 6:

(i) On or before the sales closing date, 

insurance attaches on June 1 or 

October 1, as applicable, unless we 

notify you in writing that your application 

is rejected because the documentation 

you provided is not accepted by us;

(ii) After the sales closing date, insurance 

attaches on the 31st day after we 

receive all documents required in 

section 6, unless we notify you in writing 

that your application is rejected 

because the documentation you 

provided is not accepted by us; and

(3) For each subsequent crop year, insurance 

will attach on June 1 or October 1, as 

applicable:

(i) At the same coverage percentage and 

SV as the previous crop year if you 

provide the certification identified in 

section 6(c); or

(ii) At the coverage percentage and SV 

chosen for that crop year.

(b) Insurance ends on a basic unit, or portion 

thereof, at the earliest of:

(1) The date of final adjustment of a loss when 

the total of all indemnities equals the amount 

of insurance;

(2) Harvest of the crop;

(3) Removal of specific plants from the CE;

(4) Failure of the structure or its equipment or 

any action that caused failure such that CE 

cannot be maintained;

(5) End of day on May 31 or September 30, as 

applicable;

(6) Abandonment or destruction of the crop in 

the unit; or

(7) For specific plants, when determined to be 

dead/zero market value plants.

10. Causes of Loss

(a) In lieu of section 12 of the Basic Provisions, 

insurance is provided for unavoidable damage 

caused only by the unknown introduction of a 

plant disease or contamination into the CE at no 

fault of the CE operator resulting in a destruction 

order that requires destruction of the plants.

(b) In addition to the causes of loss excluded in 

section of the Basic Provisions, we do not insure:

(1) The inability to market the specific plants 

resulting solely from:

(i) The refusal of a buyer to accept such 

plants; or

(ii) Boycott.

(2) Any damage or loss of production for any 

reason other than a disease or 

contamination that requires destruction of 

the insured plants.

(3) Any cause of loss if the only damage 

suffered is a failure of specific plants to grow 

to an expected size; or

(4) Damage to specific plants due to failure to 

follow recognized good production 

practices.

11. Duties in the Event of Damage or Loss

(a) In addition to your duties contained in section 14 

of the Basic Provisions,

(1) You must obtain our written consent for 

each basic unit prior to:

(i) Destroying or otherwise disposing of 

any dead/zero market value plants; or

(ii) Changing or discontinuing your normal 

and customary good production 

practices related to the care and 

maintenance of the specific plants.

(2) You must submit a claim for indemnity to us 

on our form no later than 60 days after the 

date of your loss for each applicable basic 

unit, but in no event later than 60 days after 

the end of the insurance period. We will 

waive this requirement if the final adjustment 

of your claim is totally or partially deferred 

because we are unable to make an accurate 

determination of the amount of damage to 

the specific plants. If we notify you that we 

are unable to make an accurate 

determination of damage on all or some of 

your specific plants:

(i) For those specific plants in the basic 

unit on which the loss adjustment and 

claim have not been deferred, you must 

submit a claim for such specific plants 

in accordance with this section and we 

will settle your claim on such specific 

plants;

(ii) For those specific plants in the basic 

unit on which the loss adjustment and 

claim have been deferred, we will 

determine the post-loss damage value

at the earliest possible date but no later 

than one year after the end of the 
(7 of 9)

insurance period for the crop year in 

which the damage occurred; and

(iii) You must maintain the identity of the 

insured dead/zero market value plants 

using a method approved by us. Failure 

to maintain those records will result in 

those plants being uninsurable for the 

remainder of the crop year.

(b) If you fail to obtain our written consent as 

required by section 11(a)(1), your claim will be 

denied on each basic unit for which written 

consent was not obtained.

(c) If you fail to meet the above requirements and 

such failure results in our inability to inspect the 

dead/zero market value plants, any damage to 

such insured plants will be considered 

uninsurable, and the claim will be denied.

(d) Prior to our determination of the amount of any 

loss, you must provide acceptable 

documentation to us that supports your CEVR 

and inventory immediately prior to the loss 

occurrence.

(1) Required documentation includes, but is not 

limited to, the following:

(i) A detailed listing that includes the full 

name of each specific plant;

(ii) Acceptable, verifiable sales records for 

any specific plants that were sold the 

previous 60 days or 12 months, as 

applicable, that support the 

determination of an approved sales 

value for each specific plant as 

described in section 1; and

(iii) Documentation or demonstrated 

performance of your ability to properly 

obtain specific plants and carry out 

good production practices related to the 

maintenance of the specific plants.

(2) If you fail to provide the required 

documentation you will still owe premium 

based upon your SV, but you will not receive 

an indemnity for any specific plant for which 

you did not provide such documentation.

(e) You must maintain an inventory. If requested, 

you must provide:

(1) Your most recent inventory; and

(2) Purchase and verifiable sales records from 

the date of your most recent inventory to the 

date of loss occurrence;

(f) You must provide any information that we 

request to verify you have followed good 

production practices.

(g) You must provide a copy of the destruction 

order.

(h) Prior to receiving an indemnity, we must verify 

that you destroyed or disposed of the dead/zero 

market value plants by a method approved by 

us. We will determine the quantity of each 

specific plant destroyed or disposed of as 

described in section 12(c).

12. Settlement of Claim

(a) We will determine an indemnity for each basic 

unit as follows:

(1) Determine the pre-loss actual unit value;

(2) Determine the post-loss damage value as 

set forth in section 12(c);

(3) Determine the percent of loss by dividing the 

result of section 12(a)(2) by the result of 

section 12(a)(1);

(4) Multiply the percent of loss by the coverage

percentage; and

(5) Multiply the result of 12(a)(4) by the lesser 

of the:

(i) Pre-loss actual unit value; or

(ii) SV minus any previous loss for the 

basic unit;

(6) Multiply the result of 12(a)(5) by the price 

election percentage; and

(7) Multiply the result from section 12(a)(6) by 

your share.

If the result of section 12(a)(7) is greater than 

zero, an indemnity not to exceed the remaining 

amount of insurance is owed.

(b) The total of all indemnities paid for the crop year 

will not exceed the amount of insurance.

(c) The post-loss damage value will be determined 

as follows:

(1) We will determine the number of specific 

plants in the unit that were ordered to be 

destroyed due to a covered cause of loss.

(2) We will multiply the result of section 12(c)(1) 

by the approved sales value for each of the 

specific plants in the unit.

(3) We will multiply the result of section 12(c)(2) 

by the damage factor.

(4) We will sum the results of section 12(c)(3).

13. Late and Prevented Planting

The late and prevented planting provisions in the 

Basic Provisions are not applicable.

14. Written Agreements

The written agreement provisions in the Basic 

Provisions are not applicable.

15. Examples

Single Unit Example: Pre-Loss Actual Unit Value 

Exceeds SV

Assume you have a 100 percent share and your SV 

based on your MUVP plan is $500,000. Your 

coverage percentage is 75 percent. Your amount of 

insurance is $375,000 (($500,000 × 0.7500) ×

1.0000 share). You have not had any previous 

indemnity on the basic unit during the crop year. At 

the time of loss, we determine that your pre-loss 

actual unit value is $600,000. At the time of loss, we 

determine that 15,000 specific plants with an 

approved sales price of $20.00 each in the basic unit 

were ordered to be destroyed due to a plant disease. 

The post-loss damage value is 15,000 specific plants 

× $20.00 = $300,000.

We determine there is no damage due to uninsured 
(8 of 9)

causes of loss. Your indemnity is calculated as 

follows for basic units with additional coverage:

(a) Determine the pre-loss actual unit value:

$600,000;

(b) Determine the post-loss damage value:

$300,000;

(c) Determine the percent of loss [step (b) ÷ step 

(a)]:

$300,000 ÷ $600,000 = 0.5000;

(d) Multiply the percent of loss (step (c)) by the

coverage percentage:

0.5000 percent × 0.75 = 0.3750;

(e) Multiply the result of step (d) by the lesser of the 

pre-loss actual unit value or the SV minus any 

prior losses:

0.3750 × $500,000 = $187,500;

(f) Multiply the result of step (e) by the price election 

percentage:

$187,500 × 1.00 for additional coverage = 

$187,500;

(g) Multiply the result of step (f) by the share:

$187,500 × 1.000 = $187,500.

Your indemnity equals the result of step (g).

Your indemnity will be calculated as follows for a 

basic unit with CAT coverage:

(a) Determine the pre-loss actual unit value:

$600,000;

(b) Determine the post-loss damage value:

$300,000;

(c) Determine the percent of loss [step (b) ÷ step

(a)]:

$300,000 ÷ $600,000 = 0.5000;

(d) Multiply the percent of loss (step (c)) by the 

coverage percentage:

0.5000 percent × 0.50 = 0.2500;

(e) Multiply the result of step (d) by the lesser of the 

pre-loss actual unit value or the SV minus any 

previous losses:

0.2500 × $500,000 = $125,000;

(f) Multiply the result of step (e) by the price election 

percentage:

$125,000 × 0.55 for CAT level of coverage = 

$68,750;

(g) Multiply the result of step (f) by the share:

$68,750 × 1.000 = $68,750.

Your indemnity equals the result of step (g).

Single Unit Example: Pre-Loss Actual Unit Value 

is less than SV

Assume you have a 100 percent share and your SV 

based on your MUVP is $600,000. Your coverage 

percentage is 75 percent. Your amount of insurance 

is $450,000 (($600,000 × 0.7500) × 1.0000 share). 

You have not had any previous indemnity on the 

basic unit during the crop year. At the time of loss, 

we determine that your pre-loss actual unit value is 

$500,000. The post-loss damage value is the same 

as shown in the previous example 1, which is 

$300,000. We determine there is no damage due to 

uninsured causes of loss. Your indemnity for 

additional coverage is calculated as follows:

(a) Determine the pre-loss actual unit value:

$500,000;

(b) Determine the post-loss damage value:

$300,000;

(c) Determine the percent of loss [step (b) ÷ step 

(a)]:

$300,000 ÷ $500,000 = 0.6000;

(d) Multiply the percent of loss (step (c)) by the

coverage percentage:

0.6000 × 0.75 = 0.4500;

(e) Multiply the result of step (d) by the lesser of the 

pre-loss actual unit value or the SV minus any 

previous losses:

0.4500 × $500,000 = $225,000;

(f) Multiply the result of step (e) by the price election 

percentage:

$225.000 × 1.00 = $225,000;

(g) Multiply the result of step (f) by the share:

$225,000 × 1.000 = $225,000.

Your indemnity equals the result of step (g).

Your indemnity will be calculated as follows for a 

basic unit with CAT coverage:

(a) Determine the pre-loss actual unit value:

$500,000;

(b) Determine the post-loss damage value:

$300,000;

(c) Determine the percent of loss [step (b) ÷ step 

(a)]:

$300,000 ÷ $500,000 = 0.6000;

(d) Multiply the percent of loss (step (c)) by the 

coverage percentage:

0.6000 × 0.50 = 0.3000;

(e) Multiply the result of step (d) by the lesser of the 

pre-loss actual unit value or the SV minus any 

prior losses:

0.3000 × $500,000 = $150,000;

(f) Multiply the result of step (e) by the price election 

percentage:

$150,000 × 0.55 for CAT level of coverage = 

$82,500;

(g) Multiply the result of step (f) by the share:

$82,500 × 1.000 = $82,500.

Your indemnity equals the result of step (g).