(1 of 5) 

24-0115

(Released September 2023) 

UNITED STATES DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

SHELLFISH COMMODITY PROVISIONS

In return for your payment of premium and administrative fee for coverage, these Shellfish Commodity Provisions and 

corresponding Shellfish Data 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

Actual yield – In lieu of the definition in section 1 of the 

Basic Provisions, the total number of the commodity

(which includes harvested and appraised mature 

production) as documented by production records or 

claims for indemnities for the basic unit.

Adjusted mean survival rate – The simple average of 

the standardized survival rates for the APH base period

for the applicable growing interval that is used to 

determine your expected yield for the current crop year.

Approved yield – In lieu of the definition in section 1 of 

the Basic Provisions, the approved yield for the basic unit

for the crop year is the lesser of:

(a) Your average yield for the basic unit multiplied by 

1.25; or

(b) The expected yield. 

Assigned yield – In lieu of the definition in section 1 of 

the Basic Provisions, an annual yield assigned according 

to FCIC approved procedures for an APH crop year when 

you do not file an acceptable production report, or when 

upon request by us, or any other person authorized by 

FCIC, you do not provide acceptable evidence of 

production and seed records to support your production 

report. The assigned yield will not be more than 75 

percent of the prior year’s approved yield. If an assigned 

yield cannot be determined due to no prior year’s 

approved yield, no coverage will be provided.

Average yield – In lieu of the definition in section 1 of the 

Basic Provisions, the result of summing the yearly actual 

and assigned yields for the APH database and dividing 

the sum by the number of yields contained in the APH

database for the applicable growing interval.

Basic unit – In lieu of the definition in section 1 of the 

Basic Provisions, a basic unit will be all of the insurable 

commodity in the county for which you have a share on 

the date coverage begins for the crop year. 

Commodity – An agricultural commodity as defined in 

the Basic Provisions. The term commodity will have the 

same meaning as crop when referenced in applicable 

sections of the Basic Provisions, these Commodity

Provisions, and applicable FCIC approved procedures. 

Commodity report – In addition to section 6 of the Basic 

Provisions, your report of the insured commodity in the 

county, whether insurable or not insurable. For the 

purposes of these Commodity Provisions, the commodity 

report functions as the acreage report.

Commodity reporting date – The date contained in the 

Special Provisions by which you are required to submit 

your commodity report.

Containers – Floats, bags, rafts, trays, longline systems,

racks, and other off-bottom cages commonly used by the 

shellfish industry. 

County loss trigger – The occurrence of an insurable 

cause of loss as determined in accordance with these 

Commodity Provisions and the SDP. A county meeting 

the county loss trigger will be specified in the actuarial 

documents.

Crop year – In accordance with the definition in section 

1 of the Basic Provisions, the calendar year of expected 

harvest. 

Expected yield – The result of the number of seed 

purchased from a private or commercial shellfish nursery 

or hatchery that are placed into containers for the crop 

year (as determined by the applicable growing interval) 

multiplied by the adjusted mean survival rate.

Growing interval – The time between the calendar year 

of the seed purchased and the crop year for the insured 

commodity and county and is used to calculate the 

expected yield. The growing interval must be based on 

the majority of the seeds in your operation as follows:

(a) Growing Interval I – The majority of the seed is 

purchased one calendar year prior to the crop year

(e.g., for crop year 2024, seeds are purchased in 

2023).

(b) Growing Interval II – The majority of the seed is 

purchased two calendar years prior to the crop year

(e.g., for crop year 2024, seeds are purchased in 

2022).

(c) Growing Interval III – The majority of the seed is 

purchased three calendar years prior to the crop year

(e.g., for crop year 2024, seeds are purchased in 

2021). 

Harvest – The removal of the mature commodity from the 

basic unit.

Maximum over established price – The upper limit to 

the producer price option, as shown in the actuarial 

documents.

Named storms – A low pressure system as identified by 

NOAA-NHC including hurricanes and nor’easters as 

provided in the SDP. 

NHC – National Hurricane Center. 

NOAA – National Oceanic and Atmospheric 

Administration. 

Observed survival rate – The percentage determined 

by dividing the harvested production for each crop year 

by the number of seed purchased in the calendar year 

corresponding to the growing interval (e.g., for Growing 

Interval II, divide the harvested production from the 2024 

crop year by the number of seed purchased in 2022). 

Price election – The price election, elected by you by the 

sales closing date: 

(a) As defined in section 1 of the Basic Provisions, shown 

as the “established price” in the actuarial documents; or

(b) The producer price option.

Producer price option – The producer price option is 

calculated as the average price received by you for each 

year in the most recent four APH crop years up to the 
(2 of 5)

maximum over established price. The average price is 

the total dollar sales of the commodity divided by the total 

number of the commodity sold for each crop year.

Production guarantee – In lieu of the definition in 

section 1 of the Basic Provisions, the number of the 

commodity determined by multiplying the approved yield

for the basic unit by the coverage level percentage you 

elect.

Shellfish – Oysters and other commodities as specified 

in the actuarial documents.

Shellfish Data Provisions (SDP) – A document that 

describes the methodology utilized by FCIC in identifying 

counties subject to a county loss trigger.

Standardized survival factor – A percentage 

established by FCIC based on different seed sizes that 

are used to calculate your standardized survival rate. 

The seed size factors are contained in the Special 

Provisions.

Standardized survival rate – Your observed survival 

rate for the applicable seed size for each crop year in the 

APH base period, as specified in section 3(d)(1)(ii) of 

these Commodity Provisions, multiplied by the 

standardized survival factor for that seed size.

Type – A category of the commodity identified as a type 

in the Special Provisions.

2. Unit Division

(a) A basic unit as defined in section 1 of these 

Commodity Provisions will apply.

(b) No other unit division is allowed under section 34 of 

the Basic Provisions.

3. Insurance Guarantees, Coverage Levels, and Prices

(a) If you elect the Catastrophic Risk Protection (CAT) 

level of coverage, you may not elect the producer 

price option.

(b) A single growing interval will apply for all of the 

insured commodity in the county.

(1) The growing interval must represent the majority 

of the seeds in your operation; and

(2) The growing interval for the current crop year will 

apply for each subsequent crop year your policy 

is in effect for the insured commodity except as 

provided in section 3(c) of these Commodity 

Provisions.

(c) You may request a change to your growing interval 

based on a change in seed size, or other reasons 

identified in FCIC approved procedures, in a 

subsequent crop year by requesting the change in 

writing not later than the sales closing date. The 

requested change must be approved by us in 

accordance with FCIC approved procedures.

(d) In lieu of section 3(f)(1) of the Basic Provisions, to be 

eligible for insurance, you must provide an annual 

production report for the basic unit and applicable 

growing interval by the production reporting date 

designated in the actuarial documents as follows:

(1) For the initial crop year:

(i) At least the most recent four APH crop years 

of production records of the harvested 

mature commodity;

(ii) The total seed purchased by seed size and 

seed source, including the name of the 

private or commercial shellfish nursery or 

hatchery, for years corresponding to the 

production records of the harvested mature 

commodity based on the applicable growing 

interval. For example, if the most recent four

years of harvested production records are 

provided for 2020-2023, you must report 

your seed information for at least the:

(A) 2019-2022 years for Growing Interval I;

(B) 2018-2021 years for Growing Interval II;

and

(C) 2017-2020 years for Growing Interval 

III.

(iii) The number of seeds purchased by seed 

size, supported by seed purchase receipts,

which include the name of the private or 

commercial shellfish nursery or hatchery, for 

expected harvest in the current crop year;

(iv) Total dollar sales; and

(v) Total sold production of the mature 

commodity.

(2) For subsequent crop years, you must provide 

the information contained in section 3(d)(1)(i), if 

available, and 3(d)(1)(ii)-(v) for the most recent

APH crop year. Failure to provide the required 

information will result in the imposition of an 

assigned yield.

(3) You may report a maximum of your most recent

ten consecutive APH crop years of production 

and seed records.

(e) In addition to section 3 of the Basic Provisions, you 

must report, by the production reporting date 

designated in the actuarial documents, any change 

in cultural practices, growing intervals, or growing 

locations that could reduce the potential yield below 

the approved yield upon which the insurance 

guarantee is based. We will reduce the approved 

yield as necessary:

(1) Based on our estimate of the effect of the 

changes and the information provided on the

pre-acceptance worksheet.

(2) If you fail to notify us of any of the changes, at 

any time that we become aware of the changes

in accordance with FCIC approved procedures.

(f) Your approved yield will be determined in 

accordance with section 3 and section 5 of the Basic 

Provisions and these Commodity Provisions.

4. Contract Changes

In accordance with section 4 of the Basic Provisions, the 

contract change date is August 31 preceding the 

cancellation date.

5. Cancellation and Termination Dates

In accordance with section 2 of the Basic Provisions, the 

cancellation date is November 30 and the termination 

date is December 31.

6. Report of Commodity

(a) You must submit a pre-acceptance worksheet, 

including seed purchase receipts for the current crop 

year (as determined by the applicable growing 

interval), by the sales closing date.

(b) You must submit a revised pre-acceptance 
(3 of 5)

worksheet by the commodity reporting date if:

(1) You purchased additional seeds for expected 

harvest in the current crop year (as determined 

by the applicable growing interval). The PAW

must be accompanied by seed purchase 

receipts; or

(2) You acquired additional leases for expected 

harvest in the current crop year.

(c) In addition to section 6 of the Basic Provisions, your 

commodity report must be submitted by the 

commodity reporting date and must include for the 

basic unit and applicable growing interval:

(1) All growing locations of the insured commodity 

in the county including, for each location, all 

applicable:

(i) Lease identification numbers (or other 

applicable identification numbers); and

(ii) Global Positioning System (GPS)

coordinates.

(2) The number of seed purchased and seed size 

for the current crop year (as determined by the 

applicable growing interval), supported by seed 

purchase receipts, which include the name of the 

private or commercial shellfish nursery or 

hatchery.

7. Insured Commodity

(a) In accordance with section 8 of the Basic Provisions, 

the commodity insured in the county will be all of 

each commodity you elect to insure for which a 

premium rate is provided by the actuarial documents:

(1) In which you have a share;

(2) That is listed on your application submitted by 

you and which is accepted by us;

(3) That is a type designated in the Special 

Provisions;

(4) That is grown in containers;

(5) That meets the minimum seed size contained in 

the Special Provisions and is supported by your 

seed purchase receipts;

(6) That is purchased from a private or commercial 

shellfish nursery or hatchery;

(7) That is grown by a person who has grown the 

commodity or participated in managing an

operation of the same commodity for at least four 

crop years in the county in which the commodity 

will be insured, unless otherwise specified in the 

Special Provisions;

(8) That is produced using generally acceptable 

production methods for the commodity; and

(9) That is produced in an operation that, if

inspected by us, is considered acceptable to us.

(b) Shellfish grown in nurseries and hatcheries are not 

insurable.

8. Insurance Period

(a) In accordance with the provisions of section 11 of the 

Basic Provisions:

(1) For the year of application, coverage begins on 

January 1, unless we inspect the applicable 

growing locations before insurance attaches in 

accordance with section 7(a)(10) of these 

Commodity Provisions and determine a growing 

location(s) does not meet insurability 

requirements. You must provide any information 

that we require for the commodity to determine 

the condition of your operation.

(2) For each subsequent crop year, coverage 

begins on January 1st following the December 

31st calendar date for the end of the insurance 

period for the prior crop year.

(b) Coverage ends on the basic unit or part of the unit at 

the earliest of:

(1) Total destruction of the insured commodity;

(2) Final adjustment of a loss on the unit;

(3) Abandonment of the insured commodity;

(4) Harvest of the insured commodity; or

(5) The December 31st calendar date for the end of

the insurance period.

(c) For purposes of section 8(b) of these Commodity

Provisions, coverage ends on any portion of the 

commodity within a unit once any event specified in 

section 8(b) occurs for the commodity. Coverage 

only remains in effect on any portion of the 

commodity within the basic unit that has not been 

affected by a specified event.

9. Causes of Loss

(a) In accordance with the provisions of section 12 of the 

Basic Provisions, insurance is provided only against 

the following causes of loss that occur within the 

insurance period in counties where a county loss 

trigger is determined:

(1) Named storms;

(2) Excessive heat during a low tide event;

(3) Freeze during a low tide event; or

(4) Low salinity caused by excessive rainfall.

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

12 of the Basic Provisions, we will not insure against 

damage or loss of production due to your inability to 

harvest the commodity for any reason other than 

actual physical damage from an insurable cause 

specified in this section. For example, we will not pay 

you an indemnity if you are unable to harvest due to 

quarantine, closure, or refusal of any person to 

accept production.

10. Duties in the Event of Damage or Loss

(a) Your duties:

(1) In accordance with section 14 of the Basic 

Provisions, in case of damage or loss of 

production for the insured commodity:

(i) You must:

(A) Protect the commodity from further 

damage by providing sufficient care; 

and

(B) Establish that damage to the insured 

commodity occurred during the 

insurance period.

(ii) All notices required in this section of these 

Commodity Provisions must be received by 

us within 72 hours of your initial discovery of 

damage or loss (but not later than 15 days 

after the end of the insurance period). Such 

notices must be given without regard to the 

insured county meeting the county loss 

trigger.

(iii) You must submit a claim in accordance with 

the applicable provisions of section 14(e) of 

the Basic Provisions.

(2) In addition to the provisions of section 14 of the 
(4 of 5)

Basic Provisions, you must give us written notice

within 72 hours:

(i) If you do not intend to harvest all mature 

production of the commodity for any growing 

location but not later than the end of the 

insurance period; and

(ii) If you are notified that any of your 

commodity will be quarantined, subject to 

closure, or destroyed by order of any 

governmental authority.

(3) All notices under section 10(a) of these 

Commodity Provisions may be made 

electronically (including by telephone) or in 

person to your crop insurance agent but must be 

confirmed in writing within 15 days after such 

notice.

(4) If you fail to comply with the notice requirements 

in section 10(a) of these Commodity Provisions, 

any loss will be determined in accordance with 

section 11(f)(1)(i)(E) of these Commodity 

Provisions, unless we determine we have the 

ability to accurately adjust the loss.

(b) Our duties:

We will pay any indemnity you are eligible to receive 

for your loss under these Commodity Provisions 

within 30 days after the later of the date:

(1) FCIC releases the list of counties identified as 

meeting the county loss trigger and your insured 

county is contained on the list;

(2) We determine your production to count for the 

unit under these Commodity Provisions for the 

insured crop; or

(3) Any applicable determinations are made under 

section 14(f) of the Basic Provisions.

11. Settlement of Claim

(a) An indemnity will be payable under these Commodity 

Provisions when:

(1) A county meets the county loss trigger

determined in accordance with the SDP; and

(2) There is an insurable loss of production.

(b) Indemnities are calculated following FCIC’s release 

of a county loss trigger in your county.

(c) Additional counties may be identified and published 

in the actuarial documents for the applicable crop 

year after the release of updated data as provided in 

the SDP. Once counties are listed by FCIC, they will 

not be removed even if later data indicates they did 

not meet the county loss trigger.

(d) In the event of loss or damage covered by this policy, 

we will settle your claim on a unit basis by:

(1) Multiplying the production guarantee for the 

insured commodity for the unit by your 

applicable price election;

(2) Multiplying the production to count for the 

insured commodity for the unit by your 

applicable price election;

(3) Subtracting the result of section 11(d)(2) from 

the result of section 11(d)(1); and

(4) Multiplying the result of section 11(d)(3) by your 

share.

Example:

You have a 100 percent share in a basic unit of 

oysters reported on your commodity report with a 

coverage level of 75 percent. Your production 

guarantee is 75,000 oysters (100,000 oyster

approved yield × 75 percent coverage level). You 

elected 100 percent of the price. The price election

used to establish the value of your production 

guarantee is $0.60 per oyster. The value of your 

production guarantee is $45,000 (75,000 oysters × 

$0.60). The county loss trigger occurred. An insured 

cause of loss reduced your production to count for 

the unit to 32,200 oysters.

(1) 75,000 oyster production guarantee × $0.60

price election = $45,000 value of production 

guarantee.

(2) 32,200 oysters × $0.60 per oyster = $19,320

value of production to count.

(3) $45,000 - $19,320 = $25,680.

(4) $25,680 × 1.000 share = $25,680 indemnity.

(f) The total production to count from all of the insurable 

commodity in the unit or part of a unit will include:

(1) All appraised production as follows:

(i) Not less than your production guarantee for 

the unit or part of a unit:

(A) That is abandoned;

(B) Put to another use without our consent;

(C) Damaged solely by uninsured causes;

(D) For which you fail to provide records of 

production that are acceptable to us; or

(E) For which you fail to give us notice 

required in accordance with section 

10(a) of these Commodity Provisions;

(ii) Production lost due to uninsuredcauses;

(iii) Potential production of the commodity that 

we give consent to abandon or no longer 

care for if you and we agree on the 

appraised amount of production. Upon such 

agreement, the insurance period for the unit 

will end. If you do not agree with our 

appraisal, we may defer the claim only if you 

agree to continue to care for the insured 

commodity. We will then make another 

appraisal when you notify us of further 

damage or that harvest is general in the 

area unless you harvested the insured 

commodity, in which case we will use the 

harvested production. If you do not continue 

to care for the insured crop, our appraisal 

made prior to deferring the claim will be 

used to determine the production to count;

and

(iv) Potential mature production that is not 

harvested by the end of the insurance 

period; and

(2) All harvested mature production from the insured 

unit.

12. Excluded Coverages

The following coverages and options contained in the 

Basic Provisions are not available under these 

Commodity Provisions:

(a) Section 9. Insurable Acreage;

(b) Section 13. Replanting Payment;

(c) Section 15. Production Included in Determining an 

Indemnity and Payment Reductions [except section 

15(a) and (b) of the Basic Provisions];

(d) Section 16. Late Planting;

(e) Section 17. Prevented Planting;
(5 of 5)

(f) Section 18. Written Agreements;

(g) Section 34. Units;

(h) Section 36. Yield Options;

(i) Section 37. Organic Farming Practices; and

(j) Section 38. Direct Marketing and Verifiable Records.