Shellfish Crop Insurance Program 

Growing Interval III
Risk Management Agency

• Serving America’s agricultural producers through 

effective, market-based risk management tools to 

strengthen the economic stability of agricultural 

producers and rural communities.

• www.rma.usda.gov
RMA Regional Offices
How does crop insurance work?
Crop Insurance Cycle

1. Policy Renewal/Change Options/Application

2. Sales Closing/Cancellation/Termination Dates

3. Acceptance

4. Insurance Attaches

5. Acreage Reports

6. Summary of Coverage

7. Premium Billing

8. Notice of Damage or Loss of Production

9. Inspection

10. Indemnity Claim

11. Contract Change Date
How did we get here?

• Feedback from growers

• 2020 Listening Sessions

• Reduce onsite inspections

• Reduce record requirements 

• Utilize current industry records

• RMA developed the program with a 

contractor

• 2021 Contracted for development

• 2023 FCIC Board approved for implementation

• 2024 Initial crop year for coverage
What else was considered?

• No single planting or harvesting period. Production 

timelines can vary by:

• Production region climate;

• Individual production practices;

• Marketing windows; and

• Seed availability. 

• Oysters are not planted in any acreage 

equivalents. 

• Growers were not interested in an inventory- based program. They did not want to track single 

oysters from planting to harvest. 
What are we offering?

• Oyster Coverage

• Grown for the half-shell market

• Grown in containers

• Planted at 4mm or larger, based on your seed purchase receipts

• Hurricane Insurance Protection – Wind Index (HIP-WI) and the Tropical Storm (TS) option are available, when provided in the 

actuarial documents for the county

• Limited Peril Production-Based Program

• Basic Units by County

• Coverage based on your expected harvest for the year

• Production loss with a County Loss Trigger

• 12-month Insurance Period (Jan 1 to Dec 31)

• Producer Price Option
Where is the program offered?

State Name County Name State Name County Name

Alabama Baldwin New York Suffolk

Alabama Mobile North Carolina Carteret

California Humboldt North Carolina Dare

California Marin North Carolina Onslow

Florida Franklin North Carolina Pamlico

Florida Wakulla Rhode Island Newport

Maine Cumberland Rhode Island Washington

Maine Lincoln South Carolina Beaufort

Maryland Dorchester South Carolina Charleston

Maryland St Mary’s South Carolina Colleton

Massachusetts Barnstable Virginia Accomack

Massachusetts Plymouth Virginia Gloucester

Mississippi Harrison Virginia Northumberland

New York Nassau Virginia Westmoreland 
What will coverage protect against?

• Named Storms

• Hurricanes

• Identified by NOAA – NHC

• Minimum 64-knot wind speed in a county

• Adjacent counties will also trigger

• Nor'easters

• Weather station readings

• Average hourly barometric pressure at or below 990 

millibars for at least 12 consecutive hours

• No adjacent county triggers
What will coverage protect against?

• Excessive Heat during a low tide event

• Freeze during a low tide event

• Based on NOAA reports

• What is a low tide?

• Ocean monitoring stations detect Mean Lower Low Water (MLLW) 

readings, which is the lowest of two low tides per day averaged over 

19 years. Low tide events are when the low tide is at or below the MLLW.

• What causes the trigger during a low tide event?

• Hourly low tide events are evaluated along with daily air temperatures.

• Excessive Heat is a cause of loss when the average maximum daily 

temperature is at or above 38.0 degrees Celsius during a low tide event.

• Freeze is a cause of loss when the average minimum daily 

temperature is lower than the county threshold provided in

the Shellfish Data Provisions during a low tide event.
What will coverage protect against?

• Low Salinity caused by Excessive Rainfall

• Two criteria, described in Shellfish Data Provisions:

• Cumulative precipitation meets or exceeds the threshold (for 

applicable watershed area – see map on next slide) during six 

consecutive 30-day windows in the insurance period; and

• Threshold examples:

• Dorcester, MD = 2,096 cm

• Lincoln, ME = 1,198 cm

• Daily maximum temperature meets or exceeds 20 degrees 

Celsius reported on the final day of those six consecutive 30-

day windows.

• Example:

30-Day Window

June 1 – June 30

June 2 – July 1

June 3 – July 2

June 4 – July 3

June 5 – July 4

June 6 – July 5
Watershed Areas (as mentioned on previous slide)
What doesn’t this program cover?

• Loss or damage to oysters that you were not able to 

harvest due to:

• Reasons other than physical damage from an insurable 

cause of loss

• Quarantine

• Closure

• Refusal of the buyer to purchase your oysters

• Oysters grown in nurseries or hatcheries

• Bottom culture oysters

• Seed oysters purchased at less than 4mm
What are the insurability requirements?

• You must:

• Have share in the oyster production;

• Submit an application that is accepted by the insurance provider;

• Grow your oysters for the half-shell market;

• Grow your oysters in containers;

• Have seed purchase receipts that:

• Show you purchased 4mm or larger oyster seeds; and

• Are from a private or commercial shellfish nursery or hatchery;

• Have grown oysters or participated in managing an oyster operation 

for at least four crop years in the county where the oysters will be 

insured;

• Grow your oysters using generally acceptable production 

methods; and

• Grow your oysters in an operation that, if inspected, 

would be acceptable to your insurance provider.
What do I need to do?

• December 15 (for 2024 crop year); November 30 

(for subsequent crop years)

• Sales Closing Date

• Establish or Modify Coverage

• Complete a Producer’s Pre-Acceptance Worksheet (PAW)

• Your agent will provide this form to you and may assist in its 

completion. The PAW is the current assessment of your 

operation.

• Provide your Seed Purchase Receipts (by growing interval). 

Receipts must include:

• Your name (operation name);

• Commodity (oysters);

• Date of purchase (MM/DD/YYYY);

• Number of seeds purchased by seed size (must be a 

quantity of seeds, not a weighted measurement); and

• The name of the private or commercial shellfish 

h h h h d d
What do I need to do?

• January 15

• Production Reporting Date

• For the first year of coverage: 

• Provide at least the most recent four crop years of 

annual production reports for mature harvested oysters 

based on the applicable growing interval. Your 

production reports must include: 

• The total seed purchased by seed size and seed 

source. 

• Numbers must be supported by your seed 

purchase receipts. 

• Must include the name of the private or 

commercial shellfish nursery or hatchery, for each 

year for the growing interval. 

• Total dollar sales of your mature oysters; and 

• Total sold production of the mature oysters. 

• For subsequent crop years: 

• All information detailed above for the most recent 

crop year.

For 2024 Coverage

Growing 

Interval

Harvest 

Records

Seed Purchase 

Information

I 2020-2023 2019-2022

II 2020-2023 2018-2021

III 2020-2023 2017-2020
What do I need to do?

• January 15

• Commodity Reporting Date

• You must submit, for your basic unit and growing 

interval: 

• A list of all your oyster growing locations in the county. 

For each location you must provide the:

• Lease identification numbers (or other applicable 

identification numbers); and 

• Global Positioning System (GPS) coordinates (latitude 

and longitude). 

• The number of oyster seeds you purchased for 

expected harvest in the current crop year and their 

size. The information you provide must be 

supported by your seed purchase receipts.
What do I need to do?

• August 15

• Premium Billing Date

• FSA AD-1026 (Conservation Compliance) form due

• Must complete and sign on or before the premium billing 

date

• Ensures eligibility for premium subsidy (including for oysters)

• Oyster growers should mark Box 5A

• Contact your local FSA office

• https://offices.sc.egov.usda.gov/locator/app
Other Important Dates

• January 1

• Coverage Begins

• August 31

• Contract Change Date

• Changes to the policy, if any, will be published

• Actuarial documents will be published

• November 30

• Cancellation Date

• Cancel Coverage

• December 31

• End of Insurance Period

• Termination date, if coverage has been 

cancelled
What are Growing Intervals?

• Time between the calendar year you purchase your seed and the crop 

year you expect to harvest your mature oysters. 

• Only one growing interval may be selected.

• Must be based on the majority of the seeds in your operation.

• Used to estimate your expected harvest in a given crop year. 

• For example: 

• Growing Interval I – You purchased the majority of your seeds one calendar year prior to the year you plan to harvest (e.g., for crop year 2024, seeds 

were purchased in 2023). 

• Growing Interval II – You purchased the majority of your seeds two calendar years prior to the year you plan to harvest (e.g., for crop year 2024, seeds 

were purchased in 2022). 

• Growing Interval III – You purchased the majority of your seeds three calendar years prior to the year you plan to 

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

2021). 
Price 

Election

Production 

to Count

Value of 

Production 

to Count 

Share

Value of 

Production 

to Count

Value of 

Production 

Guarantee

Indemnity

Coverage 

Level

Approved 

Yield 

Production 

Guarantee

How does it work?

Price 

Election

Production 

Guarantee

Value of 

Production 

Guarantee
Approved Yield 

• Lesser of your:

• Capped yield 

• Average yield multiplied by 1.25.

• Expected yield

• The number of seeds on your seed purchase receipts for 

expected harvest in the current crop year multiplied by 

the Adjusted Mean Survival Rate.
Approved Yield – Survival Rates

• Observed Survival Rate 

• Percentage determined by dividing your harvested production for 

each crop year by the number of seeds you purchased in the 

calendar year for your growing interval 

• For example – Growing Interval III:

• Divide the harvested production from the 2023 crop year by the number 

of seed purchased in the 2020 calendar year.

• Standardized Survival Rate

• Your observed survival rate for the applicable seed size for each 

crop year, multiplied by the standardized survival factor for that 

seed size.

• Adjusted Mean Survival Rate

• Simple average of the standardized survival rates for the 

base period for your growing interval that is used to 

determine the expected yield for the current crop year.
Survival Rates – Standardized Survival Rate

• Standardized Survival Factor 

• Percentage based on different seed sizes that are used to calculate 

the standardized survival rate. These factors are contained in the 

Special Provisions for your county.

Seed Size for APH Crop Year

Seed Size Purchased for 

Current Crop Year for 

Applicable Growing 

Interval

4mm to < 

6mm

6mm to < 

8mm

8mm to < 

10mm

10mm to < 

12mm

12mm or 

larger

4mm to < 6mm 100% 93% 90% 87% 81%

6mm to < 8mm 108% 100% 97% 93% 88%

8mm to < 10mm 112% 104% 100% 97% 91%

10mm to < 12mm 115% 107% 103% 100% 94%

12mm or larger 123% 114% 110% 107% 100%

Seed size from 

historical plantings

Seed size for expected 

harvest in current crop year
What if I plant multiple seed sizes?

• If you plant multiple seed sizes for expected harvest in 

the same crop year, a weighted average seed size will 

be used.

• Example:

Seed 

Size

Number of 

Seed Purchased

Seed Purchased 

x Size

6mm 125,000 125,000 x 6mm = 750,000

8mm 175,000 175,000 x 8mm = 1,400,000

10mm 50,000 50,000 x 10mm = 500,000

Total 350,000 2,650,000

2,650,000 ÷ 350,000 = 7.6 mm Weighted Average Seed Size
Approved Yield Example

• Producer Provided Records

• Standardized Survival Rate Calculation

Harvest 

Year

Year Seed 

Planted

# Seed 

Purchased

Seed 

Size

# Oysters 

Harvested

Total 

Dollar 

Sales

Price per 

Oyster

Observed 

Survival 

Rate

2020 2017 275,000 6mm 205,000 $70,590 $0.34 75%

2021 2018 300,000 6mm 238,000 $92,220 $0.39 79%

2022 2019 325,000 10mm 235,000 $105,920 $0.45 72%

2023 2020 333,000 6mm 254,750 $126,088 $0.49 77%

2024 2021 350,000 7.6mm

Harvest 

Year

Seed Size Observed 

Survival Rate

Standardized 

Survival Factor

Standardized 

Survival Rate

2020 6mm 75% 100% 75% x 100% = 75%

2021 6mm 79% 100% 79% x 100% = 79%

2022 10mm 72% 93% 72% x 93% = 67%

2023 6mm 77% 100% 77% x 100% = 77%

Adjusted Mean 

Survival Rate 75%

Capped 

Yield 

291,484
Approved Yield Example

• Expected Yield 

Number of Seed Purchased x 

Adjusted Mean Survival Rate

• 262,500 = 

350,000 x 75%

• Approved Yield 

Lesser of Expected Yield or Capped Yield 

• 262,500 = 

lesser of 262,500 or 291,484
Coverage Level

• Available Coverage Levels

• 50-75% Coverage levels

• Catastrophic coverage is available
Production Guarantee Example

Coverage 

Level 

Approved 

Yield

Production 

Guarantee

183,750 262,500 70%
What are the price options?

• Price Election

• Established price available in the actuarial 

documents; or

• Producer Price Option (PPO)

• Option to get a price higher than RMA’s published 

price election

• Not available for Catastrophic coverage

• You must:

• Elect the option by November 30 (SCD)

• Submit records of the number of oysters sold and average 

price received for the unit for the most recent four crop 

years. 
How is the PPO determined?

• Average price received by you for each year in the most recent 

four crop years. 

• Total dollar sales of mature oysters divided by the total number of 

mature oysters sold, for each crop year. 

• Your PPO cannot be greater than the Maximum Over Established 

Price (MOEP) for your county in the actuarial documents.

• MOEP = RMA Established Price x 1.25

• Example: Harvest Year Number of 

Oysters Sold

Dollar Sales Average Price

2020 205,000 $70,590 $0.34

2021 238,000 $92,220 $0.39

2022 235,000 $105,920 $0.45

2023 254,750 $126,088 $0.49

4-Year Average Price / PPO $0.42

RMA Established 

Price = $0.37

MOEP = $0.47
Value of Production Guarantee Example

Price 

Election

Production 

Guarantee

Value of 

Production 

Guarantee

$67,988 183,750 $0.37
What is a County Loss Trigger?

• Occurrence of an insurable cause of loss in your 

county or an adjacent county

• Determined in accordance with the Shellfish Commodity Provisions 

and the Shellfish Data Provisions 

• County loss triggers will be specified in the actuarial 

documents

• An insurable production loss and a county loss trigger 

must occur within the insurance period before any loss 

is payable
What if I have a production loss?

• You must:

• Protect your oysters from further damage by providing 

sufficient care

• Prove damage to your oysters occurred during the crop year

• Provide notice to your insurance company within 72 hours 

of your discovery of damage or loss

• This cannot be done later than 15 days after the end of the crop year

• Notice must be given even if there is no County Loss Trigger

• Submit a claim no later than 60 days after the crop year ends

• Your insurance company may inspect or 

appraise your production.
How do I know if I will receive an 

indemnity? Production 

Loss?

Yes

County Loss Trigger?

Yes

Production to Count < 

Production Guarantee

Yes, Indemnity No Indemnity

No

No Indemnity

No 

County Loss Tigger?

Yes

No Indemnity

No

No Indemnity
Value of Production to Count Example

Price 

Election

Production 

to Count

Value of 

Production 

to Count

$35,150 95,000 $0.37
Share

• Your insurable interest in your oyster operation 

as the owner or operator at the time insurance 

attaches 

• Must have a financial risk directly related to the 

production of the crop

• Who is included in your share?

• Spouse

• Child

• Household member
Indemnity Example

Share

Value of 

Production 

to Count

Value of 

Production 

Guarantee

Indemnity

$32,838 $67,988 $35,150 100%
RMA Cost Estimator

• https://ewebapp.rma.usda.gov/apps/costestimator/
RMA Cost Estimator

• Personalized Estimate
RMA Cost Estimator

• Add Item

• Enter Applicable Information
RMA Cost Estimator

• Producer Premium Amount

• Liability Amount

• Subsidy Amount
RMA Cost Estimator

• Producer Worksheet
Hurricane Insurance Protection –

Wind Index (HIP-WI)

• Covers a portion of the deductible

• Must be elected by the Sales Closing Date

• Full HIP-WI value is paid when a county, or an adjacent county, is within the area of sustained 

hurricane-force winds from a named hurricane 

based on NOAA NHC published data.

• If Tropical Storm (TS) Option elected, half of TS 

value is paid for first TS; remaining paid if subsequent TS or hurricane occurs.

• A notice of loss is not required.
HIP-WI

• Example:

• Base Policy 

Coverage 

Level = 65%

• HIP-WI 

Coverage 

Range = 30%
HIP-WI Cost Estimator

• Personalized Estimate
HIP-WI Cost Estimator

• Add Item

• Enter Applicable Information
HIP-WI Cost Estimator

• Producer Premium Amount

• Liability Amount

• Subsidy Amount
RMA Cost Estimator

• Producer Worksheet
RMA Agent Locator 

• https://www.rma.usda.gov/Information-Tools/Agent-Locator
RMA Agent Locator 

• Enter the information for your operation:
Where can I find more RMA information?

• https://www.rma.usda.gov/Topics/Shellfish
How does crop insurance work with 

FSA programs?

• Non-Insured Assistance Program (NAP)

• You can purchase coverage under NAP and the RMA Shellfish (Oyster) 

Program

• This is because the RMA Shellfish program is currently in Pilot status.

• If you have a loss, you are limited to indemnification under only one 

program (NAP or RMA).

• Emergency Assistance for Livestock, Honeybees, and FarmRaised Fish Program (ELAP)

• You can have coverage under ELAP and the RMA Shellfish (Oyster) 

Program

• You may receive and retain benefits under both programs (ELAP and 

RMA).
Thank You