United States 

Department 

of Agriculture 

Program Aid 

Number 

1894 

A Risk Management Agency Fact Sheet 

Nursery

Commodity Insurance 

Revised April 2009 

Insurance 

Nursery crop insurance is available in all States to all 

persons operating nurseries that meet certain criteria. 

Insurance coverage will apply, by practice (fieldgrown or container), to all of your nursery plants in 

a county that: 

 Are on the Eligible Plant List; 

 Are grown in a nursery that receives at least 50 

percent of its gross income from the wholesale 

marketing of nursery plants; 

 Meet all the requirements for insurability; and 

 Are grown in an appropriate medium. 

Nursery containers containing two or more different 

genera, species, subspecies, varieties, or cultivars 

cannot be insured. Plants grown for sale as Christmas trees cannot be insured, and plants grown as 

stock plants or grown solely for harvest of buds, 

flowers, or greenery cannot be insured. Plants producing edible fruits and nuts can be insured if the 

plants are available for sale (harvesting the edible 

fruit or nuts does not affect insurability). 

Your nursery must be inspected and approved as 

acceptable before insurance coverage can begin. 

Important Dates 

 The insurance period begins June 1 and continues 

through May 31 of the following year. 

 The contract change date is January 31 before the 

current crop year. 

 The sales closing date is May 1 before the current 

crop year. 

if You Suffer Damage or a Loss

Notify your agent within 72 hours (3 days) of your 

initial discovery of damage and submit a claim for 

indemnity no later than 60 days after the end of the 

insurance period. 

Insured Causes of Loss 

Adverse weather conditions1 

Failure of irrigation water supply2 

Fire3 

Wildlife 

1

Includes wind, hurricane, and freeze. If cold protection is required by 

the Eligible Plant List, adequate and operational cold protection measures must be in place. 2

If due to an insurable cause of loss, such as 

drought. 3

Provided weeds and undergrowth are controlled. 

Plant damage or losses in value as a result of the following situations are not covered: 

Collapse or failure of buildings/structures1 

Disease or insect infestation2 

Failure of plants to grow to an expected size 

Inadequate power supply3 

Inability to market nursery products4 

1

Unless caused by an insurable cause of loss. 2Unless effective control 

measures for the infestation do not exist. 3

Unless such inadequacy is a 

result of an insurable cause of loss. 4

Due to a stop sales order, quarantine, boycott, phytosanitary restriction on sales, or buyer refusal. 

Definitions 

Amount of Insurance — The result of multiplying 

the full value of all insurable plants in each basic 

unit by the selected coverage level percentage, multiplied by your share. 

Amount of Insurance Example 

$100,000 Plant inventory value 

x .65 Chosen coverage level percentage 

x 1.00 Producer share 

 $65,000 Unit amount of insurance 

Container-Grown Plants — Nursery plants planted 

and grown in standard nursery containers either 

above ground or placed in the ground [directly or 

when placed in another pot in the ground (pot-inpot)]. 

This fact sheet gives only a general overview of the crop insurance program and is not a complete policy. For further information and an 

evaluation of your risk management needs, contact a crop insurance agent. 
 

 

 

 

 

 

 

 

 

Crop Inventory Valuation Report — A plant inventory list created on the Nursery Inventory Software 

for assisting in establishing the insurable nursery 

plant inventory value. The Nursery Inventory Software is available at: http://www.rma.usda.gov/tools/ 

eplpps. 

Eligible Plant List — A list that includes botanical 

and common names of insurable plants, winter protection requirements for container-grown material and 

areas in which they apply, hardiness zone in which 

field-grown material is insurable, designated hardiness zone for each county, and unit classification for 

each plant. The list is available at: http:// 

www.rma.usda.gov/tools/eplpps and from crop insurance agents. 

Field-Grown Plants — Nursery plants planted and 

grown in the ground without the use of an artificial 

root containment device. 

Liners — Liners are insurable if the containers are 

equal to or greater than 1 inch in diameter (including 

trays containing 200 or fewer individual cells), but 

less than 3 inches in diameter at the widest point of 

the container or cell interior, have an established root 

system, and are able to maintain a firm root ball when 

lifted from the containers. 

Nursery — A business enterprise that grows nursery 

plants and receives at least 50 percent of its gross income from wholesale marketing of such plants. 

Stock Plants — Plants used solely for propagation 

during the insurance period or plants grown only for 

harvest of buds, flowers, or greenery. Stock plants cannot be insured. 

Plant Inventory Value Report 

The plant inventory value report is used to declare the 

value of your insurable plants. A plant inventory 

value report for each insured practice is required. 

Two copies of your most recent wholesale catalog or 

price list must accompany your plant inventory value 

report. Wholesale catalogs must: 

 Be typewritten and legible; 

 Show an issue date on the cover page (may be 

handwritten); 

 Contain name, address, and telephone number of 

nursery; 

 Be used for plant sales to customers; and 

 List plant names, container sizes, and wholesale 

prices. 

Your plant inventory value report must also be accompanied by a crop inventory valuation report or 

physical plant inventory and price documentation. 

Peak Inventory Endorsement 

For increased coverage during certain peak periods 

when your inventory value may be significantly 

higher than your annual plant inventory value, you 

may consider the additional insurance coverage provided by a Peak Inventory Endorsement (not available 

with the catastrophic coverage level). Contact your 

crop insurance agent for further details. 

Rehabilitation Endorsement 

This endorsement is an addition to the basic policy 

that provides reimbursement for your expenditures on 

labor and material for pruning and setup (righting, 

propping, and staking) of field-grown plants that are 

damaged by an insured cause of loss and have a reasonable expectation of recovery. The Rehabilitation 

Endorsement is not available with the catastrophic 

coverage level. Contact your crop insurance agent for 

further details. 

Pilot Nursery Grower’s Price 

Endorsement 

The Pilot Nursery Grower’s Price Endorsement, 

available in 19 States, is an addition to the basic policy that insures specific plants at prices higher than 

those shown on your eligible plant list. You must 

purchase this at the time you apply for coverage, or 

on or before the sales closing date. Contact your crop 

insurance agent for further details. 

Coverage Levels and Premium Subsidies 

Coverage levels range from 50 to 75 percent of your 

plant inventory value. Crop insurance premiums are 

subsidized as shown in the following table. For example, if you selected the 75-percent coverage level, 

your premium share would be 45 percent of the base 

premium: the catastrophic coverage level is fixed at 

27.5 percent of your plant inventory value. The only 

cost for the catastrophic coverage level is an administrative fee of $300. 

Item Percent 

Coverage level 50 55 60 65 70 75 

Premium subsidy 67 64 64 59 59 55 

Your premium share 33 36 36 41 41 45 

Risk Management Agency Nursery/PA-1894 
 

 

 

 

 

 

 

Loss Example 

$100,000 Plant inventory value 

x .65 Coverage level percentage 

 $65,000 Unit amount of insurance 

In the event of a loss: 

$100,000 Field market value before loss 

- $50,000 Field market value after loss

 $50,000 Value of loss 

- $35,000 Deductible* 

$15,000 Indemnity 

*(1 - coverage level) X inventory = (1 - .65) X $100,000 = $35,000 

Contact Us 

USDA/RMA 

Mail Stop 0801 

1400 Independence Ave., SW 

Washington, D.C. 20250-0801 

Web site: http://www.rma.usda.gov 

E-mail: rmaweb.content.@rma.usda.gov 

Agent locator: http://www3.rma.usda.gov/apps/agents/ 

Download Copies from the Web 

Visit our online publications/fact sheets page at: 

http://www.rma.usda.gov/pubs/rme/fctsht.html 

The U.S. Department of Agriculture (USDA) prohibits discrimination 

in all its programs and activities on the basis of race, color, national 

origin, age, disability, and where applicable, sex, marital status, 

familial status, parental status, religion, sexual orientation, genetic 

information, political beliefs, reprisal, or because all or a part of an 

individual's income is derived from any public assistance program. 

(Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact 

USDA's TARGET Center at (202) 720-2600 (voice and TDD). 

To file a complaint of discrimination write to: USDA, Director, Office 

of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 

20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). 

USDA is an equal opportunity provider and employer. 

Risk Management Agency Nursery/PA-1894