October 24, 2000

Apple growers in six states will have a new quality option for insurance protection. The option is available immediately. Growers in California, Michigan, New York, Pennsylvania, Virginia and Washington have until Nov. 20 to consider purchasing the option.

It provides additional quality-based coverage for growers who can provide acceptable records of annual packout for the insurable acreage for the apples grading "fancy" or better. The packout percentage will determined an amount of insurance on the acreage.

The option also defines two grades of apples for insurance purposes. The amount of liability per acre is established by the grade of the apples. Fancy and all other apples will comprise the majority of the liability, and these appropriate grades will have associated pricing levels. There is a provision included to account for a minimum value of apples that are marketable but unsold.

Losses are paid for when damage to the grower's production or packout percentage exceeds the deductible as compared to the calculated liability.

The option applies to major crops under actual production history (APH) coverage plan. For revenue plans, the subsidy is applied to the yield portion of the premium only. It applies to all plans of insurance and all price levels within a coverage level.