WV Small Farm Center

Nursery Crop Insurance

Buying a nursery crop insurance policy is one risk management option. Producers should always carefully consider how a policy will work in conjunction with their other risk management strategies to insure the best possible outcome. You can visit the Risk Management Agency’s most recent updates on policy offerings by clicking here.

Additionally, resources for inventory software and recordkeeping are available by clicking here.

How do I know if I qualify?

Insurance coverage will apply, by practice (field-grown 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.

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).

What cannot be insured?

• Nursery containers containing two or more different genera, species, subspecies, varieties, or cultivars cannot be insured. • Plants grown for sale as Christ¬mas trees cannot be insured. • Plants grown as stock plants or grown solely for harvest of buds, flowers, or greenery cannot be insured.

What is covered?

• Adverse weather conditions including wind, hurricane, and freeze • Failure of irrigation or water supply • Fire • Wildlife

What is NOT covered?

• Collapse or failure of buildings or structures • Disease or insect infestation • Failure of plants to grow to an expected size • Inadequate power supply • Inability to market nursery products

What’s the next step?

The sales closing date for nursery crop coverage is May 1 before the current crop year. The insurance period then begins on June 1 and continues through May 31 of the following year.
You must submit a plant inventory report. This is used to declare the value of your insurable plants. 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.

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.

Nursery Crops Coverage Levels

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

Terms to know

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.

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 here.

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 here 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.

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.

Frequently Asked Questions about Nursery Crop Insurance:

Q. What documentation am I required to provide to obtain insurance coverage?
A. To obtain insurance coverage, you are required to submit a PIVR, two copies of your wholesale catalog or price list, and a CIVR or a detailed plant inventory listing.

Q. What are considered acceptable records and supporting documentation?
A. You must be prepared to provide acceptable records and supporting documentation in support of the inventory values reported on your PIVR. Acceptable records and supporting documentation may include, but are not limited to: a) A detailed plant inventory listing that includes the name, the number, and the size of each plant; b) Acceptable records may also include: i. Sales of plants (e.g., sales receipts) for the crop year; ii. Purchases of plants (e.g., purchase receipts) for the crop year; iii. Costs associated with propagation for the crop year, if you propagate plants (e.g., input costs and planting records); iv. Evidence of your ability to properly obtain and maintain nursery stock.

Q. Do I have to insure all my nursery plants in a county?
A. No. There are two practices within the Nursery Crop Insurance Provisions: container grown and field grown. You may elect to insure only your container grown practice or only your field grown practice or both practices. However, you must insure all plants within each practice you elect to insure.

Q. What unit structures are available under the Nursery Crop Insurance Provisions?
A. The Nursery Crop Insurance Provisions only allow a basic unit structure. Basic units may be established by your share or they may be further divided into additional basic units by each insurable plant type depending on the level of coverage – additional level of coverage or Catastrophic (CAT) level of coverage – you elect. Optional units are not allowed. If you elect an additional level of coverage for one or both of the practices (container grown or field grown), you can elect basic units by share or elect basic units within the practice by plant type. There are 15 plant types for container grown and 12 plant types for field grown. You may elect different coverage levels for each basic unit. 2 If you elect CAT level of coverage for one or both practices, each practice is limited to one basic unit. For example, if you insure your field grown practice and your container grown practice under the CAT level of coverage, you will have two basic units: one basic unit for your field grown practice and one basic unit for your container grown practice. Note: You may insure your container grown plants under the additional level of coverage and field grown plants under the CAT level of coverage, or vice versa.

Q. How long must I keep my inventory records and/or supporting documentation?
A. All inventory records and supporting documentation must be retained for three years after the end of the crop year.

Q. What will I be required to do if my insured nursery inventory has suffered damage due to an insured cause of loss?
A. In the event your nursery inventory has suffered damage, you must submit a claim for indemnity to your AIP not later than 60 days after the date of loss, but in no event later than 60 days after the end of insurance period. Your AIP will require you to provide acceptable records and supporting documentation (please refer to the third question above for acceptable records and supporting documentation) at the time of loss to support the inventory values reported on your PIVR and CIVR or detailed plant inventory listing, whichever is applicable. You may also be asked to provide acceptable records and/or supporting documentation to verify your inventory value in the nursery immediately prior to the loss.

Find an Agent

Visit the Agent Locator link on the Risk Management Agency website.