Small Grains Crop Insurance
Who can be insured?Coverage for small grains is available in most counties of West Virginia. This consists of winter wheat, oats, and barley. Contact your local agent to determine availability in your specific county. In 2010, 35 percent of WV’s 7,000 acres of winter wheat were insured. More than 400 acres of oats and barley were also insured.
What is insured?The crop insured will be all small grains (wheat, barley, and oats) grown in the county on insurable acreage, for which premium rates are provided, in which you have a share, and is planted for harvest as grain. Wheat and barley may be covered with yield protection or revenue protection. Wheat previously covered under the Crop Revenue Coverage plan will be converted to Revenue Protection. Note: Coverage for Oats is available with Actual Production History (APH) only.
Causes of Loss
- Adverse weather conditions, including hail, frost, freeze, drought, and excess precipitation
- Failure of irrigation water supply
- Plant disease
Terms to Understand
- Yield Protection Plan and APH provide protection against production losses.
- Revenue Protection Plan provides protection against loss of revenue due to a production loss, price decline or increase, or a combination of both.
- Group Risk Plan (GRP) provides protection against widespread loss of production based on county average yields.
- Group Risk Income Protection (GRIP) is similar to GRP but factors in price to place the coverage in revenue terms. A projected price and harvest price is determined from the futures market.
- Basic Unit: A basic unit includes all of your insurable small grains acreage in the county by crop by share arrangement. Premiums are reduced 10 percent for a basic unit.
- Optional Unit: If a basic unit consists of two or more FSA farm serial numbers and certain record keeping requirements are met, you may qualify for optional units. The 10-percent premium discount will not apply.
- Enterprise Unit: Generally, all the insured acreage of the crop in a county.
- Whole Farm Unit: Generally, all the insured crops in the county that are covered by the insurance plan.
What are the next steps?The Fall-Planted sales closing date for barley and wheat is September 30. Spring-Planted oats sales closing date is March 15; and spring-planted barley sales closing date is October 31. Insurance coverage begins on the later of the date RMA accepts your application or the date when the crop is planted, and will end at the earliest of: (1) total destruction of the crop; (2) harvest of the unit; (3) final adjustment of a loss; (4) end of insurance period listed below or (5) abandonment of the crop.
Coverage Levels and Premium SubsidiesThe premium subsidy percentages and available coverage levels are shown below. Your share of the premium will be 100 percent minus the subsidy amount. Percent Premium Subsidy Small Grains
Price ElectionsPrices for wheat and barley are based on futures market prices. Projected prices are generally available 15 days prior to the sales closing date. The harvest price is generally available at the end of the month when most of the crop is harvested.
What is a loss?Under yield protection a loss occurs when the bushels of wheat produced for the unit fall below the production guarantee as a result of damage from a covered cause of loss. Under revenue protection a loss occurs when the value of production to count is less than the revenue protection guarantee due to a production loss and/or a loss of revenue.
value of production to count< revenue protection guarantee
Loss Example: 60 bushels/acre APH yield, 75 percent coverage level, $5.29 projected price, $4.49 harvest price, and 15 bushels produced.