USDA ANNOUNCES COVERAGE FOR ASIATIC CITRUS CANKER IN FLORIDA

Contact: Eric Edgington

WASHINGTON, Oct 15, 1999 - Ken Ackerman, Administrator of USDA's Risk Management Agency, (RMA) announced several revisions to the Florida Fruit Tree Pilot Crop Insurance (PDF, 34Kb) program for the 2000 crop year, which begins on November 20, 1999. This pilot program is available in Dade, Highlands, Martin, Palm Beach, and Polk Counties, Florida. RMA has requested Congressional authorization to expand the program to an additional 24 Florida counties.

One key policy change insures producers against losses of citrus trees to Asiatic Citrus Canker (ACC). "Creating this protection is important to Florida citrus producers." said Ackerman. "But, it wouldn"t have been possible without the support of the Florida Department of Agriculture and Consumer Service's Division of Plant Industry (DPI) and USDA's Animal and Plant Health Inspection Service (APHIS). Because of their monitoring and certification activities, we can provide producers the protection they need, while safeguarding the integrity of the crop insurance program."

The ACC coverage will be part of the standard policy, not an option that the producer would purchase separately. In general, the underwriting rules that control coverage for the standard perils and the ACC peril will work as follows:

• Eligibility for the two sets of perils (standard and ACC) will be determined separately. Thus, an insured may qualify for coverage against the standard perils, but not against ACC.
• The eligibility requirements for the standard perils are essentially unchanged.
• If the producer is in a county without a DPI- or APHIS-established quarantine zone, the producer will qualify for ACC coverage automatically.
• If an ACC quarantine zone has been established in the county, the producer must obtain an ACC Underwriting Certification from DPI. before coverage for ACC will attach. Crop insurance agents will be able to help grove owners request these certifications.
• Once the producer qualifies for ACC coverage, the coverage will remain in effect as long as the policy is renewed, even if the county is later included in a quarantine zone, unless the producer adds land or increases coverage options, at which time a new ACC Underwriting Certification from DPI will be required.
• Currently, only Dade County producers are required to submit ACC Underwriting Certifications in order to be eligible for ACC coverage.
• Groves failing to qualify for ACC coverage may still be covered for all other perils.

Crops and counties covered under the Florida Fruit Tree policy for crop year 2000 are:

• Dade–Carambola and Lime;
• Highlands--Orange, Grapefruit, and All Other Citrus*;
• Martin–Orange, Grapefruit, Lemon and All Other Citrus*;
• Palm Beach–Orange Grapefruit, Lemon and All Other Citrus*; and
• Polk–Orange, Grapefruit, Lemon, and All Other Citrus*.

The Florida Fruit Tree policy has also been simplified and improved with several other coverage features:

• Producers will only have to report the number of trees, the desired coverage level, and their ownership share.
• Optional units will be available by legal description and non-contiguous land, consistent with the Florida Citrus Fruit crop insurance program.
• Producers will be able to choose different coverage options by crop.
• The sales closing date is being moved from Nov. 15 to Nov. 20, in order to coincide with other tree insurance programs. As a result, coverage for policies carried over from the 1999 crop year will be given extra days of coverage under the new crop provisions to fill the 5-day gap.
• Because year-round sales are permitted, premium will be pro-rated for partial year sales.