For the past few years, Florida orange growers who had an Actual Production History (APH) crop insurance policy rather than a Dollar Amount policy were more likely to receive indemnity payments. They also provided a higher average payout, according to a UF/IFAS associate professor and Extension economist. However, just because APH has been the best choice for Florida citrus growers in the past few years, that is no guarantee that it will continue to be the best option. That UF/IFAS Extension economist recommended that Florida citrus growers consider three key factors before deciding on crop insurance.
Citrus Crop Insurance Considerations
The UF/IFAS Extension economist maintained that Florida citrus growers need to consider yield history, the Minimum Production Requirement, and net indemnities before choosing a crop insurance policy.
- Yield History. APH standards have a clause that includes a procedure that tests a grove’s yield history. If the test shows a downward trend, then it triggers an adjustment, and the grower’s APH yield will see a 20% reduction.
- Minimum Production Requirement. APH includes a minimum production requirement for acreage. This includes that blocks that are eight years old or older must have produced at least 100 boxes per acre in one of the three previous seasons. This requirement could be lowered to 75 boxes per acre, but it’s not yet decided.
If a block falls under the 100 boxes per acre rule, then growers would need to submit a request to the Risk Management Agency (RMA) to get coverage, but the determined yield cannot exceed 80% of the average yield for the APH database.
- Net Indemnities. Net indemnities under APH are decreasing each year due to the continual negative impact that citrus greening, also known as HLB, has had on yields in Florida citrus. Premium rates increase while APH yield decreases, and an APH policy may not offer Florida citrus growers the payout that it has in years past.
Florida citrus growers are advised to evaluate their numbers and APH databases to determine the optimal coverage for seasons going forward.