Insured Information Security Policy 1 Introduction to Rain and Hail... 1 Company Directory... 2

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1 Table of Contents i Table of Contents 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual PUBL_1306_06_09_15 For the electronic version of this manual, please visit: Insured Information Security Policy 1 Introduction to Rain and Hail... 1 Company Directory Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index... 3 Rainfall Index Eligible States and Counties... 4 Rainfall Index Available in the Following States and Counties... 5 Program Overview... 5 Advantages for Producers... 6 Disadvantages for Producers... 6 Important Dates... 6 Underwriting Guidelines... 7 Crop Information... 9 Index Background... 9 Program Basics Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Vegetation Index Eligible States and Counties Vegetation Index Available in the Following States and Counties Program Overview Advantages for Producers Disadvantages for Producers Important Dates Underwriting Guidelines Crop Information Index Background Program Basics Annual Forage Rainfall Index Annual Forage Rainfall Index Plan RH 5081 Rainfall Index (RI) and Vegetation Index (VI) Application/Cancellation/Transfer/Policy Change/Acreage Reporting Form PRF Processing Procedure PRF Processing Procedures Web Services/Resources Quoting Options Quick Analyzer User Interface Unit Details Coverage Analyzer User Interface Detail Panel Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

2 ii Table of Contents 7 Claims and Quality Control Rainfall Index Claims Rainfall Index Quality Control Requirements Vegetation Index Claims Vegetation Index Quality Control Requirements Rainfall Index and Vegetation Index Basic Provisions RIVI Rainfall and Vegetation Index Plan Common Policy RI-PRF FCIC Rainfall Index PRF Crop Provisions RI-API FCIC Rainfall Index API Crop Provisions VI-PRF FCIC Vegetation Index PRF Crop Provisions VI-API FCIC Vegetation Index API Crop Provisions RMA Ineligibility Amendment Rainfall Index Actuarial/Special Provisions Rainfall Index Actuarial/Special Provisions API Rainfall Index Actuarial/Special Provisions Vegetation Index Actuarial/Special Provisions PRF Vegetation Index Actuarial/Special Provisions API Vegetation Index Actuarial/Special Provisions Forms Rainfall Index (RI) and Vegetation Index (VI) Application/Cancellation/Transfer/Policy Change/Acreage Reporting Form (RH-5081) NCIS 920D Rainfall Index Disclaimer NCIS 930D Vegetation Index Disclaimer Rainfall Index Questions and Answers Pasture, Rangeland, Forage Rainfall Index Questions and Answers (Provided by RMA) Vegetation Index Questions and Answers Pasture, Rangeland, Forage Vegetation Index Questions and Answers (Provided by RMA) Rainfall Index and Vegetation Index Biology of the Crop Biology of the Crop (Provided by RMA) Marketing Materials Rainfall Index Marketing Materials Vegetation Index Marketing Materials Civil Rights Civil Rights Awareness Nondiscrimination Company Policy/Assurance Statement Public Notification Required Discrimination Complaints Rehabilitation Act of Title VII Civil Rights Communication Tools Reaching Limited Resource, Women and Minority Producers Ordering Information for Civil Rights Materials Office of Civil Rights

3 Never send communication to Rain and Hail which includes personal identifiable information for any person, including SSN, EIN, etc. Insured Information Security Policy Rain and Hail Insurance Service, Inc., and its Subsidiaries I. Purpose The purpose of this Insured Information Security Policy is to: (1) ensure the security and confidentiality of customer information; (2) protect against any anticipated threats or hazards to the security or integrity of the information; and (3) protect against unauthorized access to or use of the information that could result in substantial harm or inconvenience to any customer. This Policy applies to Rain and Hail Insurance Service, Inc., and all of its subsidiaries ( Rain and Hail ). II. Insured Information Security Risk Assessment and Existing Rain and Hail Procedures A. Rain and Hail specializes in providing and servicing crop insurance and other commercial agricultural risk protection insurance products. Rain and Hail does not provide or service life insurance, annuity contracts, or workers compensation coverages. B. All applicants are required to provide social security numbers and employer identification numbers as part of the application process. C. When third parties, including policyholders, agents and adjusters, submit sensitive information electronically, the information is protected both online and off-line. Rain and Hail uses encryption software and other security measures to protect from the loss, misuse, or alteration of sensitive information under our control. D. Rain and Hail limits employee access to personally identifiable information to those employees with a business reason to know such information. Rain and Hail educates its employees about the importance of confidentiality and customer privacy through standard operating procedures, special training programs, and our policies on ethics. Rain and Hail takes appropriate disciplinary measures to enforce employee privacy responsibilities. E. Rain and Hail does not reveal specific information about customer accounts or other personally identifiable data to parties outside its affiliated companies for independent use unless: (1) the customer requests or authorizes it; (2) the information is provided to help complete a transaction initiated by the customer; (3) the information is provided to a reputable credit bureau or similar information reporting agency; or (4) the disclosure otherwise is lawfully permitted or required. Rain and Hail does not provide account or personal information to non-rain and Hail affiliated companies for the purpose of independent telemarketing or direct mail marketing of any non-financial products or services of those companies. F. At times it is necessary for Rain and Hail to provide personally identifiable information about customers to a party outside its affiliated companies, such as to an insurance agent or adjuster who provides support or services for one or more of our products. These parties agree to safeguard our confidential information about our customers and our customers products and services with us and must abide by applicable law. G. Rain and Hail has implemented a Privacy Statement for its website and has an E-Business Implementation Plan, which addresses the proper handling of customer transactions. H. Based upon the types of risks that it insures and its existing procedures, Rain and Hail has determined that its precautions to protect insured information are commercially reasonable. III. Designation of Compliance Officer Rain and Hail hereby designates its Associate General Counsel/SIU Manager as the Policyholder Information Security Compliance Officer. IV. Detecting Violations If an employee detects any suspected violations of this Policy, the employee shall notify the Compliance Officer. In the event of a referral or notification, the Compliance Officer shall audit and investigate the circumstances of any such activity. Rain and Hail, through its Compliance Officer, will directly review and report any suspicious activities to the proper authorities as required. These controls and monitoring shall be in place on a daily basis. V. Independent Audit of the Insured Information Security Policy The Insured Information Security Policy shall be subject to audit, not less than annually, by Rain and Hail s internal auditor. The internal auditor shall annually report its findings as to compliance with this Insured Information Security Policy to Rain and Hail s audit committee as appointed by its Board of Directors and provide a copy of its findings to the Compliance Officer. VI. Training All employees shall be adequately trained and instructed with regard to Insured Information Security Policy. The scope of this training will be modified to suit the duties of individual employees. Such training will include: 1) proper handling of customer information that could arise during the course of the employee s duties, 2) instructions to contact the SIU if such violations of this policy are suspected, and 3) an explanation of the disciplinary consequences, including civil and criminal penalties, for non-compliance with this policy. The SIU officer at all times shall meet the qualifications and training required by the Federal Crop Insurance Corporation, the Risk Management Agency of the United States Department of Agriculture, and the Commissioner of Insurance of the State of Iowa. VII. Effective Date This program shall be effective June 30, (Rev. 5/11)

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5 1 1 Introduction to Rain and Hail 2 Company Directory Introduction to Rain and Hail

6 2 Section 1 Introduction to Rain and Hail Company Directory Midwest Division IA and MO 9200 Northpark Drive, Suite 200 Johnston, IA PH: FAX: Central Division IL, IN, MI and OH 7800 North Sommer Street, Suite 504 Peoria, IL PH: FAX: Southwest Division NM, OK and TX 2201 Civic Circle, Suite 604 Amarillo, TX PH: FAX: Northern Division MN, ND, SD and WI Two Carlson Parkway, Suite 255 Plymouth, MN PH: FAX: Great Plains Division CO, KS and NE F Street, Suite 213 Omaha, NE PH: FAX: Southern Division AL, AR, FL, GA, KY, LA, MS and TN 1951 Rosebud Road Grayson, GA PH: FAX: California Division AZ and CA 499 West Shaw Avenue, Suite 101 Fresno, CA PH: FAX: Northwest Division ID, MT, NV, OR, UT, WA and WY North 200 Mullan Road, Suite 111 Spokane, WA PH: FAX: Great Falls Service Office 300 River Drive North, Suite 2 Great Falls, MT PH: FAX: Atlantic Division CT, DE, ME, MD, MA, NH, NJ, NY, NC, PA, RI, SC, VT, VA and WV 3120 Highwoods Blvd., Suite 202 Raleigh, NC PH: FAX: Canadian Division AB, MB and SK 4303 Albert Street, Suite 200 Regina, SK S4S 3R6 PH: FAX: Corporate Headquarters 9200 Northpark Drive, Suite 300 Johnston, IA PH: FAX: ACE Agribusiness Farm & Ranch 9200 Northpark Drive, Suite 250 Johnston, IA PH: FAX: Commercial Ag 72 North Franklin Street P.O. Box P Wilkes-Barre, PA PH: Farm & Ranch, Commercial Ag Sun Center Drive Rancho Cordova, CA PH: FAX: Help Desk: Available Mon. - Fri. from 7:00 a.m. to 7:00 p.m. CST (All Inquiries) Available Sat. from 7:00 a.m. to 9:30 a.m. CST (General) 7:00 a.m. to 8:00 p.m. CST (LGM Only) Agency Support Unit All States PH: FAX:

7 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 4 Rainfall Index Eligible States and Counties 5 Rainfall Index Available in the Following States and Counties 5 Program Overview 6 Advantages for Producers 6 Disadvantages for Producers 6 Important Dates 7 Underwriting Guidelines 9 Crop Information 9 Index Background 12 Program Basics 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index

8 4 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index Rainfall Index Eligible States and Counties 2013 and Succeeding Crop Years - Pasturage, Rangeland, Forage Availability and Succeeding Crop Years - Apiculture

9 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 5 Rainfall Index Available in the Following States and Counties States PRF Counties API Counties Alabama All Counties All Counties Arkansas None All Counties California All Counties All Counties Colorado Adams, Alamosa, Arapahoe, Baca, Bent, Boulder, Chaffee, Cheyenne, Clear Creek, Conejos, Costilla, Crowley, Custer, Denver, Douglas, Eagle, El Paso, Elbert, Fremont, Gilpin, Grand, Gunnison, Huerfano, Jackson, Jefferson, Kiowa, Kit Carson, Lake, Larimer, Las Animas, Lincoln, Logan, Morgan, Otero, Park, Phillips, Pitkin, Prowers, Pueblo, Rio Grande, Routt, Saguache, Sedgwick, Summit, Teller, Washington, Weld and Yuma Florida All Counties All Counties Georgia All Counties All Counties Kansas All Counties All Counties Maryland None All Counties Minnesota All Counties All Counties Missouri All Counties All Counties Montana All Counties All Counties Nebraska All Counties All Counties New York All Counties All Counties North Carolina All Counties All Counties North Dakota All Counties All Counties Oklahoma All Counties All Counties Pennsylvania All Counties All Counties South Carolina All Counties All Counties South Dakota All Counties All Counties Texas All Counties All Counties Virginia All Counties All Counties Wisconsin All Counties All Counties Program Overview Perils Covered 1. Rainfall Index coverage is for a single peril, which is lack of precipitation. Coverage Levels 1. Percentages available: 70, 75, 80, 85 and 90 a. The insured may select only one coverage level for each of the insured crop types in the county. 1. For example, the insured could insure 90% for grazing and 80% for haying in same county. 2. Higher coverage levels reduce basis risk. a. This policy correlates closer to individual experience. Catastrophic Risk Protection (CAT) Not currently available Adams, Alamosa, Arapahoe, Baca, Bent, Boulder, Chaffee, Cheyenne, Clear Creek, Conejos, Costilla, Crowley, Custer, Denver, Douglas, Eagle, Elbert, El Paso, Fremont, Gilpin, Grand, Gunnison, Huerfano, Jackson, Jefferson, Kiowa, Kit Carson, Lake, Larimer, Las Animas, Lincoln, Logan, Morgan, Otero, Park, Phillips, Pitkin, Prowers, Pueblo, Rio Grande, Routt, Saguache, Sedgwick, Summit, Teller, Washington, Weld and Yuma 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

10 6 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index NAP Clarification 1. Producers can have both a PRF RI policy and a NAP policy and have losses incurred under both independently of each other. 2. Producers can obtain NAP on grazing crops (grazing) and RI on forage crops (haying) or vice versa, because they are considered separate crops by both RMA and FSA. Other Insurance 1. Unless otherwise specifically allowed by the Rainfall Index Crop Provisions or Special Provisions, an insured producer cannot insure the same crop type in the same crop year through any other federally subsidized crop insurance program in counties where they carry Rainfall Index coverage (except as noted below). If more then one policy has been written that covers the insured s share of the crop type, the policy with the earliest application date will be in effect. All later policies will be void. Penalties may be applicable as specified in the provisions of 7 CFR Section Exception: a. Rainfall Index insureds may insure the same crop in the same county and crop year under a Whole-Farm Revenue Protection (WFRP) policy. b. If allowed by the Special Provisions, an insured can have both an APH Forage Production policy and coverage under this policy (same acreage cannot be insured on both policies). Examples: 1. An insured can have an APH Forage Production policy on haying and insure grazing under this program in the same county. 2. An insured can have an APH Forage Production policy and insure all insurable acreage under that policy and then insure acreage that does not meet the minimum stand requirements under this program. Advantages for Producers 1. Flexibility Allows producers to tailor a program to their risk management needs by selecting coverage levels, index intervals, productivity factor and the number of acres to insure and allows producers to determine when precipitation is vital to plant growth. 2. Covers lack of precipitation The predominant peril to pasture and rangeland forage (a decrease in the precipitation or index would indicate a decrease from normal) 3. Provides for timely indemnities 4. Index intervals are mutually exclusive 5. No individual loss adjustments needed 6. Index is easy to understand 7. No production records are required 8. Moral hazard and adverse selection minimized Disadvantages for Producers 1. Individual losses/experiences not covered 2. Only covers a decline in precipitation Important Dates Sales Closing Date: November Only one sales closing per year a. Consistent with other programs SCD b. Minimizes possible forecasting and program abuse 2. Application must be submitted by sales closing date a. Insured must select the county, crop, plan of insurance (RI), type, level, productivity factor and dollar amount of protection per acre. 3. A Mandatory Disclaimer Form must be signed and dated for each RI crop being insured (See Section 8: Forms) The disclaimer is only required to be completed once, along with the new application.

11 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 7 Insurance Period 1. Rainfall Index crop year is 12 months and begins January 1 2. Acreage Reporting Date: November 15 a. Must file annually on insurance provider s form (such as RH-5081) b. The insured must report and certify by the acreage reporting date the insured acreage of the crop type in the county in which the insured has an interest, by share, for each grid ID and crop type. For these insured acres, the FSA farm number, FSA tract number and FSA field number must also be reported. If these numbers do not exist, the insured should request such numbers from the applicable FSA office. The insured must also report insurable acreage in the county by crop type and include percent of value on application. c. For apiculture, the insured must also report the total number of insurable colonies in the United States. d. Acreage on which the insured has failed to follow good farming/ranching practices as defined in the RI Basic Provisions for the insured crop will not be insured. e. Acreage altered or removed as criteria for participation in any other government program is not insurable. A revised acreage report must be submitted removing the acreage, if such acreage was previously reported as insurable. 3. Acreage reports can be corrected or revised prior to the ARD. After the acreage reporting date, corrections (e.g., 87 acres reported but should be 78) may be allowed at our discretion. 4. Premium Billing Date: September 1 a. Premium and administrative fees shall be due and payable 30 days after the premium billing date. 5. Contract Change Date: August 31st 6. Cancellation/Transfer: November 15th This is a continuous policy. 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index Underwriting Guidelines Share All acreage with the same share, index interval and crop type, regardless of name of other person(s) sharing in the crop, can be entered on a single line of the acreage report. Coverages Not Applicable The following coverage does not apply to Rainfall Index: 1. Hail and fire exclusion provisions 2. High-risk land exclusion provisions 3. Late planting provisions 4. Replant requirements 5. Replanting payment provisions 6. Prevented planting provisions 7. Experience adjustment factors 8. Optional units 9. Enterprise Units 10. Whole Farm Units 11. Production Reporting 12. Written agreements 13. Added county election (not applicable to pilots) Percent of Value 1. Insureds must allocate, on their application, a percent of value to each unit. The percent of value allows insureds with more than one unit to individualize their coverage within the requirements of the program. Using the percent of value, insureds can allocate a percentage of the total insured value to each selected index interval. 2. Regardless of how the total value is allocated between index intervals, the sum of the percentages for all index intervals, by grid ID, share and intended use, must equal 100 percent. 3. There may be a minimum and maximum percent of value that can be allocated to an index interval. See the crop provisions and actuarial documents for more information about minimum and maximum amounts that may be allocated Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

12 8 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index Production Records and Yield History 1. Insureds are not required to report yield history or maintain production records for the Rainfall Index policy. However, they are encouraged to maintain any individual crop production records and acreage history for use or possible future use in a plan of insurance that uses APH yields for the same crop (e.g., APH Forage Production). 2. If a Rainfall Index insured returns to a plan of insurance that uses APH yields for the same crop types, his/her APH yield history database will be updated only if continuous crop production reports (including the period insured under Rainfall Index policy) are filed when returning to such a plan. Failure to file the most recent year s crop production report may limit the insured s choices. APH procedures will apply and can be referenced in the CIH. Insured and Insurable Acreage The insured is not required to insure 100% of acreage. 1. The insured acreage in the county is the acreage selected to be insured. 2. The insured acreage will not exceed 100% of the insurable crop acreage in the county. Insurable acreage is haying and grazing that is not planted annually (unless allowed by the Special Provisions). 1. Overseeding into acreage of existing forage crops is an acceptable farming practice and is not considered an annual planting. 2. Insurable acres consists of the total number of acres suitable for insurance, which includes both insured acres and acres of the crop type that are not insured. Insured Crop The insured crop will be the crop types in the county: 1. In which you have a share. 2. That is grown for the purpose of grazing, haying or apiculture crop production. 3. Located on insurable acreage in the county listed in the accepted application. 4. Intended for harvest by haying or grazing by livestock or honey production, collection of pollen, wax and bee breeding purposes and reported as such by the acreage reporting date. 5. That is produced on established acres or on annually planted acreage if allowed by the Special Provisions (such as, but not limited to, establishment of small grains and annual forage sorghums). 6. That is not initially planted to a forage crop after July 1 of the previous crop year (unless allowed by the Special Provisions). 7. You may choose to insure grazing, haying or both. The same acreage cannot be insured as both grazing and haying. If the insured acreage is intended to be utilized as both grazing and haying and meets the requirements of both crop types, the insured must choose one crop type under which to report the acreage. 8. You must determine the applicable grid IDs, crop types and percent of value no later than the sales closing date. 9. You must determine the number of insured acres and index intervals no later than the acreage reporting date. Rain and Hail will not insure any acreage: 1. That is not established forage (unless allowed by the Special Provisions) or is not intended for harvest by haying, grazing or apiculture crop production. 2. Where the crop is destroyed or put to another use during the crop year for the purpose of conforming with, or obtaining payment under, any other program administered by the USDA, such as, but not limited to, the Conservation Reserve Program. 3. That was initially seeded after July 1 of the previous year (unless allowed by the Special Provisions).

13 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 9 Crop Information (0088) Pasture, Rangeland, Forage Type Grazing (007) 1. Established acreage of perennial forage 2. Intended for grazing by livestock 3. Acreage must be suitable for grazing a. Acreage that is steeply sloped, too far from water sources, etc.; such that livestock would not normally physically graze on the acreage is not considered suitable for grazing. Haying (030) 1. Established acreage of perennial forage 2. Intended for haying 3. Acreage must be suitable for haying a. Acreage that is steeply sloped, covered by water, etc., such that it would be impractical or impossible to mechanically harvest the acreage is not considered suitable. 4. Program covers all types of grazing and haying forage (i.e., not just alfalfa) (1191) Apiculture 1. The raising and care of honey bees for agricultural crop production 2. Honey production, collection of pollen, wax and bee breeding purposes Type No crop types specified Index Background The index is based on reliable National Oceanic and Atmospheric Administration (NOAA) data. The technology is utilized as follows: The PRF-RI Pilot Program does not explicitly predict individual forage or production on a producer s operation. Instead, the index is simply a reflection of how much precipitation is received for a specified weather grid s given two-month interval relative to the long-term average for the same interval grid. Research indicates that precipitation is highly correlated with forage production but does not directly predict forage production. Key components of the RI program include: 1. Basis for losses and payments are based on sub-county level known as a Grid ID. 2. Daily collected precipitation data is mathematically interpolated into weather grid nationwide a. Each grid is approximately 12 x 12 miles in size 3. Same data used by a. U.S. Drought Monitor b. U.S. National Threat Assessment c. Palmer Drought Index d. CPC Soil Moisture Forecast Project 4. Precipitation is averaged over 12 x 12 mile weather grid a. Actual precipitation received on a given property may not reflect what is reported for the entire grid 5. Seasonal constrained rainfall index derived a. From data collected, processed and maintained by NOAA s Climate Prediction Center (NOAA data is sustainable indefinitely given the strategic nature of the data to national monitoring programs and USDA investment in the data gathering and processing). b. Daily rainfall data starts in 1948 and is updated daily for the entire U.S. c. Data undergoes rigorous quality control from over 15,000 weather stations reporting daily into the system. 6. Eleven intervals per year for each weather grid a. Each interval is two months in duration and cannot overlap b. Four-month requirement, so at least two index intervals must be selected c. Large variation in conditions between regions across the U.S. d. Best way to recognize and capture regional variations was to provide producers the most flexibility in managing their own rainfallinduced forage risks by selecting the period of the year that best reflects their conditions Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index

14 10 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 7. Index accumulates daily, with the daily precipitation events beginning on the first day of the specified interval through the last day of the same interval. 8. Accumulated values (inches) for each of the six intervals are stored by year for all years from 1948 to 2003, resulting in 56 accumulated precipitation values for each of the eleven intervals for each of the weather grids in the proposed study area. 9. The mean accumulated value is computed for each grid and interval for this 56-year period. The computation of the index involves calculating the percent of normal value using the following formula for each grid and interval: (Current Accumulated Rainfall Index = Average Accumulated Rainfall) 100 Average Accumulated Rainfall 10. Each night a computer system automatically logs onto the NOAA data site, downloads the precipitation data for each grid and updates the accumulated rainfall amounts for each weather grid. 11. At the end of each two-month interval, the same computers then compute the percent of normal value of the resulting index. 12. This value is then made available to insurance companies via RMA s website. Biology of the Crop (Provided by RMA) 1. Because the forage-based systems consist of predominantly perennial plants and often contain mixtures of different species, each with different growth habits and seasons, rainfall, adequate to maintain sufficient soil moisture to sustain plant growth, over extended periods is important to total annual production. 2. For this reason, the PRF Rainfall Index program requires that the crop be insured for at least two intervals or four months. Index is based on deviation from normal of accumulated rainfall during a given index interval 1. Little to no actual production data is available. 2. No scientifically consistent and sound methodology for measuring production for the crop without extensive field plots, manpower, etc. 3. The deviation from long-term normal rainfall during the index intervals is used to develop the index. 4. Rainfall has a high degree of correlation to forage production. Areas of insurance are grids grids (grids 12 x 12 miles); therefore, there can be multiple grids per county. 2. Provides for a consistent program across the United States. 3. Counties vary in size, but the grids do not, which average about six to eight NOAA 12 x 12 grids per county. 4. The grids allow for closer correlation to local precipitation variations than using entire counties as an index. 5. Grid size reduces basis risk vs. county size. 6. Allows for closer correlation to individual experience. 7. Grids will cross county and state lines. (See image below) PRF Grid Example for North Dakota

15 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 11 Multiple Index Intervals 1. Considered separate crop practices 2. Coverage available over 11 index intervals, in two-month increments, beginning with January 1 of the crop year. PRF Index Interval Start Date End Date Haying 030 January February Haying 030 February March Haying 030 March April Haying 030 April May Haying 030 May June Haying 030 June July Haying 030 July August Haying 030 August September Haying 030 September October Haying 030 October November Haying 030 November December PRF Index Interval Start Date End Date Grazing 007 January February Grazing 007 February March Grazing 007 March April Grazing 007 April May Grazing 007 May June Grazing 007 June July Grazing 007 July August Grazing 007 August September Grazing 007 September October Grazing 007 October November Grazing 007 November December API Index Interval Start Date End Date (997) No Type Specified (625) January February (997) No Type Specified (626) February March (997) No Type Specified (627) March April (997) No Type Specified (628) April May (997) No Type Specified (629) May June (997) No Type Specified (630) June July (997) No Type Specified (631) July August (997) No Type Specified (632) August September (997) No Type Specified (633) September October (997) No Type Specified (634) October November (997) No Type Specified (635) November December Index Intervals 3. Allows producers to appropriately design their coverage to match their local growth patterns and production seasons. 4. The two-month intervals provide for greater reaction to precipitation events and their deviation from normal (e.g., a dry Interval II is not countered by a wet Interval IV as they are independent of each other). 5. Minimizes dependency on subjective pre-determined estimated forage growing seasons. 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

16 12 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 6. Maintains consistency across the country, while still allowing for regional and local variances by allowing individual freedom to select appropriate intervals. a. These intervals act as mini-insurance periods. 1. For example, indemnities payable on one interval are not dependent on results from other intervals. b. Index intervals are mutually exclusive. 1. One index does not affect the others. 2. All index intervals are rated separately. Insured must select at least two intervals. The two intervals do not have to be contiguous and they cannot overlap. 1. The purpose of the program is to insure annual forage production. a. Total annual forage production is influenced by precipitation in more than one two-month interval; therefore, producers are required to insure in more than one interval. 2. Maximum percentages are region specific based on growing season. The following statements are in the state/county actuarials for PRF Rainfall Index: 1. The minimum percent of value allowed in any one index interval by grid ID, intended use and share is 10 percent. The maximum percent of value that can be allocated to any one index interval by grid ID, intended use and share is specified in the Special Provisions. 2. Regardless of how the total value is allocated between index intervals, the sum of the percentages for all index intervals by grid ID, share and intended use, must equal 100 percent. Each scenario of each grid, index interval and coverage level combination is individually rated. 1. Minimizes adverse selection There is not an economic advantage of insuring in one scenario vs. another, thereby encouraging producers to select a scenario that best fits their operation. 2. Adequate data permits the individual rating, thereby allowing for the rates to accurately reflect the risks of each scenario. No requirement to insure 100% of acreage 1. Forage utilized in the annual grazing or hay cycle can be insured without insuring all acreage. 2. All acres within a property may not be productive (e.g., rocky areas, submerged areas). 3. Provides flexibility for the insured to design the coverage to his/her specific needs. 4. Because the program is an index program and other programs are not available, there is no opportunity to move production. Program supported via Internet 1. Provides the most efficient and effective way to deliver the program. 2. Allows access to the mapping tools that allow the user to locate his/her grazing areas and associated grid ID numbers. 3. Provides access to the historical rainfall indices. 4. Allows access to all relevant data, materials and tools associated with the program. Program Basics Terminology and Other Differences 1. Grid and grid ID in addition to county 2. Insurable and insured acres vs. planted acres 3. Index vs. yields 4. Web-based 5. Not required to insure 100% of acres 6. Must select two index intervals 7. Grid IDs, crop types, will be determined prior to the sales closing date 8. Acreage and index intervals will be determined by acreage reporting date

17 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 13 Basic Definitions County: May also include any acreage within a grid ID that crosses an adjoining county or state line where the acreage is contiguous. (See image below) County A County B Grid 3 C 140 Acres Grid ID Example for adjoining county or state Insurable Acreage: Haying and grazing that is not planted annually. 1. Overseeding into acreage of existing forage crops is acceptable. 2. Annually planted crops currently are not insurable. 3. Insurable acres will consist of the total number of acres suitable for insurance under the PRF Crop Provisions. 4. Includes both insured acres and uninsured acres. Insured Acres: The number of insurable acres selected to be insured by a producer. 1. May choose to insure either Grazing, Haying or both. (Insured may certify acres with FSA as haying but report them to crop insurance as grazing.) 2. Not required to insure 100% of the crop type(s). Unit: The insured acres within or assigned to a grid ID for each crop type and index interval. 1. If there are multiple grid IDs on a policy, the index values are not added together, as each unit and crop stands on its own. 2. Basic Units only no basic unit discount. County Base Value: Established production value, in dollars, of grazing and haying forage. 1. Only one value per county for each crop type. 2. RMA and the Contractor used U.S. Geological Survey land-cover estimates, regional experts and the following to establish grazing and haying county base values for each location: a. USDA Farm Service Agency Grassland Reserve Program prices for grazing b. National Agricultural Statistics Service for haying rates Productivity Factor: A percentage multiplier allowing the insured to individualize coverage based on their individual crop productivity. 1. Insured selects between 60% and 150%. a. Concept is the same as price election in GRP policies. b. Only one productivity factor may be selected per county and crop type. Dollar Amount of Protection per Acre: The county base value (CBV) per acre (determined by RMA), multiplied by the productivity factor (PF) (60% to 150% as selected by insured), multiplied by the coverage level (CL) (70% to 90% as selected by insured). 1. Example: a. $17.65 (CBV) 1.20 (PF) 0.85 (CL) = $18.00 per acre 2. Only one dollar amount of protection per acre for each county and crop type (Insureds cannot elect different levels or productivity factors for different grids within the same county). Policy Protection per Unit: Dollar amount of protection per acre, multiplied by the insured acres, multiplied by the producer s share of the unit for each grid. 1. Example: a. Amount of Protection/Acre = $18.00 (See calculation above) b. Insured Acres = 1,000 c. Share = 100% d. 50% Interval March April, 50% Interval June July e. Index Interval March April: $ acres 100% (share) = $9,000 f. Index Interval June July: $ acres 100% (share) = $9,000 Policy Protection: The sum of the policy protection per units ($18,000). 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

18 14 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index Index Definitions Index Interval: A specified period of time (Example: Apr - May) in which precipitation data is collected resulting in a grid index. Expected Grid Index: Based on the historical mean accumulated precipitation by index interval, expressed as a percentage; EGI = 100. Trigger Grid Index: The selected coverage level multiplied by the expected grid index. 1. How to calculate a Trigger Grid Index: Coverage Level = 85 and Expected Grid Index = 100; then Trigger Grid Index = 85 (Level x Expected = Trigger) 2. If the final grid index falls below the trigger grid index, the insured may be due an indemnity. Final Grid Index: Based on the current accumulated precipitation data for each index interval. The index will be available on the RMA website following the end date of each index interval. Rates and Premiums 1. Rates are the same for grazing and haying in the same grid and interval. 2. Premium subsidy by level is also located in the Special Provisions for the crop/county. Premium Subsidies and Fees Coverage Level Premium Subsidy Factor Administrative Fee $30 $30 $30 $30 $30 3. Formula for premium/unit (Index Interval) = $ amount of production/acre x insured acres/unit x premium rate x.01 x share % Grid ID Selection Grid ID: A specific code, typically five digits, associated with each grid. Point of Reference: A designated point, identifiable by longitude and latitude which can be used to identify a grid ID. 1. Selected by the insured. 2. Point that best represents the insured acreage. 3. This determines the grid ID for insurance. Certify the points of reference are representative of the acreage assigned to each grid ID and the amount of acreage in each grid ID(s). 1. Example: If the contiguous acreage is located in four grids, the acreage can be separated into two, three or four grids, or left all in one grid. 2. The same acres cannot be insured in more than one grid ID or county. Determine the point of reference and corresponding grid ID by the acreage reporting date.

19 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 15 Examples of Determining Grid ID(s) + (Plus sign represents point(s) of reference in the following examples, circled area represents the selected field.) Contiguous Acreage One Grid (See image below) 1. The insured picks one point of reference on the property. Grid 1 Grid 2 50 Acres Grid 3 Grid 4 2 Contiguous Acreage One Grid Contiguous Acreage Multiple Grids, Counties and/or States (Combined) (See image below) 1. The insured selects one point of reference in the contiguous acreage (may select Grid 1 or Grid 2). In this example, all 50 acres are insured in Grid 1. Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index Grid 1 Grid 2 50 Acres Grid 3 Grid 4 Contiguous Acreage Multiple Grids (Combined) 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

20 16 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index Contiguous Acreage Multiple Grids, Counties and/or States (Separated) (See image below) 1. The insured selects one point of reference in each grid and assigns the number of acres contained in each grid. Thirty-five acres are insured in Grid 1 while 15 acres are insured in Grid 2. Grid 1 Grid 2 35 Acres 15 Acres Grid 3 Grid 4 Contiguous Acreage Multiple Grids (Separated) Determining the Grid ID(s) for Non-Contiguous Acreage (Multiple properties separated by roads, trees, other fields, etc) (See image below) 1. A point of reference must be selected for each separate, non-contiguous acreage. 2. The insured has two separate acreage locations in two grids. 3. The insured selects a point of reference in Grid 1 and a point of reference in Grid 4. These properties must be insured under their respective grid IDs. Grid 1 Grid 2 50 Acres Grid 3 Grid 4 50 Acres Non-Contiguous Acreage Located in Separate Grids

21 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index In the next example, the insured has two separate acreage locations contained in three grid IDs. (See image below) 2. First, the insured selects a point of reference in Grid The insured has the option of combining the acreage in Grid 1 and Grid 2 or insuring the acres contained in each grid separately. The insured has elected to insure 35 of the 50 total acres in Grid 1 and the remaining 15 acres in Grid 2. Grid 1 Grid 2 35 Acres 15 Acres Grid 3 Grid 4 Contiguous Acreage Multiple Grids (Separated) 50 Acres 1. In the next example, the non-contiguous acreage is located in the same grid. (See image below) 2. The non-contiguous acreage is combined and given a single grid ID because it does not qualify for a separate unit. The 50 acres will be insured as a single unit. 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index Grid 1 Grid 2 25 Acres 25 Acres Grid 3 Grid 4 Non-Contiguous Acreage Located in Same Grid Review of Determining Grid ID(s) Type of Acreage Grid Information Guideline Contiguous Acreage Single Grid Choose one point of reference Contiguous Acreage Multiple Grids Combined Choose one point of reference Contiguous Acreage Multiple Grids Separated Choose one point of reference for each grid Non-Contiguous Acreage (Multiple Properties) Choose one point of reference for each separate, non-contiguous acreage in the county 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

22 18 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index Grid ID Selection Test Grid 1 Total Ac: 150 Grid 2 B A 100 Acres 110 Acres 50 Acres County A County B Grid 3 Grid 4 Total Ac: 140 D C 100 Acres 120 Acres E 125 Acres 40 Acres Haying Topographical Map Topographical Map Determining Grid ID(s) Basic Steps 1. Primary step: a. Accurately identify the grid ID(s): A direct link to RMA s web-based tool is available on the specific crop page under the Rainfall/Vegetation Indices gateway page. This link will bring you to the default page for the map-driven grid ID locator for the Rainfall Index pilot programs for Pasture, Rangeland, Forage. The Apiculture Rainfall Index map-driven grid ID locator tool can be found on the same gateway page. 2. Type in the city and/or county name where the property is located. 3. Select the city or county from the possible matches. A topographical map for the area will be displayed. 4. Narrow the search by selecting an area near the actual location of the insured s property. 5. Once the applicant has located the general area, continue to refine the search by switching to the photo maps. 6. Using the topographical map, photo map or combination of both, choose an appropriate resolution for proper identification of the property boundaries and corresponding grid ID(s).

23 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 19 Photo Map 2 Photo Map Determining Grid ID(s) Additional Steps 1. Select one point of reference on the property by moving the cross marker (+) to that location. 2. The grid ID is listed at the top of the screen (and on the map itself). 3. A Print Icon is in the lower right-hand corner of the screen. 4. This printed map can be used as a record to verify the grid ID. 5. Once printed, the property boundary can also be outlined and initialed by the insured for verification purposes. 6. The insured must certify the point of reference. Determining Grid ID Using RHIGIS Grid IDs can also be found directly from RHIGIS. 1. Open the Layers tab under Preferences and the Rainfall Grid ID options will be displayed. Check the Rainfall box and click Save. a. Zoom to the desired location and see the applicable grid ID for that area (No point of reference tool). Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index RHIGIS 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

24 20 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index Determining Grid IDs Example I.M. Insured has 645 acres of insurable grazing and haying in two counties. His insurable acreage is contained in five non-contiguous properties: A, B, C, D and E. (See image below) 1. Property A Property A contains 110 acres and is non-contiguous with the field that is in County B. Property A cannot therefore be insured in County B. The 110 acres fully contained in County A must be insured in County A. 2. Property B Contiguous acreage located in more than one grid (See image below) a. Insured decides to separate the property into two grid IDs, with 100 insured acreage in Grid 1 and 50 insured acreage in Grid 2 and selects a reference point in each grid ID. 3. Property C Contiguous acreage spread into more than one county, which contains two crop types (both grazing and haying with 50% share) (See image below) a. Insured selects a point of reference in County B and will use that point of reference to represent all the contiguous insurable grazing acreage (100 acres) in both County A and County B (decides not to insure haying). 4. Property D and E Non-Contiguous acreage located in a single grid (grazing with 100% share) (See image below) a. The insured combines Properties D and E and insures all 245 acres under Grid ID 4. Grid 1 Total Ac: 150 Grid 2 B A 100 Acres 110 Acres 50 Acres County A County B Grid 3 Grid 4 Total Ac: 140 D C 100 Acres 120 Acres E 125 Acres 40 Acres Haying Actual grid IDs will have five digits. Summary Example Insured Acreage, Grid ID, Coverage Level, Productivity Factor, Dollar Amount of Protection per Acre Grid ID Property Insured Acreage Grid 1 (insert the actual grid ID number for the insured, e.g., 37881) B 100 Grid 2 (insert the actual grid ID number for the insured, e.g., 37882) B 50 Grid 3 (insert the actual grid ID number for the insured, e.g., 38773) C 100 Grid 4 (insert the actual grid ID number for the insured, e.g., 38774) D and E 245 Total 495 I.M. Insured selects for grazing: 1. Coverage Level = 85% 2. Productivity Factor = 120% 3. County Base Value = $17.65 Dollar Amount of Protection per Acre $ = $18.00 per acre I.M. Insured designates a specific percentage of the insured acreage to at least two of the index intervals for each grid ID. He finds that he can place no more than 50% of his insured acreage to any one index interval.

25 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 21 The PRF Special Provisions list the following crop types and practices: Type(s) Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Practice(s) January February Index Interval February March Index Interval March April Index Interval April May Index Interval May June Index Interval June July Index Interval July August Index Interval August September Index Interval September October Index Interval October November Index Interval November December Index Interval January February Index Interval February March Index Interval March April Index Interval April May Index Interval May June Index Interval June July Index Interval July August Index Interval August September Index Interval September October Index Interval October November Index Interval November December Index Interval 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index Grid ID Index Interval Unit Number % Protection Number of Acres Grid Jan Feb % 50 acres Insured acreage = April May % 50 acres Total 100% 100 acres Grid Jan Feb % 5 acres Insured acreage = April May % 25 acres 632 Aug Sept % 20 acres Total 100% 50 acres Grid Jan Feb % 50 acres Insured acreage = Aug Sept % 50 acres Total 100% 100 acres Grid Jan Feb % acres Insured acreage = April May % 73.5 acres 631 July Aug % 49 acres Total 100% 245 acres Interval selections do not have to be contiguous, but the selected index intervals cannot contain any month in more than one index interval Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

26 22 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index Policy Protection Per Unit (10 Units) Grid ID Index Interval Unit Number Policy Protection/Unit Grid ($ A 1.0) $900 Insured acreage = ($ A 1.0) $900 Total $1800 Grid ($ A 1.0) $90 Insured acreage = ($ A 1.0) $ ($ A 1.0) $360 Total $900 Grid ($ A 1.0) $450 Insured acreage = ($ A 0.50) $450 Total $900 Grid ($ A 1.0) $2,205 Insured acreage = ($ A 1.0) $1, ($ A 1.0) $882 Total $4,410 Policy Protection $8,010 Premium Example I.M. Insured and his agent look up the applicable premium rates using the premium rate tables. Formula for premium/unit (Index Interval) = $ amount of production/acre x insured acres/unit x premium rate x.01 x share % Example Summary of Premium Grid ID Insured Acreage and Share Index Interval Unit Number Policy Protection/Unit Premium Rate/100 Premium Grid ($ ac 1.0 share) = $ $12.00 $ acres ($ ac 1.0 share) = $ $14.00 $ % share Total $1,800 $234 Grid ($ ac 1.0 share) = $90.00 $13.50 $12 50 acres ($ ac 1.0 share) = $ $13.00 $59 100% share ($ ac 1.0 share) = $ $12.00 $43 Total $900 $114 Grid ($ ac 0.50 share) = $ $13.00 $ acres ($ ac 0.50 share) = $ $12.00 $54 50% share Total $900 $113 Grid ($ ac 1.0 share) = $2, $13.00 $ acres ($ ac 1.0 share) = $1, $14.00 $ % share ($ ac 1.0 share) = $ $15.00 $132 Total $4,410 $604 Grand Totals $8,010 $1,065

27 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index 23 Example Premium Subsidy Amount 1. For the coverage level of 85%, the applicable subsidy percentage is 55% (See subsidy table in County Actuarial). a. Premium Subsidy/Unit = Premium/Unit Subsidy Percentage Example: $ = $59 Example Premium Due from Producer 1. The premium due from producer is the result of the Premium/Unit minus the Subsidy/Unit. a. Premium per Unit Premium Subsidy per Unit Example: $108 - $59 = $49 Summary of Premium, Subsidy and Producer Premium Grid ID Index Interval Unit Number Premium Premium Subsidy Producer Premium Grid Jan Feb $108 $59 $ April May $126 $69 $57 Grid Jan Feb $12 $7 $5 628 April May $59 $32 $ Aug Sept $43 $24 $19 Grid 625 Jan Feb $59 $32 $ Aug Sept $54 $30 $24 Grid Jan Feb $287 $158 $ April May $185 $102 $ July Aug $132 $73 $59 Totals $1,065 $586 $479 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index Example Summary of Yearly Policy 1. I.M. Insured insured 495 acres of grazing in four separate grid IDs. 2. I.M. Insured paid $437 in premium for $8,010 in protection Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

28 24 Section 2 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Rainfall Index PRF Rainfall Index Decision Tool 1. The calculator is not part of the program. 2. Not required to buy insurance. 3. Provides estimates. 4. Values are based on current information to derive historical estimates of indemnity, premium and subsidy numbers. 5. May not match the official figures released by FCIC in past years. 6. Contact a qualified insurance agent for actual premium quotes. Decision Tool,

29 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 26 Vegetation Index Eligible States and Counties 27 Vegetation Index Available in the Following States and Counties 27 Program Overview 28 Advantages for Producers 28 Disadvantages for Producers 28 Important Dates 29 Underwriting Guidelines 30 Crop Information 31 Index Background 34 Program Basics 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index

30 26 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Vegetation Index Eligible States and Counties 2013 and Succeeding Crop Years - Pasture, Rangeland, Forage, Availability 2013 and Succeeding Crop Years - Apiculture

31 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 27 Vegetation Index Available in the Following States and Counties State PRF Counties API Counties Arizona All Counties All Counties Colorado Archuleta, Delta, Dolores, Garfield, Hinsdale, La Plata, Mesa, Mineral, Moffat, Montezuma, Montrose, Ouray, Rio Blanco, San Juan and San Miguel Idaho All Counties All Counties Nevada None All Counties New Mexico All Counties All Counties Oregon All Counties All Counties Utah All Counties All Counties Wyoming All Counties All Counties Program Overview Perils Covered Archuleta, Delta, Dolores, Garfield, Hinsdale, La Plata, Mesa, Mineral, Moffat, Montezuma, Montrose, Ouray, Rio Blanco, San Juan and San Miguel 1. Vegetation Index covers a decline in the Normalized Difference Vegetation Index (NDVI) greenness index. 2. The reduction in the final grid index must be due to natural occurrences. a. A cause other than a natural occurrence will result in the assignment of a value to correspond to the reduction due to natural occurrences only. Coverage Levels 1. Percentages available: 70, 75, 80, 85 and 90 a. The insured may select only one coverage level for each of the insured crop types in the county. 1. For example, the insured could insure 90% for grazing and 80% for Haying in same county. 2. Higher coverage levels reduce basis risk. a. This policy correlates closer to individual experience. Catastrophic Risk Protection (CAT) Not currently available NAP Clarification 1. Producers can have both a PRF VI policy and a NAP policy and have losses incurred under both independently of each other. 2. Producers can obtain NAP on grazing crops (grazing) and VI on forage crops (Haying) or vice versa, because they are considered separate crops by both RMA and FSA. Other Insurance 1. Unless otherwise specifically allowed by the Vegetation Index Crop Provisions or Special Provisions, an insured producer cannot insure the same crop type in the same crop year through any other federally subsidized crop insurance program in counties where they carry Vegetation Index coverage (except as noted below). If more then one policy has been written that covers the insured s share of the crop type, the policy with the earliest application date will be in effect. All later policies will be void. Penalties may be applicable as specified in the provisions of 7 CFR Section Exception: a. Vegetation Index insureds may insure the same crop in the same county and crop year under a Whole-Farm Revenue Protection (WFRP) policy. b. If allowed by the Special Provisions, an insured can have both an APH Forage Production policy and coverage under this policy (same acreage cannot be insured on both policies). Examples: 1. An insured can have an APH Forage Production policy on Haying and insure grazing under this program in the same county. 2. An insured can have an APH Forage Production policy and insure all insurable acreage under that policy and then insure acreage that does not meet the minimum stand requirements under this program. 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

32 28 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Advantages for Producers 1. Flexibility Allows producers to tailor a program to their risk management needs by selecting coverage levels, index intervals, productivity factor and the number of acres to insure and allows producers to determine when precipitation is vital to plant growth. 2. Covers lack of reflected greenness in plant cells based on satellite imagery. The index is related to the amount of vegetation on earth and the changes in greenness over time. A decrease in the index would indicate a decrease from normal. 3. Provides for timely indemnities 4. Index intervals are mutually exclusive 5. No individual loss adjustments needed 6. Index is easy to understand 7. No production records are required 8. Moral hazard and adverse selection minimized Disadvantages for Producers 1. Individual losses/experiences not covered 2. Only covers a decline in NDVI greenness index Important Dates Sales Closing Date: November Only one sales closing per year a. Consistent with other programs SCD b. Minimizes possible forecasting and program abuse 2. Application must be submitted by sales closing date. a. Insured must select the county, the crop, plan of insurance (VI), type, level, productivity factor and dollar amount of protection per acre. 3. A Mandatory Disclaimer Form must be signed and dated for each VI crop being insured (See Forms section) Disclaimer is only required the initial year for RI crop. Insurance Period 1. Vegetation Index crop year is 12 months and begins January 1 2. Acreage Reporting Date: November 15 a. Must file annually on insurance provider s form b. The insured must report and certify by the acreage reporting date, the insured acreage of the crop type in the county in which the insured has an interest, by share, for each grid ID and crop type. For these insured acres, the FSA farm number, FSA tract number and FSA field number must also be reported. If these numbers do not exist, the insured should request such numbers from the applicable FSA office. The insured must also report insurable acreage in the county by crop type. c. For apiculture, the insured must also report the total number of insurable colonies in the United States. d. Acreage on which the insured has failed to follow good farming/ranching practices as defined in the VI Basic Provisions for the insured crop will not be insured. e. Acreage altered or removed as criteria for participation in any other government program is not insurable. A revised acreage report must be submitted removing the acreage, if such acreage was previously reported as insurable. 3. Acreage reports can be corrected or revised prior to the ARD. After the acreage reporting date, corrections (e.g., 87 acres reported, but should be 78) may be allowed at our discretion. 4. Premium Billing Date: September 1 a. Premium and administrative fees shall be due and payable 30 days after the premium billing date. 5. Contract Change Date: August Cancellation/Transfer: November 15 This is a continuous policy.

33 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 29 Underwriting Guidelines Share All acreage with the same share, index interval and crop type, regardless of name of other person(s) sharing in the crop, can be entered on a single line of the acreage report. Coverages Not Applicable The following coverage does not apply to Vegetation Index: 1. Hail and fire exclusion provisions 2. High-risk land exclusion provisions 3. Late planting provisions 4. Replant requirements 5. Replanting payment provisions 6. Prevented planting provisions 7. Experience adjustment factors 8. Optional units 9. Written agreements 10. Added county election (not applicable to pilots) Percent of Value 1. Insureds must allocate, on their application, a percent of value to each unit. The percent of value allows insureds with more than one unit to individualize their coverage within the requirements of the program. Using the percent of value, insureds can allocate a percentage of the total insured value to each selected index interval. 2. Regardless of how the total value is allocated between index intervals, the sum of the percentages for all index intervals, by grid ID, share and intended use, must equal 100 percent. 3. There may be a minimum and maximum percent of value that can be allocated to an index interval. See the crop provisions and actuarial documents for more information about minimum and maximum amounts that may be allocated. Production Records and Yield History 1. Insureds are not required to report yield history or maintain production records for the Vegetation Index policy. However, they are encouraged to maintain any individual crop production records and acreage history for use or possible future use in a plan of insurance that uses APH yields for the same crop (e.g., APH Forage Production). 2. If a Vegetation Index insured returns to a plan of insurance that uses APH yields for the same crop types, his/her APH yield history database will be updated only if continuous crop production reports (including the period insured under Vegetation Index policy) are filed when returning to such a plan. Failure to file the most recent year s crop production report may limit the insured s choices. APH procedures will apply and can be referenced in the CIH. Insured and Insurable Acreage The insured is not required to insure 100% of acreage. 1. The insured acreage in the county is the acreage selected by the insured to be insured. 2. The insured acreage will not exceed 100% of the insurable crop acreage in the county. Insurable acreage is Haying and grazing that is not planted annually (unless allowed by the Special Provisions). 1. For the purposes of these Crop Provisions, overseeding into acreage of existing forage crops is an acceptable farming practice and is not considered an annual planting. 2. Insurable acres will consist of the total number of acres suitable for insurance under these Crop Provisions which would include both insured acres and acres of the crop type that are not insured. 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

34 30 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Insured Crop The insured crop will be the crop types in the county: 1. In which you have a share. 2. That is grown for the purpose of grazing, haying or apiculture crop production. 3. Located on insurable acreage in the county listed in the accepted application. 4. Intended for harvest by haying or grazing by livestock or honey production, collection of pollen, wax and bee breeding purposes and reported as such by the acreage reporting date. 5. That is produced on established acres or on annually planted acreage if allowed by the Special Provisions (such as, but not limited to, establishment of small grains and annual forage sorghums). 6. That is not initially planted to a forage crop after July 1 of the previous crop year (unless allowed by the Special Provisions). 7. You may choose to insure grazing, Haying or both. The same acreage cannot be insured as both grazing and Haying. If the insured acreage is intended to be utilized as both grazing and Haying and meets the requirements of both crop types, the insured must choose one crop type under which to report the acreage. 8. You must determine the applicable grid IDs, crop types and percent of value no later than the sales closing date. 9. You must determine the number of insured acres and index intervals no later than the acreage reporting date. Rain and Hail will not insure any acreage: 1. That is not established forage (unless allowed by the Special Provisions) or is not intended for harvest by haying, grazing or apiculture crop production. 2. Where the crop is destroyed or put to another use during the crop year for the purpose of conforming with or obtaining payment under, any other program administered by the USDA, such as, but not limited to, the Conservation Reserve Program. 3. That was initially seeded after July 1 of the previous year (unless allowed by the Special Provisions). Crop Information (0088) Pasture, Rangeland, Forage Type Grazing (007) 1. Established acreage of perennial forage 2. Intended for grazing by livestock 3. Acreage must be suitable for grazing a. Acreage that is steeply sloped, too far from water sources, etc.; such that livestock would not normally physically graze on the acreage is not considered suitable for grazing. Haying (030) 1. Established acreage of perennial forage 2. Intended for haying 3. Acreage must be suitable for haying a. Acreage that is steeply sloped, covered by water, etc., such that it would be impractical or impossible to mechanically harvest the acreage is not considered suitable. 4. Program covers all types of grazing and haying forage (i.e., not just alfalfa) (1191) Apiculture 1. The raising and care of honey bees for agricultural crop production 2. Honey production, collection of pollen, wax and bee breeding purposes Type No crop types specified

35 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 31 Index Background Index Overview: 1. Lack of actual producer/industry production data 2. No consistent and sound methodology for measuring production for the crop 3. The deviation from long-term normal NDVIs used to establish the index 4. Crop greenness reflectivity has a high degree of correlation to forage production The index is based on Earth Resources Observation and Science (USGS) data. The technology is utilized as follows: 1. The PRF-VI Pilot Program is based on the use of (NDVI) data that has been derived from scanners on satellites observing the changes in greenness of vegetation of the earth since The Vegetation Index does not explicitly predict individual forage production on a given producer s operation. 3. Instead, the index is related to the amount of vegetation on earth and the changes in greenness over time. 4. The index is correlated with forage production but does not directly predict actual forage production. Key components of the VI program include: 1. The NDVI data from NASA that is processed by EROS. 2. Indices are based on a sub-county level. a. Data collected for 1-km grids (0.6 miles). b. Averaged across 8 km or 4.8 mile grids to produce the base value (used in many other national programs). c. Bi-weekly values are stored on computers at EROS from the maximum observed daily value observed during each two-week period (data updated every 14 days). 3. Using a ratio of infrared and visible light reflectance from the vegetation, an index of 0.0 to 1.0 is derived, which essentially reflects the abundance of vegetation on the ground. a. Visible light values are sensitive to the amount of chlorophyll in the plant. b. Infrared light is sensitive to the amount of plant cells inside the leaf. 4. Therefore, the more chlorophyll and the more plant cell bulk in the plant, the higher the NDVI index recorded by the satellite s sensor. 5. This dataset is widely used as part of the global monitoring system used by various government agencies (including national security and defense organizations). 6. There are multiple satellite systems that have been placed in orbit that are calibrated to each other; therefore, if one fails, another system can be used to cover the same areas. 7. NASA plans to launch a series of satellites using the same sensors and mathematics over the next decade to insure continuity of the program. 8. When the data is reported by EROS: a. Computers automatically log onto this site b. Download the data c. Update the index value 9. The index values are maintained on two separate computer systems and are reported at the end of each three-month interval. 10. This value is then made available to insurance companies for computation of indemnity payments via RMA s website. 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

36 32 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Areas of insurance are grids (grids 8 x 8 km) 1. Grids vs. County 2. Grids are approximately 4.8 x 4.8 miles in size 3. Provides for a consistent program across the United States 4. Counties vary in size, but the grids do not 5. Grid size reduces basis risk vs. county size 6. Allows for closer correlation to individual experience 7. Grids will cross county and state lines (See image below) Areas of insurance are grids (grids 8x8km)

37 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 33 Multiple Index Intervals 1. Considered separate crop practices 2. Coverage available over 10 index intervals, in three-month increments, beginning with January 1 of the crop year. PRF Index Interval Start Date End Date Haying 030 January March Haying 030 February April Haying 030 March May Haying 030 April June Haying 030 May July Haying 030 June August Haying 030 July September Haying 030 August October Haying 030 September November Haying 030 October December PRF Index Interval Start Date End Date Grazing 007 January March Grazing 007 February April Grazing 007 March May Grazing 007 April June Grazing 007 May July Grazing 007 June August Grazing 007 July September Grazing 007 August October Grazing 007 September November Grazing 007 October December API Index Interval Start Date End Date (997) No Type Specified (645) January March (997) No Type Specified (646) February April (997) No Type Specified (647) March May (997) No Type Specified (648) April June (997) No Type Specified (649) May July (997) No Type Specified (650) June August (997) No Type Specified (651) July September (997) No Type Specified (652) August October (997) No Type Specified (653) September November (997) No Type Specified (654) October December Index Intervals 3. Allows producers to appropriately design their coverage to match their local growth and production seasons. 4. The three-month intervals provide for greater reaction to forage reduction events vs. a yearly average. 5. Minimizes dependency on subjective pre-determined estimated forage growing seasons. 6. Maintains consistency across the country, while still allowing for regional and local variances by allowing individual freedom to select appropriate intervals. a. These intervals act as mini-insurance periods. 1. For example, indemnities payable on one interval are not dependent on results from other intervals. b. Index intervals are mutually exclusive. 1. One index does not affect the others. 2. All index intervals are rated separately. 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

38 34 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Insured may select more than one interval. If more than one interval is selected, they do not have to be contiguous and they cannot overlap. 1. The purpose of the program is to insure annual forage production. 2. Minimum amount if more than one interval is selected is 10%. a. A percent of value must be allocated to at least one index interval for each grid ID, intended use and share. The minimum percent of value allowed in any one index interval by grid ID, intended use and share is 10 percent. 3. The maximum amount for any index interval can be 100%. Each scenario of each grid, index interval and coverage level combination is individually rated. 1. Minimizes adverse selection There is not an economic advantage of insuring in one scenario vs. another, thereby encouraging producers to select a scenario that best fits their operation. 2. Adequate data permits the individual rating, thereby, allowing for the rates to accurately reflect the risks of each scenario. No requirement to insure 100% of acreage 1. Forage utilized in the annual grazing or hay cycle can be insured without insuring all acreage. 2. All acres within a property may not be productive (e.g., rocky areas, submerged areas). 3. Provides flexibility for the insured to design the coverage to his/her specific needs. 4. Because the program is an index program and other programs are not available, there is no opportunity to move production. Program supported via Internet 1. Provides the most efficient and effective way to deliver the program. 2. Allows access to the mapping tools that allows the user to locate his/her grazing areas and associated grid ID numbers. 3. Provides access to the historical vegetation indices. 4. Allows access to all relevant data, materials and tools associated with the program. Program Basics Terminology and Other Differences 1. Grid and grid ID in addition to county 2. Insurable and insured acres vs. planted acres 3. Index vs. yields 4. Accumulative NDVI-based grid 5. Web-based 6. No current CAT coverage 7. Not required to insure 100% of acres 8. May select one or more index intervals 9. Grid IDs and crop types will be determined prior to the sales closing date 10. Acreage and index intervals will be determined by acreage reporting date Rounding Rules 1. Acres to the tenths (X.X) 2. Share and factors to the thousandths (X.XXX) 3. Dollars to dollars and cents (X.XX) 4. Index values to tenths (XXX.X) 5. Payment calculation factor to thousandths (X.XXX)

39 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 35 Basic Definitions County: May also include any acreage within a grid ID that crosses an adjoining county or state line where the acreage is contiguous. (See image below) County A County B Grid 3 C 140 Acres Grid ID Example for adjoining county or state Insurable Acreage: Haying and grazing that is not planted annually. 1. Overseeding into acreage of existing forage crops is acceptable. 2. Annually planted crops currently are not insurable. 3. Insurable acres will consist of the total number of acres suitable for insurance under the PRF Crop Provisions. 4. Includes both insured acres and uninsured acres. Insured Acres: The number of insurable acres selected to be insured by a producer. 1. May choose to insure either Grazing, Haying or both. 2. Not required to insure 100% of the crop type(s). Unit: The insured acres within or assigned to a grid ID for each crop type and index interval. 1. If there are multiple grid IDs on a policy, the index values are not added together, as each unit and crop stands on its own. 2. Basic Units only no basic unit discount. County Base Value: Established production value of grazing and Haying forage. 1. Only one value per county for each crop type. 2. RMA and the Contractor used U.S. Geological Survey land-cover estimates, regional experts and the following to establish grazing and Haying county base values for each location: a. USDA Farm Service Agency Grassland Reserve Program prices from grazing b. National Agriculture Statistics Service for Haying rates Productivity Factor: A percentage multiplier allowing the insured to individualize coverage based on their individual crop productivity. 1. Insured selects between 60% and 150%. a. Concept is the same as price election in GRP policies. b. Only one productivity factor may be selected per county and crop type. Dollar Amount of Protection per Acre: The county base value (CBV) per acre, multiplied by the productivity factor (PF) (60% to 150%), multiplied by the coverage level (CL) (70% to 90%). 1. Example: a. $17.65 (CBV) x 1.20 (PF) x 0.85 (CL) = $18.00 per acre 2. Only one dollar amount of protection per acre for each county and crop type. Policy Protection per Unit: Dollar amount of protection per acre, multiplied by the insured acres, multiplied by the producer s share of the unit for each grid. 1. Example: a. Amount of Protection/Acre = $18.00 b. Insured Acres = 1,000 c. Share = 100% d. 50% Interval Feb April, 50% Interval May July e. Index Interval Feb April: $18.00 x 500 acres x 100% (share) = $9,000 f. Index Interval May July: $18.00 x 500 acres x 100% (share) = $9,000 Policy Protection: The sum of the policy protection per units ($18,000). 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

40 36 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Index Definitions Index Interval: A specified period of time in which NDVI data is collected resulting in a grid index. Expected Grid Index: Based on the historical mean accumulated precipitation by index interval, expressed as a percentage; EGI = 100. Trigger Grid Index: The selected coverage level multiplied by the expected grid index. 1. Example: Coverage Level = 85; then Trigger Grid Index = If the final grid index falls below the trigger grid index, the insured may be due an indemnity. Final Grid Index: Based on the current NDVI values for each index interval. The index will be available on the RMA website following the end date of each index interval. 1. If current data represents a 40% reduction, then FGI = Greater than 100 = above average 3. Less than 100 = below average Rates and Premiums 1. Premium rate is applied to each unit. a. All units are independently rated. 1. Each grid ID, crop type, coverage level and index interval 2. Minimizes adverse selection 2. Rates are the same for grazing and Haying in the same grid and interval. 3. Premium subsidy is as follows: Premium Subsidies and Fees Coverage Level Premium Subsidy Factor Administrative Fee $30 $30 $30 $30 $30 4. An administrative fee of $30 for each crop in each county applies. These fees may be waived for limited resource farmers. The fee is $30 regardless of whether grazing and/or Haying is insured. 5. Premium/unit (Index Interval) = Dollar amount of protection/acre x number of insured acres/unit x premium rate x adjustment factor of 0.01 x share Trigger and Indemnity Payment Calculation Factor: 1. (Trigger Grid Index - Final Grid Index)/[Trigger Grid Index - (Expected Grid Index x Total Loss Factor)] for each unit. 2. The payment calculation factor cannot exceed An indemnity may be made only if the final grid index is less than the trigger grid index. 4. If indemnity is due, it will be issued no later than 60 days following the determination of the final grid index. 5. Indemnity = Payment Calculation Factor x Policy Protection/Unit Example: 1. Trigger Grid Index (Coverage Level) = Final Grid Index: Interval Feb April = 90, Interval May July = 60 a. Payment Calculation Factor = Index Interval Feb April: (85-90)/[85 - (100 x 0.30)] = No indemnity due (90 > TGI) b. Index Interval May July: (85-60)/[85 - (100 x 0.30)] = Total Indemnity = $4,095 a. Index Interval Feb April = $0 b. Index Interval May July = ($9,000 x 0.455) = $4, {$18.00 x 500 (acres in May-July) x 1.0 (share)} x = $4,095

41 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 37 Grid ID Selection Grid ID: A specific code, typically six digits, associated with each grid. Point of Reference: A designated point, identifiable by longitude and latitude. 1. Selected by the insured. 2. Point that best represents the insured acreage. 3. This determines the grid ID for insurance. Certify the points of reference are representative of the acreage assigned to each grid ID and the amount of acreage in each grid ID(s). 1. Example: If the contiguous acreage is located in four grids, the acreage can be separated into two, three or four grids, or left all in one grid. 2. The same acres cannot be insured in more than one grid ID or county. Determine the point of reference and corresponding grid ID by the acreage reporting date. Examples of Determining Grid ID(s) + (Plus sign represents point(s) of reference in the following examples) Contiguous Acreage One Grid (See image below) 1. The insured picks one point of reference on the property. Grid 1 Grid 2 50 Acres 3 Grid 3 Grid 4 Contiguous Acreage - One Grid Contiguous Acreage Multiple Grids, Counties and/or States (Combined) (See image below) 1. The insured picks one point of reference in the contiguous acreage (could pick Grid 1 or Grid 2). In this example, all 50 acres would be insured in Grid 1. Grid 1 Grid 2 50 Acres Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Grid 3 Grid 4 Contiguous Acreage - Multiple Grids (Combined) 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

42 38 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Contiguous Acreage Multiple Grids, Counties and/or States (Separated) (See image below) 1. The insured selects one point of reference in each grid and assigns the number of acres. Thirty-five acres would be insured in Grid 1 and 15 acres would be insured in Grid 2. Grid 1 Grid 2 35 Acres 15 Acres Grid 3 Grid 4 Contiguous Acreage - Multiple Grids (Separated) Determining the Grid ID(s) for Non-Contiguous Acreage (Multiple Properties) (See image below) 1. A point of reference must be selected for each separate, non-contiguous acreage. 2. The steps for determining the point of reference are similar to the steps outlined for contiguous acreage, simply repeated for each non-contiguous acreage to be insured. 3. The insured has two separate acreage locations in two grids. 4. The insured picks a point of reference in Grid 1 and a point of reference in Grid 4 and insures the two properties under two separate grid IDs. Grid 1 Grid 2 50 Acres Grid 3 Grid 4 50 Acres Non-Contiguous Acreage Located in Separate Grids

43 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index In the next example, the insured has two separate acreage locations in three grids. (See image below) 2. First, the insured would pick a point of reference in Grid The insured then has the option of combining his/her acreage in Grid 1 and Grid 2 or insuring them separately by grid. The insured has elected to insure 35 acres in Grid 1 and 15 acres in Grid 2. Grid 1 Grid 2 35 Acres 15 Acres Grid 3 Grid 4 50 Acres Contiguous Acreage - Multiple Grids (Separated) 1. In the next example, if the non-contiguous acreage is located in the same grid. (See image below) 2. The non-contiguous acreage will be combined and given a single grid ID. The 50 acres can be insured as a single line item. Grid 1 Grid 2 25 Acres 25 Acres Grid 3 Grid 4 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Non-Contiguous Acreage Located in Same Grid Review of Determining Grid ID(s) Type of Acreage Grid Information Guideline Contiguous Acreage Single Grid Choose one point of reference Contiguous Acreage Multiple Grids Combined Choose one point of reference Contiguous Acreage Multiple Grids Separated Choose one point of reference for each grid Non-Contiguous Acreage (Multiple Properties) Choose one point of reference for each separate, non-contiguous acreage in the county 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

44 40 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Grid ID Selection Test Grid 1 Total Ac: 150 Grid 2 B A 100 Acres 110 Acres 50 Acres County A County B Grid 3 Grid 4 Total Ac: 140 D C 100 Acres 120 Acres E 125 Acres 40 Acres Haying Topographical Map Topographical Map Determining Grid ID(s) Basic Steps 1. Primary step: a. Accurately identify the grid ID(s): Web address for determining Vegetation Index Grid ID(s): 2. Type in the city and/or county name where the property is located. 3. Select the city or county from the possible matches. A topographical map for the area will be displayed. 4. Narrow the search by selecting an area near the actual location of the insured s property. 5. Once the applicant has located the general area, it is recommended he/she continues to refine the search by switching to the photo maps. 6. Using the topographical map, photo map or combination of both, choose an appropriate resolution for proper identification of the property boundaries and corresponding grid ID(s).

45 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 41 Photo Map Photo Map Determining Grid ID(s) Additional Steps 1. The insured then selects one point of reference on the property by moving the cross marker (+) to that location. 2. The grid ID is listed at the top of the screen (and on the map itself). 3. A Print Icon is in the lower right-hand corner of the screen. 4. This printed map can be used as a record to verify the grid ID. 5. Once printed, the property boundary can also be outlined and initialed by the insured for verification purposes. 6. The insured must certify the point of reference. Determining Grid ID using RHIGIS Grid IDs can also be found directly from RHIGIS. 1. Simply open the Layers tab under Preferences and the Vegetation Grid ID options will be displayed. Check the Vegetation box and click Save. a. Zoom to the desired location and see the applicable grid ID for that area. 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index RHIGIS 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

46 42 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Determining Grid IDs Example I.M. Insured has 645 acres of insurable grazing and Haying in two counties. His insurable acreage is contained in five non-contiguous properties: A, B, C, D and E. (See image below) 1. I.M. Insured decides to insure the four properties (535 insurable acres) located in County B and leave Property A uninsured in County A. Had he chosen to insure Property A in County A, he would have had to insure that acreage separately because Property A is non-contiguous from his other properties and located in a different county a. Property B Contiguous acreage located in more than one grid (See image below) 1. He decides to separate the property into two grid IDs, with 100 insured acreage in Grid 1 and 50 insured acreage in Grid 2. He picks a reference point in each grid b. Property C Contiguous acreage spread into more than one county, which contains two crop types (both grazing and Haying with 50% share) (See image below) 1. He decides to pick a point of reference in County B and use that point of reference to represent all the contiguous insurable grazing acreage (100 acres) in both County A and County B (decides not to insure Hayings) c. Property D and E Non-Contiguous acreage located in a single grid (both grazing with 100% share) (See image below) 1. I.M. Insured combines Properties D and E and insures all 245 acres under Grid ID 4. Grid 1 Grid 2 Total Ac: 150 B 50 Acres A 100 Acres 110 Acres County A County B Grid 3 Grid 4 Total Ac: 140 D C 100 Acres 120 Acres E 125 Acres 40 Acres Haying Actual grid IDs will have six digits. Summary Example Insured Acreage, Grid ID, Coverage Level, Productivity Factor, Dollar Amount of Protection per Acre Grid ID Property Insured Acreage Grid 1 (insert the actual grid ID number for the insured, e.g., ) B 100 Grid 2 (insert the actual grid ID number for the insured, e.g., ) B 50 Grid 3 (insert the actual grid ID number for the insured, e.g., ) C 100 Grid 4 (insert the actual grid ID number for the insured, e.g., ) D and E 245 Total 495 I.M. Insured selects for grazing: 1. Coverage Level = 85% 2. Productivity Factor = 120% 3. County Base Value = $17.65 Dollar Amount of Protection per Acre $17.65 x 0.85 x 1.20 = $18.00 per acre I.M. Insured designates a specific percentage of the insured acreage to one or more of the index intervals for each grid ID.

47 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 43 The PRF Special Provisions list the following crop types and practices: Type(s) Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Haying 030 Practice(s) January - March Index Interval February - April Index Interval March - May Index Interval April - June Index Interval May - July Index Interval June - August Index Interval July - September Index Interval August - October Index Interval September - November Index Interval October - December Index Interval Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 Grazing 007 January - March Index Interval February - April Index Interval March - May Index Interval April - June Index Interval May - July Index Interval June - August Index Interval July - September Index Interval August - October Index Interval September - November Index Interval October - December Index Interval Grid ID Index Interval Unit Number Grid 1 Insured acreage = 100 Grid 2 Insured acreage = 50 Grid 3 Insured acreage = 100 Grid 4 Insured acreage = 245 % Protection Number of Acres 650 June Aug % 100 acres Total 100% 100 acres 646 Feb April % 5 acres 649 May July % 25 acres 652 Aug Oct % 20 acres Total 100% 50 acres 646 Feb April % 50 acres 652 Aug Oct % 50 acres Total 100% 100 acres 646 Feb April % acres 649 May July % 73.5 acres 653 Sept Nov % 49 acres Total 100% 245 acres 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Interval selections do not have to be contiguous Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

48 44 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Policy Protection Per Unit (9 Units) Grid ID Index Interval Unit Number Policy Protection/Unit Grid 1 Insured acreage = ($18.00 x 100 ac x 1.0) $1, % Share Total $1, ($18.00 x 5 ac x 1.0) $90 Grid ($18.00 x 25 ac x 1.0) $450 Insured acreage = ($18.00 x 20 ac x 1.0) $ % Share Total $900 Grid ($18.00 x 50 ac x 1.0) $450 Insured acreage = ($18.00 x 50 ac x 1.0) $450 50% Share Total $ ($18.00 x ac x 1.0) $2,205 Grid ($18.00 x 73.5 ac x 1.0) $1,323 Insured acreage = ($18.00 x 49 ac x 1.0) $ % Share Total $4,410 Policy Protection $8,010 Premium Example I.M. Insured and his agent look up the applicable premium rates using the premium rate tables. Premium/Unit (Index Interval) = Dollar amount of protection/acre x number of insured acres/unit x premium rate x adjustment factor of 0.01 x share Example Summary of Premium Grid ID Grid 1 Grid 2 Grid 3 Grid 4 Insured Acreage and Share 100 acres 100% share 50 acres 100% share 100 acres 50% share 245 acres 100% share Index Interval Unit Number Policy Protection/Unit Premium Rate/100 Premium $18.00 x 100 ac x 1.0 share = $1, $12.00 $216 Total $1,800 $ $18 x 5 ac x 1.0 share = $90.00 $13.50 $ $18 x 25 ac x 1.0 share = $ $13.00 $ $18 x 20 ac x 1.0 share = $ $12.00 $43 Total $900 $ $18 x 50 ac x.50 share = $ $13.00 $ $18 x 50 ac x.50 share = $ $12.00 $54 Total $900 $ $18 x ac x 1.0 share = $2, $13.00 $ $18 x 73.5 ac x 1.0 share = $1, $14.00 $ $18 x 49 ac x 1.0 share = $ $15.00 $132 Total $4,410 $604 Grand Totals $8010 $1,047

49 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 45 Example Premium Subsidy Amount 1. I.M. Insured and his agent refer to the subsidy tables. a. For the coverage level of 85%, the applicable subsidy percentage is 55%. 2. Premium Subsidy/Unit = Premium/Unit x Subsidy Percentage Example: $216 x 0.55 = $119 Example Premium Due from Producer 1. The premium due from producer is the result of the Premium/Unit minus the Subsidy/Unit. 2. Premium per Unit - Premium Subsidy per Unit Example: $216 - $119 = $97 3. Then, sum the subsidy and producer premiums to determine the totals. Summary of Premium, Subsidy and Producer Premium Grid ID Index Interval Unit Number Premium Premium Subsidy Producer Premium Grid $216 $119 $97 Grid $12 $7 $ $59 $32 $ $43 $24 $19 Grid $59 $32 $ $54 $30 $24 Grid $287 $158 $ $185 $102 $ $132 $73 $59 Totals $1,047 $576 $471 Final and Trigger Grid Index Trigger grid index is 85 for all grids and index intervals Grid ID Index Interval Unit Number Final Grid Index Grid Above Grid Above Above Below Grid Above Below Grid Above Below Below Above or Below Trigger 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Calculating Indemnities 1. Payment Calculation Factor = (Trigger Grid Index - Final Grid Index)/[Trigger Grid Index - (Expected Grid Index x Total Loss Factor)] The payment calculation factor cannot exceed Indemnity Payment = Payment Calculation Factor x Policy Protection per Unit. 3. Total Loss Factor = A factor used in the payment calculation that increases the amount of loss incrementally until a total loss is paid when the final grid index is less than or equal to 30% of the expected grid index. The factor will be set at 0.30 unless otherwise specified in the Special Provisions. The total indemnity will never be more than 100% of the policy protection for the unit Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

50 46 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Example Calculations Grid Acres 1. June August Index Interval: The final grid index of 120 is above the trigger grid index of 85. No indemnity is due. Grid 2 50 Acres 1. February April Index Interval: The final grid index of 110 is above the trigger grid index of 85. No indemnity is due. 2. May July Index Interval: The final grid index of 90 is above the trigger grid index of 85. No indemnity is due. 3. August October Index Interval: The final grid index of 70 is below the trigger grid index of 85. The indemnity is calculated as follows: Payment Calculation Factor = (85-70)/[85 - (100 x 0.30)] = Indemnity Payment = x $360 = $98 Grid Acres 1. February April Index Interval: The final grid index of 110 is above the trigger grid index of 85. No indemnity is due. 2. August October Index Interval: The final grid index of 60 is below the trigger grid index of 85. The indemnity is calculated as follows: Payment Calculation Factor = (85-60)/[85 - (100 x 0.30)] = Indemnity Payment = x $450 = $205 Grid Acres 1. February April Index Interval: The final grid index of 120 is above the trigger grid index of 85. No indemnity is due. 2. May July Index Interval: The final grid index of 70 is below the trigger grid index of 85. The indemnity is calculated as follows: Payment Calculation Factor = (85-70)/[85 - (100 x 0.30)] = Indemnity Payment = x $1,323 = $ September November Index Interval: The final grid index of 60 is below the trigger grid index of 85. The indemnity is calculated as follows: Payment Calculation Factor = (85-60)/[85 - (100 x 0.30)] = Indemnity Payment = x $882 = $ A total indemnity of $1,065 will be due to the insured for this county for this crop year. Example Summary of Yearly Policy 1. I.M. Insured insured 495 acres of grazing in four separate grid IDs. 2. I.M. Insured paid $437 in premium for $8,010 in protection. 3. A total indemnity of $1,065 will be due to I.M. Insured for this county and crop year.

51 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index 47 PRF Vegetation Index Decision Tool 1. The calculator is not part of the program. 2. Not required to buy insurance. 3. Provides estimates. 4. Values are based on current information to derive historical estimates of indemnity, premium and subsidy numbers. 5. May not match the official figures released by FCIC in past years. 6. Contact a qualified insurance agent for actual premium quotes. 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index Decision Tool, Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

52 48 Section 3 Pasture, Rangeland, Forage (PRF) and Apiculture (API) Vegetation Index

53 4 Annual Forage 50 Rainfall Index Annual Forage 53 Rainfall Index Plan 55 RH 5081 Rainfall Index (RI) and Vegetation Index (VI) Application/Cancellation/Transfer/Policy Change/Acreage Reporting Form 4 Annual Forage

54 50 Section 4 Annual Forage Rainfall Index Annual Forage The Rainfall Index - Annual Forage Insurance Plan is a pilot federal crop insurance plan that utilizes a rainfall index to provide coverage for annual forage crops. The plan is being tested in six states and covers crops planted annually and are used for livestock feed or fodder. It is available in all counties in Texas, Oklahoma, Kansas, Nebraska, South Dakota and North Dakota. Catastrophic Risk Protection and buy-up levels are available under the plan. The Rainfall Index - Annual Forage Insurance Plan is designed to give maximum flexibility to the rancher. Producers are able to divide their liability into two-month index intervals targeting when precipitation is important for the crop being planted. The rainfall index uses National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center precipitation data. Each grid covers an area equal to 0.25 degrees in latitude by 0.25 degrees in longitude. NOAA creates the grids, which do not follow state, county or national boundaries. Each grid is individually rated based on the data for that grid. The program is designed to insure against a decline in an index value that is based on the long-term historical average precipitation for the same area for the same period. The Annual Forage pilot program utilizes the Rainfall and Vegetation Index Plan Common Policy and the Rainfall Index Plan Annual Forage Crop Provisions. Coverage All annual forage: 1. In which you have a share 2. That is annually planted for forage or fodder with the intended use including: a. Haying, grazing, grazing/haying, grain/grazing, green chop, grazing/green chop or silage. Annual forage means annual plants seeded on planted acreage for forage or fodder. Fodder means plant materials fed to domestic livestock. Forage means plants grown for haying or grazing. Sales Closing Dates Growing Season 1 (Fall) - July For acreage planted on or after July 15 and on or before the final planting date specified in the Special Provisions of Insurance Growing Season 2 (Spring) - December For acreage planted on or after December 15 and on or before July 15 Application RH 5081 Must include: 1. Crop 2. Coverage Level 3. Productivity Factor 4. Index Interval (excluding CAT) 5. Percent of Value (excluding CAT) Insured Crop Intended Use The insured crop will be all annual forage in which the producer has a share and which is annually planted for forage or fodder with the intended use including but not limited to: 1. Grazing Used solely as pasture for livestock to roam and feed on. 2. Haying Mechanically severing the plant from its root. Does not include earlage, green chop, silage or grain for feed. 3. Grazing/Haying Used both as haying and as pasture for livestock to roam and feed on. 4. Grain/Grazing Used as pasture for livestock to roam and feed on initially and then later harvested for grain. 5. Green Chop Harvested and chopped for immediate consumption. Forages cut at younger stage and fed wet directly to livestock. 6. Grazing/Green Chop Used as both green chop and as pasture for livestock to roam and feed on. 7. Silage Chopped for silage and preserved through fermentation; used as food for livestock.

55 Section 4 Annual Forage 51 Growing Seasons The Annual Forage Insurance Plan provides insurance for two different growing seasons. Growing season #1 1. Final plant dates vary 2. Sales closing date is July Acreage reporting date varies Growing season #2 1. Final plant date is July Sales closing date is December Acreage reporting date is July 15 Index Intervals Available Index Intervals Depend on the Growing Season 1. Growing Season #1 a. Sep - Oct, Oct - Nov, Nov - Dec b. Dec - Jan, Jan - Feb, Feb - Mar c. Sep - Mar CAT coverage 2. Growing Season #2 a. Mar - Apr, Apr - May, May - Jun b. Jun - Jul, Jul - Aug, Aug - Sep c. Mar - Sep CAT coverage 3. Insured must select at least two index intervals 4. Index intervals do not have to be contiguous but cannot overlap 5. A percent of value must be assigned to each index interval a. Minimum 10% b. Maximum found in the county actuarials c. The percent of value for each index interval must be selected by the sales closing date and the percent of value allocations will be applied to all applicable grid ID s in the county for the applicable growing season. 1. For example if the insured places 40 percent of value in September-October, 40 percent in November-December and 20 percent in February-March, those percentages will be applied to all insured acres and grid ids in the county for that growing season. Additional Coverage Policies Coverage Level 1. 70% - 90% for the county, the same for each growing season a. If there is not any insured planted acreage in growing season 1, coverage level may be changed for growing season 2 by the applicable sales closing date Productivity Factor 1. Percentage multiplier to individualize coverage 2. 60% - 150% by county by growing season CAT Policies For CAT coverage there is only one index interval for each grid ID that includes all the months available in the county for the growing season. The Index Interval encompasses all months applicable for the growing season. 1. Sep - Mar for growing season #1 2. Mar - Sep for growing season #2 Coverage Level 65% Productivity Factor 45% 4 Annual Forage 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

56 52 Section 4 Annual Forage Acreage Reporting Acreage reporting deadlines depend on the growing season. All insurable acres must be insured and reported. 1. Growing Season 1 (Fall) a. November 15 ND, SD, NE b. December 15 KS, OK, Part of TX c. January 15 Part of TX 2. Growing Season 2 (Spring) a. July 15 The acreage report must include the following: 1. Your Share 2. Intended use 3. Annual forage commodity 4. Planting date 5. Grid ID 6. FSA farm number, tract number and field number Insurable Acreage 1. Total insured acres will equal total insurable acres and constitutes all annual forage planted on insurable acres for each growing season. Total acres will not exceed 100% of insurable acreage for each growing season. 2. Acres can be planted in both growing season #1 and growing season #2 on the same acreage in the same crop year. However, same acres cannot be insured in more than one grid ID or county during a single growing season. Point of Reference The grid ID and county are determined based on a point of reference selected by the insured. Separate points of reference must be established as follows: 1. A separate point of reference must be selected for non-contiguous insured acreage in a grid; and 2. With respect to contiguous insured acreage, a point of reference must be selected as follows: a. If the insured chooses to combine the contiguous insured acreage into one grid, they must establish a point of reference for the insured contiguous acreage; or b. If the insured chooses to separate the contiguous insured acreage into separate grids or counties, they must establish a point of reference for each selected grid. Units For additional coverage policies units are based on the insured annual forage acres, growing season, index interval, share, grid ID and county within or assigned to a grid. For CAT coverage units are based on the insured annual forage acres, growing season, share, grid ID and county within or assigned to a grid.

57 Section 4 Annual Forage 53 Rainfall Index Plan Compare/Contrast Annual Forage vs. Pasture, Rangeland and Forage Intended for annual plants. Annual Forage Planted within the specific time period for the growing season. (Established stands that are carried over from one growing season to another are not insurable.) All acreage of the crop required to be insured. Crop Year has two growing seasons. CAT coverage 65% Coverage Level 45% Productivity Factor Only 1 Index Interval for an entire growing season Units by Growing Season, Index Interval, Share, Grid ID and County within or assigned to a grid. 508(h) product. AIP option to offer. One productivity factor per growing season. Select percent of value for each growing season that is applied to all grids in the county. Intended Use Grain/Grazing, Grazing, Grazing/Green Chop, Grazing/ Haying, Green Chop, Haying and Silage Application Information CAT Coverage Crop Coverage Level Productivity Factor Additional Coverage Coverage Level Productivity Factor Crop Index Interval Percent of Value Acreage Report Information Share Intended Use Annual Forage Commodity Planting Date Grid ID FSA Farm Number, FSA Tract Number and FSA Field Number Insured Acres by Grid ID Certification Statement Insured Crop Pasture, Rangeland and Forage Intended for perennial crops or self-seeding annual plants maintained through several years of grazing. Initially planted prior to July 1 of the previous crop year, unless allowed by the Special Provisions. All or a portion of the acreage of the crop can be insured. No specified growing seasons. CAT not available. Units by Crop, Intended Use, Index Interval, Share and County within or assigned to a grid. RMA developed product. AIPs are required to offer. One productivity factor by county and intended use. Allocate a percent of value to each unit. Intended Use Haying or Grazing Application Information Grid ID Coverage Level Productivity Factor Crop Index Interval Percent Of Value Acreage Report Information Share Intended Use Grid ID FSA Farm Number, FSA Tract Number and FSA Field Number Total Insurable Acres Insured Acres by Grid ID Certification Statement 4 Annual Forage 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

58 54 Section 4 Annual Forage Insured Crop Annual Forage Pasture, Rangeland and Forage Index Intervals Index Intervals January and February January and February February and March February and March March and April March and April April and May April and May May and June May and June June and July June and July July and August July and August August and September August and September September and October September and October October and November October and November November and December November and December. December and January CAT Index Intervals September through March (637) March through September (638) Insuring Same Acres Insuring Same Acres Same acres cannot be insured in more than one grid ID or county within a growing season Same acres can be insured in different growing seasons Point of Reference (1 difference) Point of Reference (1 difference) Not established by Intended Use when more than one Intended Use Initial Plant Dates (Refer to SP for date for your area) Initial Plant Dates Applicable to each growing season Final Plant Dates Applicable to each growing season Final Plant Dates Not applicable Acreage Reporting Dates (Refer to SP for date for your area) Acreage Reporting Dates 11/15, 12/15 and 1/15 for Growing Season 1 11/15 7/15 for Growing Season 2 Sales Closing Dates 7/15 for Growing Season 1 12/15 for Growing Season 2 Same acres cannot be insured in more than one grid ID or county Established by Intended Use when more than one Intended Use Insured crop must have been initially planted prior to July 1 of the previous crop year, unless allowed by the Special Provisions Sales Closing Dates 11/15

59 Section 4 Annual Forage 55 RH 5081 Rainfall Index (RI) and Vegetation Index (VI) Application/Cancellation/ Transfer/Policy Change/Acreage Reporting Form ACE PROPERTY AND CASUALTY INSURANCE COMPANY Crop Insurance Serviced by: x RAIN AND HAIL L.L.C. RAIN AND HAIL INSURANCE SERVICE, L.L.C. Policy Page 1 of 2 State ANYSTATE Date 11/10/XX RAINFALL INDEX (RI) AND VEGETATION INDEX (VI) APPLICATION/CANCELLATION/TRANSFER/POLICY CHANGE/ACREAGE REPORTING FORM For 20XX and succeeding years Applicant/Insured Information Spousal Person Information Agency/Agent Information applicant s name spouse s name agency name IM INSURED IM SPOUSE IM AGENT street mailing address spouse s identification number street or mailing address 123 MAIN STREET ###-##-#### No Spouse 100 MAIN STREET city state zip code Insured s Authorized Representative city state zip code ANYCITY KS ANYCITY KS telephone number cell number telephone number x Yes No Is the applicant at least 18 years old? identification number id number type 1person type Yes No 2 agency code x Is applicant insuring landlord s share? (List as SBI) ###-##-#### x SSN EIN RAN Spousal Yes x No 2 Is applicant insuring tenant s share? (List as SBI) Form Action Requested (check all that apply): Other Changes: New Applicant Policy Change Required Field Review Add/change/correct insured s authorized representative Correct insured s identification number Cancellation Coverage Change Transfer Change/correct Insured s address Correct the spelling of insured s name APPLICATION INFORMATION Intended Productivity Total Insurable County Name of Crop Use Plan of Ins. Cov. Level Factor Acres or Colonies Options 3 Index Interval 3 Percent of Value Crop to Cancel Andrews AF RI % % Effective Crop Year Crop/Type County County Base Value Coverage Level/Trigger Index Productivity Factor Dollar Amount of Protection Per Acre or Colony PRF Hayland x x = x x = PRF Grazingland x x = x x = x Annual Forage Andrews $ x 0.85 x 120% = $ Apiculture x x = Type/Intended Uninsured County/Legal Description Use (e.g. Haying (Section, Township, Range, Other Land Identifier Grid Identification Insured Acres Share/Other or Grazing) [e.g. Spanish land grants, metes and bounds, etc.]) Number/Area Acres or Colonies Person Sharing Practice: Unit Percent of Value for each 3 Classification or Colonies Index Interval Number Index Interval FSA FN/FSA Tract No./FSA Field No. Annual Forage 3 Planting Commodity Date Percentage Hard Red Andrews Winter 32 31N 21E Wheat Grazing 3272/2153/ % 8/15/XX Total Andrews AF RI % Policy Loss Payee and Address % % % % % EXAMPLE Total Correct SBI s identification number Correct the spelling of SBI s name Crop Annual Forage SBI INFORMATION - List all persons with a substantial beneficial interest (10% or more) in the insured/applicant as defined in the applicable policy provisions (include landlords or tenants insured under the applicant). If none, state NONE. Identification SBI Request Name Complete Address Telephone Number Identification Number Number Type 1 Person Type ADD REMOVE UPDATE SSN EIN RAN ADD REMOVE UPDATE Remarks: Total Insurable Colonies in United States: 1 PERSON TYPE A - Public Schools B - Trust-Bureau of Indian Affairs (BIA) and Indian Tribe Ventures C - Corporations D - Estates E - Non-Profit or Tax Exempt Organizations F - Transfer of Rights to Indemnity (SBI only) G - Receiver or Liquidator H - Public Agency State/Local Government I - Individuals J - Joint Operations/Joint Ventures/ Co-Ownerships P - Partnerships R - Revocable Trust S - Spousal/Married T - Irrevocable Trust U - Undivided Interest (CAT only) X - Individual Operating as a Business Y - Limited Liability Company Enter the spouse s information in the Spousal Person Information section. If not married, check the No Spouse box. For all insured persons other than S, list all persons or entities with 10 percent or more interest in the applicant on the Social Security Number (SSN) and Employer Identification Number (EIN) Reporting Form (RH-5034). 2 INSURING LANDLORD/TENANT S SHARE: The person who is insuring the other s share must provide evidence of the other party s approval, such as the lease agreement or power of attorney. 3 Annual Forage Only COMPANY/AGENT COPY RH (Rev ) SSN EIN RAN 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

60 56 Section 4 Annual Forage RAINFALL INDEX (RI) AND VEGETATION INDEX (VI) APPLICATION/CANCELLATION/TRANSFER/POLICY CHANGE/ACREAGE REPORTING FORM Policy Page 2 of 2 CANCELLATION INFORMATION: I hereby request cancellation of my crop insurance policy for the crop(s) and crop year State ANYSTATE Date 11/10/XX shown on this cancellation. I understand that if this form is not executed on or before the cancellation date for any crop year listed, the cancellation of insurance on such crop(s) will not become effective until the following crop year. For 20XX and succeeding years REASON FOR CANCELLATION: Mutual Consent Insured s Request Death, Incompetence or Dissolution Other TRANSFER INFORMATION: Part II: By submission of this form, we agree to provide crop insurance to this applicant for the crop(s) and crop year specified above unless this form is not executed on or before the established cancellation date for Part I: I hereby request cancellation of my insurance policy with [Enter Ceding AIP s Name and Policy No.:] any of the crop(s) shown, in which case insurance will be provided for such crop(s) for the following crop year. for the crop(s) and crop year(s) shown on this application because I have applied for insurance with another Approved Insurance Provider. I understand that if this form is not executed on or before the established cancellation date for any crop listed, the cancellation of insurance on such crop(s) will not become effective until the following Assuming AIP and Policy Issuing Company Code crop year. I hereby authorize and direct the Ceding Approved Insurance Provider shown above to furnish any information relative to my insurance policy to the Assuming Approved Insurance Provider. I understand that Signature of AIP Representative Authorized to Accept Applications if coverage for any crop(s) is now terminated or would have subsequently terminated for delinquent debt had this transfer not occurred, no coverage can be provided by the assuming Approved Insurance Provider. Date of Acceptance by Assuming AIP Yes No CONDITIONS OF ACCEPTANCE PROMISSORY NOTE (a) Are you now indebted, and the debt is delinquent, for insurance coverage under the Federal Crop Insurance Act? (b) Have you in the last five years been convicted under federal or state law of planting, cultivating, growing, producing, harvesting, or storing a controlled substance? (c) Have you ever had insurance coverage under the authority of the Federal Crop Insurance Act terminated for violation of the terms of the contract or regulations, or for failure to pay your delinquent debt? (d) Are you disqualified or debarred under the Federal Crop Insurance Act, the regulations of the FCIC, or the USDA? (e) Have you ever entered into an agreement with the FCIC or with the Department of Justice that you would refrain from participating in programs under the authority of the Federal Crop Insurance Act and that agreement is still effective? (f) Do you have like insurance on any of the above crop(s)? REQUIRED STATEMENTS A) CONDITIONS OF ACCEPTANCE: This application is accepted and insurance attaches in accordance with the policy unless: (1) The Federal Crop Insurance Corporation determines that, in accordance with the regulations, the risk is excessive; (2) any material fact is omitted, concealed or misrepresented in this application or in the submission of this application; (3) you have failed to provide complete and accurate information required by this application; or (4) the answer to any of the questions set forth in Conditions of Acceptance on the the application is yes. An answer of yes to these questions does not automatically result in rejection of the application. For example, if you answer yes to question (a) but your debt was discharged in bankruptcy, the application would not be rejected. I understand that if coverage for any crop is currently terminated or would have subsequently terminated for delinquent debt had this application been filed after the termination date, no coverage can be provided and I am ineligible for any benefits under the Federal Crop Insurance Act until the cause for termination is corrected. We will notify you of rejection by depositing notification in the United States mail, postage paid, to the applicant s address. Unless rejected or the sales closing date has passed at the time you signed this application, insurance shall be in effect for the crop(s) and crop years specified and shall continue for each succeeding crop year, unless otherwise specified in the policy, until canceled, terminated or voided. No term or condition of the contract shall be waived or changed unless such waiver or change is expressly allowed by the contract and is in writing. B) CERTIFICATION STATEMENT: I certify that to the best of my knowledge and belief all of the information on this form is correct. I also understand that failure to report completely and accurately may result in sanctions under my policy, including but not limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C and 1014; 7 U.S.C. 1506; 31 U.S.C. 3729, 3730 and any other applicable federal statutes). C) NONDISCRIMINATION STATEMENT Non-Discrimination Policy: The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the bases of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual's income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities.) To File a Program Complaint: If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at gov/complaint filing cust.html, or at any USDA office, or call (866) to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter by mail to the U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C , by fax (202) or at [email protected]. Persons with Disabilities: Individuals who are deaf, hard of hearing or have speech disabilities and wish to file either an EEO or program complaint please contact USDA through the Federal Relay Service at (800) or (800) (in Spanish). Persons with disabilities, who wish to file a program complaint, please see information above on how to contact the Department by mail directly or by . If you require alternative means of communication On or before theundersigned, in consideration of the issuance of the policy shown above, hereby agrees to pay, at 9200 Northpark Drive, Suite 300, Johnston, Iowa 50131, to the order of the Company the total premium and applicable administrative fees, all as allowed by law. The Undersigned agrees to pay the maximum amount of interest on the total unpaid premium after such due dates plus reasonable costs of collection and attorney fees, all as allowed by law as stated in 7 CFR and consents to the Iowa Court jurisdiction and venue. The Undersigned agrees and acknowledges that the Company may deduct any and all amounts owed under this policy or any other policy, whether or not due, from any loss payable to you under this policy. for program information (e.g., Braille, large print, audiotape, etc.) please contact USDA's TARGET Center at (202) (voice and TDD). D) COLLECTION OF INFORMATION AND DATA (PRIVACY ACT) STATEMENT Agents, Loss Adjusters, and Policyholders: The following statements are made in accordance with the Privacy Act of 1974 (5 U.S.C. 552a): The Risk Management Agency (RMA) is authorized by the Federal Crop Insurance Act (7 U.S.C ) or other Acts, and the regulations promulgated thereunder, to solicit the information requested on documents established by RMA, or by approved insurance providers (AIPs), that have been approved by the Federal Crop Insurance Corporation (FCIC), to deliver Federal crop insurance. The information is necessary for AIPs and RMA to operate the Federal crop insurance program, determine program eligibility, conduct statistical analysis, and ensure program integrity. Information provided herein may be furnished to other Federal, State, or local agencies, as required or permitted by law, law enforcement agencies, courts or adjudicative bodies, foreign agencies, magistrate, administrative tribunal, AIPs contractors and cooperators, Comprehensive Information Management System (CIMS), congressional offices, or entities under contract with RMA. For insurance agents, certain information may also be disclosed to the public to assist interested individuals in locating agents in a particular area. Disclosure of the information requested is voluntary. However, failure to correctly report the requested information may result in the rejection of this document by the AIP or RMA in accordance with the Standard Reinsurance Agreement between the AIP and FCIC, Federal regulations, or RMAapproved procedures and the denial of program eligibility or benefits derived therefrom. Also, failure to provide true and correct information may result in civil suit or criminal prosecution and the assessment of penalties or pursuit of other remedies. EXAMPLE E) ANTI-REBATING STATEMENTS Applicant/Insured Statement: I certify, for the crop year indicated, that I have not directly or indirectly received, accepted, or been paid, offered, promised, or given any benefit, including money, goods, or services for which payment is usually made, rebate, discount, abatement, credit, or reduction of premium, or any other valuable consideration, as an inducement to procure insurance or in exchange for purchasing this insurance policy after it has been procured. I understand that this prohibition does not include payment of administrative fees, performance based discounts, and any other payment approved by FCIC that are authorized under sections 508(a)(9)(B) and 508(d)(3) of the Federal Crop Insurance Act (Act) (7 U.S.C. 1508(a)(9)(B) and 1508(d)(3)). I understand that a false certification or failure to completely and accurately report any information on this form may subject me, and any person with a substantial beneficial interest in me, to sanctions, including but not limited to, criminal and civil penalties and administrative sanctions in accordance with section 515(h) of the Act (7 U.S.C. 1515(h)) and all other applicable federal statutes. Agent Statement: I certify, for the crop year indicated, that I have neither offered nor promised, directly or indirectly, any benefit, including money, goods, or services for which payment is usually made, rebate, discount, credit, reduction of premium, or any other valuable consideration to this person either as an inducement to procure insurance or in exchange for obtaining insurance after it has been procured. I understand that this prohibition does not include payment of administrative fees, performance based discounts, and any other payment approved by FCIC that are authorized under sections 508(a)(9)(B) and 508(d)(3) of the Federal Crop Insurance Act (Act) (7 U.S.C. 1508(a)(9)(B) and 1508(d)(3)). I understand that a false certification or failure to completely and accurately report any violation may subject me, and all agencies/companies I represent, to sanctions, including but not limited, to criminal and civil penalties and administrative sanctions in accordance with section 515(h) of the Act (7 USC 1515(h)) and all other applicable federal statutes. For Pasture, Rangeland, and Forage (PRF) and Apiculture (API) only: I certify that (1) The grid ID accurately identifies the location of the insured acreage, and (2) That the acreage assigned to each grid ID is accurate to the best of my knowledge. For (API) only, I certify that (1) The colonies qualify as apiculture; and (2) The selected index intervals support the vegetation production necessary for the colonies. I certify that the information and answers on this application are correct to my knowledge and belief; that none of the reasons for rejection in items 1 through 4 of the Conditions of Acceptance apply; and that I am aware of and understand the requirements of the Collection of Information and Data (Privacy Act), as well as all other provisions contained on this application. I personally guarantee payment of the total premium and any applicable administrative fees. IM INSURED 11/10/XX IM AGENT XXXX-XX Applicant/Insured s Printed Name Licensed Agent s Printed Name Agent s Code IM INSURED IM AGENT 11/10/XX Applicant/Insured s Signature Date Licensed Agent s Signature Date COMPANY/AGENT COPY RH (Rev )

61 5 PRF Processing Procedure 58 PRF Processing Procedures 5 PRF Processing Procedure

62 58 Section 5 PRF Processing Procedure PRF Processing Procedures Adding a New Crop Contract Click the Add Contract plus sign within the crop contract area. Select the applicable county and crop, Pasture, Rangeland, Forage (0088) from the select drop-down. Select the Rainfall Index (013) (or Vegetative Index) as the plan of insurance and MARKET for the price. Complete the main tab as applicable. When finished, click on the Prices tab (see image below) and select the applicable types. For each type selected, you will also select the Level and Productivity Factor. Prices Tab Note Low, High and Base prices in the crop contract: the Base price is the county base value as determined by RMA for the County/ Crop/Plan/Type; the Low and High process are calculated by using the minimum and maximum Productivity Factor and multiplying it by the county base value. Upon changing the Productivity Factor, the price will automatically be calculated and displayed under the Other column; this is the price at which the crop will be insured. The Productivity Factor defaults to After clicking OK to save changes, the message box below will appear. Click OK to keep the factor at 1.00 or cancel and return to the work area to change the factor. (See image below). Adding Units/Yields Once the PRF crop contract is set up, one or more units/yield lines (one unit/yield line per Grid ID/Practice) should be added to the contract. Click on the Add Yield plus sign within the crop contract area. Under the Practice drop-down, select the applicable Index Interval and complete all required information for the yield, including the Grid ID. (See image below)

63 Section 5 PRF Processing Procedure 59 If the Grid ID is known for the unit, select it from the drop-down menu. To look up the Grid ID, click on the label Grid ID. Clicking on the label will open a new Internet browser window to the RMA approved website for determining the Grid ID for the unit. An example of the RMA website for the Rainfall Index plan, see the image below. RMA Website After adding the unit/yield line, an easy way to see which Grid ID is chosen for a particular unit without going into Yield Maintenance is to refer to the Remarks / Other Entries area at the bottom of the yield line. (See image below) After a PRF unit/yield has been added, check the Incomplete Report. (See image below) Common Land Units (CLUs) are required for all PRF units/yields. From the Incomplete Report, click the edit pencil icon (see image above) or click on the edit pencil found in the Land Description area of the unit/yield. (See image below) 5 PRF Processing Procedure 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

64 60 Section 5 PRF Processing Procedure CLUs To begin adding CLUs, click on the CLU tab. CLUs can be added by clicking on the map and selecting Add CLU (see image below). Or CLUs can be added by filling out the Farm Serial, Tract and Field boxes on the left side (see image below). All of the CLUs that have been added to the yield will be displayed in a list to the left of the map. The added CLUs will be highlighted in yellow on the map. (See image above) CLUs can also be removed by either clicking the minus (-) next to the CLU in the list or by selecting Remove CLU by clicking on the map (See image below). Once the CLUs are completed, click OK to close the work area. Save your changes and continue adding PRF units/yields. Adding PRF Premium Lines PRF acres are added from the yield line. Click the Add button in the acre section at the bottom of the applicable yield. (See image below)

65 Section 5 PRF Processing Procedure 61 Policy Line Maintenance will open in the work area. Enter the Total Insured Acres or Colonies, then Percent of Value, which will determine the Acres value. (See image below) When a premium line is added to a PRF yield, all CLUs permanently associated with the yield are annually associated to the premium line and appear under the CLU tab of Policy Line Maintenance. By default, all CLUs are associated on the premium line. Unselect any CLUs that do not apply to the acres processed. Click on the CLU tab to review and remove any CLUs that do not apply by taking out the check mark(s). In the example below, the second CLU line is unchecked, indicating that this does not belong to the premium line. Acres are not required to be entered in the Acre boxes for PRF and may be left as 0. Incomplete Reports After clicking OK to save changes, an Incomplete Report stating that the Total Insured Acres are greater than Total Insurable Acres (see image below) will appear. Click on the edit pencil icon within the Incomplete Report - the work area will open the Rainfall/Vegetative Index Total Insurable Acres/Colonies form (see image below). Enter the total insurable acres for each type and county listed. 5 PRF Processing Procedure 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

66 62 Section 5 PRF Processing Procedure Rainfall/Vegetative Index Total Insurable Acres/Colonies may also be accessed from the Select drop-down above the policyholder name. (See image below) For Rainfall Index plans, an Incomplete Report will appear stating that Rain Fall Index plans require at least two intervals insured for each Crop Type and Grid ID (see image below). The Incomplete Report may also state that the interval maximum percentage is exceeded maximum percentage (also see image below). The Incomplete Reports are a reminder that a specific percentage of insured acreage must be designated on at least two index intervals for each Crop Type and Grid ID. No more than % (refer to county actuarials for specific percentages) of the insured acres for each Crop Type and Grid ID can be reported to any one index interval and a minimum of 10% of the insured acres for each Crop Type and Grid ID can be placed to any one index interval. empci Processing verifies the total number of Insured Acres is not greater than the Total Insurable Acres for the Type/Grid ID combination and that the Percent of Value does not exceed 100%. When these Incomplete Reports are received (see image below), review the Total Insurable Acres entered for the type, Grid ID and county. The image below shows an Incomplete Report for overlapping index intervals. PRF cannot have any one month in more than one interval. Correct the yields that are noted in the Incomplete Report to Index Intervals that do not have overlapping months.

67 6 6 Web Services/Resources 64 Quoting Options 64 Quick Analyzer User Interface 64 Unit Details 65 Coverage Analyzer User Interface 66 Detail Panel Web Services/Resources

68 64 Section 6 Web Services/Resources Quoting Options There are several different quoting options to choose from. Quoting Options Quick Analyzer User Interface Rain and Hail offers a simple user interface for users in addition to the original Coverage Analyzer interface. The user interface for Quick Analyzer works in the same way but produces different outputs. This option provides drop-down menus to make selections for agency, county and crop. Users can illustrate for only one crop, practice and type at a time using Quick Analyzer. Check boxes are used to make the selections for crop plan(s), level(s), unit structure(s) and option(s). Users are able to click to select all or none for each of these criteria. Users also have the ability to edit the Details or use defaults. Quick Analyzer Interface Unit Details This area allows the user to select the Productivity Factor by the current County Base Value. The user can add multiple Grid IDs and Index Intervals, as well as the amount of acres and share arrangement of each Grid. Unit Details

69 Section 6 Web Services/Resources 65 Coverage Analyzer User Interface MPCI Selections, Toolbar, Next 6 Web Services/Resources Coverage Analyzer User Interface 1. MPCI Selections: Lists generated for practice, type, crop plan, levels and options are hierarchical in nature, relying on previous selections to generate a list of all valid combinations. 2. Toolbar is located at the top of the page. Tools currently available are: a. Select County, Crop or Policy Shows current elections and enables user to dynamically edit those elections. b. Edit Illustration Lines Allows the user to edit Details of a quote such as acres, coverage, share/interest, yield or price. The user can choose from the following options: RH Classic, RH Comparison or RH Loss Estimator. c. Generate Illustration The user can choose from the following options: RH Classic, RH Comparison or RH Loss Estimator. d. Reset This option clears any selected criteria. e. Scenarios (saving a quote) The user has the option to Save a generic quote or Load a previous quote. Additional Scenarios can be created by repeating the Save process. By default, when saving, the name and description fields will contain the information of the current Scenario. To create a new Scenario, delete the name and description information and replace with new data. Changes made to Scenarios are not automatically saved; therefore, user must use the Save process to update Scenarios. f. Load Policy Selecting the Load button will generate a list of policies associated with the account. Select the policy to load by leftclicking the mouse on the appropriate row. g. Feedback The Feedback button connects you to a user survey to provide feedback to Rain and Hail about the quoting application. We are constantly looking to improve our quoting tools for our agency force and need your help to do this. 3. When the user clicks the Next button to create an illustration, two options will pop up: Next Button Pop-Up Window a. The user must choose Edit Lines; another pop-up window will appear with three options. All three options will bring up the Detail Panel, which is described in the next section, but the user can only select Standard (RH Classic) for PRF quoting. b. Standard (RH Classic) Select this to create/edit lines that closely resembles a policy. Edit Lines Pop-Up Window 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

70 66 Section 6 Web Services/Resources Detail Panel The Detail Panel lists the practice/type/plan combinations based on the selection criteria chosen and organized by crop/county. Illustrations can be tailored by: 1. Specific combinations can be omitted from the illustration by un-checking the selection using the check boxes at the left of the line. 2. Values for individual cells within the detail can be modified and are identified using the legend at the bottom of the screen. Each of the illustration lines can be tailored by modifying the acres, coverage, share/interest, yield or price. Detail Panel

71 7 Claims and Quality Control 68 Rainfall Index Claims 69 Rainfall Index Quality Control Requirements 70 Vegetation Index Claims 71 Vegetation Index Quality Control Requirements 7 Claims and Quality Control

72 68 Section 7 Claims and Quality Control Rainfall Index Claims Claim Payment We will make any indemnity payments within 60 days of receiving the published PRF final grid index from FCIC for the applicable index interval. Indemnity Payment 1. There are no field claims activities or loss adjustment for Rainfall Index policies. a. Indemnity payments must be paid according to the Rainfall Index Crop Provisions, utilizing the final grid indices released by FCIC and the insured s trigger grid index. Trigger and Indemnity Payment Calculation Factor: 1. (Trigger Grid Index - Final Grid Index)/Trigger Grid Index) for each unit. 2. An indemnity may be made only if the final grid index determined by RMA is less than the trigger grid index. 3. If indemnity is due, it will be issued no later than 60 days following the determination and publication of the final grid index. 4. Indemnity = Payment Calculation Factor Policy Protection/Unit Example: 1. Expected Grid Index is 100 x Coverage Level of 85% = a Trigger Grid Index of Final Grid Index: Interval March April = 90, Interval June July = 60 a. Payment Calculation Factor: 1. Index Interval March April: (Trigger of 85 - Final Grid Index of 90) / Trigger Grid Index 85 = No indemnity due (90 > Trigger Grid Index) 2. Index Interval June July: (85-60)/85 = Total Indemnity = $2,646 a. Index Interval March April = $0 b. Index Interval June July = ($9, ) = $2, {$18.00 (Amount of protection/acre) 500 (acres in June July) 1.0 (share)} (Payment calculation factor) = $2,646 Final and Trigger Grid Index Trigger grid index is 85 for all grids and index intervals. The insured may have a payable loss when the Final Grid Index is below the Trigger Grid Index. Grid ID Index Interval Unit Number Final Grid Index Trigger (Above or Below) Grid Above Above Grid Above Above Below Grid Above Below Grid Above Below Calculating Indemnities Below 1. Payment Calculation Factor = (Trigger Grid Index - Final Grid Index)/Trigger Grid Index 2. Indemnity Payment = Payment Calculation Factor x Policy Protection per Unit

73 Section 7 Claims and Quality Control 69 Example Indemnity Calculations Grid Acres 1. January February Index Interval: The final grid index of 120 is above the trigger grid index of 85. No indemnity is due. 2. April May Index Interval: The final grid index of 100 is above the trigger grid index of 85. No indemnity is due. Grid 2 50 Acres 1. January February Index Interval: The final grid index of 110 is above the trigger grid index of 85. No indemnity is due. 2. April May Index Interval: The final grid index of 90 is above the trigger grid index of 85. No indemnity is due. 3. August September Index Interval: The final grid index of 70 is below the trigger grid index of 85. The indemnity is calculated as follows: Payment Calculation Factor = (85-70) / 85 = Indemnity Payment = $360 = $63 Grid Acres 1. January February Index Interval: The final grid index of 110 is above the trigger grid index of 85. No indemnity is due. 2. August September Index Interval: The final grid index of 60 is below the trigger grid index of 85. The indemnity is calculated as follows: Payment Calculation Factor = (85-60) / 85 = Indemnity Payment = $450 = $132 Grid Acres 1. January February Index Interval: The final grid index of 120 is above the trigger grid index of 85. No indemnity is due. 2. April May Index Interval: The final grid index of 70 is below the trigger grid index of 85. The indemnity is calculated as follows: Payment Calculation Factor = (85-70) / 85 = Indemnity Payment = $1, = $ July August Index Interval: The final grid index of 60 is below the trigger grid index of 85. The indemnity is calculated as follows: Payment Calculation Factor = (85-60) / 85 = Indemnity Payment = $ = $ A total indemnity of $687 will be due to the insured for this county for this crop year. Rainfall Index Quality Control Requirements Acreage Review Selection 1. Insurance providers must perform acreage reviews no later than 120 days after the acreage reporting date for the crop or after a reduction in acreage. 2. Acreage reviews are required for: a. All policies of employees of the insurance provider/fcic or representatives, adjusters, agents, etc., on which a claim has been paid in the last year. b. All policies for which misrepresentation or concealment of material facts is suspected. c. All policies for which a written application for acreage reduction are made during the crop year. d. Not less than a 3% random sample for all Rainfall Index policies with reported acreage. Acreage Review Criteria Acreage reviews verify: 1. Actual acres (total of all the crop acres in the county covered by the Crop Provisions, both insurable and those that are considered uninsurable due to limitations specified in the policy with a share) of the crop versus insured acreage in the county. a. Proof of actual acres in the county can be established by providing documentation of acreage. b. Measured by FSA or an independent third party. Such proof could include the following: 1. Approved measuring service 2. Land surveys 3. Other federal agencies 4. Legal land deed 5. Written lease agreement 6. Tax documents 7 Claims and Quality Control 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

74 70 Section 7 Claims and Quality Control 2. Insurable interest/share in the crop. a. Prove by providing acceptable verifiable documentation, such as: 1. Written lease/share agreements 2. Verifiable proof, such as handwritten documents, invoices, cancelled checks, etc. 3. Insurability of the land located within the county and reported on or before the published acreage reporting date. 4. Actual field inspections are required on all PRF policies in which a review has been opened. Vegetation Index Claims Claim Payment We will make any indemnity payments within 60 days of receiving the PRF final grid index from FCIC for the applicable index interval. Indemnity Payments There are no field claims activities or loss adjustment for Vegetation Index policies, except in the case of man made actions (which may include, but is not limited to, fire). Vegetation Index policy has the following general requirements: 1. Indemnity payments must be paid according to the Vegetation Index Basic Provisions and Vegetation Index Crop Provisions, utilizing the final grid indices released by FCIC and the insured s trigger grid index: a. However, losses must be due to natural causes. If the action is determined to be an act of man or intentional (such as, but not limited to, fire), a method of assigning the Vegetation Index value by FCIC from the nearest unaffected grid will be utilized to establish a final grid index value for the grid(s) affected. The following procedure will be followed by FCIC to determine affected grids and the nearest unaffected grid(s): 1. The action must be determined to be an act of man. If natural causes, follow indemnity payments and forms as outlined in the policy. 2. The area affected has to be greater than 5,000 acres. If less than 5,000 acres, follow indemnity payments and forms as outlined in the policy. 3. FCIC will estimate the affected area before the release of the final grid index by measuring the boundary in the following manner: a. The boundary of the action will be described by a minimum of four longitude and latitude readings representing the maximum dimensions by FCIC designated personnel. For fires, this will include the upwind, downwind and width points of the burned area. b. These points can be determined using the aerial photographs on the geo-referenced teraserver web portal developed for the PRF Vegetation Index insurance program to assign grid IDs and determine point of reference. 4. The longitude and latitude of the points, in decimal degrees, will be recorded via an action/fire assessment web form and placed onto the Vegetation Index web portal by the FCIC designated web program administrator. 5. Upon submission of the points, a linear point-to-point scribed polygon will be computed by the software, which overlays the Vegetation Index grids and a list of impacted grid IDs will be extracted. 6. For each selected impacted grid, the computer program will also search for the nearest Vegetation grid ID not impacted by the action and will list those for each impacted grid ID. 7. Data from the alternative grid ID will be utilized for the impacted grid ID(s). a. Indemnity payments shall be calculated separately for each unit (grid ID, crop type and index interval). b. Insurance providers must make any indemnity payments within 60 days of receiving final grid index from FCIC.

75 Section 7 Claims and Quality Control 71 Vegetation Index Quality Control Requirements Acreage Review Selection 1. Insurance providers must perform acreage reviews no later than 120 days after the acreage reporting date for the crop or after a reduction in acreage. 2. Acreage reviews are required for: a. All policies of employees of the insurance provider/fcic or representatives, adjusters, agents, etc., on which a claim has been paid in the last year. b. All policies for which misrepresentation or concealment of material facts is suspected. c. All policies for which a written application for acreage reduction is made during the crop year. d. Not less than a 3% random sample for all Vegetation Index policies with reported acreage. Acreage Review Criteria Acreage reviews verify: 1. Actual acres (total of all the crop acres in the county covered by the Crop Provisions, both insurable and those that are considered uninsurable due to limitations specified in the policy with a share) of the crop versus insured acreage in the county. a. Proof of actual acres in the county can be established by providing documentation of acreage. 1. Measured by FSA or an independent third party. Such proof could include the following: a. Approved measuring service b. Land surveys c. Other federal agencies d. Legal land deed e. Written lease agreement f. Tax documents 2. Insurable interest/share in the crop. a. Prove by providing acceptable verifiable documentation, such as: 1. Written lease/share agreements 2. Verifiable proof, such as handwritten documents, invoices, cancelled checks, etc. 3. Insurability of the land located within the county and reported on or before the published acreage reporting date. 4. Actual field inspections are required on all PRF policies in which a review has been opened. 7 Claims and Quality Control 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

76 72 Section 7 Claims and Quality Control

77 8 Rainfall Index and Vegetation Index Basic Provisions RIVI Rainfall and Vegetation Index Plan Common Policy RI-PRF FCIC Rainfall Index PRF Crop Provisions RI-API FCIC Rainfall Index API Crop Provisions VI-PRF FCIC Vegetation Index PRF Crop Provisions VI-API FCIC Vegetation Index API Crop Provisions RMA Ineligibility Amendment 8 Rainfall Index and Vegetation Index Basic Provisions

78 74 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI RAINFALL AND VEGETATION INDEX PLAN COMMON POLICY This pilot insurance policy is reinsured by Federal Crop Insurance Corporation (FCIC) under the provisions of the Federal Crop Insurance Act (Act). All terms of the policy and rights and responsibilities of the parties are subject to the Act and all regulations under the Act published in 7 CFR chapter IV. The provisions of this policy may not be waived or modified in any way by us, our insurance agent, or any other contractor or employee of ours or any employee of the United States Department of Agriculture (USDA) unless the policy specifically authorizes a waiver. We will use the procedures, including but not limited to handbooks, manuals, memoranda, and bulletins, as issued by FCIC and published on the Risk Management Agency (RMA) web site at or a successor web site, in the administration of this policy. In the event that we cannot pay your indemnity because we are insolvent or are otherwise unable to perform our duties under our reinsurance agreement with FCIC, your indemnity will be settled in accordance with the provisions of this policy and FCIC will be responsible for any amounts owed. No state guarantee fund will be liable for your loss. Throughout this policy, you and your refer to the insured shown on the application accepted by us, and we, us, and our refer to the reinsured company issuing this policy. Unless the context indicates otherwise, the use of the plural form of a word includes the singular use and the singular form of the word includes the plural. AGREEMENT TO INSURE We agree that in return for the payment of the premium, and subject to all of the provisions of this policy; we will provide the insurance as stated in this policy. If there is a conflict between the (1) Act; (2) regulations published at 7 CFR chapter IV; (3) policy provisions; and (4) procedures issued by FCIC, the order of priority is (1) controlling (2), etc. If there is a conflict among the policy provisions, the order of priority is the (1) Catastrophic Risk Protection Endorsement, as applicable; (2) Special Provisions and Actuarial Documents; (3) Crop Provisions; and (4) these Basic Provisions, with (1) controlling (2), etc. Terms and Conditions Rainfall and Vegetation Index Plan of Insurance Basic Provisions 1. Definitions. Acreage report means an annual report that contains the information required by these Basic Provisions. Acreage reporting date means the date contained in the Actuarial Documents by which you are required to submit your acreage report. Act means the Federal Crop Insurance Act (7 U.S.C ). Actuarial Documents mean the information for the crop year that is available for public inspection in your agent s office and published on RMA s web site, which provides the county base value per acre, coverage levels, information needed to determine the premium rates, commodity types, index intervals, irrigated practices, cropping practices, organic 1 of 28 practices, program dates, and other related information regarding crop insurance in the county or grid, as applicable. Additional coverage means a level of coverage greater than CAT. Administrative fee means an amount you must pay for CAT or additional coverage for each crop. Agricultural experts means persons who are employed by the Cooperative Extension System or the agricultural departments of universities, or other persons approved by FCIC, whose research or occupation is related to the specific crop or practice for which such expertise is sought. Application means the form that contains the information required by these Basic Provisions.

79 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI Assignment of indemnity means a transfer of policy rights whereby you assign your right to an indemnity payment for the crop year only to creditors or other persons to whom you have a financial debt or other pecuniary obligation. Cancellation date means the date specified in the Actuarial Documents on which insurance for the crop will automatically renew unless canceled in writing by either you or us or terminated in accordance with your policy. Catastrophic Risk Protection (CAT) means the minimum level of insurance coverage offered by FCIC that is a dollar amount of protection equal to the county base value per acre multiplied by the 65 percent coverage level multiplied by the 45 percent productivity factor, unless otherwise specified in the Actuarial Documents. Catastrophic Risk Protection Endorsement means the part of the crop insurance policy that contains provisions of insurance that are specific to CAT. Code of Federal Regulations (CFR) means the codification of general and permanent rules published in the Federal Register by the Executive departments and agencies of the Federal Government. Rules published in the Federal Register by FCIC are contained in 7 CFR chapter IV. The full text of the CFR is available in electronic format at or a successor web site. Commodity means an agricultural good or product that has economic value. Commodity type means a specific subgroup of a commodity having a characteristic or set of characteristics distinguishable from other subgroups of the same commodity. Consent means approval in writing by us allowing you to take a specific action. Contract has the same meaning as the term policy. Contract change date means the date specified in the Actuarial Documents by which changes to the policy, if any, will be made available. Contiguous means acreage in a county or grid that continues into an adjoining state, county or grid without interruption. Acreage separated by only a public or private right-of-way, waterway, or an irrigation canal will be considered contiguous. 2 of 28 Cooperative Extension System means a nationwide network consisting of a state office located at each state s land-grant university, and local or regional offices. These offices are staffed by one or more agricultural experts, who work in cooperation with the National Institute of Food and Agriculture, and who provide information to agricultural producers and others. County means any county, parish, or other political subdivision of a state shown on your application accepted by us. County base value per acre means FCIC's determined value of the crop in the county as contained in the Actuarial Documents. Coverage level means a percentage selected by you from those contained in the Actuarial Documents. Cover crop means a crop generally recognized by agricultural experts as agronomically sound for the area for erosion control or other purposes related to conservation or soil improvement. Crop means the insurable commodity as defined in the Crop Provisions. Cropping practice means the combination of inputs such as fertilizer, herbicide, and pesticide, and operations such as planting, cultivation, etc. used to produce the insured crop. The insurable cropping practices are specified in the Actuarial Documents. Crop Provisions means the part of the policy that contains the specific provisions of insurance for each insured crop. Crop year means the period of time within which the insured crop is normally grown, regardless of whether or not it is actually grown, and designated by the calendar year in which the insured crop is normally harvested. Days mean calendar days. Delinquent debt has the same meaning as the term defined in 7 CFR part 400, subpart U, or successor regulation. Disinterested third party means a person that does not have any familial relationship with you, does not reside in your household, or who will not benefit financially from the insured crop. Double crop means the planting of two specific crops that have the capability to be planted and carried to maturity for the intended use, as reported by the producer, on the same acreage 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

80 76 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI within a crop year under normal growing conditions. Earth Resources Observations and Science (EROS) means a remotely sensed data management, systems development, and research field center for the U.S. Geological Survey's Climate and Land Use Change Mission Area. Expected grid index means a grid index determined by FCIC based on: (1) For the Vegetation Index policies, the mean NDVI values by index interval calculated using the historical NDVI gridded data, or successor data, normalized and expressed as a percentage, such that the mean is 100. The data used to calculate the expected grid index is conclusively presumed to be accurate. (2) For the Rainfall Index policies, the mean accumulated precipitation by index interval, calculated by using NOAA s historical gridded precipitation data, or successor data, normalized and expressed as a percentage such that the mean is 100. The data used to calculate the expected grid index is conclusively presumed to be accurate. Familial relationship means your parents, brothers, sisters, children, spouse, grandchildren, aunts, uncles, nieces, nephews, first cousins, or grandparents, related by blood, adoption or marriage. Federal Crop Insurance Corporation (FCIC) means a wholly owned corporation within USDA, whose programs are administered by RMA. Final grid index means a grid index determined by FCIC based on: (1) For the Vegetation Index policies, the current NDVI values, using the current NDVI gridded data, for each grid ID and index interval, expressed as a percentage. The data used to calculate the final grid index is conclusively presumed to be accurate. (2) For the Rainfall Index policies, the NOAA s current gridded precipitation data or successor data, for each grid ID and index interval, expressed as a percentage. The data used to calculate the final grid index is conclusively presumed to be accurate. First insured crop means, with respect to a single crop year and any specific crop acreage, 3 of 28 the first instance that a crop is planted or grown for harvest or prevented from being planted and is insured under the authority of the Act. For example, if winter wheat that is not insured is planted on acreage that is later planted to soybeans that are insured, the first insured crop would be soybeans. If the winter wheat was reported as insured, it would be the first insured crop. Farm Service Agency (FSA) means an agency of the USDA, or a successor agency. FSA farm number means the number assigned to a farm by FSA. FSA field number means the number assigned to a field by FSA. FSA tract number means the number assigned to a tract by FSA. Generally recognized means when agricultural experts are aware of the production method and there is no genuine dispute regarding whether the production method allows the crop to make normal progress toward maturity. Good farming practices mean the production methods utilized to produce or manage the insured crop and allow it to make normal progress toward maturity, and are those generally recognized by agricultural experts for the area. Grid means an area identified by longitude and latitude used to determine the expected grid index, final grid index, premium and indemnity. For the Vegetation Index policies, the grid is an 8 kilometer by 8 kilometer area established using NDVI gridded data. For the Rainfall Index policies, the grid is a 0.25 degree gridded area, or a successor area, established by NOAA. Grid identification number (grid ID) means a specific number assigned to each grid. Household means a domestic establishment including individuals with a familial relationship and others who live on the same property. Index interval means a period of time designated in the Actuarial Documents during which NDVI and precipitation data is collected. Insurable interest means your percentage of the insured crop that is at financial risk. Insurable loss means when the final grid index is less than your trigger grid index. Insured means the named person as shown on

81 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI the application accepted by us. This term does not extend to any other person having a share or interest in the crop, such as a partnership, landlord, or any other person, unless specifically indicated on the application accepted by us. Insured crop means the crop insured under your policy as shown on the application accepted by us. Intended use means the producer s expected end use or disposition of the commodity at the time the commodity is reported. Interplanted means acreage on which two or more crops are planted in a manner that does not permit separate agronomic maintenance or harvest of the crops. Irrigated practice means a method of producing a crop by which water, from an adequate water source, is artificially applied in sufficient amounts by appropriate and adequate irrigation equipment and facilities and at the proper times necessary to produce at least the (1) yield expected for the area; (2) yield used to establish the production guarantee or amount of insurance/coverage on the irrigated acreage planted to the commodity; or (3) producer s established approved yield, as applicable. Acreage adjacent to water, such as but not limited to a pond, lake, river, stream, creek or brook, shall not be considered irrigated based solely on the proximity to the water. Lease means a written document granting use or occupation of property for a specified compensation, during a specified period of time. Compensation may include, but is not limited to: cash, share of insured crop, proceeds, labor, calf crop, honey, services, etc. Limited resource farmer has the same meaning as the term defined at: or successor web site. National Oceanic and Atmospheric Administration (NOAA) means an agency under the Department of Commerce, or successor agency. Normalized Difference Vegetation Index (NDVI) means a measure indicating the density of photosynthetic biomass on the ground, resulting from the processing of satellite imagery. NDVI data is obtained from EROS and is conclusively presumed to be accurate. 4 of 28 Offset means the act of deducting one amount from another amount. Organic agricultural experts mean persons who are employed by the following organizations: Appropriate Technology Transfer for Rural Areas, Sustainable Agriculture Research and Education or the Cooperative Extension System, the agricultural departments of universities, or other persons approved by FCIC whose research or occupation is related to the specific organic crop or practice for which such expertise is sought. Percent of value means the percentage of the total insured value you allocate, in whole numbers, in accordance with the Crop Provisions, to the index intervals selected by you. Person means an individual, partnership, association, corporation, estate, trust, or other legal entity, and wherever applicable, a state or a political subdivision or agency of a state. Person does not include the United States Government or any agency thereof. Planted acreage means land in which seed, plants, or trees have been properly placed, at the correct depth, and into a seedbed that has been properly prepared for the insured crop, using cropping practices consistent with good farming practices. Point of reference means the location provided by you of the insured acreage. The point of reference must be provided using the maps contained on RMA s web site, or successor web site. Policy means the agreement between you and us to insure a crop, and consisting of the application accepted by us, these Basic Provisions, the Crop Provisions, other applicable endorsements or options, the Special Provisions and Actuarial Documents, the CAT Endorsement, if applicable, and the applicable regulations published in 7 CFR chapter IV. Insurance for each crop in each county will constitute a separate policy. Premium billing date means the earliest date upon which you will be billed for insurance based on your acreage report. The premium billing date is contained in the Actuarial Documents. Productivity factor means a percentage factor 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

82 78 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI selected by you that allows you to individualize your coverage based on the productivity of the acreage of the insured crop. The CAT productivity factor is 45 percent. Replanted crop means the same crop replanted on the same acreage as the first insured crop for harvest in the same crop year. Risk Management Agency (RMA) means an agency of USDA, or a successor agency. Sales closing date means the date contained in the Actuarial Documents by which an application must be filed and the last date by which you may change your crop insurance for a crop year. Second crop means with respect to a single crop year, the next occurrence of planting any crop for harvest following a first insured crop on the same acreage. A crop meeting the conditions stated herein will be considered to be a second crop regardless of whether or not it is insured. The second crop may be: (1) The same or a different crop as the first insured crop, except the term does not include a replanted crop; (2) A cover crop, planted after a first insured crop and planted for the purpose of haying, grazing or otherwise harvesting in any manner or that is hayed or grazed during the crop year, or that is otherwise harvested; or (3) A cover crop that is covered by FSA s noninsured crop disaster assistance program or receives other USDA benefits associated with forage crops. Share means your insurable interest in the insured crop as an owner, operator, or tenant. Special Provisions mean the part of the policy that contains specific provisions of insurance for the insured crop that may vary by geographic area. State means the state shown on your application accepted by us. Subsidy means the portion of your premium, shown in the Actuarial Documents, that FCIC will pay in accordance with the Act. Substantial beneficial interest means an interest held by any person of at least 10 percent in you. This includes all persons, whether foreign or domestic. (1) All corporations, partnerships, individuals etc., must be included until the 10 percent 5 of 28 interest is reached. For example, there are two corporations that each has a 50 percent interest in you. Each corporation is comprised of two foreign partnerships. Two of the foreign partnerships have a 50 percent interest in one corporation and the other two foreign partnerships have a 50 percent interest in the other corporation. Each of the four foreign partnerships is comprised of two individuals, each having a 50 percent interest in the respective foreign partnership. In this example, each individual would be considered to have a 12.5 percent interest in you. The corporations, foreign partnerships and individuals, whether foreign or domestic, would all have to be reported as having a substantial beneficial interest in you. (2) The spouse of any individual applicant or individual insured will be presumed to have a 50 percent interest in the applicant or insured unless the spouses can prove they are legally separated or otherwise legally separate under the applicable state dissolution of marriage laws. (3) Any child of an individual applicant or individual insured will not be considered to have a substantial beneficial interest in the applicant or insured unless the child has a separate legal interest in such person. Summary of coverage means our statement to you of the crop insured, dollar amount of protection per acre, premiums, and other information obtained from your application accepted by us, acreage report, and the Actuarial Documents. Tenant means a person who rents land from another person for cash, a share of the crop or a share of the proceeds of the crop. Also see the definition of share and lease. Termination date means the date contained in the Actuarial Documents upon which your insurance ceases to be in effect because of nonpayment of any amount due us under the policy, including premium. Total loss factor means a factor used in the Vegetation Index Crop Provisions indemnity payment calculation. The total loss factor is the percentage of the expected grid index at which the vegetation being measured effectively has

83 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI zero production, and results in an indemnity payment equal to the full guarantee amount for a unit when the final grid index is less than or equal to the expected grid index multiplied by the total loss factor. The total loss factor is applied only to the Vegetation Index Crop Provisions indemnity payment calculation because the NDVI measures all photosynthetic biomass on the ground, not just the insured crop. Unless otherwise specified in the Special Provisions, the total loss factor is Trigger grid index means the result of multiplying the expected grid index by the coverage level selected by you Unit means the insured acres by crop, intended use, index interval, share, and county within or assigned to a grid. Void means when the policy is considered not to have existed for a crop year. Volunteer crop means a crop that was planted in a previous crop year on the applicable acreage or drifted from other acreage, successfully self-seeded, and is growing this crop year on the applicable acreage without being intentionally sown or managed. 2. Application. With respect to your application for insurance: (a) You must provide the completed application form to your agent not later than the sales closing date of the initial insurance year for each crop for which insurance is requested; (b) If all required information is not provided, including but not limited to all social security numbers (SSN) and employer identification numbers (EIN) for you and any person with a substantial beneficial interest in you, your application will not be considered accepted by us and no insurance will be provided; (c) You must include: (1) Your grid ID, coverage level, productivity factor, crop, index interval, percent of value and any other material information required on the application to insure the crop; (2) Your SSN if you are an individual; (3) Your EIN if you are a person other than an individual; and (4) The following for all persons who have a substantial beneficial interest in you: 6 of 28 (i) The SSN for individuals; or (ii) The EIN for persons other than individuals and the SSNs for all individuals that comprise the person with the EIN if such individuals also have a substantial beneficial interest in you; (d) If your application contains an incorrect SSN or EIN for you or a person with a substantial beneficial interest in you: (1) Except as provided in section 2(d)(2), your application will be accepted and insurance will be provided if you: (i) Correct the SSN or EIN prior to earning an indemnity; and (ii) Are eligible for insurance. (2) Your application will be considered not to have been accepted by us, no insurance will be provided for the year of application and for any subsequent crop years, as applicable, and such policies will be void if: (i) The SSN or EIN is not corrected by you prior to earning an indemnity; or (ii) You correct the SSN or EIN for you or a person with a substantial beneficial interest in you but: (A) It is determined that the incorrect number would have allowed you to obtain disproportionate benefits under the crop insurance program; (B) You are determined to be ineligible for insurance; or (C) It is determined that the incorrect number would have allowed you to avoid an obligation or requirement under any state or Federal law. (3) When any of your policies are void under section 2(d)(2): (i) You must repay any indemnity payment that may have been paid for all applicable crops and crop years; (ii) Even though the policies are void, you will still be required to pay an amount equal to 20 percent of the premium that you would otherwise be required to pay; and (iii)if you previously paid premium or 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

84 80 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI administrative fees, any amount in excess of the amount required in section 2(d)(3)(ii) will be returned to you; (e) Your share for all crops included on your application will be reduced proportionately by the percentage interest in you of persons with a substantial beneficial interest in you if: (1) The SSNs or EINs of such persons are included on your application; (2) The SSNs or EINs are correct; and (3) Such persons are ineligible for insurance; (f) Notwithstanding any of the provisions in this section, if you certify to an incorrect SSN or EIN, or receive an indemnity payment and the SSN or EIN was not correct; you may be subject to civil, criminal or administrative sanctions; (g) If any of the information regarding persons with a substantial beneficial interest in you changes after the sales closing date for the current crop year, you must revise your application by the sales closing date for the next crop year to reflect the correct information. However, if such information changed less than 30 days before the sales closing date for the next crop year, you must revise your application by the sales closing date for the following crop year. If you fail to provide the required revisions, the provisions in section 2(e) will apply; (h) If you are, or a person with a substantial beneficial interest in you is, not eligible to obtain a SSN or EIN, whichever is required, you must request an assigned number from us for the purposes of this policy: (1) A number will be provided only if you can demonstrate you are, or a person with a substantial beneficial interest in you is, as applicable, eligible to receive benefits under the Act or any other applicable law; (2) If you do not request a number or a number cannot be provided for you in accordance with section (2)(h)(1), your application will not be accepted by us; or (3) If you do not request a number or a number cannot be provided for any 7 of 28 person with a substantial beneficial interest in you in accordance with section 2(h)(1), the amount of insurance for all crops on the application will be reduced proportionately by the percentage interest of such person in you. (i) When obtaining CAT or additional coverage, you must provide information to us regarding crop insurance you obtained for the same crop from any other approved insurance provider or from any FSA office. The information provided must include the date such insurance was obtained and the amount of the administrative fee; and (j) Any person may sign any document relative to crop insurance on your behalf, provided that you have a properly executed power of attorney or such other legally sufficient document authorizing such person to sign on your behalf. You are still responsible for the accuracy of all information provided on your behalf and may be subject to the consequences in section 9(f), and any other applicable consequences, if any information has been misreported. 3. Life of Policy, Cancellation, and Termination. (a) This is a continuous policy. (b) For the initial crop year after your application is accepted by us, your policy: (1) Cannot be cancelled by you; (2) May be cancelled or terminated by operation of the terms of the policy; or (3) May be cancelled or terminated by us. (c) After the initial crop year your application is accepted by us, your policy will continue in force for each succeeding crop year, unless: (1) Canceled by you in accordance with the terms of the policy; (2) Terminated or cancelled by operation of the terms of the policy; or (3) Terminated or cancelled by us. (d) Written notice, in accordance with section 28, of cancellation of your policy by either you or us must be provided to the other on or before the cancellation date. (e) If cancellation or termination of insurance occurs for any reason, including but not limited to indebtedness, suspension,

85 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI debarment, disqualification, cancellation by you or us, or violation of the controlled substance provisions of the Food Security Act of 1985, you must submit a new application on or before the sales closing date for the crop if you want to obtain insurance for your crop after you become eligible for insurance. Insurance will not be provided if you are ineligible under this policy or under any Federal statute or regulation. (f) Any amount due to us for any policy authorized under the Act will be offset from any payment due you for this or any other crop insured with us under the authority of the Act. (1) Even if you have not yet been paid, you must still pay the premium and administrative fee on or before the termination date for you to remain eligible for insurance. (2) If we offset any amount due us from a payment owed to you, the date of payment for the purpose of determining whether you have a delinquent debt will be the date RMA publishes the final grid index for the applicable index interval. (g) A delinquent debt for any policy will make you ineligible to obtain crop insurance authorized under the Act for any subsequent crop year and result in termination of all your policies in accordance with section 3(g)(2). (1) With respect to ineligibility for a delinquent debt: (i) Ineligibility for crop insurance will be effective on: (A) The date that a policy was terminated in accordance with section 3(g)(2) for the crop for which you failed to pay premium, an administrative fee, or any related interest owed, as applicable; (B) The payment due date contained in any notification of indebtedness for any overpaid indemnity, prevented planting payment or replanting payment, if you fail to pay the amount 8 of 28 owed, including any related interest owed, as applicable, by such due date; (C) The termination date for the crop year prior to the crop year in which a scheduled payment is due under a written payment agreement if you fail to pay the amount owed by any payment date in any agreement to pay the debt; or (D) The termination date the policy was or would have been terminated under sections 3(g)(2)(i), (ii), or (iii) if your bankruptcy petition is dismissed before discharge. (ii) If you are ineligible and a policy has been terminated in accordance with section 3(g)(2), you will not receive any indemnity payment, prevented planting payment or replanting payment, if applicable, and such ineligibility and termination of a policy may affect your eligibility for benefits under other USDA programs. Any indemnity payment, prevented planting payment or replanting payment, if applicable, that may be owed for the policy before it has been terminated will remain owed to you, but may be offset in accordance with section 3(f), unless your policy was terminated in accordance with sections 3(g)(2)(i), (ii), (iv), or (v). (2) With respect to termination for delinquent debt: (i) For a policy with unpaid administrative fees or premiums, termination will be effective on the termination date immediately following the billing date for the crop year: (A) For policies for which the sales closing date is prior to the termination date, such policies will terminate for the current crop year even if insurance attached prior to the termination 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

86 82 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI date; and (B) Such termination will be considered effective as of the sales closing date and no insurance will be considered to have attached for the crop year and no indemnity, prevented planting or replant payment will be owed; (ii) For a policy with other amounts due, termination will be effective on the termination date immediately following the date you have a delinquent debt: (A) For policies for which the sales closing date is prior to the termination date, such policies will terminate for the current crop year even if insurance attached prior to the termination date; and (B) Such termination will be considered effective as of the sales closing date and no insurance will be considered to have attached for the crop year and no indemnity payment will be owed; (iii)for your other policies for which a debt is not delinquent but are terminated because of a policy terminated under sections 3(g)(i) or (ii), termination will be effective on the termination date that coincides with the termination date for the policy with the delinquent debt or, if there is no coincidental termination date, the termination date immediately following the date you become ineligible; (iv) For execution of a written payment agreement and failure to make any scheduled payment, termination will be effective on the termination date for the crop year prior to the crop year in which you failed to make the scheduled payment: (A) For this purpose only, the crop year will start the day after the termination date and end on the 9 of 28 next termination date. (B) For example, if the termination date is November 30 and you fail to make a payment on November 15, 2012, your policy will terminate on November 30, 2011, for the 2012 crop year; or (v) For dismissal of a bankruptcy petition before discharge, termination will be effective on the termination date the policy was or would have been terminated under section 3(g)(2)(i), (ii) or (iii). (3) For all policies terminated under sections 3(g)(2)(i), (ii), (iv), or (v), any indemnity, prevented planting or replanting payments paid subsequent to the termination date must be repaid. (4) Once the policy is terminated, it cannot be reinstated for the current crop year unless the termination was in error. Failure to timely pay because of illness, bad weather, or other such extenuating circumstances is not grounds for reinstatement in the current year. (5) To regain eligibility, you must: (i) Repay the delinquent debt in full; (ii) Execute a written payment agreement, in accordance with 7 CFR, part 400, subpart U, or successor regulation, and make payments in accordance with the agreement; or (iii)file a petition to have your debts discharged in bankruptcy. (6) After you become eligible for crop insurance, if you want to obtain insurance for your crops, you must submit a new application on or before the sales closing date for the crop. Since applications for crop insurance cannot be accepted after the sales closing date, if you make any payment after the sales closing date, you cannot apply for insurance until the next crop year. (7) For example, for the 2013 crop year, if crop A, with a termination date of October 31, 2013, and crop B, with a termination date of March 15, 2014, are insured and you do not pay the premium

87 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI for crop A by the termination date, you are ineligible for crop insurance as of October 31, 2013, and crop A's policy is terminated as of that date. Crop B's policy does not terminate until March 15, 2014, and an indemnity for the 2013 crop year may still be owed. If you enter into a written payment agreement on September 25, 2014, the earliest date by which you can obtain crop insurance for crop A is to apply for crop insurance by the October 31, 2014, sales closing date and for crop B is to apply for crop insurance by the March 15, 2015, sales closing date. If you fail to make a payment that was scheduled to be made on April 1, 2015, your policy will terminate as of October 31, 2014, for crop A, and March 15, 2015, for crop B, and no indemnity, prevented planting payment or replant payment will be due for that crop year for either crop. You will not be eligible for crop insurance for any crop until after the amounts owed are paid in full or you file a petition to discharge the debt in bankruptcy. (8) If you are determined to be ineligible under section 3(g), persons with a substantial beneficial interest in you may also be ineligible until you become eligible again. (h) In cases where there has been a death, disappearance, judicially declared incompetence, or dissolution of any insured person: (1) If any married individual insured dies, disappears, or is judicially declared incompetent, the policy will automatically convert to the name of the spouse if: (i) The spouse was included on the policy as having a substantial beneficial interest in the insured; and (ii) The spouse has a share of the crop; (2) The provisions in section 3(h)(3) will be applicable if: (i) Any partner, member, shareholder, etc., of an insured entity dies, disappears, or is judicially declared incompetent, and such event 10 of 28 automatically dissolves the entity; or (ii) An insured individual dies, disappears, or is judicially declared incompetent, and their estate is left to a beneficiary other than a spouse or left to the spouse and the criteria in section 3(h)(1) are not met; (3) If the death, disappearance, or judicially declared incompetence occurred: (i) More than 30 days before the cancellation date, the policy is automatically canceled as of the cancellation date; or (ii) Thirty days or less before the cancellation date, the policy will continue in effect through the crop year immediately following the cancellation date and be automatically cancelled as of the cancellation date for the next crop year, unless canceled by the cancellation date prior to the start of the insurance period; (4) If any insured entity is dissolved for reasons other than death, disappearance, or judicially declared incompetence: (i) Before the cancellation date, the policy is automatically canceled as of the cancellation date; or (ii) On or after the cancellation date, the policy will continue in effect through the crop year immediately following the cancellation date and be automatically canceled as of the cancellation date immediately following the end of the insurance period for the crop year, unless canceled by the cancellation date prior to the start of the insurance period; (5) If section 3(h)(2) or (4) applies: (i) A new application must be submitted on or before the sales closing date for the crop to obtain insurance for the subsequent crop year; and (ii) Any indemnity payment will be paid to the person or persons determined to be beneficially entitled to the payment and such person or persons must comply with all policy 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

88 84 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI provisions and pay the premium; and (6) If section 3(h)(2) or (4) applies, a remaining member of the insured person or the beneficiary is required to report to us the death, disappearance, judicial incompetence, or other event that causes dissolution not later than the next cancellation date, except if section 3(h)(3)(ii) applies. If section 3(h)(3)(ii) applies, such report must be provided to us by the cancellation date for the next crop year. If notice is not provided timely, the provisions of section 3(h)(2) or (4) will apply retroactive to the date such notice should have been provided and any payments made after the date the policy should have been cancelled must be returned. (i) We may cancel your policy if no premium is earned for 3 or more consecutive years. (j) If at any time during the crop year and for any reason, including but not limited to failure, unavailability, or destruction of the equipment and resulting data, FCIC is not able to receive the EROS NDVI data or the NOAA precipitation data, as applicable, utilized to determine and publish the final grid index for any particular index interval: (1) For any policy in effect when the events in section 3(j) occurs: (i) If the data becomes unavailable before or during one of your insured index intervals: (A) No indemnity will be due for any index interval where the data is not available; and (B) The premiums for such index intervals will not be due or will be refunded to you, as applicable; or (ii) If the data becomes unavailable after one or more of your insured index intervals ends: (A) Any indemnity owed will be paid; and (B) You will still owe premium for such index interval. (2) Sales for the next crop year may be suspended or terminated. 4. Contract Changes. 11 of 28 (a) We may change the terms of your policy from year to year. (b) Any changes in policy provisions, amounts of insurance, premium rates, program dates, or county base values, if applicable, will be published on RMA s web site, or successor web site, not later than the contract change date. We may only revise this information after the contract change date to correct clear errors, such as the county base value per acre was announced at $2, per acre instead of $ per acre. (c) After the contract change date, all changes made in accordance with section 4(b) will be available upon request from your crop insurance agent. (d) Not later than 30 days prior to the cancellation date for the insured crop you will be provided, in accordance with section 28, a copy of the changes to these Basic Provisions, Crop Provisions, and Special Provisions. (e) Acceptance of all the changes will be conclusively presumed in the absence of notice from you to change or cancel your insurance. 5. Insured Crop. (a) The insured crop will be that shown on your application accepted by us and as specified in the Crop Provisions, Special Provisions, or Actuarial Documents, and must be grown on insurable acreage. (b) Uninsurable crops include, but are not limited to, any crop: (1) That is not grown on planted acreage; (2) That is a crop type not generally recognized for the area; (3) Where the conditions under which the crop is planted are not generally recognized for the area, such as where agricultural experts determine that planting a non-irrigated crop after a different failed crop on the same acreage in the same crop year is not appropriate for the area; (4) For which the information necessary for insurance, such as county base value per acre and premium rate, is not included in the Actuarial Documents; (5) That is a volunteer crop;

89 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI (6) Planted following the planting and harvesting of the same crop on the same acreage in the same crop year unless specifically permitted by the Crop Provisions or the Special Provisions; (7) That is planted for the development or production of hybrid seed or for experimental purposes, unless permitted by the Crop Provisions or Special Provisions; or (8) That is used solely for wildlife protection or management. If the lease specifies that a percentage of the crop must be left unharvested, your share will be reduced by such percentage. (c) Although certain policy documents may state that a commodity type, intended use, or cropping practice is not insurable, it does not mean all other commodity types, intended uses, or cropping practices are insurable. 6. Insured and Insurable Acreage. (a) Your total insured acreage will equal your total insurable acreage unless otherwise allowed in the Crop Provisions. The total number of your insured acres of the crop in the county will not exceed 100 percent of your insurable acreage of the crop in the county. (b) Insurable acreage includes: (1) Both insured acres of the crop, and acres of the crop that are not insured if allowed by the Crop Provisions, in the county; and (2) Contiguous acreage of the insured crop located in another grid or county, if elected by the insured. For example, a total of 140 insurable acres are contiguous and located in both county A and county B. You may elect to report: (1) all 140 insurable acres for county A; (2) all 140 insurable acres for county B; or (3) any number of acres assigned by you to county A or county B respectively. Regardless of your choice, no more than 140 total insurable acres can be reported. (c) Unless otherwise specified in the Crop Provisions, your insurable acreage is the total number of acres planted to the insured crop: 12 of 28 (1) In the county and grid ID listed on your application accepted by us; (2) For which premium rates are provided in the Actuarial Documents; and (3) In which you have a share. (d) To be insured, acreage must be: (1) Planted to the insured crop on or before the final planting date provided in the Actuarial Documents; (2) Reported by the acreage reporting date; and (3) Located in the county, including applicable contiguous acres, listed on your application accepted by us. (e) The same acres cannot be insured in more than one grid ID or county during the crop year. (f) The grid ID and county are determined based on a point of reference selected by you. Separate points of reference must be established as follows: (1) A separate point of reference must be selected for non-contiguous insured acreage in a grid, by crop and intended use: and (2) With respect to contiguous insured acreage, a point of reference must be selected as follows: (i) If you choose to combine the contiguous insured acreage into one grid, you must establish a point of reference for the insured contiguous acreage by crop and intended use. For example, contiguous acreage is located in two grids. Some of the acreage physically located in each grid is intended for haying and the remaining is intended for grazing. If you choose to insure all the acreage in one grid, you must establish a separate point of reference for each intended use, for a total of two points of reference in the grid; or (ii) If you choose to separate the contiguous insured acreage into separate grids or counties, you must establish a point of reference for each selected grid by crop and intended use. For example, the 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

90 86 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI contiguous acreage is located in four grids and you choose to insure the acreage in separate grids, the acreage can be separated into two, three, or four grids and you must establish a point of reference in each grid selected, by crop and intended use. (g) We will not insure any acreage: (1) That must remain unharvested according to your lease; (2) Enrolled in any other program administered by the USDA that prohibits haying and grazing, including but not limited to, the Conservation Reserve Program and Wetland Reserve Program; (3) Where the crop was destroyed or put to another use during the crop year for the purpose of conforming with, or obtaining a payment under, any other program administered by the USDA that prohibits haying and grazing, including but not limited to, the Conservation Reserve Program and Wetland Reserve Program; or (4) Where you have failed to follow good farming practices for the insured crop. (i) We will notify you if we identify an issue regarding good farming practices. (ii) If we notify you, you must contact FCIC for a determination of whether your production methods are considered to be good farming practices. (h) If you have insured acreage and: (1) You sell or cash lease all or part of the insured acreage to another person: (i) You may be eligible to receive any indemnities for insured index intervals during or prior to such action but insurance will cease and no coverage will be provided for any subsequent index intervals and the full premium for the insurance period is owed by you; or (ii) You may be able to transfer your insurance rights in accordance with section 23; or (2) Except as provided in section 6(i), the insured crop is destroyed or otherwise 13 of 28 disposed of, you may be eligible to receive any indemnities for insured index intervals during or prior to such action but insurance will cease and no coverage will be provided for any subsequent index intervals and the full premium for the insurance period is owed by you. (i) With respect to acreage of a first insured crop in the crop year that has suffered an insurable loss and the acreage is planted to a second crop, except in the case of double cropping described in sections 6(k) and (l): (1) If you elect not to insure the second crop on the same acreage for harvest in the same crop year: (i) You may collect 100 percent of the indemnities owed for the first insured crop for all insured index intervals during or prior to planting the second crop; (ii) You will pay 100 percent of the full premium that you would otherwise owe for the first insured crop for the insurance period; and (iii)insurance will cease and no coverage will be provided for the first insured crop for any index intervals subsequent to the planting of the second crop; (2) If you elect to insure the second crop: (i) You will pay the full premium for the second crop, and if there is an insurable loss to the second crop, receive the full amount of indemnity that may be due for the second crop, regardless of whether there is a subsequent crop planted on the same acreage; (ii) You may collect 35 percent of the indemnities owed or received for the first insured crop for all insured index intervals during or prior to planting the second crop; (iii)you will pay 35 percent of the full premium that you would otherwise owe for the first insured crop for the insurance period; (iv) If the second crop does not suffer an insurable loss, you may collect an

91 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI indemnity equal to 65 percent of the indemnities not previous paid under section 6(i)(2)(ii) and you must pay the remaining 65 percent of the premium for the first insured crop that you did not pay under section 6(i)(2)(iii); and (v) Insurance will cease and no coverage will be provided for the first insured crop for any index intervals subsequent to the planting of the second crop; (3) If the first insured crop is: (i) Insured under this policy, you must provide written notice to us of your election not to insure acreage of a second crop: (A) At the time the first insured crop is released by us; or (B) If the first insured crop is not released by us: (1) By the acreage reporting date for the second crop if it is insured under this policy; or (2) Before planting the second crop if the second crop is insured under any other policy; or (ii) Not insured under this policy, you must provide written notice to us of your election not to insure acreage of a second crop before the second crop insured under this policy is planted; (4) In the event a second crop is planted and insured with a different insurance provider, or planted and insured by a different person, you must provide written notice to each insurance provider that a second crop was planted; (5) If you fail to provide a notice as specified in 6(i)(3) and (4), the second crop acreage will be insured in accordance with applicable policy provisions and you must repay any overpaid indemnity for the first insured crop; (6) You must report the crop acreage that will not be insured on the applicable acreage report; and (7) The reduction in the amount of 14 of 28 indemnity and premium specified in section 6(i)(2)(ii) and (iii) will apply: (i) Notwithstanding the priority contained in the Agreement to Insure section, to any premium owed or indemnity paid in accordance with the Crop Provisions, and any applicable endorsement; and (ii) Regardless of whether another person plants the second crop on any acreage where the first insured crop was planted. (j) A crop planted following a second crop or following an insured crop that is prevented from being planted after a first insured crop is not insurable, unless: (1) It is a generally recognized practice for the area to plant three or more crops for harvest on the same acreage in the same crop year; (2) Additional coverage provided under the authority of the Act is offered for the third or subsequent crop in the same crop year; (3) You provide records acceptable to us that show: (i) You have produced and harvested the insured crop following two other crops harvested on the same acreage in the same crop year in at least two of the last four years in which you produced the insured crop; or (ii) The applicable acreage has had three or more crops produced and harvested on it in at least two of the last four years in which the insured crop was grown on it; and (4) The amount of insurable acreage will not exceed 100 percent of the greatest number of acres for which you provide the records required in section 6(j)(3). (k) Notwithstanding section 6(i)(2)(ii), you may receive a full indemnity for a first insured crop when a second crop, regardless of whether or not the second crop is insured or sustains an insurable loss, if each of the following conditions is met: (1) It is a practice that is generally recognized by agricultural experts or organic agricultural experts for the area 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

92 88 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI to plant two or more crops for harvest in the same crop year; (2) The second crop is customarily planted after the first insured crop for harvest on the same acreage in the same crop year in the area; (3) Additional coverage offered under the authority of the Act is available in the county on the two or more crops that are double cropped; and (4) You provide records acceptable to us of acreage and production that show you have double cropped acreage in at least two of the last four crop years in which the first insured crop was planted, or that show the applicable acreage was double cropped in at least two of the last four crop years in which the first insured crop was grown on it. (l) If the conditions in section 6(k) have been met, the receipt of a full indemnity on both crops that are double cropped is limited to the number of acres for which you can demonstrate you have double cropped or that have been historically double cropped. (1) If the records you provided are for acreage you double cropped in at least two of the last four crop years, you may double crop any acreage of the insured crop in the county up to the maximum number of acres for which you have double cropping history (for example, if you have double cropped 100 acres of wheat and soybeans in the county and you acquire an additional 100 acres in the county, you can double crop any of the 200 acres in the county as long as the total number of double cropped acreage does not exceed 100 acres in the county); or (2) If the records you provided are for acreage that another producer double cropped in at least two of the last four crop years you may only double crop the same physical acres for which double cropping records were provided (for example, if a neighbor has double cropped 100 acres of wheat and soybeans in the county and you acquire your neighbor s 100 double cropped 15 of 28 acres and an additional 100 acres in the county, you can only double crop the same 100 acres that your neighbor double cropped). (m) We may restrict the amount of acreage that we will insure to the amount allowed under any acreage limitation program established by the USDA if we notify you of that restriction prior to the sales closing date. 7. Amounts of Protection and Coverage Levels. (a) The dollar amount of protection per acre is equal to the county base value per acre, as specified in the Actuarial Documents, multiplied by the coverage level selected by you, multiplied by the productivity factor selected by you. (1) For CAT policies, the coverage level is 65 percent and the productivity factor is 45 percent. (2) For additional coverage policies: (i) You may select only one coverage level from 70 percent through 90 percent for the county, crop, and intended use; and (ii) You may select only one productivity factor from 60 percent through 150 percent for the county, crop, and intended use. (b) You will have only one dollar amount of protection per acre for each county, crop, commodity type, intended use, and index interval. (c) Your policy protection per unit, as shown on your Summary of Coverage: (1) Is equal to the dollar amount of protection per acre multiplied by your insured acres, multiplied by the percent of value selected by you, and multiplied by your share; and (2) Will be calculated separately for each unit. (d) On or before the sales closing date you may change the coverage level or the productivity factor for each insured county, crop, and intended use, as applicable. Changes must be in writing and received by us by the sales closing date. If no changes are received by the sales closing date, we will assign the same coverage level and productivity factor as the previous year.

93 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI (e) You are responsible for the information provided to establish insurance and guarantees. If at any time we discover you have misreported any information, including, but not limited to insurable acreage, insured acreage, share, and grid ID, the following actions will be taken, as applicable: (1) Any overpaid indemnity must be repaid or underpaid premium must be paid; and (2) You will be subject to the provisions regarding misreporting contained in section 9(f), unless the incorrect information was the result of our error or the error of someone from USDA. 8. Payment Calculation Factor and Indemnity Calculation. (a) An indemnity may be made only if the final grid index for the insured unit is less than your trigger grid index. A final grid index: (1) Of 100 would represent an average value or precipitation, as applicable, for the grid ID and index interval and no indemnity would be owed. (2) Below 100 would represent below average values or precipitation, as applicable, for the grid ID and interval and an indemnity may be owed. (3) Above 100 would represent above average values or precipitation, as applicable, for the grid ID and index interval and no indemnity would be owed. (b) For the purposes of calculating an indemnity payment for each unit, your payment calculation factor will be: (1) With respect to the Vegetation Index Policy, {(your trigger grid index final grid index) [your trigger grid index (expected grid index x total loss factor)]}, not to exceed 1.0; or (2) With respect to the Rainfall Index Policy, [(your trigger grid index final grid index) your trigger grid index]. (c) The indemnity for the unit will be equal to the payment calculation factor multiplied by the policy protection per unit. (d) When an indemnity is owed, it will be issued to you not later than 60 days following the date RMA publishes the final 16 of 28 grid index for the grid ID and applicable index interval. (e) Once published, the final grid index is: (1) Conclusively presumed to be accurate and will not be changed; and (2) Is a matter of general applicability and is not appealable to the National Appeals Division. 9. Report of Acreage. (a) An annual acreage report must be submitted to us on our form for each insured crop in the county on or before the acreage reporting date. (b) Your acreage report must include the following information: (1) The total amount of insurable acreage of the crop in which you have a share in the county; (2) For each applicable grid ID, all the insured acreage assigned to the grid ID. (3) With respect to the acreage specified in section 9(b)(2): (i) Your share; (ii) Irrigated practice; (iii) Organic practice; (iv) Cropping practice; (v) Commodity type; (vi) Intended use; (vii) (viii) Grid ID; and FSA farm number, FSA tract number and FSA field number. (4) You must certify on your acreage report that the: (i) Grid ID accurately identifies the location of your insured acreage; and (ii) Acreage assigned to each grid ID is accurate to the best of your knowledge. (c) If an acreage report for the crop year is not provided by the acreage reporting date there will be no coverage for any index interval for the insurance period. (d) We will not insure any acreage of the insured crop planted or acquired after the acreage reporting date. (e) Subject to section 9(f), your premium and indemnity, if any, will be based on your insured acreage and share on your acreage report. (f) You must provide all required reports and 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

94 90 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI you are responsible for the accuracy of all information contained in those reports. (1) If you submit information on any report that is determined to be incorrect and the correct information results in: (i) A higher liability, the information reported will not be revised and your policy protection per unit will not be increased; (ii) A lower liability, the information reported and your policy protection per unit will be revised to be consistent with the correct information; or (iii)you not having any insurable acreage in the grid ID listed on your acreage report, you will receive no insurance for that grid ID for the insurance period. (2) You may be subject to the provisions contained in section 22 and criminal, civil or administrative sanctions. (g) Prior to the acreage reporting date, you may request an acreage measurement from FSA or a business that provides such measuring services. (1) On or before the acreage reporting date, you must provide to us: (i) Documentation of your request for an acreage measurement; and (ii) An acreage report with estimated acreage. (2) You must provide the completed acreage measurement to us. (i) If the acreage measurement shows the estimated acreage was incorrect, we will revise your acreage report to reflect the correct acreage. (ii) No indemnity will be paid until the completed acreage measurement is provided to us. (3) If you fail to provide the acreage measurement: (i) We will measure the acreage at your expense; (ii) The provisions of section 9(f) will apply; (iii)no indemnity will be paid until we determine whether the estimated acreage is correct; and 17 of 28 (iv) Estimated acreage will no longer be accepted from you for any subsequent acreage report. (h) If there is a difference between the acreage measured by FSA, a measuring service or our on-farm measurement, the order of priority is (1) our on-farm measurement; (2) FSA measurement; and (3) measuring service measurement. (i) If the acreage report has been revised in accordance with section 9(g)(2)(i), the information on the initial acreage report will not be considered misreported for the purposes of section 9(f). (j) If we discover you have incorrectly reported any information on the acreage report for any crop year, you may be required to provide documentation in subsequent crop years substantiating your report of acreage for those crop years, including, but not limited to, an acreage measurement service at your own expense. If the correction of any misreported information would affect an indemnity that was paid in a prior crop year, such indemnity will be adjusted and you will be required to repay any overpaid amounts. (k) We may inspect the insured acreage at any time to verify any information you certified on the acreage report and the accuracy of the points of reference. (l) In the event the RMA web site is unavailable on the sales closing date or acreage reporting date, as applicable, and you are unable to properly identify your grid, grid ID, or comply with other requirements, as applicable, insurance will attach provided you sign an application and provide a report of your acreage with all available information as specified under these Basic Provisions. Upon the availability of the RMA web site, or successor web site, you must provide all required information you were previously unable to provide because the web site was unavailable. All required information must be provided within two business days after the web site becomes available. 10. Share Insured. (a) Insurance will attach: (1) Except as provided in section 10(a)(2),

95 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI only to your share of the insured crop; and (2) To another person s share of the insured crop only if the other person has a share of the crop and the application clearly states you as a landlord will insure your tenant s share, or you as a tenant will insure your landlord s share. If you as a landlord will insure your tenant s share, or you as a tenant will insure your landlord s share, you must: (i) Provide evidence of the other party s agreement to allow you to insure their share, such as a lease, power of attorney, etc., that will be retained by us; (ii) Clearly set forth the percentage shares of each landlord and tenant on the acreage report; and (iii)for each landlord and tenant, report the landlord s and tenant s SSN, EIN, or other identification number we assigned for the purposes of this policy, as applicable. (b) With respect to your share: (1) Upon our request, you must provide a verifiable lease or written proof of ownership supporting the share you reported for the insured acreage on your acreage report; (2) We will consider as part of your share under your policy, any acreage or interest reported by or for: (i) Your spouse, unless such spouse can prove they have a separate farming operation, which includes but is not limited to, separate land (transfers of acreage from one spouse to another is not considered separate land), separate capital, separate inputs, separate accounting, and separate maintenance of proceeds; or (ii) Your children who reside in your household or any other member of your household, unless such children or other members of the household can demonstrate such person has a separate share in the crop; and (3) If it is determined that the spouse, children or other members of the 18 of 28 household have a separate policy but do not have a separate farming operation or share of the crop, as applicable: (i) The policy for one spouse or the policy for the children or other members of the household will be void and the policy remaining in effect will be determined in accordance with section 17; (ii) The acreage or share reported under the policies that are voided will be included under the remaining policy; and (iii)no premium will be due and no indemnity will be paid for the voided policies. (c) You must report your share for all insured acreage whether leased on a cash basis, share of the crop basis, or any other basis. (1) If you lease the acreage for a portion of the crop year, you may still have a 100 percent share in the insured crop provided you receive 100 percent of the benefits from the insured crop. For example, producer A leases 100 acres and insures the crop from May 1 through July 31. Producer A receives 100 percent of the benefits of the insured crop. There is no value remaining in the insured crop after July 31. Producer B leases the same acreage from August 1 through December 31. Producer B gets no value from the crop and uses the acreage only as a place to keep and feed his livestock. In this example, producer A would have 100 percent share of the insured crop. (2) Under no circumstances can the total of all shares in the insured crop on the acreage exceed 100 percent. For example, producer A leases 100 acres and insures 100 percent of the insured crop. Producer B cannot insure any percentage of the same insured crop on the same acreage in the same crop year. 11. Annual Premium and Administrative Fees. (a) The annual premium is earned and payable, as specified in the Crop Provisions. You will be billed for the premium and administrative fee not earlier than the 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

96 92 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI premium billing date. (b) Premium or administrative fees owed by you will be offset from any payment due you in accordance with section 3(f). (c) The premium amount is determined, as applicable, by multiplying your policy protection per unit by the premium rate and by any other premium adjustment percentages that may apply. The annual premium is the sum of premiums for all units for the crop. (d) The information needed to determine the premium rate and any premium adjustment percentages that may apply are contained in the Actuarial Documents. (e) In addition to the premium charged, for CAT or additional coverage, as applicable, you must pay an administrative fee each crop year for each crop and county, in the amount specified in the Actuarial Documents. (1) The administrative fee must be paid no later than the date the premium is due or the amount will be considered a delinquent debt. (2) Payment of an administrative fee will not be required if you file a zero acreage report on or before the acreage reporting date for the insured crop. If you falsely file a zero acreage report you will be subject to criminal and administrative sanctions. (3) The administrative fee will be waived if you request it, and you: (i) Qualify as a limited resource farmer; or (ii) Were insured prior to the 2005 crop year or for the 2005 crop year and your administrative fee was waived for one or more of those crop years because you qualified as a limited resource farmer under a policy definition previously in effect, and you remain qualified as a limited resource farmer under the definition that was in effect at the time the administrative fee was waived. (4) Failure to pay the administrative fees when due may make you ineligible for certain other USDA benefits. 19 of 28 (f) If the amount of premium and administrative fee you are required to pay for any acreage exceeds the liability for the acreage, insurance for those acres will not be provided. No premium or administrative fee will be due and no indemnity will be paid for such acreage. 12. Insurance Period and Insured Index Intervals. (a) Unless otherwise specified in the Crop Provisions or Actuarial Documents, the insurance period is January 1 through December 31 of the crop year for the insured crop. (b) Insurance attaches for all twelve months even if you do not select index intervals covering all twelve months. (c) While insurance may have attached, you are only eligible to receive an indemnity for the index intervals selected by you. 13. Causes of Loss. Losses are only payable when the final grid index is less than your trigger grid index. (a) This policy does not directly measure, capture, or utilize any actual crop production, including any of your actual crop production. For example, it is possible for you to receive an indemnity payment without suffering a loss of actual crop production. However, you may experience a loss of crop production and not receive an indemnity payment. (b) For the Vegetation Index policy, the final grid index will be based on natural causes of loss only. For example, when a man-made fire would result in a final grid index different than what it would have been without such cause of loss, the final grid index will be based on natural causes of loss only. 14. Written Agreements. Written agreements are not applicable unless otherwise specified in the Crop Provisions or Special Provisions. 15. Mediation, Arbitration, Appeal, Reconsideration, and Administrative and Judicial Review. (a) If you and we fail to agree on any determination made by us except those specified in section 15(d), the disagreement

97 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI may be resolved through mediation in accordance with section 15(g). (1) If resolution cannot be reached through mediation, or you and we do not agree to mediation, the disagreement must be resolved through arbitration in accordance with the rules of the American Arbitration Association, except as provided in sections 15(c) and (f), and unless rules are established by FCIC for this purpose. (2) Any mediator or arbitrator with a familial, financial or other business relationship to you or us, or our agent or loss adjuster, is disqualified from hearing the dispute. (3) All disputes involving determinations made by us, except those specified in section 15(d), are subject to mediation or arbitration. However, if the dispute in any way involves a policy or procedure interpretation, either you or we must obtain an interpretation from FCIC in accordance section 31. (4) Unless the dispute is resolved through mediation, the arbitrator must provide to you and us a written statement describing the issues in dispute, the factual findings, the determinations and the amount and basis for any award and breakdown by claim for any award. The statement must also include any amounts awarded for interest. Failure of the arbitrator to provide such written statement will result in the nullification of all determinations of the arbitrator. All agreements reached through settlement, including those resulting from mediation, must be in writing and contain at a minimum a statement of the issues in dispute and the amount of the settlement. (b) Regardless of whether mediation is elected: (1) The initiation of arbitration proceedings must occur within one year of the date we rendered the determination with which you disagree; (2) If you fail to initiate arbitration in accordance with section 15(b)(1) and complete the process, you will not be 20 of 28 able to resolve the dispute through judicial review; (3) If arbitration has been initiated in accordance with section 15(b)(1) and completed, and judicial review is sought, suit must be filed not later than one year after the date the arbitration decision was rendered; and (4) In any suit, if the dispute in any way involves a policy or procedure interpretation, regarding whether a specific policy provision or procedure is applicable to the situation, how it is applicable, or the meaning of any policy provision or procedure, an interpretation must be obtained from FCIC in accordance with section 31. (c) Any decision rendered in arbitration is binding on you and us unless judicial review is sought in accordance with section 15(b)(3). Notwithstanding any provision in the rules of the American Arbitration Association, you and we have the right to judicial review of any decision rendered in arbitration. (d) With respect to good farming practices: (1) FCIC will make determinations regarding what constitutes a good farming practice. (2) If you do not agree with such determination made by FCIC: (i) You may request reconsideration by FCIC of the determination in accordance with the reconsideration process established for this purpose and published at 7 CFR part 400, subpart J, or successor regulation; or (ii) You may file suit against FCIC. (A) You are not required to request reconsideration from FCIC before filing suit. (B) Any suit must be brought against FCIC in the United States district court for the district in which the insured acreage is located. (C) Suit must be filed against FCIC not later than one year after the date: (1) Of the determination; or (2) Reconsideration is 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

98 94 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI completed, if reconsideration was requested under section 15(d)(2)(i). (3) You may not sue us for any determinations regarding whether good farming practices were used by you. (e) Except as provided in section 15(d) or (j), if you disagree with any other determination made by FCIC, you may obtain an administrative review in accordance with 7 CFR part 400, subpart J, or successor regulation, or appeal in accordance with 7 CFR part 11, or successor regulation. (1) If you elect to bring suit after completion of any appeal, such suit must be filed against FCIC in the United States district court for the district in which the insured acreage is located not later than one year after the date of the decision rendered in such appeal. (2) Under no circumstances can you recover any attorney fees or other expenses, or any punitive, compensatory or any other damages from FCIC. (f) In any mediation, arbitration, appeal, administrative review, reconsideration or judicial process, the terms of your policy, the Act, and the regulations published at 7 CFR chapter IV, including the provisions of 7 CFR part 400, subpart P, or successor regulation are binding. Conflicts between this policy and any state or local laws will be resolved in accordance with section 26. If there are conflicts between any rules of the American Arbitration Association and the provisions of your policy, the provisions of your policy will control. (g) To resolve any dispute through mediation, you and we must both: (1) Agree to mediate the dispute; (2) Agree on a mediator; and (3) Be present or have a designated representative who has authority to settle the case present, at the mediation. (h) Except as provided in section 15(i), no award or settlement in mediation, arbitration, appeal, administrative review or reconsideration process or judicial review can exceed the amount of liability established or which should have been 21 of 28 established under the policy, except for interest awarded in accordance with section 21. (i) In a judicial review only, you may recover attorney s fees or other expenses, or any punitive, compensatory or any other damages from us only if you obtain a determination from FCIC that we, our agent or loss adjuster failed to comply with the terms of this policy or procedures issued by FCIC and such failure resulted in you receiving a payment in an amount that is less than the amount to which you were entitled. Requests for such a determination should be addressed to the following: USDA/RMA/Deputy Administrator of Compliance/Stop 0806, 1400 Independence Avenue, S.W., Washington DC (j) The final grid index determined by FCIC is a matter of general applicability and is not appealable to the National Appeals Division. (k) Any determination made by FCIC that is a matter of general applicability is not subject to administrative review under 7 CFR part 400, subpart J, or successor regulation, or appeal under 7 CFR part 11, or successor regulation. If you want to seek judicial review of any FCIC determination that is a matter of general applicability, you must request a determination of non-appealability from the Director of the National Appeals Division in accordance with 7 CFR part 11 before seeking judicial review. 16. Access to Insured Crop and Records, and Record Retention. (a) For a period of three years after the end of the crop year, or three years after the date of final payment of the indemnity, whichever is later, you must retain and provide upon our request, or the request of any employee of USDA authorized to investigate or review any matter relating to crop insurance, complete records pertaining to: (1) The planting, replanting, inputs, production, harvest and disposition of the insured crop; (2) Your insurable, insured, and not insured acres; and (3) All lease or other agreements that may be applicable to the insured crop.

99 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI (b) By signing the application for insurance authorized under the Act or by continuing insurance for which you have previously applied, you authorize us or USDA, or any person acting for us or USDA authorized to investigate or review any matter relating to crop insurance, to obtain records relating to the planting, replanting, lease, ownership, share, production, inputs, harvesting, disposition, or contract agreements of the insured crop from any person who may have custody of such records, including but not limited to, FSA offices, banks, warehouses, gins, cooperatives, marketing associations, landlords and accountants. You must assist in obtaining all records we or any employee of USDA, or any person acting for us or USDA authorized to investigate or review any matter relating to crop insurance, request from third parties. (c) We or any employee of USDA, or any person acting for us or USDA authorized to investigate or review any matter relating to crop insurance: (1) May extend the record retention period beyond three years by notifying you of such extension in writing; and (2) Have the right to examine, as often as reasonably required during the record retention period: (i) The insured crop at any location where such crop may be found or maintained; and (ii) All records related to the insured crop, this policy, and mediation, arbitration or litigation involving the insured crop, at any location where such records may be found or maintained. (d) Failure to provide access to the insured crop or the farm, maintain or provide any required records, authorize access to the records maintained by third parties, or assist in obtaining all such records will result in a determination that no indemnity is due for the crop year in which such failure occurred. 17. Other Insurance. Nothing in this section prevents you from obtaining other insurance not authorized under the Act. However, unless specifically 22 of 28 authorized by these or any other policy provisions, you must not obtain any other crop insurance authorized under the Act on your share of the insured crop and crop type. (a) If you impermissibly obtain other crop insurance authorized under the Act on your share of the insured crop and crop type, and you cannot demonstrate that you did not intend to have more than one policy in effect, your policy will be void and no indemnity will be due for any year in which you have more than one policy in effect. (b) If you impermissibly obtain other crop insurance authorized under the Act on your share of the insured crop and crop type, and you can demonstrate that you did not intend to have more than one policy in effect, such as in the example provided in section 17(b)(3), and: (1) One is an additional coverage policy and the other is a CAT policy: (i) The additional coverage policy will apply if both policies are with the same insurance provider or, if not, both insurance providers agree; or (ii) The policy with the earliest date of application will be in force if both insurance providers do not agree; or (2) Both are additional coverage policies or both are CAT policies, the policy with the earliest date of application will be in force and the other policy will be void, unless both policies are with: (i) The same insurance provider and the insurance provider agrees otherwise; or (ii) Different insurance providers and both insurance providers agree otherwise. (3) For example, an application to transfer your policy or written notification to an insurance provider that states you want to purchase or transfer insurance, and you want any other policies for the crop canceled would demonstrate you did not intend to have duplicate policies in effect. 18. [Reserved] 19. Conformity to Food Security Act. (a) Although your violation of a number of 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

100 96 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI federal statutes, including the Act, may cause cancellation, termination, or voidance of your policy, you should be specifically aware that your policy will be void if you are determined to be ineligible to receive benefits under the Act due to violation of the controlled substance provisions of the Food Security Act of 1985 (Pub. L ) and the regulations promulgated under the Act by USDA. (b) We will recover any and all monies paid to you or received by you during your period of ineligibility, and your premium will be refunded, less an amount for expenses and handling equal to 20 percent of the premium paid or to be paid by you. 20. Amounts Due Us. (a) Interest will accrue at the rate of 1.25 percent simple interest per calendar month, or any portion thereof, on any unpaid amount owed to us or on any unpaid administrative fees owed to FCIC. (1) For the purpose of premium amounts owed to us or administrative fees owed to FCIC, interest will start to accrue on the first day of the month following the premium billing date. (2) We will collect any unpaid amounts owed to us, and any interest owed thereon, and, prior to the termination date, we will collect any administrative fees, and interest owed thereon, to FCIC. (3) After the termination date, FCIC will collect any unpaid administrative fees, and any interest owed thereon, for any CAT policy, and we will collect any unpaid administrative fees, and any interest owed thereon, for additional coverage policies. (b) For the purpose of any other amounts due us, such as repayment of indemnities found not to have been earned, interest will start to accrue on the date that notice is issued to you for the collection of the unearned amount. (1) Amounts found due under this paragraph will not be charged interest if payment is made within 30 days of issuance of the notice by us. (2) The amount will be considered 23 of 28 delinquent if not paid within 30 days of the date the notice is issued by us. (c) All amounts paid will be applied first to expenses of collection, as specified in section 20(d), if any, second to the reduction of accrued interest, and then to the reduction of the principal balance. (d) If we determine that it is necessary to contract with a collection agency or to employ an attorney to assist in collection, you agree to pay all of the expenses of collection. (e) The portion of the amounts owed by you for a policy authorized under the Act that are owed to FCIC may be collected in part through administrative offset from payments you receive from United States government agencies in accordance with 31 U.S.C. chapter 37. Such amounts include all administrative fees, and the share of the overpaid indemnities and premiums retained by FCIC, plus any interest owed thereon. 21. Interest Limitations. (a) We will pay simple interest computed on the net indemnity ultimately found to be due by us or by a final judgment of a court of competent jurisdiction, from and including the 61st day after the final grid index results are published for the applicable index interval. (b) Interest will be paid only if the reason for our failure to timely pay is NOT due to your failure to provide information or other material necessary for the computation or payment of the indemnity. (c) The interest rate will be that established by the Secretary of the Treasury under section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611) and published in the Federal Register semiannually on or about January 1 and July 1 of each year, and may vary with each publication. 22. Concealment, Misrepresentation or Fraud. (a) If you have falsely or fraudulently concealed the fact that you are ineligible to receive benefits under the Act or if you or anyone assisting you has intentionally concealed or misrepresented any material fact relating to this policy: (1) This policy will be voided; and

101 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI (2) You may be subject to remedial sanctions in accordance with 7 CFR part 400, subpart R, or a successor regulation. (b) Even though the policy is void, you will still be required to pay 20 percent of the premium that you would otherwise be required to pay to offset costs incurred by us in the service of this policy. If previously paid, the balance of the premium will be returned. (c) Voidance of this policy will result in you having to repay all indemnities paid for the crop year in which the voidance was effective. (d) Voidance will be effective on the first day of the insurance period for the crop year in which the act occurred, and will not affect the policy for subsequent crop years unless a violation of this section also occurred in such crop years. (e) If you willfully and intentionally provide false or inaccurate information to us or FCIC or you fail to comply with a requirement of FCIC, in accordance with 7 CFR part 400, subpart R, or successor regulation, FCIC may impose on you: (1) A civil fine for each violation in an amount not to exceed the greater of: (i) The amount of the pecuniary gain obtained as a result of the false or inaccurate information provided or the noncompliance with a requirement of FCIC; or (ii) $10,000; and (2) A disqualification for a period of up to 5 years from receiving any monetary or non-monetary benefit provided under each of the following: (i) Any crop insurance policy offered under the Act; (ii) The Farm Security and Rural Investment Act of 2002 (7 U.S.C et seq.); (iii) The Agricultural Act of 1949 (7 U.S.C et seq.); (iv) The Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.); (v) The Agricultural Adjustment Act 24 of 28 of 1938 (7 U.S.C et seq.); (vi) Title XII of the Food Security Act of 1985 (16 U.S.C et seq.); (vii) The Consolidated Farm and Rural Development Act (7 (viii) U.S.C et seq.); and Any federal law that provides assistance to a producer of an agricultural commodity affected by a crop loss or a decline in the prices of agricultural commodities. 23. Transfer of Insurance and Right to Indemnity. (a) If you transfer any part of your share during the crop year, you may transfer your insurance rights, if the transferee is eligible for crop insurance. (b) We will not be liable for any more than the liability determined in accordance with your policy that existed before the transfer occurred. (c) The transfer of coverage rights must be on our form and will not be effective until approved by us in writing. (d) Both you and the transferee are jointly and severally liable for payment of the premium and administrative fees. (e) The transferee has all rights and responsibilities under this policy consistent with the transferee s interest. 24. Assignment of Indemnity. (a) You may assign your right to an indemnity for the crop year only to creditors or other persons to whom you have a financial debt or other pecuniary obligation. You may be required to provide proof of the debt or other pecuniary obligation before we will accept the assignment of indemnity. (b) All assignments must be on our form, provided to us, and are effective when approved in writing by us. Each assignment form may contain more than one creditor or other person to whom you have a financial debt or other pecuniary obligation. (c) Unless you have provided us with a properly executed assignment of indemnity, we will not make any payment to a lienholder or other person to whom you have a financial 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

102 98 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI debt or other pecuniary obligation even if you may have a lien or other assignment recorded elsewhere. Under no circumstances will we be liable: (1) To any lienholder or other person to whom you have a financial debt or other pecuniary obligation where you have failed to include such lienholder or person on a properly executed assignment of indemnity provided to us; or (2) To pay to all lienholders or other persons to whom you have a financial debt or other pecuniary obligation any amount greater than the total amount of indemnity owed under the policy. (d) If we have received the properly executed assignment of indemnity form: (1) Only one payment will be issued jointly in the names of all assignees and you; and (2) Any assignee will have the right to submit all notices and forms as required by the policy. 25. Federal or State Actions. If any Federal or State agency requires destruction of any insured crop or crop production, as applicable, because it contains levels of a substance, or has a condition, that is injurious to human or animal health in excess of the maximum amounts allowed by the Food and Drug Administration, other public health organizations of the United States or an agency of the applicable State, you must destroy the insured crop or crop production, as applicable, and certify that such insured crop or crop production has been destroyed prior to receiving an indemnity payment. Failure to destroy the insured crop or crop production, as applicable, will result in you having to repay any indemnity paid and you may be subject to administrative sanctions in accordance with section 515(h) of the Act and 7 CFR part 400, subpart R, or successor regulation, and any applicable civil or criminal sanctions. 26. Applicability of State and Local Statutes. If the provisions of this policy conflict with statutes of the State or locality in which this policy is issued, the policy provisions will prevail. State and local laws and regulations in 25 of 28 conflict with federal statutes, this policy, and the applicable regulations do not apply to this policy. 27. Descriptive Headings. The descriptive headings of the various policy provisions are formulated for convenience only and are not intended to affect the construction or meaning of any of the policy provisions. 28. Notices. (a) All notices required to be given by you must be in writing and received by your crop insurance agent on or before the designated date unless otherwise provided by the notice requirement. The date your crop insurance agent receives the written notice from you will be the date the notice is considered received. If the date by which you are required to submit a report or notice falls on Saturday, Sunday, or a Federal holiday, or if your agent s office is, for any reason, not open for business on the date you are required to submit such notice or report, such notice or report must be submitted on the next business day. (b) All policy provisions, notices and communications required to be sent by us to you will be: (1) Provided by electronic means, unless: (i) We do not have the ability to transmit such information to you by electronic means; or (ii) You elect to receive a paper copy of such information; (2) Sent to the location specified in your records with your crop insurance agent; and (3) Will be conclusively presumed to have been received by you. 29. Multiple Benefits. (a) If you are eligible to receive an indemnity under an additional coverage plan of insurance and are also eligible to receive benefits for the same loss under any other USDA program, you may receive benefits under both programs, unless specifically limited by the crop insurance contract or by law. (b) Any amount received for the same loss from any USDA program, in addition to the crop insurance payment, will not exceed the

103 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI difference between the crop insurance payment and the actual amount of the loss, unless otherwise provided by law. The amount of the actual loss is the difference between the total value of the insured crop before the loss and the total value of the insured crop after the loss. (c) FSA or another USDA agency, as applicable, will determine and pay the additional amount due you for any applicable USDA program, after first considering the amount of any crop insurance indemnity. 30. Crops as Payment You must not abandon any crop to us. We will not accept any crop as compensation for payments due us. 31. Obtaining FCIC Interpretations (a) You or we may request interpretations of specific provisions of this policy and related procedures regarding: (1) Whether a specific policy provision or procedure is applicable to the situation; (2) How a specific policy provision or procedure is applicable to the situation; or (3) The meaning of the specific policy provision or procedure. (b) Interpretations of specific policy provision or procedures will only be provided when mediation, arbitration, or litigation has been legally filed or formally initiated. Interpretations of specific policy provision or procedures will not be provided for prospective mediation, arbitration, or litigation. (c) All requests for an interpretation must be submitted, and will be considered, in accordance with the following: (1) Requests for interpretations must be submitted in writing to the attention of the RMA Deputy Administrator for Product Management or a designee or successor, via any of the following three means: (i) Certified mail, and addressed to the person stated above, USDA - Risk Management Agency, Beacon Facility - Mail Stop 0801, P.O. Box , Kansas City, MO of ; (ii) Facsimile to (816) ; or (iii) to RMA at: [email protected] a.gov. (2) Requests must be submitted not later than 90 days before the date the mediation, arbitration or litigation proceeding, such as a hearing on a motion, evidentiary hearing or trial, in which the interpretation will be used is scheduled to begin. (i) If the rules of the court, mediation or arbitration require the interpretation prior to the date the proceeding begins, the number of days prior to the proceeding must be added to the 90 days. For example, if a court requires the interpretation 20 days prior to the date the proceeding begins, the request must be submitted 110 days before the proceeding is scheduled to begin. (ii) Failure to timely submit a request for an interpretation may result in: (A) FCIC issuing a determination that no interpretation could be rendered because it was not timely submitted; and (B) Nullification of any agreement or award, as determined by FCIC. (iii)if during the mediation, arbitration, or litigation proceeding, an issue arises that requires an interpretation of a specific policy provision or procedure, the mediator, arbitrator, judge, or magistrate must promptly request such an interpretation in accordance with section 31(c)(1). (A) FCIC will authorize personnel to provide an oral or written interpretation, as appropriate; and (B) Any decision or settlement resulting from such mediation, arbitration or litigation proceeding before FCIC provides its interpretation may not be binding on the parties. (d) A request for each interpretation of a specific policy provision or procedure must 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

104 100 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RIVI include the following: (1) The identification of the type of legal action, such as mediation, arbitration, or litigation, in which the interpretation will be used; (2) The date any proceeding within the action is scheduled to begin, or if a specific date for the legal proceeding to begin has not yet been determined, the earliest possible date such legal proceeding would likely begin; (3) The name, address, telephone number, and fax number or address of a contact person, acting on behalf of the requestor and the same information with respect to persons appearing on behalf of other parties to the legal action; (4) With respect to the policy, all of the following: (i) The state and county where the policy involved in the dispute is written; (ii) The name and the applicable social security number or employer identification number of the insured; (iii)the insurance provider; and (iv) The policy number; (5) Identification of the applicable crop and crop year for which the interpretation is sought; (6) The citation of the procedure from the handbook, manual, memoranda, or bulletin for which an interpretation is requested and a quotation of such procedure; (7) A detailed description of the requestor s interpretation of the procedure; and (8) If the interpretation requested is to determine if a specific policy provision or procedure is applicable or how it is applicable, all material information needed to determine whether the specific policy provision or procedure is applicable to the dispute, including all relevant facts, and the requestor s interpretation and reasoning regarding applicability of the specific policy provision or procedure or how it is applicable. (e) The requestor is responsible for providing 27 of 28 all other parties involved in the legal action copies of the interpretation. (f) A request may be made for multiple insured persons provided the legal actions filed or formally initiated involve the same specific policy provision or procedure for all such persons. In this case, the information required in section 31(d) must be provided for each person. (g) Each request for an interpretation must contain no more than one request for an agency interpretation. If more than one policy provision or one provision of the procedures is at issue, separate requests must be made for each provision. (h) If, in the sole judgment of FCIC, the request for the interpretation is unclear, ambiguous, incomplete or otherwise does not include all the information needed to make an interpretation, the requestor will be notified, by facsimile or , within 30 days of the date the request is received by FCIC that the request is rejected and the basis for the rejection. (1) The requestor will have 15 days from the date stated on the notification to address the basis for rejection. (2) Failure to timely address the basis for rejection will result in a determination that no interpretation could be rendered and any agreement or award may nullified, as determined by FCIC. However, if sufficient time remains to submit a new request in accordance with section 31(c)(2), a new request can be initiated. (i) If all the requirements for obtaining an interpretation have been met, an interpretation will be provided in writing to the requestor on behalf of FCIC within 90 days of the date the request is initially submitted as specified in section 31(c)(2). (j) If FCIC agrees with the interpretation provided by the requestor, it will provide a response indicating agreement by the time frame specified in section 31(i). However, if FCIC fails to provide an interpretation of a procedure by the 90 day deadline, the requestor s interpretation will be considered as the interpretation from FCIC with respect

105 Section 8 Rainfall Index and Vegetation Index Basic Provisions RIVI to the subject legal proceeding only. It will not be applicable to any other legal proceeding or to any other insured or approved insurance provider, unless the request is made for multiple insured persons as specified in section 31(f). (k) FCIC will not interpret any specific factual situation or case, including but not limited to the actions of any insured, approved insurance provider, agent or loss adjuster. Interpretations of a specific policy provision or procedure will not include any analysis of whether the insured, approved insurance provider, agent or loss adjuster was in conformance with the policy provisions or procedures. (l) If the requestor or the other party to the legal proceeding does not agree with the written interpretation provided by FCIC, a request for reconsideration may be submitted in accordance with section 31(c)(1). (1) A request for reconsideration must be filed within 30 days of receipt of the written interpretation. If delivered by certified mail, a request for reconsideration will be considered to be filed when the properly addressed request, postage paid, is postmarked. (2) Requests for reconsideration will not be accepted from the mediator or arbitrator. (3) The FCIC will render a determination on the request for reconsideration not later than 30 days after receipt of the timely filed request for reconsideration. (m) An interpretation by FCIC of a specific policy provision or procedure may be appealed to the National Appeals Division in accordance with 7 CFR part 11, or successor regulation. 8 Rainfall Index and Vegetation Index Basic Provisions 28 of Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

106 102 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RI-PRF UNITED STATES DEPARTMENT OF AGRICULTURE FEDERAL CROP INSURANCE CORPORATION RAINFALL INDEX PASTURE, RANGELAND, FORAGE (PRF) CROP PROVISIONS 1. Definitions Basic Provisions mean the Rainfall and Vegetation Index Plan Common Policy. Crop means pasture, rangeland, or forage. Crop year means, in addition to the definition contained in section 1 of the Basic Provisions, the crop year begins on January 1 and ends on December 31. Forage means plants grown for haying or grazing. Grazing means used solely as pasture for livestock to roam and feed on. Haying means severance of the plant from its root by mechanical equipment and cured. Haying does not include earlage, green chop, grain which may be fed to livestock, or silage. Insurable interest means, in lieu of the definition contained in section 1 of the Basic Provisions, your percentage of the insured crop that is at financial risk. For acreage with an intended use of grazing, your percentage of the insured crop that is at financial risk will be based on your: (1) Percentage interest of the livestock to be grazed on the insured acres, if the acres are cash leased; or (2) Percentage of the value gained of the livestock being grazed on the insured acres, if the acres are share leased. Percentage of the value gained includes, but is not limited to, a percentage of the value obtained from the pounds gained by the livestock being grazed or a percentage of the offspring from the livestock being grazed. Livestock means domesticated animals, including but not limited to, cattle, sheep, horses, swine, goats, and poultry. Overseeding means to place or distribute seeds into an existing established plant community, without destroying the existing established plant community, which is used for forage. Pasture means a community of plants grown for haying or grazing. Rangeland means a community of plants composed primarily of native plants grown for grazing. 2. Application (a) In addition to the provisions contained in section 2(c)(1) of the Basic Provisions, a percent of value must be allocated to more than one index interval for each grid ID, intended use and share. The minimum percent of value allowed in any one index interval by grid ID, intended use and share is 10 percent. The maximum percent of value that can be allocated to any one index interval by grid ID, intended use and share is specified in the Special Provisions. (b) For the purposes of section 2(c)(1) of the Basic Provisions you may select any index interval provided in the Actuarial Documents. However, the same month cannot be included in more than one selected index interval for the same grid ID, intended use and share. For example, if you select an index interval that contains the months of April and May, you cannot select any other index interval offered that contains either April or May for the same grid ID, intended use and share. 3. Insured Crop (a) In addition to the provisions in section 5(a) of the Basic Provisions, the insured crop will be pasture, rangeland or forage: (1) In which you have a share; (2) Which is grown for the intended use of haying or grazing, and reported as such on your acreage report; (3) Located on insurable acreage in the county listed on the application accepted by us; and (4) That: (1 of 2)

107 Section 8 Rainfall Index and Vegetation Index Basic Provisions RI-PRF (i) (ii) Was initially planted prior to July 1 of the previous crop year, unless allowed by the Special Provisions; Is naturally present but was not planted, such as native perennial grasses; or (iii) Is self-seeding annual plants maintained through several years of grazing. (b) In addition to section 5(b) of the Basic Provisions, we will not insure any crop that is not grown for the intended use of haying or grazing. 4. Insured and Insurable Acreage (a) In lieu of section 6(a) of the Basic Provisions, you may elect to insure all or a portion of your insurable acreage in the county. You may select the number of acres to be insured. However, the total number of your insured acres of the crop in the county will not exceed 100 percent of your insurable acreage of the crop in the county. (b) Notwithstanding section 6(b) of the Basic Provisions, acreage of the crop that is: (1) So steeply sloped or is too far from a water source such that livestock would not normally graze such acreage, or is otherwise not suitable for grazing, is not insurable under an intended use of grazing; or (2) So steeply sloped or covered by water such that it is impractical or impossible to hay such acreage using normal haying equipment, or is otherwise not suitable for haying using normal haying equipment, is not insurable under an intended use of haying. (c) In addition to section 6(c) of the Basic Provisions, acreage where the crop is naturally present but not planted, such as native plants, may be insurable. (d) In lieu of section 6(d)(1) of the Basic Provisions, acreage may be insured if the crop meets the provisions of 3(a)(4). (e) In addition to section 6(g) of the Basic Provisions, we will not insure any (2 of 2) acreage that is annually planted. Overseeding is not considered an annual planting. 5. Amounts of Protection and Coverage Levels (a) In lieu of section 7(a)(1) of the Basic Provisions, catastrophic risk protection is not available under these Crop Provisions. (b) In lieu of section 7(b) of the Basic Provisions, you will have only one dollar amount of protection per acre for each county, crop, intended use and index interval. 6. Report of Acreage In lieu of section 9(b)(3) of the Basic Provisions, your acreage report must include: (a) Your share; (b) Intended use; (c) Grid ID; and (d) The FSA farm number, FSA tract number and FSA field number. 7. Annual Premium and Administrative Fees In accordance with section 11(a) of the Basic Provisions, the annual premium is earned and payable at the time the insured crop is reported on the acreage report. 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

108 104 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RI-API UNITED STATES DEPARTMENT OF AGRICULTURE FEDERAL CROP INSURANCE CORPORATION RAINFALL INDEX APICULTURE (API) CROP PROVISIONS For ease in the administration of the terms of this policy and to avoid the duplication of documents, as used throughout the Basic Provisions and applicable handbooks and directives, the term acre is replaced by colony ; acres and acreage are replaced with colonies ; acreage report is replaced with colony report ; and acreage reporting date is replaced with colony reporting date. 1. Definitions Apiculture means the raising and care of honey bees for agricultural crop production purposes, including but not limited to, honey production, collection of pollen and wax, and breeding purposes. Basic Provisions mean the Rainfall and Vegetation Index Plan Common Policy. Colony means a group of honey bees housed in a managed hive used for apiculture, which does not include wild or feral honey bees. Contiguous means, in lieu of the definition contained in section 1 of the Basic Provisions, acreage which contains locations owned or controlled by you, or rented by you for cash or crop share, in a county or grid that continues into an adjoining county or grid without interruption and is occupied and foraged by insurable colonies. Acreage separated by only a public or private right-ofway, waterway, or an irrigation canal will be considered contiguous. Crop means apiculture with the ability to produce honey. Crop year means, in lieu of the definition contained in section 1 of the Basic Provisions, January 1 through December 31. Hive means a shelter constructed in accordance with good farming practices for housing a colony of honey bees, also referred to as a beehive. Honey bees mean bees of the species Apis mellifera, sp which produce and store honey. Location means the point of land where the hive is placed. Unit means, in lieu of the definition contained in section 1 of the Basic Provisions, the insured colonies by index interval, share and county within or assigned to a grid. 2. Application (a) In addition to the provisions contained in section 2(c)(1) of the Basic Provisions, a percent of value must be allocated to more than one index interval for each grid ID and share. The minimum percent of value allowed in any one index interval by grid ID and share is 10 percent. The maximum percent of value that can be allocated to any one index interval by grid ID and share is specified in the Special Provisions. (b) For the purposes of section 2(c)(1) of the Basic Provisions you may select any index interval provided in the Actuarial Documents. However, the same month cannot be included in more than one selected index interval for the same grid ID and share. For example, if you select an index interval that contains the months of April and May, you cannot select any other index interval offered that contains either April or May for the same grid ID and share. 3. Insured Crop (a) In lieu of the provisions in section 5(a) of the Basic Provisions, the insured crop will be: (1) That shown on your application accepted by us; and (2) Apiculture: (i) In which you have a share; and (ii) Located on acreage in the county listed on the application accepted by us. (1 of 3)

109 Section 8 Rainfall Index and Vegetation Index Basic Provisions RI-API (b) Sections 5(b)(1), (2), (3), (5), (6), (7) and (8) of the Basic Provisions are not applicable to these Crop Provisions. 4. Insured and Insurable Colonies In lieu of section 6 of the Basic Provisions: (a) Insurable colonies include all colonies located within the United States. (b) You may elect to insure all or a portion of your insurable colonies in the county: (1) You may select the number of colonies located in the county to be insured; (2) The total number of the insured colonies in the county cannot exceed the number of the total insurable colonies in the county; and (3) The total number of colonies you insure in all grids under all policies cannot exceed the total number of all your insurable colonies in the United States. For example, if you have a total of 200 insurable colonies in the United States and you elect to insure all 200 colonies under these Crop Provisions in grid ID you cannot insure any colonies in any other grid under this policy or any other policy in the same crop year. However, if you insure only 50 of your 200 insurable colonies in grid ID 17220, you may insure up to 150 colonies in any other eligible grid under these Crop Provisions or the Vegetation Index Apiculture Crop Provisions, as applicable, in the same crop year. (c) To be insured, colonies must be: (1) Located in the county and grid ID, for which premium rates are provided in the Actuarial Documents, listed on your application accepted by us; (2) Located on acreage the insured owns or leases that allows the placement of colonies on the acreage; (3) Those in which you have a share; and (4) Reported by the colony reporting date. (d) The grid ID and county are determined based on a point of reference selected by (2 of 3) you. Separate points of reference must be established as follows: (1) A separate point of reference must be selected for all non-contiguous acreage on which hives of the insured colonies are located; and (2) With respect to contiguous insured acreage, a point of reference must be selected as follows: (i) If you elect to combine the contiguous acreage into one grid, you must establish a point of reference for the contiguous acreage. For example, contiguous acreage is located in two grids and you elect to insure all your colonies in one grid. You must establish a point of reference in the selected grid for the contiguous acres; or (ii) If you elect to separate the contiguous acreage into separate grids or counties, you must establish a point of reference for all the acres in or assigned to each selected grid. For example, contiguous acreage is located in two grids and you elect to insure some of your colonies in each grid. You must establish a point of reference in each selected grid. (e) We will not insure any colonies where you have failed to follow good farming practices for apiculture: (1) We will notify you if we identify an issue regarding good farming practices; and (2) If we notify you, you must contact FCIC for a determination of whether your production methods are considered to be good farming practices. (f) If you have insured colonies and: (1) You sell or lease the colonies to another person: (i) You may be eligible to receive any indemnities for insured index intervals during or prior to such action but insurance will cease 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

110 106 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-RI-API and no coverage will be provided for any subsequent index intervals and the full premium for the insurance period is owed by you; or (ii) You may be able to transfer your insurance rights in accordance with section 23 of the Basic Provisions; or (2) The colonies are destroyed or otherwise disposed of, you may be eligible to receive any indemnities for insured index intervals during or prior to such action but insurance will cease and no coverage will be provided for any subsequent index intervals and the full premium for the insurance period is owed by you. 5. Amounts of Protection and Coverage Levels (a) In lieu of section 7(a)(1) of the Basic Provisions, catastrophic risk protection is not available under these Crop Provisions. (b) In lieu of section 7(a)(2) of the Basic Provisions, for additional coverage policies: (1) You may select only one coverage level from 70 percent through 90 percent for the county and crop; and (2) You may select only one productivity factor from 60 percent through 150 percent for the county and crop. (c) In lieu of section 7(b) of the Basic Provisions, you will have only one dollar amount of protection per colony for the county. 6. Report of Colonies (a) In lieu of section 9(b) of the Basic Provisions, your colony report must include the following information: (1) The total amount of all your colonies in which you have a share in the United States; (2) For each applicable grid ID, all the hives of the insured colonies assigned to the grid ID; (3) With respect to the colonies specified in 6(a)(2), your share and grid ID; and (4) A certification that: (i) The colonies qualify as apiculture; and (ii) The selected index intervals support the vegetation production necessary for the colonies. (b) Sections 9(g), (h), and (i) of the Basic Provisions are not applicable to these Crop Provisions. 7. Annual Premium and Administrative Fees In accordance with section 11(a) of the Basic Provisions, the annual premium is earned and payable at the time the insured crop is reported on the colony report. 8. Access to Insured Crop and Record Retention In addition to 16(a) of the Basic Provisions, you must also retain and provide upon our request, or the request of any employee of USDA authorized to investigate or review any matter relating to crop insurance, all applicable records for all of your colonies in the United States. (3 of 3)

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112 108 Section 8 Rainfall Index and Vegetation Index Basic Provisions

113 Section 8 Rainfall Index and Vegetation Index Basic Provisions VI-API UNITED STATES DEPARTMENT OF AGRICULTURE FEDERAL CROP INSURANCE CORPORATION VEGETATION INDEX APICULTURE (API) CROP PROVISIONS For ease in the administration of the terms of this policy and to avoid the duplication of documents, as used throughout the Basic Provisions and applicable handbooks and directives, the term acre is replaced by colony ; acres and acreage are replaced with colonies ; acreage report is replaced with colony report ; and acreage reporting date is replaced with colony reporting date. 1. Definitions Apiculture means the raising and care of honey bees for agricultural crop production purposes, including but not limited to, honey production, collection of pollen and wax, and breeding purposes. Basic Provisions mean the Rainfall and Vegetation Index Plan Common Policy. Colony means a group of honey bees housed in a managed hive used for apiculture, which does not include wild or feral honey bees. Contiguous means, in lieu of the definition contained in section 1 of the Basic Provisions, acreage which contains locations owned or controlled by you, or rented by you for cash or crop share, in a county or grid that continues into an adjoining county or grid without interruption and is occupied and foraged by insurable colonies. Acreage separated by only a public or private right-ofway, waterway, or an irrigation canal will be considered contiguous. Crop means apiculture with the ability to produce honey. Crop year means, in lieu of the definition contained in section 1 of the Basic Provisions, January 1 through December 31. Hive means a shelter constructed in accordance with good farming practices for housing a colony of honey bees, also referred to as a beehive. Honey bees mean bees of the species Apis mellifera, sp which produce and store honey. Location means the point of land where the hive is placed. Unit means, in lieu of the definition contained in section 1 of the Basic Provisions, the insured colonies by index interval, share and county within or assigned to a grid. 2. Application (a) In addition to the provisions contained in section 2(c)(1) of the Basic Provisions, a percent of value must be allocated to at least one index interval for each grid ID and share. The minimum percent of value allowed in any one index interval by grid ID and share is 10 percent. (b) For the purposes of section 2(c)(1) of the Basic Provisions you may select any index interval provided in the Actuarial Documents. However, the same month cannot be included in more than one selected index interval for the same grid ID and share. For example, if you select an index interval that contains the months of March, April, and May, you cannot select any other index interval offered that contains March, April, or May for the same grid ID and share. 3. Insured Crop (a) In lieu of the provisions in section 5(a) of the Basic Provisions, the insured crop will be: (1) That shown on your application accepted by us; and (2) Apiculture: (i) In which you have a share; and (ii) Located on acreage in the county listed on the application accepted by us. (b) Sections 5(b)(1), (2), (3), (5), (6), (7) and (8) of the Basic Provisions are not applicable to these Crop Provisions. 4. Insured and Insurable Colonies In lieu of section 6 of the Basic Provisions: 8 Rainfall Index and Vegetation Index Basic Provisions (1 of 3) 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

114 110 Section 8 Rainfall Index and Vegetation Index Basic Provisions 13-VI-API (a) Insurable colonies include all colonies located within the United States. (b) You may elect to insure all or a portion of your insurable colonies in the county: (1) You may select the number of colonies located in the county to be insured; (2) The total number of the insured colonies in the county cannot exceed the number of the total insurable colonies in the county; and (3) The total number of colonies you insure in all grids under all policies cannot exceed the total number of all your insurable colonies in the United States. For example, if you have a total of 200 insurable colonies in the United States and you elect to insure all 200 colonies under these Crop Provisions in grid ID you cannot insure any colonies in any other grid under this policy or any other policy in the same crop year. However, if you insure only 50 of your 200 insurable colonies in grid ID 17220, you may insure up to 150 colonies in any other eligible grid under these Crop Provisions or the Vegetation Index Apiculture Crop Provisions, as applicable, in the same crop year. (c) To be insured, colonies must be: (1) Located in the county and grid ID, for which premium rates are provided in the Actuarial Documents, listed on your application accepted by us; (2) Located on acreage the insured owns or leases that allows the placement of colonies on the acreage; (3) Those in which you have a share; and (4) Reported by the colony reporting date. (d) The grid ID and county are determined based on a point of reference selected by you. Separate points of reference must be established as follows: (1) A separate point of reference must be selected for all non-contiguous (2 of 3) acreage on which hives of the insured colonies are located; and (2) With respect to contiguous insured acreage, a point of reference must be selected as follows: (i) If you elect to combine the contiguous acreage into one grid, you must establish a point of reference for the contiguous acreage. For example, contiguous acreage is located in two grids and you elect to insure all your colonies in one grid. You must establish a point of reference in the selected grid for the contiguous acres; or (ii) If you elect to separate the contiguous acreage into separate grids or counties, you must establish a point of reference for all the acres in or assigned to each selected grid. For example, contiguous acreage is located in two grids and you elect to insure some of your colonies in each grid. You must establish a point of reference in each selected grid. (e) We will not insure any colonies where you have failed to follow good farming practices for apiculture: (1) We will notify you if we identify an issue regarding good farming practices; and (2) If we notify you, you must contact FCIC for a determination of whether your production methods are considered to be good farming practices. (f) If you have insured colonies and: (1) You sell or lease the colonies to another person: (i) You may be eligible to receive any indemnities for insured index intervals during or prior to such action but insurance will cease and no coverage will be provided for any subsequent index intervals and the full premium for the insurance period is owed by you;

115 Section 8 Rainfall Index and Vegetation Index Basic Provisions VI-API or (ii) You may be able to transfer your insurance rights in accordance with section 23 of the Basic Provisions; or (2) The colonies are destroyed or otherwise disposed of, you may be eligible to receive any indemnities for insured index intervals during or prior to such action but insurance will cease and no coverage will be provided for any subsequent index intervals and the full premium for the insurance period is owed by you. 5. Amounts of Protection and Coverage Levels (a) In lieu of section 7(a)(1) of the Basic Provisions, catastrophic risk protection is not available under these Crop Provisions. (b) In lieu of section 7(a)(2) of the Basic Provisions, for additional coverage policies: (1) You may select only one coverage level from 70 percent through 90 percent for the county and crop; and (2) You may select only one productivity factor from 60 percent through 150 percent for the county and crop. (c) In lieu of section 7(b) of the Basic Provisions, you will have only one dollar amount of protection per colony for the county. 6. Report of Colonies (a) In lieu of section 9(b) of the Basic Provisions, your colony report must include the following information: (1) The total amount of all your colonies in which you have a share in the United States; (2) For each applicable grid ID, all the hives of the insured colonies assigned to the grid ID; (3) With respect to the colonies specified in 6(a)(2), your share and grid ID; and (4) A certification that: (3 of 3) (i) The colonies qualify as apiculture; and (ii) The selected index intervals support the vegetation production necessary for the colonies. (b) Sections 9(g), (h), and (i) of the Basic Provisions are not applicable to these Crop Provisions. 7. Annual Premium and Administrative Fees In accordance with section 11(a) of the Basic Provisions, the annual premium is earned and payable at the time the insured crop is reported on the colony report. 8. Access to Insured Crop and Record Retention In addition to 16(a) of the Basic Provisions, you must also retain and provide upon our request, or the request of any employee of USDA authorized to investigate or review any matter relating to crop insurance, all applicable records for all of your colonies in the United States. 8 Rainfall Index and Vegetation Index Basic Provisions 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

116 112 Section 8 Rainfall Index and Vegetation Index Basic Provisions 15-Ineligibility (April 2014) UNITED STATES DEPARTMENT OF AGRICULTURE FEDERAL CROP INSURANCE CORPORATION INELIGIBILITY AMENDMENT (This is a Continuous Amendment) This amendment modifies the provisions of the Area Risk Protection Insurance Basic Provisions (ARPI), Common Crop Insurance Policy Basic Provisions (CCIP), Livestock Gross Margin for Cattle Insurance Policy Basic Provisions (LGM-Cattle), Livestock Gross Margin for Dairy Cattle Insurance Policy Basic Provisions (LGM-Dairy), Livestock Gross Margin for Swine Insurance Policy Basic Provisions (LGM-Swine), Livestock Risk Protection Insurance Policy Basic Provisions (LRP), Rainfall and Vegetation Index Plan of Insurance Basic Provisions (RIVI) for the 2015 and succeeding crop years for all crops with a 2015 contract change date on or after April 30, 2014, and for the 2016 and succeeding crop years for all crops with a 2015 contract change date prior to April 30, The changes to the above policies are required as the result of changes made in the Final Rule to 7 CFR part 400 by revising Subpart U Ineligibility for Programs Under the Federal Crop Insurance Act published in the Federal Register on January 13, These technical changes apply to policyholders not being eligible for crop insurance on any crop until after all amounts owed are paid in full, a written payment agreement is executed, or policyholders have those debts discharged in bankruptcy. The revised provisions are as follows: In addition to section: The following provisions have been added: 1 LGM Dairy Delinquent debt - Has the same meaning as the term defined in 7 CFR part 400, subpart 1 LGM Swine U. In lieu of section: 2(j) LGM Dairy 2(j)(1)(i)(A) LGM Dairy 2(f)(1)(i)(B) CCIP 3(g)(1)(i)(B) RIVI 2(j)(1)(i)(B) LGM Dairy 2(j)(1)(i)(B) LGM Swine 2(k)(1)(i)(B) ARPI 2(f)(1)(i)(C) CCIP 2(k)(1)(i)(C) ARPI 3(g)(1)(i)(C) RIVI 2(j)(1)(i)(C) LGM Dairy 2(j)(1)(i)(C) LGM Swine 2(f)(1)(i)(D) CCIP 2(k)(1)(i)(D) ARPI 3(g)(1)(i)(D) RIVI 2(j)(1)(i)(D) LGM Dairy 2(j)(1)(i)(D) LGM Swine The following provisions will apply: A delinquent debt for any policy will make you ineligible to obtain crop insurance authorized under the Act for any subsequent crop year and result in termination of all policies in accordance with section 2(j)(2). The date that a policy was terminated in accordance with section 2(j)(2) for the commodity for which you failed to pay premium, an administrative fee, or any related interest owed, as applicable; The payment due date contained in any notification of indebtedness for any overpaid indemnity, prevented planting payment or replanting payment, if you fail to pay the amount owed, including any related interest owed, as applicable, by such due date; or The payment due date contained in any notification of indebtedness for overpaid indemnity and any other amounts due, including but not limited to, premium billed with a due date after the termination date for the crop year in which premium is earned, if you fail to pay the amount owed, including any related interest owed, as applicable, by such due date; or The termination date for the crop year prior to the crop year in which a scheduled payment is due under a written payment agreement if you fail to pay the amount owed by any payment date in any agreement to pay the debt. Paragraph (D) is removed. (1 of 4)

117 Section 8 Rainfall Index and Vegetation Index Basic Provisions Ineligibility (April 2014) In lieu of section: 2(f)(1)(ii) CCIP 2(k)(1)(ii) ARPI 3(g)(1)(ii) RIVI 2(j)(1)(ii) LGM Dairy 2(j)(1)(ii) LGM Swine 2(f)(2)(i)(C) CCIP 2(j)(2)(i)(C) LGM Dairy 2(j)(2)(i)(C) LGM Swine 2(k)(2)(i)(C) ARPI 3(g)(2)(iii) RIVI 2(f)(2)(i)(D) CCIP 2(k)(2)(i)(D) ARPI 2(j)(2)(i)(D) LGM Dairy 2(j)(2)(i)(D) LGM Swine 3(g)(2)(iv) RIVI The following provisions will apply: If you are ineligible and a policy has been terminated in accordance with section 2(f)(2), you will not receive any indemnity, prevented planting payment or replanting payment, if applicable, and such ineligibility and termination of the policy may affect your eligibility for benefits under other USDA programs. Any indemnity, prevented planting payment or replanting payment that may be owed for the policy before it has been terminated will remain owed to you, but may be offset in accordance with section 2(e), unless your policy was terminated in accordance with sections 2(f)(2)(i)(A), (B), or (D). If you are ineligible and a policy has been terminated in accordance with section 2(k)(2), you will not receive any indemnity, and such ineligibility and termination of the policy may affect your eligibility for benefits under other USDA programs. Any indemnity that may be owed for the policy before it has been terminated will remain owed to you, but may be offset in accordance with section 2(j), unless your policy was terminated in accordance with sections 2(k)(2)(i)(A), (B), or (D). If you are ineligible and a policy has been terminated in accordance with section 3(g)(2), you will not receive any indemnity payment, prevented planting payment or replanting payment, if applicable, and such ineligibility and termination of a policy may affect your eligibility for benefits under other USDA programs. Any indemnity payment, prevented planting payment or replanting payment, if applicable, that may be owed for the policy before it has been terminated will remain owed to you, but may be offset in accordance with section 3(f), unless your policy was terminated in accordance with sections 3(g)(2)(i), (ii), or (iv). If you are ineligible and a policy has been terminated in accordance with section 2(j)(2), you will not receive any indemnity, prevented planting payment or replanting payment, if applicable, and such ineligibility and termination of the policy may affect your eligibility for benefits under other USDA programs. Any indemnity, prevented planting payment or replanting payment that may be owed for the policy before it has been terminated will remain owed to you, but may be offset in accordance with section 2(i), unless your policy was terminated in accordance with sections 2(j)(2)(i)(A), (B), or (D). For all other policies that are issued by us under the authority of the Act, the termination date that coincides with the termination date for the policy with the delinquent debt or, if there is no coincidental termination date, the termination date immediately following the date you become ineligible; or For all other policies that are issued by us under the authority of the Act, the termination date that coincides with the termination date for the policy with the delinquent debt, or if there is no coincidental termination date, the termination date immediately following the date you become ineligible; or For your other policies for which a debt is not delinquent but are terminated because of a policy terminated under sections 3(g)(i) or (ii), termination will be effective on the termination date that coincides with the termination date for the policy with the delinquent debt or, if there is no coincidental termination date, the termination date immediately following the date you become ineligible; or For execution of a written payment agreement and failure to make any scheduled payment, the termination date for the crop year prior to the crop year in which you failed to make the scheduled payment (for this purpose only, the crop year will start the day after the termination date and end on the next termination date, e.g., if the termination date is November 30 and you fail to make a payment on November 15, 2011, your policy will terminate on November 30, 2010, for the 2011 crop year). For execution of a written payment agreement and failure to make any scheduled payment, termination will be effective on the termination date for the crop year prior to the crop year in which you failed to make the scheduled payment: (A) For this purpose only, the crop year will start the day after the termination date and end on the next termination date. (B) For example, if the termination date is November 30 and you fail to make a payment on November 15, 2012, your policy will terminate on November 30, 2011, for the 2012 crop year. 8 Rainfall Index and Vegetation Index Basic Provisions (2 of 4) 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

118 114 Section 8 Rainfall Index and Vegetation Index Basic Provisions 15-Ineligibility (April 2014) In lieu of section: 2(f)(2)(i)(E) CCIP 2(k)(2)(i)(E) ARPI 2(j)(2)(i)(E) LGM Dairy 2(j)(2)(i)(E) LGM Swine 3(g)(2)(v) RIVI 2(f)(2)(ii) - CCIP 2(k)(2)(ii) ARPI 3(g)(3) RIVI 2(j)(2)(ii) LGM Dairy 2(j)(2)(ii) LGM Swine 2(f)(3)(iii) CCIP 2(k)(3)(iii) ARPI 3(g)(5)(iii) RIVI 2(j)(3)(iii) LGM Dairy 2(j)(3)(iii) LGM Swine 2(f)(5) CCIP 2(j)(5) LGM Dairy 2(j)(5) LGM Swine 2(p)(2) ARPI The following provisions will apply: Paragraph (E) is removed. Paragraph (v) is removed. For all policies terminated under sections 2(f)(2)(i)(A), (B), or (D), any indemnities, prevented planting payments or replanting payments paid subsequent to the termination date must be repaid. For all policies terminated under section 2(k)(2)(i)(A), (B), or (D), any indemnities paid subsequent to the termination date must be repaid. For all policies terminated under sections 3(g)(2)(i), (ii), or (iv), any indemnity, prevented planting or replanting payments paid subsequent to the termination date must be repaid. For all policies terminated under sections 2(j)(2)(i)(A), (B), or (D), any indemnities paid subsequent to the termination date must be repaid. Have your debts discharged in bankruptcy. For example, for the 2011 crop year, if crop A, with a termination date of October 31, 2010, and crop B, with a termination date of March 15, 2011, are insured and you do not pay the premium for crop A by the termination date, you are ineligible for crop insurance as of October 31, 2010, and crop A s policy is terminated as of that date. Crop B s policy does not terminate until March 15, 2011, and an indemnity for the 2010 crop year may still be owed. If you enter into a written payment agreement on September 25, 2011, the earliest date by which you can obtain crop insurance for crop A is to apply for crop insurance by the October 31, 2011, sales closing date and for crop B is to apply for crop insurance by the March 15, 2012, sales closing date. If you fail to make a payment that was scheduled to be made on April 1, 2012, your policy will terminate as of October 31, 2011, for crop A, and March 15, 2012, for crop B, and no indemnity, prevented planting payment or replant payment will be due for that crop year for either crop. You will not be eligible to apply for crop insurance for any crop until after the amounts owed are paid in full or you have your debts discharged in bankruptcy. Since applications for crop insurance cannot be accepted after the sales closing date, if you make any payment, or you otherwise become eligible, after the sales closing date, you cannot apply for insurance until the next crop year. For example, for the 2012 crop year, if crop A, with a termination date of October 31, 2012, and crop B, with a termination date of March 15, 2013, are insured and you do not pay the premium for crop A by the termination date, you are ineligible for crop insurance as of October 31, 2012, and crop A s policy is terminated as of that date. Crop B s policy does not terminate until March 15, 2013, and an indemnity for the 2012 crop year may still be owed. You will not be eligible to apply for crop insurance for any crop until after the amounts owed are paid in full or have your debts discharged in bankruptcy. (3 of 4)

119 Section 8 Rainfall Index and Vegetation Index Basic Provisions Ineligibility (April 2014) In lieu of section: The following provisions will apply: 2(g)(7) RIVI For example, for the 2013 crop year, if crop A, with a termination date of October 31, 2013, and crop B, with a termination date of March 15, 2014, are insured and you do not pay the premium for crop A by the termination date, you are ineligible for crop insurance as of October 31, 2013, and crop A's policy is terminated as of that date. Crop B's policy does not terminate until March 15, 2014, and an indemnity for the 2013 crop year may still be owed. If you enter into a written payment agreement on September 25, 2014, the earliest date by which you can obtain crop insurance for crop A is to apply for crop insurance by the October 31, 2014, sales closing date and for crop B is to apply for crop insurance by the March 15, 2015, sales closing date. If you fail to make a payment that was scheduled to be made on April 1, 2015, your policy will terminate as of October 31, 2014, for crop A, and March 15, 2015, for crop B, and no indemnity, prevented planting payment or replant payment will be due for that crop year for either crop. You will not be eligible for crop insurance for any crop until after the amounts owed are paid in full or have your debts discharged in bankruptcy. 2(j)(8) LGM Cattle A policy already in effect at the time you become ineligible will not be affected until the termination date for that policy, and if you are ineligible, you may not obtain any insurance under the Act for any crop or livestock until payment is made in full, you execute an agreement to repay the debt and make payments in accordance with the agreement, or have your debts discharged in bankruptcy; 2(j)(9)(C) LGM Cattle You will be ineligible for insurance under the Act until the debt is paid in full or you have your debts discharged in bankruptcy; 1 LRP definition of The definition of delinquent accountžis removed. delinquent accountž 3(j)(5) LRP A crop insurance or livestock policy already in effect at the time you become ineligible will not be affected until the termination date for that policy (If you are ineligible, you may not obtain any insurance under the Act until payment is made, you execute an agreement to repay the debt and make payments in accordance with the agreement, or you have your debts discharged in bankruptcy); 3(j)(6) - LRP If you execute an agreement to pay the debt and fail to make any scheduled payment, all of your policies, including all crop insurance policies, will be terminated effective on the termination date for the crop year prior to the crop year in which you failed to make the scheduled payment and no indemnity will be due for that year (You will no longer be eligible to obtain insurance under the Act by execution of an agreement to pay the debt. You will be ineligible for insurance under the Act until the debt is paid in full or you have your debts discharged in bankruptcy); 8 Rainfall Index and Vegetation Index Basic Provisions (4 of 4) 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

120 116 Section 8 Rainfall Index and Vegetation Index Basic Provisions

121 9 Rainfall Index Actuarial/Special Provisions 118 Rainfall Index Actuarial/Special Provisions 120 API Rainfall Index Actuarial/Special Provisions 9 Rainfall Index Actuarial/ Special Provisions

122 Rainfall Index Actuarial/Special Provisions Special Provisions of Insurance 2013 XX and Succeeding Crop Years Year: 2013 XX Commodity: Pasture,Rangeland,Forage (0088) State: Anystate Missouri (29) Date: 6/26/2012 XX Plan: Rainfall Index (13) County: Adair (001) Anycounty Program Dates for Insurable Types and Practices Sales Closing Date Earliest Planting Date Final Planting Date Acreage Reporting Date Premium Billing Date 11/15/2012 XX 11/15/2012 XX 9/1/2013 XX TP Type Practice T/P 01 Grazing 007 Jan - Feb Index Interval 625 T/P 02 Haying 030 Jan - Feb Index Interval 625 T/P 03 Grazing 007 Feb - Mar Index Interval 626 T/P 04 Haying 030 Feb - Mar Index Interval 626 T/P 05 Grazing 007 Mar - Apr Index Interval 627 T/P 06 Haying 030 Mar - Apr Index Interval 627 T/P 07 Grazing 007 Apr - May Index Interval 628 T/P 08 Haying 030 Apr - May Index Interval 628 T/P 09 Grazing 007 May - Jun Index Interval 629 T/P 10 Haying 030 May - Jun Index Interval 629 T/P 11 Grazing 007 Jun - Jul Index Interval 630 T/P 12 Haying 030 Jun - Jul Index Interval 630 T/P 13 Grazing 007 Jul - Aug Index Interval 631 T/P 14 Haying 030 Jul - Aug Index Interval 631 T/P 15 Grazing 007 Aug - Sep Index Interval 632 T/P 16 Haying 030 Aug - Sep Index Interval 632 T/P 17 Grazing 007 Sep - Oct Index Interval 633 T/P 18 Haying 030 Sep - Oct Index Interval 633 T/P 19 Grazing 007 Oct - Nov Index Interval 634 T/P 20 Haying 030 Oct - Nov Index Interval Section 9 Rainfall Index Actuarial/Special Provisions 1

123 Special Provisions of Insurance 2013 XX and Succeeding Crop Years Year: 2013 XX Commodity: Pasture,Rangeland,Forage (0088) State: Anystate Missouri (29) Date: 6/26/2012 XX Plan: Rainfall Index (13) County: Adair Anycounty (001) 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual TP Type Practice T/P 21 Grazing 007 Nov - Dec Index Interval 635 T/P 22 Haying 030 Nov - Dec Index Interval 635 Type Information Practice Information TP Commodity Type Class Sub Class Intended Use Irrigation Cropping Organic Interval T/P 01 No Commodity Type T/P 02 No Commodity Type T/P 03 No Commodity Type T/P 04 No Commodity Type T/P 05 No Commodity Type T/P 06 No Commodity Type T/P 07 No Commodity Type T/P 08 No Commodity Type T/P 09 No Commodity Type T/P 10 No Commodity Type No Class No Class No Class No Class No Class No Class No Class No Class No Class No Class No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass Grazing 007 Haying 030 Grazing 007 Haying 030 Grazing 007 Haying 030 Grazing 007 Haying 030 Grazing 007 Haying 030 No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 JAN - FEB INDEX INTERVAL 625 JAN - FEB INDEX INTERVAL 625 FEB - MAR INDEX INTERVAL 626 FEB - MAR INDEX INTERVAL 626 MAR - APR INDEX INTERVAL 627 MAR - APR INDEX INTERVAL 627 APR - MAY INDEX INTERVAL 628 APR - MAY INDEX INTERVAL 628 MAY - JUN INDEX INTERVAL 629 MAY - JUN INDEX INTERVAL Section 9 Rainfall Index Actuarial/Special Provisions Rainfall Index Actuarial/ Special Provisions

124 API Rainfall Index Actuarial/Special Provisions Special Provisions of Insurance 2013 XX and Succeeding Crop Years Year: 2013 XX Commodity: Apiculture (1191) State: Anystate Missouri (29) Date: 6/26/2012 XX Plan: Rainfall Index (13) County: Adair (001) Sales Closing Date Earliest Planting Date Final Planting Date Colony Reporting Date Premium Billing Date 11/15/2012 XX 11/15/2012 XX 9/1/2013 XX TP Type Practice T/P 01 No Type Jan - Feb Index Interval 625 T/P 02 No Type Feb - Mar Index Interval 626 T/P 03 No Type Mar - Apr Index Interval 627 T/P 04 No Type Apr - May Index Interval 628 T/P 05 No Type May - Jun Index Interval 629 T/P 06 No Type Jun - Jul Index Interval 630 T/P 07 No Type Jul - Aug Index Interval 631 T/P 08 No Type Aug - Sep Index Interval 632 T/P 09 No Type Sep - Oct Index Interval 633 T/P 10 No Type Oct - Nov Index Interval 634 T/P 11 No Type Nov - Dec Index Interval 635 Type Information Practice Information TP Commodity Type Class Sub Class Intended Use Irrigation Cropping Organic Interval T/P 01 No Commodity Type T/P 02 No Commodity Type T/P 03 No Commodity Type No Class No Class No Class No Subclass No Subclass No Subclass Program Dates for Insurable Types and Practices No Intended Use No Intended Use No Intended Use No Irrigation Practice No Irrigation Practice No Irrigation Practice No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 Anycounty No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 JAN - FEB INDEX INTERVAL 625 FEB - MAR INDEX INTERVAL 626 MAR - APR INDEX INTERVAL Section 9 Rainfall Index Actuarial/Special Provisions 1

125 Special Provisions of Insurance 2013 XX and Succeeding Crop Years Year: 2013 XX Commodity: Apiculture (1191) State: Anystate Missouri (29) Date: 6/26/2012 XX Plan: Rainfall Index (13) County: Anycounty Adair (001) 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual Statement General Type Information Contact your agent regarding possible premium discounts, options, and/or additional coverage that may be available. Per the crop provisions, the maximum percent of value allowed in any one index interval by grid ID and share is 60%. In accordance with the Basic Provisions, the administrative fee is $30. Practice Information TP Commodity Type Class Sub Class Intended Use Irrigation Cropping Organic Interval T/P 04 No Commodity Type T/P 05 No Commodity Type T/P 06 No Commodity Type T/P 07 No Commodity Type T/P 08 No Commodity Type T/P 09 No Commodity Type T/P 10 No Commodity Type T/P 11 No Commodity Type No Class No Class No Class No Class No Class No Class No Class No Class No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass No Intended Use No Intended Use No Intended Use No Intended Use No Intended Use No Intended Use No Intended Use No Intended Use No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 APR - MAY INDEX INTERVAL 628 MAY - JUN INDEX INTERVAL 629 JUN - JUL INDEX INTERVAL 630 JUL - AUG INDEX INTERVAL 631 AUG - SEP INDEX INTERVAL 632 SEP - OCT INDEX INTERVAL 633 OCT - NOV INDEX INTERVAL 634 NOV - DEC INDEX INTERVAL Section 9 Rainfall Index Actuarial/Special Provisions Rainfall Index Actuarial/ Special Provisions

126 122 Section 9 Rainfall Index Actuarial/Special Provisions

127 10 Vegetation Index Actuarial/Special Provisions 124 PRF Vegetation Index Actuarial/Special Provisions 126 API Vegetation Index Actuarial/Special Provisions 10 Vegetation Index Actuarial/ Special Provisions

128 PRF Vegetation Index Actuarial/Special Provisions Special Provisions of Insurance 2013 XX and Succeeding Crop Years Year: 2013 XX Commodity: Pasture,Rangeland,Forage (0088) State: Anystate Colorado (08) Date: 6/26/2012 XX Plan: Vegetation Index (14) County: Anycounty Delta (029) Sales Closing Date Earliest Planting Date Final Planting Date Acreage Reporting Date Premium Billing Date 11/15/2012 XX 11/15/2012 XX 9/1/2013 XX TP Type Practice T/P 01 Grazing 007 Apr - Jun Index Interval 648 T/P 02 Haying 030 Apr - Jun Index Interval 648 T/P 03 Grazing 007 May - Jul Index Interval 649 T/P 04 Haying 030 May - Jul Index Interval 649 T/P 05 Grazing 007 Jun - Aug Index Interval 650 T/P 06 Haying 030 Jun - Aug Index Interval 650 T/P 07 Grazing 007 Jul - Sep Index Interval 651 T/P 08 Haying 030 Jul - Sep Index Interval 651 T/P 09 Grazing 007 Aug - Oct Index Interval 652 T/P 10 Haying 030 Aug - Oct Index Interval 652 T/P 11 Grazing 007 Sep - Nov Index Interval 653 T/P 12 Haying 030 Sep - Nov Index Interval 653 Type Information Practice Information TP Commodity Type Class Sub Class Intended Use Irrigation Cropping Organic Interval T/P 01 No Commodity Type T/P 02 No Commodity Type T/P 03 No Commodity Type No Class No Class No Class No Subclass No Subclass No Subclass Program Dates for Insurable Types and Practices Grazing 007 Haying 030 Grazing 007 No Irrigation Practice No Irrigation Practice No Irrigation Practice No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 APR - JUN INDEX INTERVAL 648 APR - JUN INDEX INTERVAL 648 MAY - JUL INDEX INTERVAL Section 10 Vegetation Index Actuarial/Special Provisions 1

129 Special Provisions of Insurance 2013 XX and Succeeding Crop Years Year: 2013 XX Commodity: Pasture,Rangeland,Forage (0088) State: Anystate Colorado (08) Date: 6/26/2012 XX Plan: Vegetation Index (14) County: Anycounty Delta (029) 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual Statement General Type Information Contact your agent regarding possible premium discounts, options, and/or additional coverage that may be available. In accordance with the Basic Provisions, the administrative fee is $30. Practice Information TP Commodity Type Class Sub Class Intended Use Irrigation Cropping Organic Interval T/P 04 No Commodity Type T/P 05 No Commodity Type T/P 06 No Commodity Type T/P 07 No Commodity Type T/P 08 No Commodity Type T/P 09 No Commodity Type T/P 10 No Commodity Type T/P 11 No Commodity Type T/P 12 No Commodity Type No Class No Class No Class No Class No Class No Class No Class No Class No Class No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass Haying 030 Grazing 007 Haying 030 Grazing 007 Haying 030 Grazing 007 Haying 030 Grazing 007 Haying 030 No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 MAY - JUL INDEX INTERVAL 649 JUN - AUG INDEX INTERVAL 650 JUN - AUG INDEX INTERVAL 650 JUL - SEP INDEX INTERVAL 651 JUL - SEP INDEX INTERVAL 651 AUG - OCT INDEX INTERVAL 652 AUG - OCT INDEX INTERVAL 652 SEP - NOV INDEX INTERVAL 653 SEP - NOV INDEX INTERVAL Section 10 Vegetation Index Actuarial/Special Provisions Vegetation Index Actuarial/ Special Provisions

130 API Vegetation Index Actuarial/Special Provisions Special Provisions of Insurance 2013 XX and Succeeding Crop Years Year: 2013 XX Commodity: Apiculture (1191) State: Anystate Colorado (08) Date: 6/26/2012 XX Plan: Vegetation Index (14) County: Anycounty Delta (029) Sales Closing Date Earliest Planting Date Final Planting Date Colony Reporting Date Premium Billing Date 11/15/2012 XX 11/15/2012 XX 9/1/2013 XX TP Type Practice T/P 1 No Type Apr - Jun Index Interval 648 T/P 2 No Type May - Jul Index Interval 649 T/P 3 No Type Jun - Aug Index Interval 650 T/P 4 No Type Jul - Sep Index Interval 651 T/P 5 No Type Aug - Oct Index Interval 652 T/P 6 No Type Sep - Nov Index Interval 653 Type Information Practice Information TP Commodity Type Class Sub Class Intended Use Irrigation Cropping Organic Interval T/P 1 T/P 2 T/P 3 T/P 4 T/P 5 T/P 6 No Commodity Type No Commodity Type No Commodity Type No Commodity Type No Commodity Type No Commodity Type No Class No Class No Class No Class No Class No Class No Subclass No Subclass No Subclass No Subclass No Subclass No Subclass Program Dates for Insurable Types and Practices No Intended Use No Intended Use No Intended Use No Intended Use No Intended Use No Intended Use No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Irrigation Practice No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Cropping Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 No Organic Practice Specified 997 APR - JUN INDEX INTERVAL 648 MAY - JUL INDEX INTERVAL 649 JUN - AUG INDEX INTERVAL 650 JUL - SEP INDEX INTERVAL 651 AUG - OCT INDEX INTERVAL 652 SEP - NOV INDEX INTERVAL Section 10 Vegetation Index Actuarial/Special Provisions 1

131 Special Provisions of Insurance 2013 XX and Succeeding Crop Years Year: 2013 XX Commodity: Apiculture (1191) State: Anystate Colorado (08) Date: 6/26/2012 XX Plan: Vegetation Index (14) County: Anycounty Delta (029) Statement General Contact your agent regarding possible premium discounts, options, and/or additional coverage that may be available. In accordance with the Basic Provisions, the administrative fee is $ Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual 2 Section 10 Vegetation Index Actuarial/Special Provisions Vegetation Index Actuarial/ Special Provisions

132 128 Section 10 Vegetation Index Actuarial/Special Provisions

133 11 Forms 11 Forms 130 Rainfall Index (RI) and Vegetation Index (VI) Application/Cancellation/Transfer/Policy Change/Acreage Reporting Form (RH-5081) 133 NCIS 920D Rainfall Index Disclaimer 135 NCIS 930D Vegetation Index Disclaimer

134 130 Section 11 Forms Rainfall Index (RI) and Vegetation Index (VI) Application/Cancellation/Transfer/ Policy Change/Acreage Reporting Form (RH-5081) Additional Instructions for the Pasture, Rangeland, Forage Rainfall Index and Vegetation Index Instructions for Coverage section in the upper right-hand corner of the form: 1. Name of Crop: Enter PRF for Pasture, Rangeland, Forage or API for Apiculture. 2. Intended Use: Enter GRZ for Grazing and HAY for Haying. 3. Plan of Insurance: Enter RI (for Rainfall) or VI (for Vegetation) Index. 4. Price: Select a productivity factor as a whole percentage number between 60% and 150%. Note 1. Farm Number, tract and field ID (CLU) associated with the insured acres for each grid ID are required. 2. The point of reference means the location of the insured acreage. Agents must maintain in their files a copy of the map page(s) showing where the insured acreage is located and the applicable points of reference. 3. The applicant determines the percent of acreage insured in each index interval by reporting the percent of value that applies to selected index intervals within each grid ID. The percent of value assigned to the selected index intervals must meet the minimum and maximum percentages as indicated in the county Special Provisions. 4. It is optional to submit any maps, such as maps selecting the point of interest, that were used to determine the required information for insurance under these programs. Any background information not originally submitted may be requested if the insured is selected for an Acreage Review.

135 Section 11 Forms 131 RH 5081 Rainfall Index (RI) and Vegetation Index (VI) Application/Cancellation/ Transfer/Policy Change/Acreage Reporting Form 1 PERSON TYPE ACE PROPERTY AND CASUALTY INSURANCE COMPANY Crop Insurance Serviced by: x RAIN AND HAIL L.L.C. RAIN AND HAIL INSURANCE SERVICE, L.L.C. Policy Page 1 of 2 State ANYSTATE Date 11/10/XX RAINFALL INDEX (RI) AND VEGETATION INDEX (VI) APPLICATION/CANCELLATION/TRANSFER/POLICY CHANGE/ACREAGE REPORTING FORM For 20XX and succeeding years Applicant/Insured Information Spousal Person Information Agency/Agent Information applicant s name spouse s name agency name IM INSURED IM SPOUSE IM AGENT street mailing address spouse s identification number street or mailing address 123 MAIN STREET ###-##-#### No Spouse 100 MAIN STREET city state zip code Insured s Authorized Representative city state zip code ANYCITY KS ANYCITY KS telephone number cell number telephone number x Yes No Is the applicant at least 18 years old? identification number id number type 1person type Yes No 2 agency code x Is applicant insuring landlord s share? (List as SBI) ###-##-#### x SSN EIN RAN Spousal Yes x No 2 Is applicant insuring tenant s share? (List as SBI) Form Action Requested (check all that apply): Other Changes: New Applicant Policy Change Required Field Review Add/change/correct insured s authorized representative Correct insured s identification number Cancellation Coverage Change Transfer Change/correct Insured s address Correct the spelling of insured s name APPLICATION INFORMATION Intended Productivity Total Insurable County Name of Crop Use Plan of Ins. Cov. Level Factor Acres or Colonies Options 3 Index Interval 3 Percent of Value Crop to Cancel Andrews AF RI % % A - Public Schools B - Trust-Bureau of Indian Affairs (BIA) and Indian Tribe Ventures C - Corporations D - Estates E - Non-Profit or Tax Exempt Organizations F - Transfer of Rights to Indemnity (SBI only) G - Receiver or Liquidator H - Public Agency State/Local Government I - Individuals J - Joint Operations/Joint Ventures/ Co-Ownerships P - Partnerships R - Revocable Trust S - Spousal/Married T - Irrevocable Trust U - Undivided Interest (CAT only) X - Individual Operating as a Business Y - Limited Liability Company Effective Crop Year Crop/Type County County Base Value Coverage Level/Trigger Index Productivity Factor Dollar Amount of Protection Per Acre or Colony PRF Hayland x x = x x = PRF Grazingland x x = x x = x Annual Forage Andrews $ x 0.85 x 120% = $ Apiculture x x = Type/Intended Uninsured County/Legal Description Use (e.g. Haying (Section, Township, Range, Other Land Identifier Grid Identification Insured Acres Share/Other or Grazing) [e.g. Spanish land grants, metes and bounds, etc.]) Number/Area Acres or Colonies Person Sharing Practice: Unit Percent of Value for each 3 Classification or Colonies Index Interval Number Index Interval FSA FN/FSA Tract No./FSA Field No. Annual Forage 3 Planting Commodity Date Percentage Hard Red Andrews Winter 32 31N 21E Wheat Grazing 3272/2153/ % 8/15/XX Total Andrews Policy Loss Payee and Address Enter the spouse s information in the Spousal Person Information section. If not married, check the No Spouse box. For all insured persons other than S, list all persons or entities with 10 percent or more interest in the applicant on the Social Security Number (SSN) and Employer Identification Number (EIN) Reporting Form (RH-5034). 2 INSURING LANDLORD/TENANT S SHARE: The person who is insuring the other s share must provide evidence of the other party s approval, such as the lease agreement or power of attorney. 3 Annual Forage Only Correct SBI s identification number Correct the spelling of SBI s name SBI INFORMATION - List all persons with a substantial beneficial interest (10% or more) in the insured/applicant as defined in the applicable policy provisions (include landlords or tenants insured under the applicant). If none, state NONE. Identification SBI Request Name Complete Address Telephone Number Identification Number Number Type 1 Person Type ADD REMOVE UPDATE SSN EIN RAN ADD REMOVE UPDATE Remarks: Total Insurable Colonies in United States: AF RI % % % % % % EXAMPLE COMPANY/AGENT COPY RH (Rev ) Total Crop SSN EIN RAN Forms 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

136 132 Section 11 Forms RAINFALL INDEX (RI) AND VEGETATION INDEX (VI) APPLICATION/CANCELLATION/TRANSFER/POLICY CHANGE/ACREAGE REPORTING FORM Policy Page 2 of 2 CANCELLATION INFORMATION: I hereby request cancellation of my crop insurance policy for the crop(s) and crop year State ANYSTATE Date 11/10/XX shown on this cancellation. I understand that if this form is not executed on or before the cancellation date for any crop year listed, the cancellation of insurance on such crop(s) will not become effective until the following crop year. For 20XX and succeeding years REASON FOR CANCELLATION: Mutual Consent Insured s Request Death, Incompetence or Dissolution Other TRANSFER INFORMATION: Part II: By submission of this form, we agree to provide crop insurance to this applicant for the crop(s) and crop year specified above unless this form is not executed on or before the established cancellation date for Part I: I hereby request cancellation of my insurance policy with [Enter Ceding AIP s Name and Policy No.:] any of the crop(s) shown, in which case insurance will be provided for such crop(s) for the following crop year. for the crop(s) and crop year(s) shown on this application because I have applied for insurance with another Approved Insurance Provider. I understand that if this form is not executed on or before the established cancellation date for any crop listed, the cancellation of insurance on such crop(s) will not become effective until the following Assuming AIP and Policy Issuing Company Code crop year. I hereby authorize and direct the Ceding Approved Insurance Provider shown above to furnish any information relative to my insurance policy to the Assuming Approved Insurance Provider. I understand that Signature of AIP Representative Authorized to Accept Applications if coverage for any crop(s) is now terminated or would have subsequently terminated for delinquent debt had this transfer not occurred, no coverage can be provided by the assuming Approved Insurance Provider. Date of Acceptance by Assuming AIP Yes No CONDITIONS OF ACCEPTANCE PROMISSORY NOTE (a) Are you now indebted, and the debt is delinquent, for insurance coverage under the Federal Crop Insurance Act? (b) Have you in the last five years been convicted under federal or state law of planting, cultivating, growing, producing, harvesting, or storing a controlled substance? (c) Have you ever had insurance coverage under the authority of the Federal Crop Insurance Act terminated for violation of the terms of the contract or regulations, or for failure to pay your delinquent debt? (d) Are you disqualified or debarred under the Federal Crop Insurance Act, the regulations of the FCIC, or the USDA? (e) Have you ever entered into an agreement with the FCIC or with the Department of Justice that you would refrain from participating in programs under the authority of the Federal Crop Insurance Act and that agreement is still effective? (f) Do you have like insurance on any of the above crop(s)? REQUIRED STATEMENTS A) CONDITIONS OF ACCEPTANCE: This application is accepted and insurance attaches in accordance with the policy unless: (1) The Federal Crop Insurance Corporation determines that, in accordance with the regulations, the risk is excessive; (2) any material fact is omitted, concealed or misrepresented in this application or in the submission of this application; (3) you have failed to provide complete and accurate information required by this application; or (4) the answer to any of the questions set forth in Conditions of Acceptance on the the application is yes. An answer of yes to these questions does not automatically result in rejection of the application. For example, if you answer yes to question (a) but your debt was discharged in bankruptcy, the application would not be rejected. I understand that if coverage for any crop is currently terminated or would have subsequently terminated for delinquent debt had this application been filed after the termination date, no coverage can be provided and I am ineligible for any benefits under the Federal Crop Insurance Act until the cause for termination is corrected. We will notify you of rejection by depositing notification in the United States mail, postage paid, to the applicant s address. Unless rejected or the sales closing date has passed at the time you signed this application, insurance shall be in effect for the crop(s) and crop years specified and shall continue for each succeeding crop year, unless otherwise specified in the policy, until canceled, terminated or voided. No term or condition of the contract shall be waived or changed unless such waiver or change is expressly allowed by the contract and is in writing. B) CERTIFICATION STATEMENT: I certify that to the best of my knowledge and belief all of the information on this form is correct. I also understand that failure to report completely and accurately may result in sanctions under my policy, including but not limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C and 1014; 7 U.S.C. 1506; 31 U.S.C. 3729, 3730 and any other applicable federal statutes). C) NONDISCRIMINATION STATEMENT Non-Discrimination Policy: The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the bases of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual's income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities.) To File a Program Complaint: If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at gov/complaint filing cust.html, or at any USDA office, or call (866) to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter by mail to the U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C , by fax (202) or at [email protected]. Persons with Disabilities: Individuals who are deaf, hard of hearing or have speech disabilities and wish to file either an EEO or program complaint please contact USDA through the Federal Relay Service at (800) or (800) (in Spanish). Persons with disabilities, who wish to file a program complaint, please see information above on how to contact the Department by mail directly or by . If you require alternative means of communication On or before theundersigned, in consideration of the issuance of the policy shown above, hereby agrees to pay, at 9200 Northpark Drive, Suite 300, Johnston, Iowa 50131, to the order of the Company the total premium and applicable administrative fees, all as allowed by law. The Undersigned agrees to pay the maximum amount of interest on the total unpaid premium after such due dates plus reasonable costs of collection and attorney fees, all as allowed by law as stated in 7 CFR and consents to the Iowa Court jurisdiction and venue. The Undersigned agrees and acknowledges that the Company may deduct any and all amounts owed under this policy or any other policy, whether or not due, from any loss payable to you under this policy. for program information (e.g., Braille, large print, audiotape, etc.) please contact USDA's TARGET Center at (202) (voice and TDD). D) COLLECTION OF INFORMATION AND DATA (PRIVACY ACT) STATEMENT Agents, Loss Adjusters, and Policyholders: The following statements are made in accordance with the Privacy Act of 1974 (5 U.S.C. 552a): The Risk Management Agency (RMA) is authorized by the Federal Crop Insurance Act (7 U.S.C ) or other Acts, and the regulations promulgated thereunder, to solicit the information requested on documents established by RMA, or by approved insurance providers (AIPs), that have been approved by the Federal Crop Insurance Corporation (FCIC), to deliver Federal crop insurance. The information is necessary for AIPs and RMA to operate the Federal crop insurance program, determine program eligibility, conduct statistical analysis, and ensure program integrity. Information provided herein may be furnished to other Federal, State, or local agencies, as required or permitted by law, law enforcement agencies, courts or adjudicative bodies, foreign agencies, magistrate, administrative tribunal, AIPs contractors and cooperators, Comprehensive Information Management System (CIMS), congressional offices, or entities under contract with RMA. For insurance agents, certain information may also be disclosed to the public to assist interested individuals in locating agents in a particular area. Disclosure of the information requested is voluntary. However, failure to correctly report the requested information may result in the rejection of this document by the AIP or RMA in accordance with the Standard Reinsurance Agreement between the AIP and FCIC, Federal regulations, or RMAapproved procedures and the denial of program eligibility or benefits derived therefrom. Also, failure to provide true and correct information may result in civil suit or criminal prosecution and the assessment of penalties or pursuit of other remedies. EXAMPLE E) ANTI-REBATING STATEMENTS Applicant/Insured Statement: I certify, for the crop year indicated, that I have not directly or indirectly received, accepted, or been paid, offered, promised, or given any benefit, including money, goods, or services for which payment is usually made, rebate, discount, abatement, credit, or reduction of premium, or any other valuable consideration, as an inducement to procure insurance or in exchange for purchasing this insurance policy after it has been procured. I understand that this prohibition does not include payment of administrative fees, performance based discounts, and any other payment approved by FCIC that are authorized under sections 508(a)(9)(B) and 508(d)(3) of the Federal Crop Insurance Act (Act) (7 U.S.C. 1508(a)(9)(B) and 1508(d)(3)). I understand that a false certification or failure to completely and accurately report any information on this form may subject me, and any person with a substantial beneficial interest in me, to sanctions, including but not limited to, criminal and civil penalties and administrative sanctions in accordance with section 515(h) of the Act (7 U.S.C. 1515(h)) and all other applicable federal statutes. Agent Statement: I certify, for the crop year indicated, that I have neither offered nor promised, directly or indirectly, any benefit, including money, goods, or services for which payment is usually made, rebate, discount, credit, reduction of premium, or any other valuable consideration to this person either as an inducement to procure insurance or in exchange for obtaining insurance after it has been procured. I understand that this prohibition does not include payment of administrative fees, performance based discounts, and any other payment approved by FCIC that are authorized under sections 508(a)(9)(B) and 508(d)(3) of the Federal Crop Insurance Act (Act) (7 U.S.C. 1508(a)(9)(B) and 1508(d)(3)). I understand that a false certification or failure to completely and accurately report any violation may subject me, and all agencies/companies I represent, to sanctions, including but not limited, to criminal and civil penalties and administrative sanctions in accordance with section 515(h) of the Act (7 USC 1515(h)) and all other applicable federal statutes. For Pasture, Rangeland, and Forage (PRF) and Apiculture (API) only: I certify that (1) The grid ID accurately identifies the location of the insured acreage, and (2) That the acreage assigned to each grid ID is accurate to the best of my knowledge. For (API) only, I certify that (1) The colonies qualify as apiculture; and (2) The selected index intervals support the vegetation production necessary for the colonies. I certify that the information and answers on this application are correct to my knowledge and belief; that none of the reasons for rejection in items 1 through 4 of the Conditions of Acceptance apply; and that I am aware of and understand the requirements of the Collection of Information and Data (Privacy Act), as well as all other provisions contained on this application. I personally guarantee payment of the total premium and any applicable administrative fees. IM INSURED 11/10/XX IM AGENT XXXX-XX Applicant/Insured s Printed Name Licensed Agent s Printed Name Agent s Code IM INSURED IM AGENT 11/10/XX Applicant/Insured s Signature Date Licensed Agent s Signature Date COMPANY/AGENT COPY RH (Rev )

137 Section 11 Forms 133 RAINFALL INDEX DISCLAIMER 2013-NCIS 920D 11 Forms By signing below, I certify that I understand the following. 1. The Rainfall Index plan of insurance is not a plan of insurance against a loss of actual production. The terms and conditions of the Rainfall Index are different from those of an Actual Production History plan of insurance. The Rainfall Index plan of insurance does not measure, capture, or utilize the actual crop production of any producer or any of the actual crop production within the grid, county or state. It is based upon grid indices, not individual farm yields. 2. Selecting index intervals when precipitation is not needed for the insured crop or when precipitation does not normally occur is not an effective use of the Rainfall Index plan of insurance. 3. The Rainfall Index is a risk management tool to insure against a decline in an index value that is based on the long-term historical average precipitation for the grid and index interval. It is best suited for producers whose production tends to follow and correlate to the historical average interpolated precipitation patterns for the grid. 4. It is possible for me to have low crop production or receive low precipitation amounts on the acreage I insure and still not receive an indemnity payment under this plan. 5. The only insurable cause of loss is having a final grid index less than my trigger grid index. 6. There are historical indices, information, and other tools on the RMA web site to help me determine if the Rainfall Index is suitable for my risk management needs. INSURED S SIGNATURE: DATE: SAMPLE 2012 National Crop Insurance Services, Inc Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

138 134 Section 11 Forms COLLECTION OF INFORMATION AND DATA (PRIVACY ACT) STATEMENT Agents, Loss Adjusters and Policyholders The following statements are made in accordance with the Privacy Act of 1974 (5 U.S.C. 552a): The Risk Management Agency (RMA) is authorized by the Federal Crop Insurance Act (7 U.S.C ) or other Acts, and the regulations promulgated thereunder, to solicit the information requested on documents established by RMA or by approved insurance providers (AIPs) that have been approved by the Federal Crop Insurance Corporation (FCIC) to deliver Federal crop insurance. The information is necessary for AIPs and RMA to operate the Federal crop insurance program, determine program eligibility, conduct statistical analysis, and ensure program integrity. Information provided herein may be furnished to other Federal, State, or local agencies, as required or permitted by law, law enforcement agencies, courts or adjudicative bodies, foreign agencies, magistrate, administrative tribunal, AIP s contractors and cooperators, Comprehensive Information Management System (CIMS), congressional offices, or entities under contract with RMA. For insurance agents, certain information may also be disclosed to the public to assist interested individuals in locating agents in a particular area. Disclosure of the information requested is voluntary. However, failure to correctly report the requested information may result in the rejection of this document by the AIP or RMA in accordance with the Standard Reinsurance Agreement between the AIP and FCIC, Federal regulations, or RMA-approved procedures and the denial of program eligibility or benefits derived therefrom. Also, failure to provide true and correct information may result in civil suit or criminal prosecution and the assessment of penalties or pursuit of other remedies. NONDISCRIMINATION STATEMENT The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) (voice and TDD). To file a complaint of discrimination, write to: USDA, Director, Office of Civil Rights,1400 Independence Avenue, S.W., Washington, D.C , or call (800) (voice) or (202) (TDD). USDA is an equal opportunity provider and employer. SAMPLE

139 Section 11 Forms 135 VEGETATION INDEX DISCLAIMER By signing below, I certify that I understand the following NCIS 930D 11 Forms 1. The Vegetation Index plan of insurance is not a plan of insurance against a loss of actual production. The terms and conditions of the Vegetation Index are different from those of an Actual Production History plan of insurance. The Vegetation Index plan of insurance does not measure, capture, or utilize the actual crop production of any producer or any of the actual crop production within the grid, county or state. It is based upon grid indices, not individual farm yields. 2. Selecting index intervals when vegetative growth does not normally occur or is not needed is not an effective use of the Vegetation Index plan of insurance. 3. The Vegetation Index is a risk management tool to insure against a decline, caused by natural occurrences, in an index value that is based on the long-term historical average for the grid and index interval. It is best suited for producers whose past production correlates with the historical average vegetation index patterns for the grid. 4. It is possible for me to have low crop production on the acreage I insure and still not receive an indemnity payment under this plan. 5. The only insurable cause of loss is having a final grid index less than my trigger grid index that is due to natural causes. 6. There are historical indices, information, and other tools on the RMA web site to help me determine if the Vegetation Index is suitable for my risk management needs. INSURED S SIGNATURE: DATE: SAMPLE 2012 National Crop Insurance Services, Inc Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

140 136 Section 11 Forms COLLECTION OF INFORMATION AND DATA (PRIVACY ACT) STATEMENT Agents, Loss Adjusters and Policyholders The following statements are made in accordance with the Privacy Act of 1974 (5 U.S.C. 552a): The Risk Management Agency (RMA) is authorized by the Federal Crop Insurance Act (7 U.S.C ) or other Acts, and the regulations promulgated thereunder, to solicit the information requested on documents established by RMA or by approved insurance providers (AIPs) that have been approved by the Federal Crop Insurance Corporation (FCIC) to deliver Federal crop insurance. The information is necessary for AIPs and RMA to operate the Federal crop insurance program, determine program eligibility, conduct statistical analysis, and ensure program integrity. Information provided herein may be furnished to other Federal, State, or local agencies, as required or permitted by law, law enforcement agencies, courts or adjudicative bodies, foreign agencies, magistrate, administrative tribunal, AIP s contractors and cooperators, Comprehensive Information Management System (CIMS), congressional offices, or entities under contract with RMA. For insurance agents, certain information may also be disclosed to the public to assist interested individuals in locating agents in a particular area. Disclosure of the information requested is voluntary. However, failure to correctly report the requested information may result in the rejection of this document by the AIP or RMA in accordance with the Standard Reinsurance Agreement between the AIP and FCIC, Federal regulations, or RMA-approved procedures and the denial of program eligibility or benefits derived therefrom. Also, failure to provide true and correct information may result in civil suit or criminal prosecution and the assessment of penalties or pursuit of other remedies. NONDISCRIMINATION STATEMENT The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) (voice and TDD). To file a complaint of discrimination, write to: USDA, Director, Office of Civil Rights,1400 Independence Avenue, S.W., Washington, D.C , or call (800) (voice) or (202) (TDD). USDA is an equal opportunity provider and employer. SAMPLE

141 12 Rainfall Index Questions and Answers 138 Pasture, Rangeland, Forage Rainfall Index Questions and Answers (Provided by RMA) 12 Rainfall Index Questions and Answers

142 138 Section 12 Rainfall Index Questions and Answers Pasture, Rangeland, Forage Rainfall Index Questions and Answers (Provided by RMA) 1. Q: What are some of the basic concepts of the Rainfall Index Pasture, Rangeland, Forage (RI-PRF) Insurance Program? A: The Rainfall Index is an area-based plan of insurance and is based on a National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) interpolated rainfall data set and uses a 0.25 degrees in latitude by 0.25 degrees in longitude. Producers must select at least two, two-month time periods in which precipitation is important for the growth and production of the forage species. These time periods are called Index Intervals. Insurance payments to a producer are calculated based on the deviation from normal precipitation interpolated to the grid and index interval(s) selected. This insurance coverage is for a single peril lack of precipitation. It is critical that producers review the historical indices for their grid ID to determine how well the past results correspond to their past observations. Land 1. Q: Can I just insure the acreage where my best improved grasses are grown or do I have to insure all of my pastures? A: You may choose to insure grazing land, hay land or both. You are NOT required to insure 100 percent of the crop type s insurable acres in the county. 2. Q: Can my pastureland be insured for grazing in one year and for haying the next year? A: The crop type and associated insurance can vary from year to year and this determination will be based on the intended use; however, if you change crop types, intended use and insured acres, you must contact your insurance agent to make the appropriate changes to your policy, prior to the acreage reporting date. 3. Q: Are there a minimum number of acres which I can insure? A: No. However there are minimums and maximums that can be insured in any one interval. 4. Q: Can I insure my hay land that I annually plant to a forage crop? A: No. You cannot insure acreage with annual plantings. However, there are provisions that allow overseeding into an established perennial pasture. 5. Q: If I establish an improved forage pasture, how long do I have to wait until I can insure these acres? A: The policy states that land is insurable as long as it is not initially planted to a forage crop after July 1 of the previous crop year, unless allowed by the special provisions. For example, the land could be insured in 2014 if planted before July 1, Q: Is overseeding into established acreage of existing forage crops, which are not planted annually, an acceptable farming practice and not considered as an annual planting? A: Yes. Overseeding into established existing forage crop acreage, which are not annually planted, is an acceptable practice in the Rainfall Index Pasture, Rangeland, Forage Insurance Program. 7. Q: Can my Farm Service Agency (FSA) maps be used to determine acreages for my policy? A: Yes, FSA maps and records are acceptable for determining insurable acreages for your policy. 8. Q: Will I be able to insure my Conservation Reserve Program (CRP) land? A: Acreage enrolled in other types of USDA programs is not eligible. Also, due to the fact that CRP programs prohibit grazing and haying, land in a CRP program is considered uninsurable acreage. 9. Q: Can I insure the waterways around my row crop fields that I hay for my livestock? A: Yes, if it is declared as hay land and you intend to hay the acreage during the upcoming crop year. 10. Q: Can I insure my grazing land that is located within a city limit or within a deed restricted area? A: Yes, if it can legally be used for grazing and you intend to graze the acreage during the upcoming crop year. Value 1. Q: How do I determine the value per acre of my grazing land? A: You may select a value for your grazing/hay land that is between 60 and 150 percent (productivity factor) of the county base value per acre, depending on your costs/revenue expectations for your grazing/hay land. 2. Q: Will the value be the same for all of the grazing land in my county? A: Yes, county base values are determined and provided on a county basis, they will not change for each grid. 3. Q: What is the productivity factor and why is it included in the program? A: A percentage factor selected by you that allows you to individualize your coverage based on the productivity of the crops you produce and may be between 60 and 150 percent. Only one productivity factor may be selected per county and crop type. 4. Q: Will the county base value of a grid be changed from year to year? A: The county base value will be updated when grazing land and hay land values within an area change. It is anticipated that these values will be updated or evaluated on a periodic base of three to five years, not yearly.

143 Section 12 Rainfall Index Questions and Answers 139 Index 1. Q: Why do I have to select two intervals if I get most of my grazing in only one? A: You must select at least two intervals because total production per year is influenced by rainfall in more than one interval. Trigger 1. Q: If my grid has a loss, how will I be notified of my loss? A: Based on your policy, your insurance company will automatically send you an indemnity payment once the final grid index is determined and if the final index value is below your trigger grid index, assuming all qualifications of the policy are fulfilled. Once published, you can check on the RMA Website for official final index values. 2. Q: Does the rainfall index predict forage production on each insured s operation? A: The rainfall index does not explicitly predict individual forage production on a given producer s operation. Instead, the index is simply a reflection of how much precipitation is received for a given 2-month interval for a specified weather grid, declared by the producer, relative to a long term average for the same interval and grid. Research indicates that rainfall is highly correlated with forage production, but does not directly predict forage production. 3. Q: What is the trigger grid index? A: It is the result of multiplying the expected grid index by your selected coverage level. 4. Q: How many years of rainfall data is used to determine the average rainfall for this insurance? A: NOAA CPC has kept records since 1948, which are used in calculating the normal rainfall index for each interval and grid ID. 5. Q: Can I follow the rainfall status of my grid during the interval which I have chosen to insure? A: You will always be able to look at the historical rainfall during the interval that you have chosen, but the current interpolated rainfall data, used in the program will only be reported on the RMA Website after the end of the index interval. 6. Q: If I keep the official rainfall records for a local weather station, can I then use these records for my selected grids? A: No. The final grid index will be determined by FCIC based on NOAA s CPC current 0.25 degree grid interpolated precipitation data for each grid ID and index interval during the crop year. The interpolated precipitation is based on multiple weather station and other data and cannot be traced to a single point. It is also important to remember that as stated in the Rainfall Index Pasture, Rangeland, Forage crop provisions: this program is designed as a risk management tool to insure against widespread loss of production of the insured crop in a designated area called a grid. It is primarily intended for use by those producers whose forage production correlates with the average interpolated precipitation patterns for the selected grid. It is possible for you to have reduced forage production on your insured acreage and still not receive a payment under this plan. Please contact a qualified crop insurance agent for more information. Grid 1. Q: What is a grid index? A: A calculated value utilizing each grid s current and historical interpolated precipitation data for each grid ID and index interval. The index is expressed as a percentage. 2. Q: What are the origins of the grid ID system? A: NOAA CPC has used the 0.25 degree grids to report weather for many years. It is based on data from reporting weather stations, enhanced with NEXRAD and satellite cold cloud data. Multiple weather station data is weighted and interpolated by NOAA CPC to each grid. 3. Q: Will I have to provide the Grid ID numbers to my agent or will he or she be able to help me locate them? A: You can determine the grid ID yourself or your agent will be able to help you locate them. It is recommended that during the application, the agent be involved to ensure you meet all the policy requirements. 4. Q: If I have five pastures located several miles apart, will I be able to insure them separately or will I have to put them all together? A: It depends, if they are in different grids they will have to be insured in the grid in which they are located. 5. Q: If an applicant has non-contiguous acreage which is located in separate grids, can he/she opt to use one point of reference for all the acreage and use only one grid ID? A: No. A point of reference must be selected for each separate, non-contiguous acreage of the crop that is located in the county. If the non-contiguous acreage is located in separate grids, each non-contiguous acreage must have a separate grid ID. 6. Q: Can all contiguous acreage of the crop type be combined into a single grid ID using one point of reference for all of the acreage, including acreage that extends into an adjoining numbered grid or county? A: All contiguous acreage of the crop type may be combined into a single grid ID using one point of reference for all of the acreage, including acreage that extends into an adjoining numbered grid or county. For more information on grid selection and grid identification, refer to the Rainfall Index Insurance Standards Handbook. 12 Rainfall Index Questions and Answers 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

144 140 Section 12 Rainfall Index Questions and Answers Miscellaneous 1. Q: Can a new application be accepted at anytime the first time an insured applies? A: New applications must be submitted prior to the sales closing date as outlined in the actuarial documents for the given crop year. 2. Q: Will I have to supply fertilizer records or other management records if I have a loss? A: No. Individual inputs and records are not required. Losses and indemnities are determined by the final index values. 3. Q: Does the Website servicing the Rainfall Index PRF Insurance Program require internet access and can the information only be used electronically? A: The Rainfall Index PRF Insurance Program system has been developed as an interactive Website that a user can navigate to collect information and establish a grid ID. The system also allows screen printing, including the maps and grids. Contact your approved agent for available options. 4. Q: With the written approval of the insurance provider, may the insured assign rights to an indemnity payment to someone else for the current crop year? A: Yes. The insured may assign rights to an indemnity payment to another party for the current crop year.

145 13 Vegetation Index Questions and Answers 142 Pasture, Rangeland, Forage Vegetation Index Questions and Answers (Provided by RMA) 13 Vegetation Index Questions and Answers

146 142 Section 13 Vegetation Index Questions and Answers Pasture, Rangeland, Forage Vegetation Index Questions and Answers (Provided by RMA) 1. Q: What are some of the basic concepts of the Vegetation Index Pasture, Rangeland, Forage (VI-PRF) Insurance Program? A: The Vegetation Index is an area insurance plan, and is based on Earth Resources Observation Systems (EROS) Normalized Difference Vegetation Index (NDVI) data, using an approximate 4.8-mile square grid. Producers can select one or more, three month time periods in which NDVI data is important during the growth and production of the forage species. These time periods are called Index Intervals. Insurance payments to a producer are calculated based on the deviation from normal NDVI within the grid and index interval(s) selected. It is critical that producers review the historical indices for their grid ID to determine how well the past results correspond to their past observations. 2. Q: What does NDVI mean? A: Normalized Difference Vegetation Index, which is a multi-spectral satellite image that records changes in greenness of vegetation on the surface of the earth. Land 1. Q: Can I just insure the acreage where my best improved grasses are grown or do I have to insure all of my pastures? A: You may choose to insure grazing land, hay land or both. You are not required to insure 100 percent of the crop type s insurable acres in the county. 2. Q: Can my pastureland be insured for grazing in one year and for haying the next year? A: The crop type and associated insurance can vary from year to year and this determination will be based on the intended use; however, if you change crop types, intended use and insured acres, you must contact your insurance agent to make the appropriate changes to your policy, prior to the acreage reporting date. 3. Q: Are there a minimum number of acres which I can insure? A: No. However there are minimums and maximums that can be insured in any one interval. 4. Q: Can I insure my hay land that I plant to a forage crop each year? A: No. You cannot insure acreage with annual plantings. However, there are provisions that allow overseeding into an established perennial pasture. 5. Q: If I establish an improved forage pasture, how long do I have to wait until I can insure these acres? A: The policy states that land is insurable as long as it is not initially planted to a forage crop after July 1 of the previous crop year, unless allowed by the special provisions. For example, the land could be insured in 2014 if planted before July 1, Q: Is overseeding into established acreage of existing forage crops, which are not planted annually, an acceptable farming practice and not considered as an annual planting? A: Yes. Overseeding into established existing forage crop acreage, which are not annually planted, is an acceptable practice in the Vegetation Index PRF Insurance Program. 7. Q: Can my Farm Service Agency (FSA) maps be used to determine acreages for my policy? A: Yes, FSA maps and records are acceptable for determining insurable acreages for your policy. 8. Q: Will I be able to insure my Conservation Reserve Program (CRP) land? A: Acreage enrolled in other types of USDA programs is not eligible. Also, due to the fact that CRP programs prohibit grazing and haying, land in a CRP program is considered uninsurable acreage. 9. Q: Can I insure the waterways around my row crop fields that I hay for my livestock? A: Yes, if it is declared as Haying and you intend to hay the acreage during the upcoming crop year. 10. Q: Can I insure my grazing land that is located within a city limit or within a deed restricted area? A: Yes, if it can legally be used for grazing and you intend to graze the acreage during the upcoming crop year.

147 Section 13 Vegetation Index Questions and Answers 143 Value 1. Q: How do I determine the value per acre of my grazing land? A: You may select a value for your grazing/hay land that is between 60 and 150 percent (productivity factor) of the county base value per acre, depending on your costs/revenue expectations for your grazing/hay land. 2. Q: Will the value be the same for all of the grazing land in my county? A: Yes, county base values are determined and provided on a county basis; they will not change for each grid. 3. Q: What is the productivity factor and why is it included in the program? A: A percentage factor selected by you that allows you to individualize your coverage based on the productivity of the crops you produce and may be between 60 and 150 percent. Only one productivity factor may be selected per county and crop type. 4. Q: Will the county base value of a grid be changed from year to year? A: The county base value will be updated when grazing land and hay land values within an area change. It is anticipated that these values will be updated or evaluated on a periodic base of three to five years, not yearly. Trigger 1. Q: If my grid has a loss, how will I be notified of my loss? A: Based on your policy, your insurance company will automatically send you an indemnity payment once the final grid index is determined and if the final index value is below your trigger grid index, assuming all qualifications of the policy are fulfilled. Once published, you can check on the RMA website for official final index values. 2. Q: Does the vegetation index predict forage production on each insured s operation? A: The vegetation index does not explicitly predict forage on a given producers operation. Instead, the index is simply a reflection of how the greenness of the vegetation has changed over the given 3-month interval for a specified grid, declared by the producer, relative to a long term average for the same interval and grid. Research indicates that the NDVI index is highly correlated with forage production, but does not directly predict forage production. 3. Q: What is the trigger grid index? A: It is the result of multiplying the expected grid index by your selected coverage level. 4. Q: How many years have NDVI records been kept that will be used to determine the average NDVI Index for this insurance? A: USGS/EROS has kept records since 1989 which are used in calculating the normal NDVI index for each interval. Grid 1. Q: What is a grid index? A: A calculated value utilizing each grid s current and historical NDVI data for each grid ID and index interval. The index is expressed as a percentage. 2. Q: Where are the origins of the grid ID system? A: USGS/EROS reports the NDVI data in 1 x 1 km grids, which are aggregated to 8.0 x 8.0 km grids (4.8 x 4.8 miles). The current grid size is utilized, to capture changes in NDVI/forage on a scale smaller than the county level but large enough to prevent individuals from influencing the value. 3. Q: Will I have to provide the grid ID numbers to my agent or will he or she be able to help me locate them? A: You can determine the grid ID yourself or your agent will be able to help you locate them. It is recommended that during the application, the agent be involved to ensure you meet all the policy requirements. 4. Q: If I have five pastures located several miles apart, will I be able to insure them separately or will I have to put them all together? A: It depends, if they are in different grids they will have to be insured in the grid in which they are located. 5. Q: If an applicant has non-contiguous acreage which is located in separate grids, can he/she opt to use one point of reference for all the acreage and use only one grid ID? A: No. A point of reference must be selected for each separate, non-contiguous acreage of the crop that is located in the county. If the non-contiguous acreage is located in separate grids, each non-contiguous acreage must have a separate grid ID. 6. Q: Can all contiguous acreage of the crop type be combined into a single grid ID using one point of reference for all of the acreage, including acreage that extends into an adjoining numbered grid or county? A: All contiguous acreage of the crop type may be combined into a single grid ID using one point of reference for all of the acreage, including acreage that extends into an adjoining numbered grid or county. For more information on grid selection and grid identification, refer to the Vegetation Index Insurance Standards Handbook. 13 Vegetation Index Questions and Answers 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

148 144 Section 13 Vegetation Index Questions and Answers Miscellaneous 1. Q: Can a new application be accepted at anytime the first time an insured applies? A: New applications must be submitted prior to the sales closing date as outlined in the actuarial documents for the given crop year. 2. Q: Will I have to supply fertilizer records or other management records if I have a loss? A: No. Individual inputs and records are not required. Losses and indemnities are determined by the final index values. 3. Q: Does the website servicing the Vegetation Index PRF Insurance Program require internet access and can the information only be used electronically? A: The Vegetation Index PRF Insurance Program system has been developed as an interactive website that a user can navigate to collect information and establish a grid ID. The system also allows screen printing, including the maps and grids. Contact your approved agent for available options. 4. Q: With the written approval of the insurance provider, may the insured assign rights to an indemnity payment to someone else for the current crop year? A: Yes. The insured may assign rights to an indemnity payment to another party for the current crop year. 5. Q: Do I have to select more than one interval if I get most of my grazing in only one? A: You may select only one interval if you feel that one interval alone best represents your annual production.

149 14 Rainfall Index and Vegetation Index Biology of the Crop 146 Biology of the Crop (Provided by RMA) 14 Rainfall Index and Vegetation Index Biology of the Crop

150 146 Section 14 Rainfall Index and Vegetation Index Biology of the Crop Biology of the Crop (Provided by RMA) Federally regulated crop insurance programs have been available to producers for many years. For the most part, these insurance products are based upon agronomic crops that are planted annually, such as cotton, soybeans, corn, grain sorghum, wheat and many others. Until recently, Federal crop insurance programs were not available for pasture, rangeland or forage producers. The PRF-RI Pilot Program is an effort by USDA RMA to provide a forage-based insurance product for grazing and haying producers. There are significant differences between the PRF-RI and VI Pilot Programs and traditional crop insurance programs because of the crops each are designed to insure. The PRF-RI and VI Pilot Programs deals with forage-based production systems on land areas that produce primarily perennial native vegetation (rangeland), including grasses, grass-like plants, forbs, shrubs and trees. Of this diversity of plant types, grasses, grass-like plants and forbs commonly dominate the vegetation available for foraging animals. Rangeland plant communities can be a mix of annual plants reproducing only by seed from one year to the next, or perennial, surviving from year to year from meristematic tissue that produces new growth in subsequent growing periods (basal buds, stolons, rhizomes, etc). Plants within rangeland communities may have different phonological characteristics, with both warm season species and cool season species. Thus, rangeland ecosystems are made up of diverse plant communities; diverse in the kinds of plants and phonological differences among plants and having vast differences in productivity across the industry. For example, on deep fertile soils in high rainfall areas, rangeland annual production of forage may easily reach 3-4 tons per acre of dry matter, whereas in the more arid regions rangeland annual yields may be less than 0.5 tons per acre. These differences in productivity equate to great variation in livestock carrying capacity and are recognized in the dollar value of rangeland. Different from native rangeland, pastures insured within the program are commonly thought of as perennial forage-based areas that may be native or non-native species and can be monocultures or mixes of species that produce forage. There are a wide variety of plant species used for pastures that are established by planting or sprigging or they may be developed from existing native vegetation enhanced in production and quality by cultural inputs. Forage from pastures may be harvested directly by grazing animals or it may be harvested for hay or a combination of both. Once established, these pastures are not normally reestablished unless plant density declines. However, limited cultural practices, such as weed control, fertilization or subsoiling for improved moisture infiltration are commonly used. There are also significant differences in management practices applied to pastures across the industry. For example, pastures in arid and semi-arid regions that are dryland; that is, receiving only precipitation and normally little or no inputs of fertilizer and cultural practices, would be low producing, while others in the same area where the potential for irrigation exists may be Irrigated and heavily fertilized to induce maximum production and forage quality. Similarly, producers in high rainfall areas may chose to increase production and forage quality by fertility programs, while others use little or no inputs. These differences in productivity potential are also reflected in the relative value of the forage and may be recognized by the producer in selection of the productivity factor for the land. The key difference between crops in the PRF-RI and VI Pilot Programs and traditional crops is the dominance of perennial vegetation on rangeland and pastures and its capacity to live and reproduce from year to year from live meristem in the plants. The leaves of perennial grass are food-factories that in the presence of sunlight combine carbon dioxide from the air with minerals and water from the soil to form plant food. This plant food provides energy for the plant to grow vigorously and compete with other vegetation, while providing nutritious forage for livestock and wildlife, as well as residue for soil organic matter sustenance, cover and protection. Perennial grass plants need to store a portion of food production in the stem base and upper roots before the end of the growing season to provide energy for respiration during the dormant season and energy for new growth in the subsequent growing season. The amount of food that the plant can produce, including the amount that can be stored for regrowth, is dependent upon leaf area available during the growing season. Management of leaf area is critical to healthy rangeland and should result in leaving about 50% of total leaf area produced during the growing season by the key plant species; that is, those species that are desired in greater proportion than others in the same plant community. Such management is based primarily on control of grazing animals and does not normally include cultural practices, such as fertilization, cultivation, irrigation or other practices that would be common in agronomic crop management. On the other hand, established pastures composed of a monoculture, often do require such practices as weed control and infrequent tillage, such as subsoiling, in order to maintain the species integrity against invading plants and optimize production and quality of forage. There is an obvious gradient between the application of energy inputs on cropland and rangeland and pasture, with cropland receiving high levels of inputs and rangeland receiving little or none. Pastureland is on the gradient between the other two. Because the forage-based systems consist of predominantly perennial plants and often contain mixtures of different species, each with different growth habits and seasons, rainfall, adequate to maintain sufficient soil moisture to sustain plant growth, over extended periods is important to total annual production. For this reason, the PRF Rainfall Index program requires that the crop be insured for at least two intervals.

151 15 Marketing Materials 148 Rainfall Index Marketing Materials 148 Vegetation Index Marketing Materials 15 Marketing Materials

152 148 Section 15 Marketing Materials Rainfall Index Marketing Materials To order, contact your local Rain and Hail representative or your local division office. California Division (CA) Southwest Division (OK and TX) Midwest Division (MO) Northern Division (MN, ND, SD and WI) Great Plains Division (CO, KS and NE) Northwest Division (MT) Atlantic Coast Division (MD, NY, NC, SC, PA and VA) Southern Division (AL, AR, FL and GA) Marketing Number MKTG_1034 MKTG_2017 MKTG_2023 MKTG_3017 MKTG_8001 Item Description Pasture, Rangeland, Forage and Apiculture Rainfall Index Brochure Pasture, Rangeland, Forage Rainfall Index Ad Annual Forage Ad Pasture, Rangeland, Forage Rainfall Index Postcard Annual Forage Crop Insurance Insight Vegetation Index Marketing Materials To order, contact your local Rain and Hail representative or your local division office. California Division (AZ) Southwest Division (NM) Great Plains Division (CO) Northwest Division (ID, NV, OR, UT and WY) Marketing Number MKTG_1030 MKTG_2018 MKTG_3018 Item Description Pasture, Rangeland, Forage and Apiculture Vegetation Index Brochure Pasture, Rangeland, Forage Vegetation Index Ad Pasture, Rangeland, Forage Vegetation Index Postcard

153 16 16 Civil Rights Civil Rights 150 Civil Rights Awareness 150 Nondiscrimination 150 Company Policy/Assurance Statement 150 Public Notification Required 151 Discrimination Complaints 151 Rehabilitation Act of Title VII 152 Civil Rights Communication Tools 153 Reaching Limited Resource, Women and Minority Producers 154 Ordering Information for Civil Rights Materials 154 Office of Civil Rights

154 150 Section 16 Civil Rights Civil Rights Awareness 1. Title VI & VII The Civil Rights Act of Rehabilitation Act of 1973 Section Age Discrimination Act of 1975 MPCI Providers, reinsured by the Federal Crop Insurance Corporation (FCIC), are required by the Standard Reinsurance Agreement (SRA) to provide civil rights training to employees, agents and adjusters. Every program that involves federal tax dollars falls under nondiscrimination provisions of the Civil Rights Act. The Civil Rights Act pertains to MPCI because the program receives federal financial assistance. Companies reinsured by FCIC are considered primary recipients of federal funds because they receive expense reimbursement, reinsurance, retention of net losses, etc., from FCIC. Financial assistance is also provided to insureds through MPCI premium subsidies and loss payments. Title VI of the Civil Rights Act (as amended), Section 504 of the Rehabilitation Act of 1973 (as amended) and the Age Discrimination Act of 1975 (as amended) prohibit discrimination in programs or activities receiving federal financial assistance. Nondiscrimination MPCI is available to all eligible producers without regard to: 1. Race 2. Color 3. National Origin 4. Age 5. Disability 6. Sex 7. Marital or Family Status Company Policy/Assurance Statement Plan of Operation 8. Parental Status 9. Religion 10. Sexual Orientation 11. Political Beliefs 12. Reprisal 13. Income (if derived from any public assistance program) 14. Genetic Information Companies reinsured by FCIC must submit to FCIC, as part of their Plan of Operation, assurance statements of nondiscrimination. The assurance statement is the company policy regarding availability and delivery of MPCI, benefits and employment without discrimination. Agent Responsibilities Concerning Discrimination 1. It is the policy of Rain and Hail that crop insurance policies be available to all eligible producers regardless of race, color, national origin, age, disability and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal or because all or a part of an individual s income is derived from any public assistance program. Agents contracting with Rain and Hail are expected to offer crop insurance policies to eligible producers in accordance with this nondiscrimination policy. 2. Display And Justice for All poster or its equivalent in facilities used by the public. Rain and Hail will provide a copy of the poster free of charge. 3. Report any complaints about discrimination from insured or applicant to Rain and Hail Corporate Office. 4. Advise complainant of their right to file a complaint and provide them with USDA civil rights contact information. Public Notification Required Statements Required on Semi-Permanent Advertising and Informational Materials Rain and Hail prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal or because all or a part of an individual s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA s TARGET Center at (202) (voice and TDD). As a substitute to the full statement, Rain and Hail may use, This institution is an equal opportunity provider and employer.

155 Section 16 Civil Rights 151 Service Delivery Points Display current And Justice for All poster in a conspicuous space where it is visible and within reading distance upon entering the agent s office. All adjusters must display poster conspicuously as well. 1. Right to Complain 2. Where to File Complaint The public must also be informed that MPCI and its benefits are available without discrimination. To meet the public notification requirement, a nondiscrimination statement must be included on semi-permanent advertising/informational material. (Semi-permanent is defined as material expected to be effective for about a year.) 3. Agents should include the nondiscrimination statement on all forms, pamphlets, brochures and advertising materials distributed to the public, pertinent to FCIC programs or which inform the public of events where FCIC programs will be discussed. 4. This institution is an equal opportunity provider and employer is an abbreviated version, appropriate for radio, TV and newspaper advertisement, of the nondiscrimination statement that may be submitted as an alternative to the full statement where time and/or space is limited. Discrimination Complaints Insureds or applicants for crop insurance who feel they have been discriminated against may file verbal or written complaints through any company representative (agent, adjuster, company employee) or they may write directly to the manager of FCIC or the Secretary of Agriculture. The recipient of the initial (verbal) complaint is required to notify the complainant of their right to file and provide them with the name, address and phone number of the USDA Office where they can officially file their complaint. (A copy of the Office of Civil Rights Complaint Procedure should be given to the complainant.) Individuals who may accept complaints from insured or applicants for crop insurance are: 1. Agent - Forward to Rain and Hail Division or Corporate Office 2. Adjuster - Forward to Rain and Hail Division or Corporate Office 3. Company Employee 4. FCIC 5. Secretary of Agriculture Complaint must be filed within 180 days of incident prompting the complaint. Rehabilitation Act of 1973 Section 504 Prohibits Discrimination Forward to Rain and Hail Division or Corporate Office The following programs and services must be available to handicapped individuals: 1. Participation in MPCI 2. Physical accessibility 3. Employment if qualified Section 504 of the Rehabilitation Act of 1973, as amended, assures that program services and benefits are available and accessible (physically) to handicapped individuals. It also prohibits employment discrimination on the basis of handicap in any program or activity that receives federal financial assistance. Discrimination is prohibited in all aspects of employment against handicapped persons who with reasonable accommodation can perform the essential functions of a job. 16 Civil Rights 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

156 152 Section 16 Civil Rights Title VII Civil Rights Act of 1964 Prohibits Discrimination in Employment Rain and Hail Equal Opportunity Policy 1. It is the policy of the Company that an individual s race, color, national origin, age, disability and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal or because all or a part of an individual s income is derived from any public assistance program is not and will not be considered in any personnel or management decisions. 2. Recruiting, hiring, training and promotions will be done without regard to race, color, national origin, age, disability and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal or because all or a part of an individual s income is derived from any public assistance program except in situations where age or sex is a bona fide occupational qualification. 3. Promotion decisions will be made in accordance with equal opportunity principles and only valid job requirements will be used. 4. All other personnel actions, such as compensation, benefits, transfers, layoffs, returns from layoffs, company-sponsored training, social and recreational programs, will be administered without regard to race, color, national origin, age, disability and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal or because all or a part of an individual s income is derived from any public assistance program except where age or sex is a bona fide occupational requirement. 5. Any employee who feels he/she is the victim of discrimination should report this to his/her immediate supervisor or to the personnel department at Corporate Office. The complaint will be promptly investigated and the employee bringing the complaint will be advised of the findings. Civil Rights Communication Tools Departmental Regulation, Number , February 25, 1998, Equal Opportunity Public Notification Policy Establishes policy for ensuring positive and continuing notification of USDA equal opportunity policy to the public. The And Justice for All poster, which includes the nondiscrimination statement The poster should also be sent to all agents, with instructions to conspicuously display at the public entrance to the premises and at other exterior or interior locations, as directed by RMA. The statement is available in 12 languages and should be translated locally where other languages are needed. Several translations of the nondiscrimination statement are available on the USDA home page. When needed, the appropriate translation can be copied from the home page and inserted on the poster. Unlocking the Barriers Keys to Communication with Under-Served Customers This 16-page publication includes Departmental regulation , which sets policy for communication to the under-served and provides practical information on how to improve those communications. This booklet is also available on the Web at finals.htm. Simple Justice A 13-minute videotape and audiotape for the visually impaired, designed to promote an understanding of program delivery discrimination and the new program complaints process. The tapes mention a brochure on How to File a Program Complaint, and a Program Discrimination Complaints Form for customers to use in filing a complaint.

157 Section 16 Civil Rights 153 Reaching Limited Resource, Women and Minority Producers As stated in the 2016 Standard Reinsurance Agreement, insurance providers must encourage program participation of limited resource, women, minority and under-served producers or in under-served areas. Limited Resource Farmers According to the Limited Resource Farmer Program Definition ( a limited resource farmer or rancher or forest owner is a person with: 1. Direct or indirect gross farm sales* not more than $176,800 (for FY 2015) in each of the previous two years.** and 2. A person with a total household income at or below the national poverty level for a family of four or less than 50 percent of county median household income in each of the previous two years.*** * Gross Farm Sales is defined as Gross Income entered on IRS Form 1040, Schedule F, in the Farm Income Section. For example, for the 2011 crop year the Gross Farm Sales level for 2008 and 2009 should be less than or equal to the above referenced dollar threshold level. ** This value will be increased from $100,000 beginning in fiscal year 2004 to adjust for inflation using the Prices Paid by Farmer Index compiled by NASS. *** Total household income will be determined annually and indexed for inflation using Commerce Department Data. An entity or joint operation can be a Limited Resource Farmer or Rancher if all individual members independently qualify. If a producer qualifies as a limited resource farmer, administrative fees for crop insurance policies will be waived. Administrative fees may be waived for limited resource farmers who do not meet the definition of a limited resource farmer if: 1. The insured was insured prior to the 2005 crop year or for the 2005 crop year and administrative fees were waived for one or more of those crop years because the insured qualified as a limited resource farmer under the limited resource farmer definition in effect at the time and 2. The insured remains qualified as a limited resource farmer under the definition that was in effect at the time the administrative fee was waived. Outreach 1. According to a report published by the USDA Economic Resource Service called Characteristics and Risk Management Needs of Limited-Resource and Socially Disadvantaged Farmers, there are many ways to successfully reach out to limited resource, minority and women farmers. Some of these include group workshops, information sessions and one-on-one assistance, which is the most effective. 2. Another source of assistance in reaching these producers is to work with local University extension offices, FSA offices or RMA regional offices to further pinpoint areas of need for limited resource, minority and women producers in the area. 3. To further assist our agents in reaching limited resource, minority and women producers, Rain and Hail offers a Limited Resource Producer brochure that includes all requirements and an application. Please contact your local Rain and Hail Marketing Supervisor for more information or to order these brochures. 4. For more information, please visit or 16 Civil Rights 2016 Pasture, Rangeland, Forage and Apiculture Rainfall/Vegetation Index Training Manual

158 154 Section 16 Civil Rights Ordering Information for Civil Rights Materials Contact Tracy Ware, Director USDA, Risk Management Agency Office of Civil Rights 1400 Independence Ave., S.W. Washington, D.C Phone Number: (202) Fax Number: (202) Additional Contact Iris Snowden: (202) Information Available at the Above Address 1. Video tape - Simple Justice 2. Publication - Unlocking the Barriers - Keys to Communication with Under Served Customers 3. Brochure - How to File a Program Complaint 4. Form - Program Discrimination Complaints Form Office of Civil Rights Complaint Procedures Steps to file a civil rights complaint against the delivery of USDA programs and services: 1. Contact the Office of Civil Rights to obtain a Complaint Intake Data Form: a. Online: b. By Mail: USDA, Director, Office of Civil Rights 1400 Independence Ave., S.W. Washington, D.C c. By Telephone: Toll Free: (866) Relay: (866) Complete the Complaint Intake Data Form by reporting: a. Your name, address, phone numbers and best time to call b. Name, address and phone numbers of your representative or attorney c. List of the basic issues, decisions, actions or events that you believe were discriminatory d. The date of the most recent event e. The name of the individual(s) or entity you believe discriminated against you and the agency or recipient that employs that/those individual(s). f. Select one or more of the bases of discrimination, such as race, gender, age, physical ability, marital status and reprisal g. Other brief facts that may be relevant 3. Sign the Complaint Intake Form and return it to the above address, to [email protected] or fax to (202) If your complaint is accepted, you will receive an acknowledgment letter notifying you of the acceptance and inform you of the issues that will be investigated. If your complaint is not accepted, you will also receive a letter explaining why your complaint is not accepted.