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MPCI for Winter Wheat—Options A & B - Limited Liability
What Is It? What Are Its Benefits?
The MPCI policy for wheat provides that when winter wheat acreage is severely damaged by an insurable peril and it is still practical to replant the crop, growers are required to replant the damaged acreage. The winter wheat coverage remains in effect on the newly planted acres.
In addition to the replant provisions, the basic policy also offers growers the flexibility of an expanded unit structure by allowing initially planted winter and spring wheat to be separate insurance units for claim calculation purposes (not applicable for replanted acres).
The Basic Policy
- If you replant the damaged winter wheat to spring wheat, you may be eligible to receive a replanting payment. The coverage guarantee for winter wheat will continue on the acres replanted to spring wheat (the spring wheat acreage is not a separate unit).
- If you harvest the spring wheat and your yields are below the winter wheat guarantee, an indemnity (loss) is payable.
Option A
If you destroy the damaged winter wheat following winterkill, the maximum loss payment is 30% of the guarantee (reduced by any appraised potential yield). You can then leave the land idle (fallow) for the remainder of the year or plant a completely different crop (i.e., sunflowers, spring wheat, which would be a separate unit).
Option B
If you destroy the damaged winter wheat, you can receive a loss payment of up to 100% of the guarantee (reduced by any appraised potential yield). You can then leave the land idle (fallow) for the remainder of the year or plant and insure a completely different crop (i.e., sunflowers, spring wheat, which would be a separate unit).
Deadlines
Option A or B may apply to acres that are initially planted by the final planting date for these options, which may be earlier than the winter wheat final planting date for the county. Option A and Option B must be elected by the applicable MPCI fall sales closing date.
03/30/01
Note: This summary is for general illustration only. See policy for program details.
