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John Shea, 202-690-0437

2007 SPECIAL PROVISIONS OF INSURANCE RELEASED

WASHINGTON, Nov 2, 2006 - Risk Management Agency (RMA) today released the Special Provisions of Insurance (SPOI) for corn, grain sorghum, soybeans, and sunflowers for 2007 which contain new quality adjustment statements. Barley, rye, wheat, canola, flax, oats, and safflowers special provisions for 2008 will also contain the new statements.

Quality adjustment is the process which reduces the quantity of mature production when it meets certain requirements stated in the crop provisions. This adjusted production to count is used for indemnity and actual production history purposes. Discount factors and additional procedures for quality adjustment are listed in the specific SPOI for each county/crop.

RMA redesigned the quality adjustment procedures to be more responsive to producer's needs, improve the efficiency of loss adjustment on poorer quality grain, and to treat all producers more equitably. RMA received input on the quality adjustment procedures from RMA personnel, insurance industry groups, grower associations, and concerned parties from various states. RMA is optimistic that the new quality adjustment procedures will help to continue the objective of strengthening the economic stability of agricultural producers.

Presentation: Production to Count, Quality Adjustment, Sampling, and Grading Overview: Beginning with 2007 Corn, Grain Sorghum, Soybeans, and Sunflowers and 2008 Barley, Rye, Wheat, Canola, Flax, Oats, and Safflowers (PDF)

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