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Revenue Insurance Program Development Long Term Revenue Perennial Program RMA contracted with Watts and Associates to develop a new revenue insurance program. The result of this contract has been the development of the Long Term Revenue (LTR) Insurance Plan. In order to provide effective insurance coverage to the specific needs of diverse crop types, three unique applications of LTR have been developed. The applications are LTR Annual, LTR Regional, and LTR Perennial. Each of these applications offer a distinct but broadly applicable test of LTR concepts under the pilot. The LTR Perennial application was designed to be generally applicable to long-lived perennial crops. This application will insure losses resulting from perils affecting fruit production and the productive stands that produce fruit. The insurance principles and nature of risk management needs for most long-lived perennial crops are fundamentally the same, yet distinctly different from those of annual crops. To address this distinction, the Perennial application is comprised of two inseparable components. The LTR "Fruit" component is designed to insure production and price risks of the current year's crop. The "Grove" component is designed to insure the long term production value of the grove if an event occurs that will reduce future productivity. When severe loss events occur, significant clean up and replant costs are incurred by the producers. The Grove component has provisions to compensate these losses. The integration of the Perennial components provides comprehensive coverage of the insurable risks faced by producers. It is our intent to apply the LTR Perennial application to the Northwest Apples, Northeast Apples, Grapefruit, and Orange Pilot Programs.
Apple Pilot Area
Orange Pilot Areas 
Grapefruit Pilot Area Not Pictured. |
LTR Annual LTR Regional LTR Perennial  |