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Christmas Tree Research and Development Insurance Program From 1995 through 1999, RMA worked to develop a Christmas tree pilot program but terminated the project because of conflicts with existing private insurance. The private insurance product is no longer available, providing RMA with an opportunity to research and develop some of the newer risk management options which may be appropriate for this multi-year crop. Furthermore, Christmas tree grower groups have requested that RMA develop risk management strategies for producers. RMA contracted with Watts and Associates to research and develop a multi-year insurance product that will cover Christmas trees from the time they are planted (in their final growing place) until harvest, seven to twelve years later. The proposed insurance product will be designed for producers growing homogeneous blocks of trees (groups of trees of the same age and expected harvest date), whether for the wholesale market or "choose-and-cut" market. Production periods for Christmas trees can be divided into three periods: plant/replant, maintenance, and harvest. Losses in many years of the production cycle are expected to be small and indeterminable until near to or at the time of marketing since damage during the maintenance period is often correctable or self-recoverable. A producer desiring coverage will purchase a separate policy for each age cohort as it is planted. The insurance guarantee will be expressed in terms of harvestable trees per acre. To provide the producer an incentive to follow sound cultural practices, a replant provision will be included in the insurance program. This will be structured to encourage producers to replant consistent with prudent management practices. This policy is intended to continuously cover producers throughout the production cycle. Offer Comments Via Telephone Toll Free Number: (888) 344-0072 Contact: Matt Martin Email Matt Martin |
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