Pecan Producers

Do you own a commercial pecan orchard? What is the biggest threat to your operation? Of course, you may already know you can insure your pecan crop, but did you know you can also insure the tree that produces those pecans? It’s true! Since 2018, the Pecan Tree Insurance Program has offered protection to pecan producers against major damage or destruction to the pecan trees themselves. Getting a pecan tree into production is no small endeavor. Once it starts producing a crop, the loss of that tree is going to cost you a lot more than just one year’s lost revenue!

The Pecan Tree insurance policy is a tree-based dollar plan of insurance that provides coverage for naturally occurring damage to pecan trees. Covered perils include wind (hurricane, tornado, etc.), fire, flood, ice damage, freeze to younger trees, and drought in some areas.

Two options available for additional premium can be added which make the program even more beneficial:

  1. Recognizing that it is rare to lose more than 25% of an orchard in any one event, the Occurrence Loss Option eliminates the unit deductible and allows the policy to pay indemnities on more frequent, less severe events.
  2. The Comprehensive Tree Value Endorsement recognizes that a producer loses much more than one year’s production when the tree is destroyed and allows the producer to insure a higher value per tree, an amount that represents the difference between the expected revenue from the tree that was damaged and the expected revenue from a newly planted tree and the time required to get the new tree into production.

Q: Where is the program available? The Pecan Tree program is available in Alabama, Arkansas, Florida, Georgia, Kansas, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, and Texas. However, the program may not be available in every county where the Pecan Revenue Program is offered.

Q: When do I need to sign up for this program? The Pecan Tree Sales Closing Date is May 15. However, the Pecan Revenue Program Sales Closing Date is January 31, so it would be wise to start discussing both programs with your agent sooner than later, so you can put together a comprehensive plan for your operation.

Q: Do I have to choose between the two programs? NO! The two programs are separate and made to use together to fully protect the producer. You can choose to purchase either or both programs.

You may select coverage levels from 50 to 75%. As a federal crop insurance program, subsidies ranging from 55%-67% also apply. CAT Coverage is also available for this program.

If you are interested in learning more about either the Pecan Revenue or the Pecan Tree Insurance program, give us a call and we can help you find the best risk management solutions for your operation and budget.

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