Spring Freeze Protection Help Guide
Spring Freeze Protection pays if the temperature at the specified location falls below (or equal to) the Freeze Temperature during the coverage period. Because many crops are at greater risk of freeze damage as the season progresses, you can select coverage that pays out more the later a freeze occurs.
Key Terms
Selecting a Location
To begin quoting, enter your location details into the “Location" text box and click the “Locate” button. You can enter city, city and state, county, county and state, zip code, or latitude and longitude to find your location. Next, click on the marker ( ) for the location you want to quote. This populates the “Selected Location” text with the weather station name, city and state you selected (the map will also center on your selected location). To select a different station, move click and drag the map to your desired location and click a new marker.
Selecting Dates
Start Date
Select the date that you would like to start coverage; if the date of the last spring freeze (specified by the "Freeze Temperature) occurs before this date, the coverage will not pay out.
Maximum Coverage Begins
Select the date after which damage from freeze will be greatest. If a freeze occurs on or after this date, you will receive the "Maximum Coverage Amount" per acre. If last date that the "Freeze Temperature" occurs is between the "Start Date" and the "Maximum Coverage Begins Date" the payout amount will be determined by the "Payout Structure" table.
End Date
Select the date that you would like coverage to stop. If the last date the "Freeze Temperature" occurs is between the "Maximum Coverage Begins Date" and the "End Date" the coverage will pay out the "Maximum Coverage" amount. If the first date that the "Freeze Temperature" occurs is after the "End Date", the coverage will not pay out."
Coverage
This coverage protects revenue loss from a late spring freeze. It matches a grower’s risk by paying out more the later a freeze occurs. If the temperature equals or falls below the “Freeze Temperature” during the coverage period, the coverage will pay out. Payout is determined by the last date the Freeze Temperature occurs, according to the Payout Structure table.
Initial Coverage per acre
The amount of coverage on the Start Date (can be $0 or higher). The coverage level will increase daily from this amount to the Maximum Coverage Amount.
If the last "Freeze" occurs between the "Start Date" and the "Maximum Coverage Begins Date", the payout amount will be determined by the "Payout Structure" table. This field is specified in US dollars and should be entered on a per acre basis.
Maximum Coverage per acre
The amount needed to cover maximum freeze damage. This amount will be paid if the last "Freeze" of the coverage period occurs between the "Maximum Coverage Begins Date" and the "End Date" (including both dates). This field is specified in US dollars and should be entered on a per acre basis.
Number of Acres
The total acreage you would like to protect. By entering a total number of acres your quote will include a total premium and total coverage amount in addition to a per acre premium and per acre coverage amount. If no value is entered, one acre is used as a default.
Temperature
The temperature that results in freeze damage. Choose the temperature that applies to your situation and crop. The coverage will pay out when the temperature recorded is equal to or below this value between the "Start Date" and the "End Date" (including both the "Start Date" and "End Date").
Quote Terms
After entering your coverage details, click “get quote.” The pricing details returned include:
Premium per Acre indicates the “per acre” cost of this coverage.
Total Premium is the Premium per Acre multiplied by the Number of Acres input above.
Coverage per Acre indicates the maximum dollar amount this coverage would pay out per acre.
Total Coverage is the Coverage per Acre multiplied by the Number of Acres input above.
Historical Data
The “Historical Payouts” table displays what this contract would have paid out (per acre) in the past. The “Latest Freeze Dates” table lists the temperature and date of the ten earliest freezes for your specified location in the past.
Data and Settlement
The weather data used to determine the payouts of the coverage is the minimum temperature recorded at the weather station selected for your coverage. Payout is based on weather station measurements, not human assessment, so it is fully transparent. A full report showing the official temperature data that is used to settle your payout is always available on the website.
Common Questions
Do I need to submit any acreage reports?
No. There is no need to submit any paperwork for the number of acres planted. The coverage payout amount is determined by whether a minimum daily temperature at the specified location equaled or fell below the Freeze Temperature during your coverage period. At the end of the coverage period payment is made automatically with no need for additional adjustment or paperwork.
What should I enter for the Coverage Amounts?
The payout amounts should be linked to the loss per acre associated with the specified freeze temperature occurring during the coverage period. For example, if the specified Freeze Temperature would result in $10 per acre of damage if it occurred on the Start Date, enter an Initial Coverage per acre of $10. If specified Freeze Temperature occurring between the Maximum Coverage Begins Date and the End Date would result damages of $100 per acre, enter $100 as the Maximum Coverage per acre.
What should I enter for the Freeze Temperature?
The temperature that results in freeze damage (this temperature can vary depending on your situation and crop; it does not need to be 32 degrees). Some crops may experience different freeze damage at different temperatures (for example, 90% damage at 24 degrees, but 10% damage at 28 degrees). Enter the temperature that corresponds to the risk you want to cover.
Examples
If you select the following dates:
- Start Date: 3/15/2010
- Maximum Coverage Begins Date: 3/24/2010
- End Date: 4/30/2010
And the following coverage amounts:
- Initial Coverage per acre: $10
- Maximum Coverage per acre: $100
- Number of Acres: 200
And a Freeze Temperature of 28 degrees Fahrenheit, then the following scenarios would payout as follows:
1.) If the last freeze occurs before 3/15/2010, this will result in no payout, as the last freeze was before the Start Date.
2.) If the last freeze occurs on 3/21/2010, then the coverage will payout $70 per acre , or a total of $14,000 ($70 per acre times 200 acres). In this example the payout amount is determined by the last date of freeze.
3.) If the last freeze occurs on 4/28/2010, then the coverage will payout $100 per acre (the Maximum Coverage per acre), or a total of $20,000 ($100 per acre times 200 acres).
(Note: the payout amounts scale up from the Initial Coverage per acre to the Maximum Coverage per acre)