October 31, 2022

Business Tips and Tools

How Does Apple Insurance Protect Quality?

By: Daniele Harris


Pick-your-own apple orchards are familiar with wasted apples. Customers may take a bite of a few apples while picking or toss a few on the ground during their stay. While crop insurance doesn’t cover these unfortunate losses, it can help with apple quality before the masses visit the orchard.

Perils impact the quality of apples more than the quantity. Perils include any event that causes damage, such as hail, drought, flood, scab, fire blight, pitting, insect or wildlife damage, etc. Within the apple policy, claims can be opened for any impact of mother nature on quality. There is a quality sliding scale that helps producers capture the economic impact of damaged fruit.  

Sliding Scale of the Fresh Fruit Option

The Fresh Fruit Option considers apple quantity and quality. Each apple variety has its own parameters to meet U.S. Fancy. There is not a set size to grade U.S Fancy. Some varieties have color thresholds noted in the U.S. Grade standards. Misshapen fruit, bruising, and any imperfections or blemishes are all considered when grading apples. 

An adjuster will appraise the orchard looking at each variety and then calculate the amount of damage based on the average of all varieties damage. If 50% of apples do not grade U.S. Fancy due to a covered peril, it is a 70% loss. If 65% of apples do not grade U.S. Fancy due to a covered peril, it is a 100% loss.

two column chart comparing actual percent damage of apple crop to quality adjusted percent damage with a green border

Remember, sales records must be maintained by unit! You must discuss with the adjuster what you can do with the fruit after it has been adjusted for this option. Failure to do so can adversely affect the outcome of your claim.

To learn more about apple insurance offered through Crop Growers, LLP, click here. The upcoming sales closing date is November 20, and all acreage and production history must be reported by January 15. Should you suffer crop loss from an insurable peril, a crop insurance agent must be notified within 72 hours. Reach out to a Crop Growers agent for more information. 

Crop Growers: Your first choice for crop insurance.

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