New in 2021, the Quality Loss Option (QL) is an endorsement that can be added to an individual crop insurance policy. It applies to any year that he suffered a quality loss, and it allows a farmer to replace his farm’s post-quality adjusted production with pre-quality adjusted production. Improving historical yields will allow you to increase your coverage.
To qualify, the QL option must be provided in the county actuarial documents for the crop. Eligible crops include barley, buckwheat, canola, corn, cotton, flax, grain sorghum, malting barley, oats, peanuts, rice, rye, safflower, soybean, sunflower, and wheat. In addition, you must have filed a notice of loss in the crop year you wish to replace a yield in your historical database. An indemnity is not required. This is how the AIP will verify pre-Quality Adjusted production.
Once you elect the QL, it is a continuous election in effect from year to year. However, you will need to modify your elections by the production reporting date on a yearly basis.