The U.S. USDA announced that a new Fire Insurance Protection-Smoke Index (FIP-SI) endorsement is available for grapes grown in California starting with the 2025 crop year. USDA’s Risk Management Agency (RMA) is offering this endorsement for grapes insured under the Grape Crop Provisions grown in the California counties listed in the actuarial documents. The sales closing date is January 31, 2025, for the 2025 crop year.

This endorsement covers a portion of the deductible of the Grape Crop Provisions when the insured county experiences a minimum number of Smoke Events identified in the actuarial documents. A Smoke Event is a day with heavy smoke density as determined by the National Oceanic and Atmospheric Administration (NOAA) Hazard Mapping System Smoke Product.

FIP-SI provides protection against widespread loss in a county. Individual vineyard yields and revenues are not considered under FIP-SI. It is possible that a producer with the FIP-SI endorsement may experience reduced yield and not receive an indemnity under the FIP-SI coverage. Likewise, producers may receive an indemnity under FIP-SI but not their grape policy. Triggered counties will be determined after the end of the insurance period. Producers with FIP-SI coverage are not required to file a notice of loss. The counties where payments occur will be identified in the actuarial documents.

Read more about the Fire Insurance Protection-Smoke Index (FIP-SI) endorsement here.