Late spring 2019 updates
With the spring plant delays from wet weather, many farmers will have to decide to plant or take a prevent plant payment. It’s important that you know the specifics on the qualifications and the impact of prevent plant on your APH and indemnity level. Here are a few things to consider-
- All revenue and yield plan policies are eligible for a prevent plant payment. Area plan policies do not qualify. The full prevent payment on a crop is 55% of your crop insurance guarantee for that unit. Prevent plant payments are based off the spring price. They will not increase if the harvest price is above the projected price. If you added SCO coverage to your policy, the underlying multi-peril policy pays the prevent plant, not the SCO endorsement.
- If you are on enterprise units (EU) you must plant at least 20 acres or 20% of planted acres in two or more sections to qualify for the EU discount on your policy. If not, the prevent plan payment is paid off of a basic unit premium rate.
- To file a prevent plant claim, you must file with 72 hours AFTER the final plant date or by the final planting date; June 5th for corn and June 20th for soybeans for crops that are prevented from being planted due to an insurable cause. NOTE: In order to receive Prevented Planting benefits, the loss must be general to the area. In other words, other producers must have been prevented from planting also. Your loss alone in a county WILL NOT qualify for a payment provided the majority of farmers in the area get their crops planted. Also, if you switch to another crop before the final plant date, you are not eligible to file for prevent plant coverage.
- Once you decide to file for prevent plant, there are still a few decisions to make. It’s important that you give us a call to go over your options before you decide to file prevent plant because prevent plant elections can impact your APH and your indemnity.
Hail & Wind Coverage
We can’t control the weather but we CAN control how we protect our investment. Hail and wind events wreaked havoc on our crop last year. Take advantage of additional inexpensive protection by adding a hail or wind endorsement to your multi-peril policy. We pride ourselves in representing several companies to provide you with the best rates and coverage.
Hail coverage Crop-Hail coverage provides protection against physical damage from hail and/or fire. Other coverages provided include fire department service charges, transit coverage to the first place of storage, vandalism and malicious mischief. Other endorsements can be added to increase coverage such as wind, grain fire and harvested grain coverage.
Crop-Hail can be used along with your multi-peril policy to offset the MPCI deductible and provide protection up to the actual cash value of the crop. Coverage is provided on an acre-by-acre basis, so part of a farm may be affected while the rest of the unit remains untouched.
A Wind endorsement provides coverage for corn affected with a direct loss from Green Snap or Wind. This endorsement is available for field corn, sweet corn, and popcorn. You can add extra harvest expense (EHE) to this endorsement which provides an additional payment to harvest the down crop. For soybeans, you can elect coverage for soybean lodging which covers damage due to windstorm, excessive rainfall or a snowstorm.
Once the crops are planted…..
Once you get your crops planted, please call us first to report your planted acres and planting dates to finalize your crop coverage. The crop information you give us should transmit to FSA so when you report to the Farm Service Agency your crop insured acres and dates should match what is reported. If you think you have a loss. It is your responsibility to contact your crop insurance agent immediately after discovering a loss or potential loss on your crops.
In a loss situation…….
For crops that need replanted: A notice of loss for replant must be filed within 72 hours of the initial discovery of damage or loss. All replant acreage is replanted to the initial crop. Please note that switching from one crop to another is not replanting and should be submitted as a harvest loss. Before you replant or destroy the crop, call your agent first to make sure you stay in compliance. A crop insurance adjuster must give approval BEFORE you replant or destroy the existing stand to receive loss benefits.
Once a notice of loss is filed, an adjuster will contact you to schedule an appointment to inspect the crop and review other pertinent information necessary to review your claim. REMINDER: You must notify and obtain consent from an adjuster BEFORE and AFTER the following actions:
- Destroying any of the insured crop that is not to be harvested;
- Putting the insured crop or acreage to an alternative use; or
- Abandoning any portion of the insured crop.
We now have the capability to use precision farming data for your crop insurance records. Please contact our office if you are interested in this ability.
Smart Phone Apps
We live in a world where you want information at the tip of your fingers immediately. We now have smart phone applications for many of our insurers that provide you with the most current information regarding your crop insurance policy. Contact our office for more information.
Please don’t hesitate to contact our office at 800-209-7238 with any questions about your policy.
2019 SPRING UPDATE
Crop Dates - If we have an early Spring, please pay attention to crop dates. Your insurance including replant coverage, attaches as soon as the crop is planted in the ground provided it is planted within the approved planting dates.
|Earliest Planting Date||Final Planting Date|
Crop guarantee prices for corn and soybeans will be announced on March 1st.
The sales closing deadline for changes to your corn and soybean coverage is March 15th!! If no changes are made, your policy will remain the same as last year.
You can now have enterprise units across county lines……. If you farm in more than one county and do not qualify for enterprise units in one county (County A) but utilize enterprise units in another county (County B), you can qualify County B using the enterprise unit from County A to make a multi county enterprise unit (MCEU). Both policies must have the same insurance plan and coverage level. All claims will be calculated based on the multi county unit guarantee.
Make sure you’re covered…… With the decline in corn and soybean prices, crop guarantees may not provide the guarantee level you need for your operation. The most economical way to increase your guarantee is to increase your crop coverage level since there is a subsidy applied to area and individual policies. There are also several private products to add bushels or revenue to your guarantee. Please contact us before the sales closing date to run through these scenarios to make sure you are getting the most out of your policy.
2019 Farm Bill, PCL & SCO - The 2019 Farm Bill provides farmers the option to choose between the ARC program and the PLC program. Due to the changes in crop prices, producers might find the PLC program a better fit for their operation. By enrolling in the PLC program producers with an individual multi-peril policy can take out Supplemental Coverage Option (SCO) and area plan which pays out based on county yield or revenue guarantees.
Now is the time to bundle up!!! If you would like a little more protection for your crop, you might want to take out a bundle policy for hail, wind and replant coverage. These bundles provide a price discount so the coverage for all three perils is often cheaper than taking out the coverage individually. Hail, wind and replant coverage is paid on an acre for acre basis even if your multi-peril policy is on enterprise units. Take advantage of these discounts early because once sales closing passes, the bundle discount is gone. Contact us for more information on these private products.
Farm Changes……. Be sure and let us know of any farm/entity changes to your operation. These changes impact your crop policy.
How Your Revenue Policy Works
As market prices decline, there is a growing need to understand how your crop insurance revenue policy works.
Revenue policies guarantee a certain level of revenue rather than just production. It protects from a decline in crop prices or yield. Your crop coverage guarantee is based on the futures market and your yield history. Both are used to compute your revenue coverage and guarantee. The monthly average of the crop futures price for the month of February determines the spring crop price. A harvest price is determined in November using the new crop futures price during the month of October. The final revenue guarantee is computed by multiplying the higher of (projected price or harvest price x yield x your coverage level.) If your actual revenue falls below the revenue guarantee, you’ll receive a crop insurance indemnity equal to the difference.
Please keep good production records. Given current price levels, it’s important to submit your production information to us as soon as you are done harvesting so we can determine if you qualify for an indemnity payment.
Livestock Mortality Insurance is now Available at Bath Insurance Group!
BIG is also a livestock mortality insurance agency offering additional coverage for all aspects of livestock whether production or the show ring. It's no secret that livestock farming is a risky business. That is why a solid and affordable livestock policy is essential to protect your investment from those unexpected events and accidents that can devastate your animals and your livelihood.
Livestock insurance is individualized to fit your farming operation and cover your specialized livestock, whether you have cattle, pigs, sheep, goats, horses or any combination on your farm.
Insure your animals. For more information on rates and policies, contact us today.