2020 CROP INSURANCE
IMPORTANT CROP INSURANCE DATES
SPRING CROPS
FALL CROPS
MPCI Sales Closing Date
March 15
Sept. 30
Production Deadline
April 29
Nov. 14
Acreage Report Date
July 15
See below
MPCI Premium Billing Date
Aug. 15
July 1
Oct. 1
Aug. 1
MPCI Premium Due Date
Spring Crops– Barley, Corn, Corn Silage, Dry Beans, Forage Seeding, Oats, Soybeans, Sugar Beets Fall Crops– Forage Production: Oct. 15, Wheat: Nov. 15
*Early/Final/Late Planting Dates & Insurance Periods: Varies by crop, by county. If a crop is not listed above, please contact your GreenStone crop insurance specialist for further information.
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REVENUE PROTECTION - HOW IT WORKS Revenue Protection (RP) Corn Example
CALCULATING YOUR GUARANTEE
DESCRIPTION
Actual Production History (APH) Price per Bushel
150 bushels x
Average Market Value Coverage Level
$4.00
Average daily closing price in February of December Corn Futures Contract
$600 x
Crop Insurance Guarantee per Acre
80%
Available coverage level: 50% - 85%
$480
CALCULATING A HARVEST LOST CLAIM
DESCRIPTION $3.40
Harvest Price Harvest Yield
Your history up to 10 years
x
110
Harvest Revenue
$374
Revenue Protection Claim
$106
Average daily closing price in November of December Corn Futures Contract 2020 yield
Harvest revenue less crop insurance guarantee
Private Product Add-On Protection, Revenue Protection Option (RPO) Corn Example (Add up to 50 cents more per bushel)
CALCULATING YOUR RPO
DESCRIPTION 150 bushels
Actual Production History (APH) Price
x
Average Market Value Coverage Level
$4.50
$4.00 Feruary average + $0.50
$675 x
Crop Insurance Guarantee per Acre
80%
Available coverage level: 50% - 85%
$540
CALCULATING A HARVEST LOST CLAIM
DESCRIPTION $3.40
Harvest Price Harvest Yield
Your history up to 10 years
x
110
Harvest Revenue
$374
Revenue Protection Claim
$166
Average daily closing price in November of December Corn Futures Contract 2020 yield
REPORTING A LOSS Crop damages must be reported within 72 hours of discovery of damage and no later than 15 days after the end of insurance (EOI) period (EOI is earlier of when crop has been harvested or December 10 for spring crops and October 31 for fall crops). Call your GreenStone crop insurance specialist before destroying crops. Do not destroy crops until you have talked to an adjuster.
ARC AND PLC COVERAGE CHOICE When it comes to managing risk—in acres and in business—you need the latest, most accurate information available. Changes in the 2018 Farm Bill allow producers to choose between Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) when enrollment opens. Understanding how the two programs are implemented is important to making the right risk management decision for your operation. Price Loss Coverage (PLC)
Agriculture Loss Coverage-County (ARC-CO)
• Payment triggers when the Marketing Year Average
• Payment Triggers when the county revenue falls below the
(MYA) price of a covered commodity falls below the
historical benchmark revenue, not current production, of
reference price for that commodity.
covered commodities
• Producers are indemnified based on the difference
• Producers are issued ARC-CO payments when the actual county
between the MYA price and the reference price, times
crop revenue of a covered commodity is less than the ARC-CO
your FSA program yield
guarantee (Limited to 10% of the benchmark revenue)
• Supplemental Coverage Option (SCO) is available* • EXAMPLE: 2019 corn (effective reference price $3.70 – effective price $3.50) x payment yield 150 bu/acre x 85% x 1000 FSA base acres = $25,500 PLC payment
• Supplemental Coverage Option (SCO) in not available* • EXAMPLE: 2019 corn (5 year Olympic average county yield 171 x 5 year Olympic average price $3.70) x 86% (actual yield 150 X effective price $3.50) x 85% x 1000 FSA base acres = $16,150
* Supplemental Coverage Option (SCO) is an area-based policy endorsement that is purchased to supplement an underlying crop insurance policy. SCO endorsement begins to pay when county average revenue falls below 86% of its expected level.
Agriculture Loss Coverage-Individual (ARC-IC) • Payment triggers when a farm’s revenue is below the ARC-IC guarantee.
Enroll at Your Local FSA Office
CROP YEAR
2019 Enrollment
September 3, 2019
START
March 15, 2020
END
2019 REFERENCE PRICES Corn $3.70 per bushel
2020 Enrollment
October 1, 2019
March 15, 2020
Soybeans $8.40 per bushel
2020 Yield Update
October 1, 2019
September 30, 2020
Wheat $5.50 per bushel
2019 ARC/PLC Payments
October 2020
Determining the best selection for individual farms requires calculation of each program based on the farm’s number of base acres, farm yields and ARC yields. Contact your GreenStone crop insurance specialist to run your individual numbers and project the best choice for your farm.
CLAIMING PREVENT PLANT (PP) AND REPLANT
First insured crop is PP and double-cropping qualifications are not met.
ABBREVIATIONS KEY:
The policy holder must elect one of two options on the Multi-Crop Certification
LPP - Late Planting Period
Agreement at the time the first insurable crop acres are released.
PP - Prevent Plant
Note: Landlord/tenant policy holders must elect the same option
APH - Approved Production History
FPD - Final Planting Date
NAP - Noninsured Assistance Program
if they do not want to impact the indemnity of the other.
No
Elect to plant second crop for harvest on the same acres? (includes NAP crops)
Yes
An approved cover crop may be planted after
The second crop must be planted after the FPD
the FPD or the LPP for the first insured crop,
or any applicable LPP for the first insured crop.
but must not be hayed or grazed until after
• Second crop automatically insured if crop is on policy. • Second crop premium is 100 percent and eligible to receive full indemnity.
Nov. 1. In addition, the acreage cannot be cash rented to another person.
Is the cover crop planted?
No
The first insured crop indemnity will be limited to 35 percent of the insurable indemnity and premium will be reduced
Yes
100 percent of the insurable
to 35 percent of the amount due. The
indemnity is paid on the first
65 percent remaining PP indemnity can not
insured crop acres. No APH
be restored regardless of 2nd crop loss.
impact if no crop planted. Is cover crop hayed or grazed before Nov. 1?
Yes
No
First insurable crop indemnity is reduced to 35 percent (overpaid indemnity)
The APH Impact: • First crop (PP) - 60 percent of approved APH yield for prevent planted acres • Second crop - APH calculated off actual production