Crop Insurance Bulletin

Considering planting Canola? (see page 2)

CROP INSURANCE BULLETIN HOT TOPICS

SUGAR BEET PROVISION CHANGES

Be sure to stay informed about the current Farm Bill at: www.agri-pulse.com/topics/21601-farmbill

The Risk Management Agency (RMA) has revised the Sugar Beet Crop Provisions for the 2019 and succeeding crop years. The intended effect of the changes is to update the policy to better reflect current agricultural practices. The following policy modifications were made to the Sugar Beet Crop Insurance Provisions:

IMPORTANT DATES March 15 Spring Crop Sales Closing March 15 Sugar Beet Replant Application Deadline March 15 Whole Farm Revenue Protection (WFRP) Sales Closing July 15 Spring Crop Acreage Reporting

MULTI COUNTY ENTERPRISE UNITS Do you farm in Multiple Counties?

Do you utilize Enterprise Units?

Recent changes to MPCI policy provisions mean you may be able to save money by utilizing “Enterprise Units” across county lines. If you farm land located in more than one county, contact your agent to see if this new option can benefit your operation.

n Changed the basis of insurance from standardized tons of sugar beets to pounds of raw sugar. n Removed stage guarantees, producers will receive 100% of the production guarantee regardless of stage. Also, the stage removal endorsement option has been incorporated into the base policy. n Added an early harvest factor that will increase the yield recognized for that year’s harvest and prevent a decline in the producer’s future insurable yield due to early harvest. n Moved “end of insurance period” dates to the actuarial documents. n Updated several definitions to align with the Common Crop Insurance Policy, Basic Provisions and terms defined in other crop policies. n Moved the dollar payment of replant payment has to the Special Provisions.

The dollar value however, remains unchanged.

Sugar Beet Replant EXTRA n The Sugar Beet MPCI policy limits replant payments to a small amount per acre.

Additionally, replant payments are limited to 20 acres or 20% of the unit requires a replant. n Replant Extra allows you to purchase additional coverage per acre for replant of sugar beets. n Replant Extra is not limited to the 20 acre or 20% of the unit requirement. n Contact your agent prior to March 15 to ask about Replant Extra on Sugar Beets.

WHOLE FARM REVENUE PROTECTION Whole Farm Revenue Protection (WFRP) provides a risk management safety net for all commodities on the farm under one insurance policy. This insurance plan is tailored for any farm with up to $8.5 million in insured revenue, including farms with specialty or organic commodities (both crops and livestock), or those marketing to local, regional, specialty, or direct markets. WFRP protects your farm against the loss of farm revenue that you expect to earn, such as the following. n Commodities you produce during the insurance period, whether they are sold or not n Commodities you buy for resale during the insurance period A part of the Farm Credit System Equal opportunity lender, provider, employer

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n All commodities on the farm except timber, forest and forest products, and animals for sport or pets

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CROP INSURANCE BULLETIN PRODUCTION REPORTING EVIDENCE The Risk Management Agency (RMA) has made accurate Production Reporting a point of emphasis. If selected for an audit or review, you will be asked to provide source documents that verify the production you reported (by unit/data base). Typical source documents are as follows:

To learn how crop insurance can really work for you, call your American AgCredit Specialist today!

Keely Meinecke

AVP Customer Risk Management Specialist 4505 W. 29th Street Greeley, CO 80634 970.506.3461 Office 970.775.4280 Cell kmeinecke@agloan.com

n Elevator ledger or “Proof of Yield” statements (show NET bushels after quality adjustments) n Formal bin measurements of farm stored crops – completed by an adjuster n Formal appraisals of crops not harvested for grain (chopped, hayed, or otherwise destroyed) n You must be able to provide a source document (or combination of documents) equal to the production shown on your Production Report for each unit/data base.

If documentation to support the reported production is unavailable or indicates less production than reported, significant penalties (assigned/lower yields and loss of optional units) may apply. n When reporting total production, you are now required to indicate the type of source document you utilized (ledgers, bin measurement, appraisal, et al.) to determine your production. If you have crop production from anything other than harvested grain delivered to a commercial elevator, it is best to contact your agent and arrange to have the production appraised or measured and a source document created and maintained!

CLAIMS The ability to collect an indemnity in the event of a loss is crucial. Policy provisions outline the responsibilities of an insured in order to receive an indemnity. This list is not all-inclusive but has many helpful reminder for handling potential claims. n Contact your agent IMMEDIATELY in the event of a POTENTIAL loss. Your policy limits the time you have to turn in a claim. Indemnities can, and have been, denied due to waiting too long to file a claim. n Don’t wait until the end of harvest to contact your agent, if you have a potential loss.

It is better to withdraw the claim due to meeting your guarantees, than being denied for a delayed notice. There is no penalty for filing a claim for a loss that does not materialize. n You must contact your agent to file a claim when applicable. Regulations prohibit agents from turning in claims on behalf of policyholders unless instructed to do so by the policyholder. Turning in production results is NOT the same as filing a claim. n Contact your agent immediately if considering replanting any acreage. Replanting requires company authorization. We can get approval quickly, but approval must precede replanting. n Don’t chop, hay, or otherwise destroy acres that were insured and intended for grain harvest before contacting your agent. This acreage must be appraised prior to putting to an alternate use. Acreage cannot be reduced simply because it was not harvested for grain. This can create many negative outcomes for policyholders.

DAIRY REVENUE PROTECTION What is Dairy Revenue Protection? n Dairy Revenue Protection (Dairy RP) is an area-based revenue product designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level.

How Does Dairy Revenue Protection Work? n Select Component or Class Pricing Option ● Class Pricing Options (Class III or IV) ● Component Pricing Options (Butterfat, Protein, Other Solid) n Select Quarterly Insurance Period

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n Declare Covered Milk Production n Select Coverage Level ● 70-95% in 5% increments n Declare Share Percentage n Select Protection Factor ● 1.00 – 1.50 in 0.05 increments

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