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NOBLESVILLE, Ind. — Indiana Farm Bureau has spent the past year re searching how to resolve exorbitant healthcare costs that threaten farm ers’ livelihoods and even their lives.
“Basically, we want to offer something that’s innovative, that provides choice and that focuses on owner-operators that don’t have employees,” said Katrina Hall, director of public policy, during a breakout session at the Young Farmers and Ag Professionals Conference in Noblesville.
“We’re getting into a whole new area of health services that we really haven’t focused on that much before. We’re creat ing a new company that will be the entity that will do that, and it will be an entity of Indiana Farm Bureau.”
About 80% of INFB members are either sole proprietors or operators with no employees, and the association health plans offered by other organizations represent groups of employers and businesses, Hall said. “The plans that they offer in the statutory framework that they are using wouldn’t work for us,” she explained.
Pending authorization by the Indiana General Assembly, INFB plans to partner with Tennessee Farm Bureau, which has offered a health benefit plan to its members for over 25 years. Iowa Farm Bureau and, just last year, Kansas Farm Bureau have also pur sued a similar approach. “We believe that that using Tennessee Farm Bureau’s backend, which is basically the adminis trative part, the website part, and their experience will help us get to market sooner,” Hall said.
The goal is to be in the marketplace by the end of the year, she added.
Hall provided answers to questions about INFB’s proposed alternative for more affordable health care for rural families. Who will benefit from INFB’s health benefit plans?
Members in all 92 counties who do not have access to group insurance plans or work somewhere for health benefits such as farmers, those who work on farms, agribusiness professionals and rural entrepreneurs with fewer than two employees or who do not qualify for significant Affordable Care Act subsidies. Hall
Why not use an existing option?
Through a year of extensive research of the healthcare benefit plans currently available, we have found there isn’t a single option that creates significant savings for the sole proprietor.
Plans like the ones offered through the Indiana Chamber of Commerce benefit small businesses with two or more employees. Since a vast majority of INFB members are sole proprietors, they do not qualify for those types of health plans.
What’s the legislative fix? For INFB to offer a healthcare option for our members, we need a statutory change. The statutory change will allow INFB to offer a non-insurance, high quality and more affordable health benefit plan to our members.
Why is it called a health benefit plan and not insurance? Our solution creates a health benefit plan for our members. Since it will not meet all of the requirements under the ACA and not all applicants will receive coverage due to certain preexisting conditions, the solution we are pursuing can’t be called “insurance.” Importantly, the health benefit plan will function just like any other traditional health insurance plan.
Will this plan impact the health coverage marketplace?
INFB partnered with
“I know at the time there were a few votes that were borderline, and I think having people there telling their stories and having a show of the need helped push a few of them over to the yes side.”
But this is only halftime, Kron stressed.
A lot can happen — and still must happen — between now and the end of the legislative session, which will conclude March 11, he said.
“We’re cautiously optimistic. We’ve had a lot of support. But it’s still a long ways to go,” Kron said.
“We had a great grassroots effort in the Senate side. It’s going to take that and more on the House side,” he said. “It was im pressive when the chairman of the insurance committee says, ‘Well, how many are here for Farm Bureau and this bill?’ Everybody’s hand went up in the room. I guarantee that has an impact when you do that. And then he’s like, ‘Well, there’s a bunch out in the hallway there, too.’ It will take that. They’ve got to see the need to be able to make this happen.
“Call your state representative,” he said. “Have communications with them. You don’t have to get down in the details. Just say there’s a need, we need some more affordable choices.”
Farmers are excited for INFB’s health benefit plan and have repeatedly asked Kron how soon it will be available.
“I’m surprised by how many have told me they don’t even have insurance. There’s a real need out there,” he said.
There are other options available, but they require two or more employees. A family farm doesn’t neces sarily meet that requirement. “The farm community is a little unique in the way we operate,” Kron ex plained. “You think, well, these farms, they’ve got two or more employees, but I was talking to an individual the other day, it was the dad, himself and the grandson. You look at it and you think, oh, they’re a business, there are three employees. He told me, ‘Oh, no, we all work together, but we operate separately. We each have our own ground. We share equipment.’
“From appearance, you would look at it and think, oh, that’s a family, they’ve got three employees. But all three are sole proprietors, and that’s what we’re finding in agriculture. There’s a lot of that out there.”
INFB is not replacing or taking away anything that is available now. It is just trying to bring another option to the market that is more affordable, Kron said.
“In my four years as serving as president, seldom do I go to a meeting that somebody and the conversation on the side doesn’t turn to health costs or health insurance and how it’s affecting their farms,” he said, citing a woman who told him at the Statehouse that the monthly health insurance premiums for her and her husband and 4-month-old child cost more than her mortgage.
“Generally, the conversation is ‘I can’t afford it’ or ‘there are problems, it’s affecting our bottom line.’ Somewhere in there it turns to, ‘Can’t Farm Bureau do something to help us?’ We’re going to try.”
But INFB leadership cannot do it alone.
“The grassroots, our members, are going to be key to this passing. I can’t stress that enough,” Kron said.
“What worries me is the vote in the Senate looks really good. So, you can think, oh, it’s done. It’s not. It’s not going to be an easy lift. Don’t take your foot off the gas now, please.”
James Henry HEALTH FROM PAGE ONE
Lewis & Ellis, a nationally respected actuary firm, to analyze the impact on the marketplace. They concluded that our plan would have a minimal impact, accounting for only a 0.1% to 0.2% premium increase for those in the marketplace.
Because our health benefit plans are targeted to address a gap in current offerings, the number of Hoosiers who would be looking into products like these would be somewhat limited.
What would INFB’s health benefit plan cover?
Our health benefit plan will be very robust, allowing members to choose the coverages they need. Our associates will work with our members to ensure their individual needs are met and they understand their coverages.
Through a third-party administrator, we’ll be able to offer plans that feature many essential health benefits — including, but not limited to: n Office visits. n Hospitalization and tele-medicine. n Prescription drug benefits. n Preventative, routine and wellness services. n Maternity, newborn and pediatric care. n Outpatient services. n Mental health and substance abuse counseling and treatment. n Emergency room services. n Dental and vision coverage. n Rehabilitative services and devices. n Laboratory services.
What happens if a member gets sick? Will I lose my coverage if I get sick?
Once members are accepted and pay their premiums they will not be denied coverage as long as they continue to be an INFB member. Similar to traditional healthcare plans, premiums may increase as the performance of the pool of a particular plan changes or as the individual ages.
How will INFB create a more affordable healthcare option?
Since each applicant will be individually rated based on their medical history, INFB will be able to offer coverage for significantly less than similar coverage under the ACA where premiums are not subsidized.
Will members be denied coverage?
Our goal is to cover as many members as possible. To create a health benefit plan that is more affordable, some applicants may not qualify for INFB’s plan. In Tennessee, for example, nearly nine out of 10 applicants receive coverage.
Could any Indiana Farm Bureau member take advantage of this health benefit plan? The health plan we are proposing would become a benefit available to Indiana Farm Bureau members. Defining who is a farmer is a judgment call and could leave out agribusiness professionals and other small businesses that support farmers and rural economies.
Limiting those who could join Farm Bureau or who could buy the proposed healthcare benefit would also limit the size of the pool of lives covered and limit the ability of those in the pool to share risk.
Why not cover everyone? Our solution will help many of our members, but will not address every individual healt care need. Our members stressed the importance of cost savings throughout this process.
Without cost savings of individual underwriting, we wouldn’t be able to offer something substantially different than what is
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What are the advantages to the Indiana Farm Bureau health benefit plan compared to other non-traditional health coverages?
Our health benefit plan will function like any other traditional health benefit plan. Plans will include premiums and deductibles. Most importantly, it is a legally binding contract outlining specific coverages based on individual health conditions at the time of application.
Indiana Farm Bureau is at its core an organization designed to serve our members’ needs. All of our plans will have clearly defined consumer protection provisions.
James Henry can be reached at 815-223-2558, ext. 190, or jhenry@ agrinews-pubs.com.
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WASHINGTON — The third and final tranche of the 2019 Market Facilitation Program payments are being issued by the U.S. Department of Agriculture. The final payment represents the remaining 25% of the total county per-acre calculation. The first tranche was comprised of the higher of either 50% of a pro ducer’s calculated county peracre payment or $15 per acre, which may reduce potential payments to be made in tranche three. The second tranche was 25% of the total payment ex pected.
Of the $16 billion authorized for the program by President Donald Trump, $14.5 billion was aimed at assisting farmers suffer ing from damage due to trade retaliation by foreign nations. The funding was authorized under the Commodity Credit Corp. Charter Act and administered by the Farm Service Agency.
The program’s remaining funding was to implement a $1.4 billion Food Purchase and Distribution Program to pur chase surplus commodities affected by trade retaliation such as fruits, vegetables, some pro cessed foods, beef, pork, lamb, poultry and milk for distribution to food banks, schools and other outlets serving low- i ncome individuals.
An additional $100 million was issued through the Agricultural Trade Promotion Program to assist in developing new export markets on behalf of producers. Perdue
COUNTY RANGES
Illinois’ total county per-acre payments ranged from $87 in Piatt to $50 in Jo Daviess, and Indiana’s counties ranged from $80 in Tipton to Starke’s $44. Final payments will be 25% of those per-acre totals.
The county payment rates were based on historical fixed average area and yields. The total potential payment amount for non-specialty crops is the eligible area multiplied by the non-specialty county rate per acre.
For each crop in a county, the rates were determined by multiplying the fixed historical acres, the fixed historic yields and the
Total MFP payments in Illinois and Indiana were: Non-specialty Specialty Livestock Crops Crops Total Illinois $23,530,119 $1,071,606,484 $97,224 $1,095,233,827 Indiana $15,509,883 $531,803,427 $23,352 $547,336,662
payment rate for unit for each eligible crop.
“It’s been a great start to 2020 for American agriculture with the signing of the historic Phase 1 deal with China and the signing of USMCA,” said USDA Secretary Sonny Perdue.
“While these agreements are welcome news, we must not forget that 2019 was a tough year for farmers as they were the tip of the spear when it came to unfair trade retaliation.”
ELIGIBLE CROPS
Payments were made by FSA to producers of alfalfa hay, barley, canola, corn, crambe, dried beans, dry peas, extra-long staple cotton, flaxseed, lentils, long grain and medium grain rice, millet, mustard seed, oats, peanuts, rapeseed, rye, safflower, sesame seed, small and large chickpeas, sorghum, soybeans, sunflower seed, temperate japonica rice, triticale, upland cotton and wheat. MFP assistance for these non-specialty crops is based on a single county payment rate multiplied by a farm’s total plantings of MFP-eligible crops in aggregate in 2019. Those per-acre payments are not dependent on which of these crops are planted in 2019.
A producer’s total payment-eligible plantings cannot exceed total 2018 plantings. County payment rates in the nation range from $15 to $150 per acre, depending on the impact of unjustified trade retaliation in that county.
Dairy producers who were in business as of June 1, 2019, receive a per-hundredweight payment on Dairy Margin Coverage production history, and hog producers will receive a payment based on the number of live hogs owned on a day selected by the producer between April 1 and May 15, 2019.
MFP payments are limited to a combined $250,000 for non-specialty crops per person or legal entity. MFP payments are also limited to a combined $250,000 for dairy and hog producers and a combined $250,000 for specialty crop producers. However, no applicant can receive more than $500,000.
Eligible applicants must also have an average adjusted gross income for tax years 2015, 2016, and 2017 of less than $900,000 unless at least 75% of the person’s or legal entity’s AGI is derived from farming, ranching, or forestry related activities.
Applicants also must comply with the provisions of the Highly Erodible Land and Wetland Conservation regulations.
Many producers were affected by natural disasters this spring, such as flooding, that kept them out of the field for extended periods of time. Producers who filed a prevented planting claim and planted an FSA-certified cover crop, with the potential to be harvested qualify for a $15 peracre payment. Acres that were never planted in 2019 are not eligible for an MFP payment.
Tom C. Doran can be reached at 815-780-7894 or tdoran@ agrinews-pubs.com. Follow him on Twitter at: @AgNews_ Doran.
AGRINEWS PHOTO/ASHLEY LANGRECK Although there are no leaves or fruit on these apple trees now, due to favorable conditions so far this winter, buds will be growing before long.
Favorable fruit outlook
By Ashley Langreck AGRINEWS PUBLICATIONS
WEST LAFAYETTE, Ind. — As February gets into full swing, producers are busy planning for the 2020 growing season.
Peter Hirst, Purdue University professor of horticulture and the assistant director of interna tional programs in agriculture, recently shared an outlook of what 2020 is looking like for Hoosier fruit growers.
Hirst said one of the biggest issues facing Hoosier growers is the uncertainty related to immi gration. “Some producers rely largely on immigrant labor, especially for harvest,” Hirst said.
Hirst said that growers want some certainty to guarantee their workers won’t be deported and to plan for the future of their operation, but he added he isn’t sure that will be happening anytime soon.
In terms of weather and how fruit production is shaping up for the year, Hirst said he is optimistic it will be a good season. “It has been a mild winter so far, but there is a way to go,” Hirst said.
Hirst said the growing season is looking pretty good and fruit like apples can withstand quite a bit of cold and even if temperatures get colder Hoosier producers are unlikely to see damage on apples. Overall, the Hoosier fruit industry is in a positive place at this point, but it is still only February and there is still another month where anything can happen in terms of Mother Nature.
Ashley Langreck can be reached at 800-426-9438, ext. 192, or alangreck@ agrinews-pubs.com. Follow her on Twitter at: @AgNews_ Langreck.
Keeping growers in the know
Purdue Extension offers resources for vegetable and fruit producers
By Ashley Langreck AGRINEWS PUBLICATIONS
WEST LAFAYETTE, Ind. — Purdue Extension recently updated and renovated resources to help Indiana fruit and vege table growers stay in the know when it comes to crop manage ment.
Liz Maynard, clinical engagement associate professor of horticulture at Purdue University, said one of the resources that Purdue Extension has been working on updating is the Midwest Vegetable Production Guide for Commercial Growers.
“What we are really excited about is the online version of the guide,” Maynard said, adding it is mobile friendly and will allow fruit and vegetable producers to search for pest management rec ommendations from their phone. The guide is a yearly compilation of statespecific information on vegetable varieties, fertility, seeding rates, fertilizer rates, weed control, insect control and disease management. Maynard said experts have worked hard over the last few years to create the online version of the guide and they are hoping people get it on their phone.
“We are excited to have it out there and are hoping to hear back from people how they like it. There is always room for upgrading,” Maynard said.
The online version of the 2020 Midwest Vegetable Production Guide for Commercial Growers can be accessed for free at mwveguide.org.
Maynard said that another resource available for producers is subscribing to the Vegetable Crops Hotline, which is updated every two weeks during the growing season to make sure producers have access to the latest crop management inforMaynard
mation.
“The Vegetable Crops Hotline is a place during growing season that has information on pests, certain crops and upcoming production events,” Maynard said.
Producers can find out more information or subscribe to the hotline at vegcropshotline. org.
The third resource Purdue Extension has been busy updating for producers Maynard said, is the Midwest Vegetable Trial Reports.
“It’s a compilation of vegetable research trials from people conducting them at land-grant universities,” Maynard said.
Maynard said that every year Purdue Extension compiles reports from trials and encourages researchers to send in their results.
Maynard said that the trials cover a wide range of information including yield and quality data based on different cropping conditions for producer including cabbage, cucumbers, watermelon, sweet corn, peppers and many more.
To access the trials, visit docs. lib.purdue.edu/mwvtr.
ARC, PLC program sign-up deadline nears
By Tom C. Doran AGRINEWS PUBLICATIONS
SPRINGFIELD, Ill. — The deadline to sign up for either the Agriculture Risk Coverage or the Price Loss Coverage program nears and farmers are encouraged not to wait until the last minute.
“The clock is ticking. March 16 is the last day to make what is likely one of the most important business decisions you will make for your farming operation this year,” said Bill Graff, Illinois Farm Service Agency executive director.
“If you have not already visited your local FSA county office to make your election for either the ARC or the PLC program and to sign your annual enrollment contract, you should call and make your appointment now.”
As of Feb. 6, 43,000 farms have signed up and 118,000 across the state are yet to enroll.
“We’re getting it down to the point that it’s literally becoming a math problem. We have to do over 4,500 contracts a day in Illinois through March 16. We did 10,000 contracts so far this week, but we really need to be doing closer to 15,000 contracts a week, and the more the farmers delay the bigger the math problem becomes. You can only do so many contracts an hour; you can only do so many a day,” Graff said.
Through late last week, one county had 80% of its farms enrolled, another was at 60%, several were in the 50% range, a large number of counties were around 40%, and some counties have only 8% of the farms signed up.
“It’s going to be real tough for the counties that are lagging behind to get it done. I don’t want anybody to be left out,” Graff continued.
There are no provisions for late filing.
“If you do not make a selection by March 16, we will make that selection for you and what we will do is give the farm the same election that the farm had in 2018 under the old farm bill. But you won’t have a contract that you’ll get paid on in 2019,” Graff noted.
“So, if you don’t make this election, the election is going to be made for you and it may not be the one that you want. It may not be the one that’s going to pay the best.
“Especially farmers with wheat base and farmers that had a lot of prevent plant and failed acres, they really need to be going into the office and making some decisions right now.”
The new program contracts must include the landowners’ signatures, making it that much more important to start the process now.
Graff added that farmers can choose a particular program and if they need to make a change they can before the deadline.
INFORMATION LINKS
Information resources are available via links on the national FSA website, including the University of Illinois’ farmdoc and Texas A&M’s Agriculture and Food Policy Center websites. Both feature decision-making tools to determine which program may be the best fit for a farm or crop.
The ARC-County program provides income support tied to historical base acres, not current production, of covered commodities. ARC-CO payments are issued when the actual county crop revenue of a covered commodity is less than the ARC-CO guarantee for the covered commodity.
PLC program payments are issued when the effective price of a covered commodity is less than the respective reference price for that commodity. The effective price equals the higher of the market year average price or the national average loan rate for the covered commodity.
Feed Industry Institute June 8-11
MILWAUKEE — The American Feed Industry Association has opened registration for its biennial Feed Industry Institute June 8-11 in Milwaukee.
The conference brings together individuals in the industry to learn the fundamentals of the animal food manufacturing process — from the types of ingredients used, to the animals served, to federal policies that shape the output of the industry. “The Feed Industry Institute is a great educational forum where people new to the livestock feed or pet food industry can learn more about the business of feed from those who know it best — industry experts,” said Paul Davis, AFIA’s director of quality, animal food safety and education. “Our goal is that attendees not only understand how to manufacture high-quality animal food, but why doing so is so essential for animal productivity and well-being.”
The 2020 FII will include an overview of the U.S. feed industry, animal physiology and nutrition basics, information on the types of ingredients used in animal food and why, the role of medications and other additives, and various processing techniques.
It also will look at agricul ture’s role in building consumer trust, the role of international trade and provide an overview of state and federal regulations. The full agenda can be found on the event’s website, www.afia.org/events/fii-2020/ agenda.
