Finishing Up the 2019 Crop Insurance Year

As we near the end of the calendar year, so came the end of the crop insurance period on December 10th, which marked the latest date of insurance coverage for corn and soybeans. If you still have a crop in the field after the December 10th deadline, here are the actions you must take:
• Contact your AgQuest Crop Insurance agent and report a loss
• Continue your normal and customary harvesting practices, including keeping good production records by unit, if possible.
• Document conditions for your acreage and the actions you take so you can receive an accurate claim payment, if one is due.
• You may request an extension of time to harvest if you are unable to harvest by the calendar date for the end of the insurance period. You must harvest your crop during the extension period if a window of opportunity arises. If you do not, the approved insurance provider will appraise the acreage at that time and finalize the claim based on the appraisal. Damage occurring after the window of opportunity to harvest is uninsurable.

Harvest prices set
Final harvest prices have been set using the daily average closing price during the month of October, for December Corn Contracts and November Soybean Contracts. The final approved Revenue Protection (RP) harvest prices were lower than the spring prices, therefore, raising your loss trigger yield. What that means, is that even though you may have made your spring guarantee, you could still have a revenue loss. You will want to check with your AgQuest Crop Insurance agent to make sure you don’t miss out on a claim.

Deferral of Interest Charges on Crop insurance premiums extended
Due to widespread flooding, and excess moisture conditions impacting much of the U.S. RMA had extended the premium due date on policies with an 8/15 bill date only and relaxed the policy provisions on interest attaching to unpaid premium. Due to the ongoing issues and now weather forcing later harvests in many areas, RMA has made the decision to push back interest charges into 2020.

Interest on unpaid premium is deferred to the earlier of the applicable termination date or until 1/31/20. However, any premium not paid by the earlier of the applicable termination date or 2/1/20, interest will be retroactive to 9/1/19.

In addition, as done for the last extension, again decided to allow for the same additional time to remit payment on their 2019 Crop Hail & Named Peril premium without incurring interest charges.

Billings will be generated as normal, however, interest will not be charged for any unpaid premium if payment is postmarked by 1/31/20. If any premium remains unpaid on 2/1/20, interest will be retroactive to 10/1/19.

While most companies are following RMAs deferral of interest charge extension on the hail and named perils, to be sure, we highly encourage you to clarify your individual situation with your agent.

Make an informed decision
Enrollment is now open for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2019 and 2020 crop years. Sign up deadlines are March 15, 2020 for your 2019 election and June 30, 2020 for your 2020 election. As your trusted advisors, we encourage you to talk to your AgQuest BRM and/or your AgQuest Crop Insurance Specialist before signing up. The 2019/2020 marketing year average prices will continue to run their course, which will aid in the decision making for your 2019 program election. With the tools that AgQuest has available, we can help you make a more informed decision when determining which program is the best fit for you.

Importance of crop insurance
If you are looking at cutting expenses for the 2020 crop year, your crop insurance coverage should not be one of them. Crop insurance is one of your best risk management tools – helping to protect your crop from unforeseen setbacks and you from unforeseen losses. Again, we encourage you to talk to an AgQuest agent to analyze the different coverage options available. We look forward to the 2020 crop year and preparing your crop insurance coverage.

AgQuest Insurance Agency is an Equal Opportunity Provider.