Looking Forward to the 2021 Crop Insurance Year

Good weather, rising commodity prices, and the time and ability to do fall field work in preparation for the 2021 crop year, made for a great end to the 2020 harvest.

With harvest complete for most growers, we just want to remind you that December 10th marks the end of insurance coverage for corn and soybeans. IF you have a potential claim you have not reported, please contact your AgQuest Insurance agent immediately to start the claim
process. If you still have that crop in the field, here are the actions you must take:
• 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.
• If you are not able to harvest all your crop by December 10, you must contact your AgQuest insurance agent prior to that date.

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 higher than the spring prices:
Corn from $3.88 to $3.99
Soybeans from $9.17 to $10.55

To capture that higher price, you would need to be below your guarantee either by optional unit or total liability on an enterprise unit structure. Take time to make sure your production exceeds your guarantees, so you don’t miss turning in a timely claim.

RMA approves Enhanced Coverage Option for 2021
RMA has approved the new Enhanced Coverage Option (ECO) for the coming year. ECO is available for 31 crops in most spring type counties for 2021 and provides an area-based coverage for a portion of your underlying policy’s deductible in a manner similar to the Supplemental Coverage Option (SCO). ECO uses the same expected and final area yields, projected and harvest prices and payment factors as SCO, but covers a band from 86 percent (where SCO coverage ends) up to 90 or 95 percent of expected crop value. Like the Supplemental Coverage Option, ECO is based on your underlying policy plan of insurance.

If you choose ECO it must be purchased as an endorsement to your MPCI policy and follow the coverage of your underlying policy (Yield protection or Revenue protection). The premium cost is shared between you and the government, where the government pays 51 percent or 44 percent of the premium for yield and revenue policies, respectively. The exact premium cost will depend on the crop, county, coverage level selected, and type of coverage selected such as Yield Protection versus Revenue Protection.

Unlike SCO, if you elect ECO and ARC for the same crop on a farm, your ECO coverage for that crop on that farm will be unaffected.

Contact your AgQuest Insurance Agent for more details.

Coronavirus Food Assistance Program 2
As a reminder, the CFAP 2 application deadline is December 11. FSA staff at your local USDA Service Center can work with you to file your application, which can be submitted via mail, fax, hand delivery, or via electronic means. The application and associated forms are available online at farmers.gov/cfap.

Reporting your production
We understand the current COVID situation may be affecting your ability to meet with us in person to report your production. Rest assured, the AgQuest staff is willing to work with you in whatever manner you feel comfortable. Please give us a call today to talk through how you can get your production reported so your databases are up to date for quoting time. 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 2021 crop year and preparing your crop insurance coverage.

Have a safe and healthy Christmas season and a joyous New Year!

AgQuest Insurance Agency is an Equal Opportunity Provider