What You Need to Know as the Crop Insurance Deadline Closes In

The sales closing for 2021 Crop Insurance is March 15, 2021 and we are starting off with higher prices than we have seen in a few years. The volatility factors are trending higher as well, but it is the last 5-day trading days that will contribute to final premium prices.

Some things to be mindful of as you are renewing your crop insurance coverages on or before the March 15 deadline:

• Now is the time to make any modifications needed regarding entity changes – going from an individual to an LLC, Partnership or Corporation, or even from a Corporation, LLC or Partnership back to an Individual. Other modifications to keep in mind are, marital status or the addition of land in a county that you have not farmed in prior years.

• All acreage reports need signatures including counties with zero acres.

• Contract crops – A copy of the contract must be provided to us no later than the acreage reporting deadline.

• Document signing – RMA requires crop insurance documents to be signed the way the policy is named by the individual with signing authority. Examples:

       o TripleJ Farm Inc. by Joe Don Jameson (Pres)

       o Joe Don Jameson by Jack Jameson POA

*FSA does not have this same requirement.

• Partnership Entities – A death, judicial declaration of incompetence, withdrawal, addition or changing of a partner terminates the partnership, unless a written partnership agreement provides otherwise.

BFR & VFR Additional Benefits

Are you farming for the first time? If so, then the Beginning Farmer Rancher (BFR) and Veteran Farmer/Rancher (VFR) may have some additional benefits for you up to 5 years.

• A BFR/VFR may now use another producer’s production history if:

• BFR/VFR must have been previously involved in a farming or ranching operation including:

       o Decision making necessary to produce the crop or livestock on the farm OR

       o Physical activities necessary to produce the crop or livestock on the farm and;

• The BFR or VFR must provide the AIP with verifiable evidence indicating the involvement in a farming or ranching operation decision making or physical activities.

New for 2021

• Corn planted on acreage following a crop that has been prevented from being planted, will not be considered a cover crop.

• RMA has revised use of an Intended acreage report and now allows the option to use an intended acreage report for the first two consecutive crop years a producer farms in a new county, instead of only the first year.

• Enhanced Coverage Option (ECO): Enhanced Coverage Option (ECO) is a new crop insurance option that provides additional area-based coverage for a portion of your underlying crop insurance policy deductible.

      o Must be purchased as an endorsement to the Yield Protection, Revenue Protection, Revenue Protection with the Harvest Price Exclusion, Actual Production History or Yield Based Dollar           Amount of Insurance policy. This endorsement is offered on majority of the MN crops.

      o Covers loss from 86% up to 90 or 95%.

      o Benefits producers whose yields and revenue correlate with the county and could potentially trigger an indemnity on only a 5% loss in revenue or yield, (depended on the underlying MPCI coverage plan).

      o Is not impacted by either farm program decisions, including PRICE LOSS OPTION (PLC) and AGRICULTURE RISK COVERAGE (ACR).

      o Expected and Final yields are based on RMA data, NOT producer yields and any indemnities will not be paid until the summer following the crop year.

          • An indemnity could potentially:

              o Payout with ECO but not on your individual MPCI

              o On your individual MPCI policy but no ECO indemnity

              o On both programs or

              o No indemnities on either

With the March 15 deadline approaching for MPCI policies, ECO, SCO and your decision of PLC/ARC with the FSA, we encourage you to call an AgQuest Crop Insurance Specialist to make sure you have the right coverage for your operation. AgQuest has a selection of pricing options as well as crop hail plans available that are an excellent risk management tool. Contact your AgQuest Agent for a review on what may best fit your operation. Crop Insurance Specialist: Kathy Mainer – 319.290.4258, Sheri Bakker – 320.212.9226, and Mike Kurtz – 419.552.6455.

AgQuest Insurance is an Equal Opportunity Provider.