Agricultural Risk Management 2012 - Our Policies

The Major changes to crop insurance for 2012 are very beneficial to farmers for 2012!

TREND ADJUSTMENT

This is a new option to adjust prior years' yields to better reflect better yield potential due to improved crop genetics and advanced farming practices. A new feature called the trend-adjusted APH will address this concern. This is a major improvement and can improve your bushel per acre guarantee for this year. Be sure you understand this option and all of its applications.

Click here to download production charts.

HAIL & FIRE COVERAGE

Click here to download coverage brochure

RISK MANAGEMENT AGENCY (RMA)

RMA has studied the loss payments in the Midwest and determined a premium reduction is justified. Example: Iowa will have an approximate 13% reduction in premium on corn and a 9% reduction soybeans. however, this will vary by county.

BILLING DATES

Billing dates for premium payments will now be August 15 rather than October. This change was set by RMA and will affect every company writing crop insurance. Remember, acreage reporting has been set for July 15.

BIOTECH SEED

The Biotech seed discount has ended. It was determined by the FCIC it was no longer necessary due to new technology.

You will only be remembered for two things: the problems you solve or the ones you create. -Mike Murdock

• How to evaluate
  Crop-Hail Insurance:

• Hail is the one catastrophe that is most likely to totally destroy a part of your crop and leave the rest looking fine. The part hail takes out may well be less then the deductible of your Multiple Peril Crop Insurance policy or it may not lower your yield enough for a revenue insurance policy to kick in. Crop-Hail insurance can fill that gap. While crop insurance policies protect you against losses severe enough to significantly drop the yield per insured unit, Crop-Hail insurance gives you acre-by-acre protection that can be up to the actual cash value of the crop.
   

• Important definitions:

• Revenue Protection: Insurance coverage that provides protection against production loss or price decline or increase, or a combination of both.
  As an example only: To arrive at the total bushels to potentially market, multiply APH (or expected yield) by coverage level by acres planted. For example, a farmer with a 165-bu. corn APH, 1000 acres and 75% coverage would look to price ahead 123,800 bu. Because of the revenue insurance with a harvest price option, farmers can confidently price this amount knowing they’ll be covered even if prices should rise going into harvest.

  Yield Protection: Insurance coverage that only provides protection against a production loss for crops for which revenue protection is available but was not elected.

• REMEMBER: Fire is not a covered peril under any Crop Insurance Policy. You should consider a Hail Policy on corn with a high deductible to cover this peril.