2015 Crop Considerations

With the new farm bill comes new guidlines, new opportunities, and new key points to consider for the American farmer. Here are just a few topics that should be thought about before this fall's Sales Closing Date:

Crop Insurance Considerations:

  • Winter Coverage Option (WCO)

  • Gives the option of reseeding to another crop in the spring, leaving fallow, taking to harvest.

  • On fall type peas, gives a replant payment if stand is not 90% in the spring.

  • Is more attractive as seeding conditions are less attractive.

  • See attached pricing sheet for 2014/2015 comparisons.

  • Lower Wheat Pricing

  • Lower price equals lower liability equals lower premium

  • Consider increasing percentage level to compensate for lost liability.

  • Beginning Farmer

  • Qualify if has less than five years of interest in a crop.

  • Receives 10% more premium subsidy at any level of insurance.

FSA Program Considerations:

  • Price Loss Coverage (PLC)

  • Uses National Average Price ($5.50 for wheat)

  • Figured on 85% of base acres

  • Claim occurs if National Price falls below earlier set price ($5.50)

  • Agricultural Risk Coverage

  • ARC Farm

  • Figures Liability from whole farm revenue. Wheat, Barley, Livestock, Forage, etc...

  • Figured on 65% of base acres

  • Band width of 76% to 86%

  • Claim occurs if farm revenue falls below liability, then farm is paid up to the 10% coverage.

  • Assumes 75% level of crop insurance

  • If elected, farmer cannot elect Supplemental coverage option.

  • ARC County

  • Crop by crop

  • Figured on 85% of base acres

  • Same 10% Band width

  • Claim occurs if county has disaster, then farmer gets paid up to the 10% coverage.

  • Assumes 75% level of crop insurance

  • If elected, farmer cannot elect Supplemental coverage option.

With the ocean of information that is now flooding the market, it would be normal to have oodles of questions. If you are in need of answers, honor us by giving us a call. It is our business to protect your business!

#cropinsurance #farminsurance

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