Crop Insurance News:
PREMIUM ACCOUNTING & BILLING UPDATE
For 2023, interest was deferred on premium due on October 1 until December 1, 2023. This is a temporary extension granted by the Risk Management Agency. After that time, payments are applied as follows: A) any unpaid finance or interest charge, B) unpaid administrative fees, and C) unpaid premiums. Please keep in mind that accrued interest on uncollected premium is attached, according with the terms of the Standard Reinsurance Agreement, and CANNOT be waived by the agent or AIP. If you cannot pay your premium before the March 15 Debt Termination Date, contact the AIP directly to set up a payment plan. Otherwise, you will not be eligible for crop insurance or any other federally subsidized programs.
NEW MULTI PERIL POLICY OPTIONS
The past few years as seen many new options offered that can be added to your multi-peril policy. Supplemental Coverage Option (SCO) and Enhanced Coverage Option (ECO) can be added to your policy to increase your total coverage levels and acre income guarantees, sometimes at a premium cost that is less than buying up your regular policy coverage level. Your crop insurance specialist has the tools to show you what options are available and the best options to maximize your coverage at a cost that fits your budget. Give them a call to set up an appointment.
PERSON TYPES & IDENTIFICATION NUMBERS
To better accommodate data reconciliation between the Farm Service Agency & Risk Management Agency, there have been some changes made to the social security number and employer identification reporting requirements for individuals, estates, and trusts. If you have recently made a change in how an entity has been set up, let your crop insurance specialist know and they will make sure your policy is renewed using the correct identifying numbers. These records need to be updated before the March 15 deadline.
CONTRACT PRICE ADDENDUM
The Risk Management Agency offers a contract price addendum that would allow a producer who receives a contract price for their crop to receive a crop insurance guarantee that is more reflective of the actual value of the crop. Under the addendum, insured producers would have the ability (where available and by choice) to use their personal contract price as their price election, or to use the existing crop insurance price election. If you grow specialty crops under contract and are interested in using your contract price to set your crop insurance guarantee, ask your crop insurance specialist about the new contract price addendum.
MULTI-COUNTY ENTERPRISE UNITS (MCEU)
RMA now allows a single Enterprise Unit (EU) structure that covers two adjoining counties. It is only available when authorized on the actuarial documents for crops which Revenue Protection (RP) is available. One county must individually qualify for EU as the primary and the other county must not qualify for EU. MCEU must be elected on or before the SCD and electing MCEU does not automatically make the county eligible MCEU.
EARLY/LATE PLANT DATES
Early and late plant dates may have changed and vary by location within the state. Be sure to contact your crop insurance specialist to get the specific dates for your area. It is important to note that crop acreage planted before the early plant date is not eligible for replant payments but will still be eligible for insurance coverage. The insurance guarantee is not impacted if producers follow good farming practices. Crops planted after the late plant date during the late plant period will also have reduced coverage.
POWER OF ATTORNEY (POA) AND SIGNATURES
Crop insurance documents requiring a signature must be signed by an authorized person. The Crop Insurance Handbook says that for a spouse or others to sign for the insured, they must be authorized by a POA or other legally sufficient document. Even if the person is listed as an SBI on the application. Signature statements on the Application or Policy Change Form can serve as a legally sufficient document. For specific details, please consult your Specialist.
DRY BEAN PREVENTED PLANTING COVERAGE LEVEL CHANGES
Prevented Planting (PP) Coverage levels for dry beans has been reduced from 60% coverage down to 50%. Prevented planting coverage levels have changed for many other crops in recent years. See your crop insurance specialist for the most current levels and options for PP coverage.
ORGANIC CROPS
As a reminder, the USDA Risk Management Agency now requires all insured organic certified producers to provide a copy of their organic crop plan and organic certificate to their agent before the acreage reporting date.
CROP INSURANCE UPDATES & IMPORTANT DATES
- January 15 Fruit Acreage Reports / Yield Reports & Pre-Acceptance Worksheets Due
- March 15 Final date to sign up or make changes for a Spring 2024 Crop Insurance policy. If you are interested in changing the coverage level, type or need to add a crop, please call your crop insurance specialist to review your options. All changes need to be completed by the March 15th deadline! If a signed application is not returned, your policy will automatically renew at the same level you insured at during the previous year.
- April 29 Production reporting deadline for Fall 2023 harvested crops. Before you get busy in the field this spring, be sure to have your production reports completed, signed, and submitted before the April 29th.
To view the winter 2024 issue of Partners magazine in its entirety, click here.
