It has always been the goal of Phillips Agency, Inc. to make sure our clients were the best educated and most informed Federal Crop Insurance customers in our area. In the past we have utilized informational meetings, newsletters and direct mailings to get information to our customers.
We hope this web site is one more way to get information that affects our producers out quickly and easily.
The average price of December 2011 corn traded in February on the Chicago Board of Trade is used to calculate the Spring Base Price for multi peril crop insurance policies. That price was set at $6.01.
The average price of November 2011 soybeans traded in February on the Chicago Board of Trade is used to calculate the Spring Base Price for multi peril crop insurance policies. That price was set at $13.49.
The Department of Agriculture's Risk Management Agency (RMA) announced earlier this month that it has published a proposed rule in the Federal Register that would reward farmers participating in the federal crop insurance program for good performance. While crop insurance agencies have no role in the administration of this proposed refund, you can get more information by selecting the following link - Good Performance Refund FAQ
The average price of December 2010 corn traded in November on the Chicago Board of Trade is used to calculate the Fall Harvest Price for RA policies. The running average was establised at $15.51
The average price of November 2010 soybeans traded in October on the Chicago Board of Trade is used to calculate the Fall Harvest Price for CRC and RA policies. The running average was establised at $11.63.
The average price of December 2010 corn traded in October on the Chicago Board of Trade is used to calculate the Fall Harvest Price for CRC policies. The running average was established at $5.46.
The average price of December '09 Corn traded in November on the Chicago Board of Trade is used to calculate the Fall Harvest Price for RA policies. That average price was $3.90.
The average price of December '09 Corn traded in October on the Chicago Board of Trade is used to calculate the Fall Harvest Price for CRC policies. That average price was $3.72.
The average price of November '09 Soybeans traded in October on the Chicago Board of Trade is used to calculate the Fall Harvest Price for CRC and RA policies. That average price was $9.66.
As you know, the ACRE deadline of August 14, 2009 is rapidly approaching. It is our commitment to provide you with information fo help you make informed decisions that best fit your operation.
Kent Theisse, Government Farm Program Analyst, has provided an ACRE Program Decisions for 2009, ACRE Program Worksheet and ACRE FSA Worksheets for both corn and soybeans that may aid you in your decision on whether or not to participate in this program. His memo to Farm Operators and Land Owners is below with the links to the various documents at the bottom of the memo.
There are links to several additional websites featuring expanded ACRE information on the LINKS tab of this website.
July 24, 2009 To : Farm Operators and Land Owners From : Kent Thiesse, Government Farm Program Analyst RE : Final Decision on the ACRE Farm Program for 2009
“Decision Time” has arrived for the new “Average Crop Revenue Election” (ACRE) Program. The ACRE Program has been discussed in meetings and articles for months, and many University Farm Management Specialists have done analysis and developed calculation spreadsheets for ACRE. The recent drop in expected 2009 corn and soybean prices has seemed to make ACRE sign-up much more attractive for the 2009 crop year. Farm operators and land owners have until August 14, 2009, to sign-up for the ACRE Program at County Farm Service Agency (FSA) offices.
The ACRE sign-up deadline, which is August 14, 2009, is only a short-time away. Use whatever time remains to take a look at the ACRE program for 2009. Remember, ACRE enrollment is by farm unit, so you do not have to enroll all your farms in ACRE for 2009. In may be tempting to just wait until 2010 for possible ACRE enrollment; however, the current situation with 2009 revenue guarantees and 2009 corn and soybean price projections may mean that 2009 could offer the best potential for ACRE payments in the next four years. Remember that there are no guarantees with ACRE, so there is some financial risk involved. There may not be any ACRE payments during the 4-year period (2009-2012), which would cost the producer the value of the 20 percent reduction in direct payments over the 4-year period (approx. $15.00-$20.00 per base acre). In the end, the final ACRE decision lies with the producers and land owners, and we will not know the results of that decision for the 2009 crop year until after August 31, 2010.
ACRE is somewhat complicated and difficult to understand; however, do not let that stop you from thoroughly analyzing the ACRE Program for 2009 on your Farm Units.
If you have cash rented land that ACRE looks favorable on, discuss it with your Landlords as they also need to sign the ACRE Form at the County FSA Office by August 14.
Attached are some very useful information and spreadsheets that may be helpful to you in evaluating the ACRE decision for 2009 on your farms.
The “ACRE Worksheet Calculation Spreadsheet” (FSA Worksheet Format) is the easiest and simplist format that I have found to analyze the ACRE decision for 2009.
The MN Guaranteed Yields for 2009 are 161 Bu./A. for corn and 41 Bu./A. for soybeans. The 2-year guaranteed price through June 30, 2009 was $4.13/Bu. for corn and $4.05/Bu. for soybeans.
Look at different variables for the 2009 National Average Prices (9-01-09 to 8-31-10), as well as the 2009 State & Farm-Level yields, and see what the ACRE payment projections are for the 2009 crop year.
Additional hybrids and varieties were approved for the Biotechnology Endorsement (BE). Use the link below to access the USDA Risk Management Agency (RMA) website to verify the hybrid(s) you are considering this spring are qualified for BE.
All of us know that record keeping is a critical part of doing business. April 29 is the deadline for production reporting. Too many government programs require accurate yield data for payment calculations to neglect this part of your operation.
Phillips Agency is here to help you! Our Customer Service Reps are the best trained in the industry. They know how to put your data in the proper form to insure the integrity of your operation.
Our files contain current and past yield information. You can access this information in case of audits, either from Federal Crop Insurance Corporation (FCIC) or Farm Service Agency (FSA). Your files at the Phillips Agency are kept for ten years to insure easy access to past records.
If you have not yet brought in your 2008 Production Records, please give your salesperson, or the Phillips Agency office a call today to schedule an appointment!
The average price of December '09 Corn traded in February on the Chicago Board of Trade is used to calculate the Spring Base Price. That price was set at $4.04
The average price of November '09 Soybeans traded in February on the Chicago Board of Trade is used to calculate Spring Base Price. That price was set at $8.80.
At this time of the year there is never a shortage of things to think about. We want to make sure you are aware that the Harvest Price has been set for Soybeans and the Harvest Price for Corn is currently being estblished. Due to the lower Harvest Price, your trigger yields for a Revenue Loss have been significantly raised.
A mailing was sent out to all clients on Monday, November 10, detailing the impact, the timeline for submitting a Revenue Loss Claim and the importance of getting your Soybean and Corn production records in to your Agent as soon as possible. Please select the Link below to see the details.
As most of you are aware, the bean market has taken quite a slide in the last month or so. We want to remind you that this drop could throw individual units or your whole farm into Revenue Loss situations. Some of you might remember a similar situation in 2004, where Revenue Losses were paid on yields over the 10-year APH because the fall price was significantly below the spring price.
The spring price on RA and CRC policies was set at $13.36 for beans. The fall price is currently being set. It is determined by averaging the November Chicago Board of Trade bean futures traded during the month of October.
This average will change daily as the markets close. You can view a daily running average on our Home Page. This is important because as the fall price declines, your trigger yields for losses actually rise. Included in the Fall Harvest book, we have provided a sliding scale that shows how your trigger yields are affected by the declining price.
As you finish with your bean harvest, please take the time to review your yields and the current average price. If your yields are anywhere close to your new trigger yields, please bring all your production information to the office or contact your agent. We will submit your yields to John Deere Risk Protection so they can determine if there is a loss.
Time is critical as there are deadlines for submitting a Revenue Loss. Please read the information below carefully:
REVENUE AND NON-REVENUE (APH based) POLICIES—WITH PRODUCTION LOSSES
The Policy Provisions provide that in the event of damage or loss it is the insured’s duty to give us notification within 72 hours of the initial discovery of damage, but not later than 15 days after the end of the insurance period.
The end of the insurance period is the earlier of: total destruction of the crop on the unit, harvest of the unit, or the date contained in the Crop Provisions (December 10 for many spring crops).
REVENUE (APH based) POLICIES—WITH ONLY REVENUE LOSSES
If the production guarantee has been achieved and the loss is due only to a price decline, the deadline to report a claim is extended from what was mentioned above to 45 days after the harvest price has been announced.
IS A “DELAYED NOTICE” ALLOWED?
A DELAYED NOTICE is a notice that is filed after the time required in the policy.
Example: Corn, APH plan, Calendar Date for end of insurance is Dec. 10 and harvest is complete on the entire unit October 31.
Q1. When is the end of insurance on this unit? A1. October 31. Q2. Would notice provided to John Deere on November 10 be timely? A2. Yes Q3. Would notice provided to John Deere on November 16 be timely? A3. No
RMA procedures allow Insurance Providers some discretion relative to accepting a Delayed Notice. The acceptance of a delayed notice does not constitute approval of the claim. If a delayed notice is accepted, the insurance provider will perform any necessary inspections.
The insured should be reminded of the requirement for timely filing a notice of damage, and the right of the insurance provider to reject any claim if failure to give timely notice affects the insurance provider’s ability to SATISFACTORILY establish ALL data needed to properly adjust the claim.
Contact your agent or call the Phillips Agency at (507) 847-4433 or (866) 450-4433 if you have any questions about recording production or for a refresher course on your individual policy.
The new farm bill disaster policy states that all crops must be insured to qualify for any disaster payment. While we don't feel this new policy will come into play in the 2008 crop year, we want to make sure that our producers are aware of the changes in the federal policy.
To qualify for a disaster payment (prompted by a Secretary disaster declaration) in 2008, any uninsured acres on your 578's must be insured by September 16, 2008. To insure these unisured acres, you need to purchase a Buy-in for 2008 CAT or NAP policy through the local FSA office.
Uninsured acres would include any Oats, Wheat, Alfalfa, Barley, Millet, Apples, Home Garden for Profit, Grass for Forage or Grazing acres in addition to other crops. If a Buy-in for 2008 CAT or NAP policy is purchased in 2008, that coverage must also be purchased for 2009. Phillips Agency will be your point of contact for purchasing the CAT policy coverage in 2009. The local FSA office will be the point of contact for purchasing the NAP policy coverage in 2009.
If you are unsure if you have uninsured acres, please feel free to call your agent or into the office at 507-847-4433.
The link below accesses the USDA Fact Sheet on the 2008 Crop Year Buy-in for Disaster Assistance Programs if you would like to read the bulletin.
A mailing regarding special requirements for silage, earlage or high moisture corn was sent to all insured August 22. Please click on the link below to access the information.
Yes, the pilot Biotech Yield Endorsement (BYE) is available through Phillips Agency, Inc.
The pilot biotech yield endorsement (BYE), available for the 2008 crop year, will allow you to receive a premium rate reduction on non-irrigated corn for grain planted to hybrid varieties of corn that contain specific Monsanto triple-stack genetics.
BYE is available for non-irrigated corn in all counties in Illinois, Indiana, Iowa, and Minnesota. Producers will be required to purchase an individual yield or revenue insurance plan (APH, RA or CRC) at a buy-up level of coverage, and plant at least 75 percent of their corn acres on an insured unit to a corn hybrid containing specific Monsanto triple-stack genetics.
If all eligibility criteria are met, the producer will automatically qualify for the premium rate reduction. This determination will be made at acreage reporting time. There are additional forms to be completed by both the insured and their seed dealer.
However, insureds will be subject to spot-check or audit to ensure compliance with pilot BYE requirements.
Please contact us for more information in regard to the eligibility criteria, forms, reporting and compliance risks associated with the Biotech Yield Endorsement.
It is important that as soon as you believe you may have suffered a crop loss, that you contact us via phone, e-mail or in person.
If your corn or soybeans are planted and part of the crop is destroyed due to flooding, hail, late frost or other insurable causes, you may qualify for replant coverage.
To qualify:
You must replant at least the lesser of 20 acres or 20% of the unit.
The original acreage must be planted after the initial planting date designated in your policy.
A replant payment may be made only once on an acre per year.
You must replant 50 acres or less per unit in order to qualify for self-certified replants.
You must replant to the same crop as was initially planted.
Agent Notification:
If you will be replanting LESS THAN 50 acres per unit, YOU MUST CALL YOUR AGENT BEFORE replanting so a Replant Claim Notice can be submitted for authorization to qualify for self-certification to replant corn to corn, soybeans to soybeans.
If you will be replanting OVER 50 acres per unit, it is mandatory to have a crop insurance adjuster inspect the crop damage and give approval before destroying any damaged crop acres. YOU MUST CALL YOUR AGENT BEFORE replanting so a Replant Claim Notice can be submitted and an adjuster can get there as soon as possible.
First Crop / Second Crop:
If you have corn acres that require replanting, and it is deemed too late to replant corn, those acres may be able to be switched to soybeans. It is mandatory to have a crop insurance adjuster inspect the crop damage and give approval BEFORE destroying any damaged crop acres. YOU MUST CALL YOUR AGENT BEFORE switching crops so a Replant Claim Notice can be submitted and an adjuster can get there as soon as possible.
Replant Payments:
Once eligible, the replant coverage payments will be the actual costs of replanting, up to predetermined maximum limits. The replant coverage payment limits for corn are 8 bushels per acre times the Market Price Election on MPCI or times the Base Price for CRC and RA. For soybeans, the replant limit is 3 bushels times the Market Price Election for MPCI or times the Base Price for CRC and RA. The original minimum per acre coverages that were in place with a MPCI or CRC/RA insurance policy will continue after the crop acres are replanted.
Example: Corn MPCI: 8 bu. X $4.75 = $38.00 per acre CRC/RA: 8 bu. X $5.40 = $43.20 per acre
Soybeans MPCI: 3 bu. X $11.50 = $34.50 per acre CRC/RA: 3 bu. X $13.36 = $40.08 per acre
