FCS Financial Crop Insurance Update

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Information about FCS Financial Crop Insurance Update
Education

Published on March 4, 2014

Author: FCSFinancial

Source: slideshare.net

Description

FCS Financial staff provided an update on the 2014 crop insurance changes at the FCS Financial Ag Seminars held in February 2014. View our website, www.myfcsfinancial.com, to find a crop insurance agent near you.

Growing Relationships. Creating Opportunities.™

2013 INDEMNITIES Growing Relationships. Creating Opportunities.™

Growing Relationships. Creating Opportunities.™

Product Guide 2014 Policy Type Benefits YP(Yield Protection) Protects against a production loss for crops which revenue protection is available but was not selected. RP(Revenue Protection) Protects against price and production losses. Establishes a dollar guarantee based on the CEPP projected price. RPHPE(Revenue Protection with Harvest Price Exclusion) Similar to RP except excludes the benefit of harvest price. Establishes a dollar guarantee based on the CEPP projected price. CAT(Catastrophic) Production based coverage protects the producer against major yield loss. ARPI (Area Risk Protection Insurance) Group insurance policy with coverage based on the production of the county. No individual protection. LRP(livestock Risk Protection) Protects against declining livestock prices. LGM(Livestock Gross Margin) Protects the gross margin between the value of insured livestock or milk and the cost of feed inputs. PRF(Pasture, Rangeland and Forage) Protection for losses of forage for haying or grazing due to the lack of rainfall. Growing Relationships. Creating Opportunities.™

Major Changes for 2014 • Area Risk Protection Insurance (ARPI) • Cover Crops • Signature Authority New for 2014 Growing Relationships. Creating Opportunities.™

Area Risk Protection Insurance (ARPI) • New names for group insurance policies – Area Yield Protection (GRP) – Area Revenue Protection (GRIP w/HRO) – Area Revenue Protection with Harvest Price Exclusion (GRIP) New for 2014 • If you have one of these policies it will automatically convert to the new name • It is now mandatory to report production Growing Relationships. Creating Opportunities.™

Cover Crops • Changes for 2014 to allow cover crops to be hayed or grazed, as long as NRCS Guidelines are followed New for 2014 Growing Relationships. Creating Opportunities.™

Signature Authorization New for 2014 • Purpose of Signature Authorization on Crop Insurance Policy Application – To allow the person listed to have authorization to sign documents for any crop/counties listed on the application at the time of signing – Considered more of a Limited Authorized Representative that could sign all documents for the applicant except any document that was adding another crop/county coverage – Anyone designated as an Authorized Representative for a Corporation, Partnership, Estate or Trust within that entity’s paperwork does not need to be listed under the Authorized Statement Growing Relationships. Creating Opportunities.™

Trend Adjusted Option • Available for corn, soybeans, and grain sorghum in eligible counties. • Option that aligns product coverage with production expectations of current practices • Option has to be selected by the applicable sales closing date (March 15th). Growing Relationships. Creating Opportunities.™

Specialty Crops • Corn – Special provisions provide insurability for High Amylase corn as a specific type – Do not confuse with High Amylose corn • Soybeans – Numerous specialty types available • • • • • • • • Large Seeded Food Grade Small Seeded Food Grade Low Linolenic Acid Low Saturated Fat High Protein All other food grade Commodity Organic Growing Relationships. Creating Opportunities.™

High Risk – Alternative Coverage Endorsement (HR-ACE) • How it works: – Provides better coverage than previous offer CAT – Insure high risk acres separately at a coverage at least 5% lower than the “base” policy – Only Optional or Basic units available – no Enterprise Units – Offers replant coverage – Must be elected by March 15th Growing Relationships. Creating Opportunities.™

New Break Acreage • These acres are not insurable without approval from the crop insurance company or RMA. • CRP coming out of the program are not considered new break as long as it is farmed within the first two years. • For 2014 the assigned yields on New Break acres will range from 65% of the T-yield to 80% of the T-yield. Growing Relationships. Creating Opportunities.™

CRP ACREAGE • Any ground being planted in 2014 that has come out of CRP within the last two years will receive 100% of the applicable county T-Yield. • Subsequent years – Acres will be absorbed into existing database if they do not qualify for their own unit. – If the acres qualify for their own unit that unit will receive the SAT yield if it is applicable. Growing Relationships. Creating Opportunities.™

Claims Reminders • If an insured crop incurs damage, it must be reported to the company within 72 hours of initial discovery of damage, but no later than 15 days after the end of the insurance period for the crop and unit. • Failure to provide notice within this time frame could jeopardize an indemnity for any loss on the unit Growing Relationships. Creating Opportunities.™

Private Insurance Products • Crop Hail Insurance – Policies usually offer protection against hail, fire transportation, storage, mischief, and theft. • Named Perils – – – – Additional Replant Policies Green Snap Insurance Wind Additional Harvest Expense • Total Weather Insurance (The Climate Corporation) – Insurance targeting perils that impacting growth during specific stages of the crop. – Policies are intended as a compliment to MPCI coverage. Growing Relationships. Creating Opportunities.™

Price Flex New for 2014 • Provides added protection from fluctuating prices by offering more price discovery periods – Enables producers to potentially receive additional policy benefits if the average of the price period they select exceeds the RMA projected and harvest prices • Available for corn, grain sorghum, soybeans and spring wheat • Must have MPCI policy • Growers must insure all of their acres of a crop in a county – Must have at least 25 acres • Offered through Great American Insurance Company Growing Relationships. Creating Opportunities.™

CLIMATE.COM • Provided by the Climate Corporation • Provides field-level data • Available to everyone, regardless of AIP company • www.climate.com Growing Relationships. Creating Opportunities.™

The Agricultural Act of 2014 • The 2014 Farm Bill sets crop insurance as the primary help for farmers to deal with production and price risk • Eliminates direct and countercyclical payment programs from FSA and implements Price Loss Coverage and Agriculture Risk Protection • Price Loss Coverage: makes a payment when the market price for a crop is below a fixed reference price • Agriculture Risk Protection: makes a payment when either the farm’s revenue from all crops or the county’s revenue is below 86% of a predetermined benchmark http://www.cropinsuranceinamerica.org/just-the-facts Growing Relationships. Creating Opportunities.™

The Agricultural Act of 2014 • Added two supplemental policies to help producers expand their protection against losses due to natural disasters or price declines • Supplemental Coverage Option (SCO): gives producers the option to purchase area coverage in addition to their individual MPCI policy • Stacked Income Protection Plan (STAX): for upland cotton acreage only http://www.cropinsuranceinamerica.org/just-the-facts Growing Relationships. Creating Opportunities.™

The Agricultural Act of 2014 The 2014 Farm Bill is still in its beginning stages. For more information as the bill evolves please visit the following sites: http://www.cropinsuranceinamerica.org/about-crop-insurance/just-the-facts/ http://www.agmanager.info/ http://www.farmdoc.illinois.edu/index.html Growing Relationships. Creating Opportunities.™

FCS Financial Insurance Providers • ADM – A- (Excellent) Agrinational Insurance Company • Farmers Mutual Hail – A (Excellent) • Great American Insurance – A (Excellent)- for over 100 years • Rain and Hail Insurance – A+ (Superior) • The Climate Corporation – A (Excellent) Growing Relationships. Creating Opportunities.™

The Crop Insurance Specialists would like to say Thank You to our current customers. We enjoy working with you and appreciate your business! Why Choose FCS Financial Crop Insurance? At FCS Financial, we are Focused on our customers by providing Customized crop protection plans that meet individual needs and provide Solutions for their operations. • • • • Our crop insurance experts have more than 100 years of combined experience. We are dedicated solely to this industry. It doesn’t matter if you have 100 or 10,000 acres to protect. We will meet with you at your farm. FCS Financial is an Equal Opportunity Provider Growing Relationships. Creating Opportunities.™

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