First Tribune Insurance
2015 Crop Insurance
Spring Farm Meeting
Non‐Discrimination Statement
Non-Discrimination Statement
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and
activities on the basis of race, color, national origin, age, disability, and where applicable,
sex, marital status, parental status, religion, sexual orientation, genetic information,
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(Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720‐
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of Civil Rights, 1400 Independence Avenue, S.W. Washington, DC 20250‐9410, or call (800)
795‐3272 (voice) or (202) 720‐6382 (TDD). USDA is an equal opportunity provider and
employer.
The information contained in this printed material might not account for recent changes mandated by
the Risk Management Agency with respect to the deliverance of the Federal Crop Insurance Program.
Please call FTIA if you have any questions.
620-376-4239
Lesa@FirstTribuneInsurance.com
WWW.FirstTribuneInsurance.com
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Disclaimer
The information contained in this book and the information
we will be presenting does not account for all recent
changes mandated by the Risk Management Agency
(RMA) with respect to the delivery of the Federal Crop
Insurance Program.
We have made every effort to ensure the information
included is current and accurate;
however:
We encourage you to come in and go over your policy with
First Tribune Insurance Agency agents to insure you are
getting the best policy for your needs.
Don’t be confused
Keep it Simple…
Present to March 16th , 2015
You can only make changes to a policy until March 16th for Spring crops and until September
30th for wheat.
This includes adding the new Yield Exclusion Endorsement and the Supplemental
Coverage Option
You can now insure your Irrigated and Non-Irrigated crops at different levels.
Do you qualify as a Beginning Farmer?
Tell us about any new breaking ground. Written agreements are due by March 16th .
Present to March 31st , 2015
Producers make a one-time election of either ARC or PLC for the 2014-2018 crop years at the
FSA office.
June 1st , 2015
Check with FSA and make sure you have a AD-1026 certification of compliance on file by
June 1, 2015. To be eligible for premium subsidy a completed and signed form AD-1026 must
be on file with FSA by June 1, 2015 for the 2016 reinsurance year (July 1, 2015 – June 30,
2016), and you, and any affiliated person, must be in compliance with the HELC and WC
provisions.
2014 Farm Bill Commodity Program Highlights
• No more direct, countercyclical or ACRE program payments
• Must choose (1 time for life of Farm Bill) between
› Price Loss Coverage (PLC, payments when prices fall below a trigger)
› Agriculture Risk Coverage (ARC, payments when per-acre revenues fall
below a trigger)
› If producers don’t agree on the same program, NO payments for 2014 crop
and enrolled in PLC for 2015
• A new crop insurance option (SCO) for PLC participants
› Approved Insurance Providers sell and administer SCO
Price Loss Coverage (PLC)
• Makes payments when Marketing Year Average (MYA)
price falls below the Reference Price
• Makes up that difference on 85% of the producers base
acres
• Payments tied to base acreage and program yields
• These generally do NOT depend on current production
choices
› Except for those with cotton base or with fruits and
vegetables, planting more or less of a given crop will
have NO effect on payments
• New “reference prices” are far higher than old target prices
› See next slide
• Administered by FSA but available with SCO
Reference and Target prices
2008 Farm Bill
Target prices
2014 Farm Bill
Reference prices
Wheat/bu.
$4.17
$5.50
Corn/bu
$2.63
$3.70
Soybeans/bu.
$6.00
$8.40
Sorghum/bu.
$2.63
$3.95
71.25 cents
None*
$10.50
$14.00
$495
$535
Upland cotton/lb.
Long-grain rice/cwt
Peanuts/ton
*Upland cotton is not eligible for PLC (or ARC) benefits under the 2014
farm bill as it has STAX.
Under PLC, payments are made in October of the year after the crop is
harvested (e.g., payments for the 2014 crop would be made in October
2015)
Agriculture Risk Coverage (ARC)
• Makes payments when per-acre revenues fall below a
trigger
• Trigger depends on moving averages of market prices
and yields
• Paid on base acreage, not planted
• Tied to county or farm yields, not state
• Covers losses of 14-24% (ACRE was 10-35%)
• Administered by FSA
ARC Details
Payments if per-acre revenues fall below 86% of benchmark:
• County : 5-yr. Olympic avg. national price * 5-yr. Olympic
avg. county yield
• Farm: 5-yr Olympic average of the weighted per-acre
revenues
• Prices used to compute averages are higher of farm price
or reference price
Maximum payment: 10% of benchmark (covers 76-86%)
Paid on 85% (county yield option) or 65% (farm yield option)
of base acres (not planted)
As with PLC, 2014 crop year payments to be made in
October 2015
FSA Farm Bill Activity Timelines
• Present to March 31, 2015- Producers make a one-time election of
either ARC or PLC for the 2014-2018 crop years
• Mid-April 2015 through Summer 2015- Producers sign contracts for
2014 and 2015 crop years
• October 2015- Payments for 2014 crop year, if needed
• Payment limitation rules
› $125,000 payment limitation on ARC/PLC + marketing loan benefits
› Could affect many producers
› Not eligible for any PLC or ARC payment if Adjusted Gross Income
exceeds $900,000 from all sources
Is your head
swimming yet?
Make Better Decisions
• Three universities also have decision making tools available to
producers/agents
 Texas A&M
› www.AFPC.TAMU.EDU
 University of Illinois
› http://farmdocdaily.illinois.edu
 Kansas State University
› http://www.agmanager.info/fb.htm
 RMA
› http://prodwebnlb.rma.usda.gov/apps/CIDT/
What is SCO?
• SCO provides area-based coverage for a portion of your insurance
deductible
• SCO is an endorsement to Yield Protection (YP), Revenue Protection
(RP),Revenue Protection with the Harvest Price Exclusion (RP-HPE)
• The endorsement will be available in select counties for corn,
soybeans, wheat, sorghum, cotton, and rice starting with the 2015
crop year
• Must be purchased with an underlying individual crop policy
• Liability (max payout) based on expected crop value for the individual
grower
› But the amount paid out is based on how well the county does
› Payment generally occurs later than for individual policy
› Based on when county data becomes available
› Similar to Area Risk Protection Insurance (ARPI)
• 65% premium subsidy
› Regardless of coverage level of the underlying policy
Overview of SCO
• SCO coverage type follows underlying plan of insurance
› If underlying policy is yield-based (YP or APH), SCO also provides yield
coverage
› If underlying policy is revenue-based (RP or RP-HPE), SCO provides revenue
coverage
• Separate Premium and Administrative Fees for SCO by crop/county
› In addition to fees for underlying individual policy
› Follows underlying policy
• The amount of SCO coverage depends on the liability, coverage level,
and approved yield of your underlying policy
› If there are multiple types or practices for the insured crop in the county, the
supplemental protection will be determined separately for each coverage
level, type, and practice
• Indemnity payments for SCO are based on whether the yield or revenue
for an area (generally county) falls below its expected level
SCO Coverage
Example:
Grower
purchases an
individual
revenue
policy, 75%
coverage
Percent of
Expected
Grower
Revenue
100%
95%
90%
86%
80%
75%
70%
65%
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Individual Loss
Area-Based Loss
SCO Revenue
(86% to 75%)
Individual
Revenue Policy
(75% coverage)
In this example, the
grower selects 75%
revenue coverage. This
means that 75% of the
grower’s expected
revenue is coverage by
the individual (or
‘underlying’) policy, and
SCO covers an additional
11% of crop value (the
difference between 86%
and 75%). Any SCO
indemnity payment will be
based on whether or not
the Final Area Revenue
falls below the Expected
Area Revenue
Other Farm Bill Changes
• Beginning Farmer and Rancher (BFR)
› If qualified, receive 10% points higher subsidy and 80% of T-yield for YA
› Separate application required and proof of qualification must be provided
with the application
• To be a Beginning Farmer/ Rancher, an individual:
› Must not have actively operated and managed a farm or ranch in any
county/state, for more than 5 years, with an insurable interest in a crop or
livestock as an
›
›
›
›
Owner-operator,
Landlord,
Tenant, or
Sharecropper
• Insurable interest may exclude any crop year:
› Under the age of 18
› In post-secondary studies or
› On active duty in the U.S. military
Requesting BFR
• An individual must complete a BFR application by the applicable
Sales Closing Date to be eligible
• If insured has an EIN, all individuals with a SBI in the insured must be
qualified as a BFR
• Documentation for BFR eligibility and excluded years of insurable
interest must be provided by the producer at the time of BFR
application
• Approved Insurance Providers verify BFR status by the acreage
reporting date and notify the producer of failure to qualify, if applicable
• An amended BFR application is required to update the status when
there is a change in exclusions of insurable interest
› For example, an Individual in the Army Reserve goes on active duty
Other Farm Bill Changes
• Conservation Compliance (Applicable to Highly Erodible Land (HEL) and
Wetlands)
› Violations include converting a wetland, planting on converted wetland, and
planting on HEL without a conservation plan
› If in violation or without an AD-1026 on file w/ FSA by 6/1/15, insured will
have no premium subsidy on all policies but can still have crop insurance
› Ineligibility applies to reinsurance year(s) after final determination, including
all appeals of violation/non-compliance
› First year of ineligibility will be 2016 reinsurance year
› FSA will send RMA a list of violators this winter
› Q. Do I need to have a completed certification of compliance, form
AD-1026, filed with the Farm Service Agency (FSA) to be eligible for
premium subsidy on my crop insurance policies?
A: Yes, to be eligible for premium subsidy a completed and signed form
AD-1026 must be on file with FSA by June 1, 2015 for the 2016
reinsurance year (July 1, 2015 – June 30, 2016), and you, and any
affiliated person, must be in compliance with the HELC and WC provisions.
New Producer
A New Producer (NP) is a person who has not been actively engaged
in farming for a share of the production of the insured crop in the county
for more than 2 APH crop years
• The insured must not have produced the insured crop in the county
for more than 2 APH crop years, ever (not limited to just the last 10
years)
• Producing the insured crop means actively engaged in farming for a
share of the insured crop’s production in the county or being a SBI
holder to a person who has been actively engaged in farming for a
share of the insured crop’s production in the county
› If a crop is planted and insurable it is considered producing the crop for NP
purposes (i.e. wheat for grain that gets short-rated or corn for grain that
gets harvested as silage)
› Producing the crop does not include when the crop is planted in such a
way that it would not be insurable (i.e. wheat planted with intent to
graze/hay or silage-only type of corn planted for silage in grain only county)
New Producer
• Benefit is 100% of T-yield without having records, plus ability to
qualify for Optional units
› If qualifying for NP with 1 or 2 years of actual records, those records must
be provided
• Must request, document, and verify NP status by (PRD) production
reporting date.
› The company must obtain NP Certification form initial year NP status is
requested
› Includes New and Transfer in policies
• Determine New Producer status early and make sure you truly qualify
to avoid problems down the road
• NP’s also need to turn in an Intended A/R for (PP) Prevented Planting
eligibility purposes the first time they farm in a new county
› Intended A/R for PP eligibility not accepted if other crops previously grown
in county
New Producer – Regional Office Request
• Some situations allow a request to the regional office (RO) for a
100% T-yield when otherwise the insured may be limited to
something less
• Solution to avoid 65% T-yield is to make a request to the RO to use
100% T-yield
• Formation or dissolution of an entity does not automatically qualify the
new entity as a New Producer
› These situations no longer allow an RO Determined Yield request due to
“New Person” procedures
• Situations that may still warrant an RO Determined Yield:
› A person or SBI has NOT produced or shared in the crop for more than 2
APH crop years in the last 10 calendar years
› Insured produced the crop for more than 2 crop years, stopped farming ALL
land in that farming operation, and has produced the crop on entirely
different land for 2 APH crop years or less in the county
• Use RMA RO Determined Yield Request form and the request must
be made by the Production Reporting Date
WFRP Basics
• A whole-farm insurance product that provides producers with
risk management protection for all commodities on the farm
under one insurance policy.
• Provides protection against loss of revenue that a producer
expects to earn or will obtain from commodities produced or
purchased for resale during the insurance period.
› Whole-farm revenue consists of revenue from all insured
commodities on the farm operation, including revenue from animals
and animal products.
• Insures against loss of approved revenue due to unavoidable
natural causes that occur during the insurance period
• Insurance Year
› A calendar year if you file your taxes on a calendar year basis, or
› A fiscal year if you file your taxes on a fiscal year basis
› is designated by the calendar year in which the sales closing date
occur
WFRP Basics
Coverage is based on the lesser of:
• The farm operation’s whole farm historic average revenue and expenses
using five consecutive tax years information immediately before the
insurance year and adjusted according to the policy
› Indexing process accounts for farm growth
› Expanding operations provision allows for 10% growth over historic
average, with AIP approval, and;
• The commodities the producer expects to earn revenue from during the
current insurance period as reported on the Farm Operation Report
Coverage levels of 50% - 85% in 5% increments
Losses are based on:
• Whether the Allowable Revenue, (farm revenue the IRS requires to be
reported on the farm tax records) from the production of commodities
produced during the insurance year, falls below the Insured Revenue (the
amount of revenue the farm operation is expected to earn during the
insurance year times the coverage level chosen).
WFRP Premium Subsidy
• Farms with 2 or more commodities receive Whole Farm premium subsidy
• Farms with 1 commodity receive standard premium subsidy
WFRP Subsidy: Percentage of Total Premium Paid by Government
Coverage Level
50%
55%
60%
65%
Whole-Farm SubsidyQualifying Commodity
80%
80%
80%
80%
Count: 2 or more
Basic Subsidy-Qualifying
Commodity Count: 1
67%
64%
64%
59%
70%
75%
80%
85%
80%
80%
71%
56%
59%
55%
48%
38%
YA, YE, TA
Yield Adjustment (YA) APH Adjustment Election
Insured’s may elect to substitute their actual APH yields with 60% of the county T-yield if their individual APH yields, in
comparison, are lower.
Actual Yields include:
•
Assigned Yields
•
Temporary Yields
Yield Exclusion (YE)
The APH YE is a provision of the 2014 Farm Bill that allows for the exclusion of an actual yield for a crop year when
RMA determines the county per planted acre yield for a crop year was at least 50 percent below the simple average of
the per planted acre yield for the crop in the county for the previous 10 consecutive crop years. When a crop year is
determined to be eligible for YE for a crop in a county, producers in contiguous counties will also be eligible to exclude
their actual yield for that crop year under YE. Separate determinations will be made for irrigated and non-irrigated
acreage, when data is available. The YE option will be listed in the county actuarial documents showing the crop and
eligible crop year(s) for exclusion.
Trend Adjustment (TA)
Trend Adjustment assesses yields by county, ​ Makes up for lag in APH yields​ Recalculated every year,​ Continuous
until canceled, ​ Must be chosen by sales closing date, ​ Covers corn, soybeans and wheat, (not available everywhere)
Higher rate does apply
Transition Yields (T-Yield)
If at least four successive years of records are not available, a transition or T yield for each missing year must be substituted.
Each county has a different T yield. It is based on the 10-year historical county average yield. Growers with no records are
assigned 65 percent of the T yield as their APH yield. Growers with a record for one year receive 80 percent of the T yield for
the other three years. With two records, they receive 90 percent of the T yield, and with three records, they receive 100
percent of the T yield for the one remaining year needed to calculate the APH. Once each year has been assigned a yield, the
APH is just a simple average of the four yields.
If only a few years of yield records exist, the APH yield may be considerably below the actual expected yield because of the
reduced T yields. In that case, buying an ARPI Product may be a good strategy, since ARPI Product guarantees are based on
county yields rather than individual farm yields. This could provide a higher level of protection while the farm builds records to
establish a realistic APH yield.
A new farmer or one who has never planted the crop to be insured will receive 100 percent of the T yield for the APH. If the
crop continues to be planted for four years, the T yields will be replaced with the actual production each year. New producers
who have previously been closely associated with farming a particular unit, such as children taking over a family farm, can
use the previous operator’s records to establish an APH yield.
Once four years or more of production history are available, the APH is the simple average of all of the yearly reported yields.
The four years of history will eventually build to ten years. After ten years of history are reached, the APH becomes a moving
ten-year average yield. As each new year of production history is added, the oldest record is dropped out of the calculation.
Cup and Floor
When a new yield record is added to the APH history, the APH has a cup of 10 percent, that is, the proven yield is not allowed
to decline by more than 10 percent in one year.
The APH also has a floor equal to 70 percent of the T yield for growers with only a one-year record. Growers with two to four
years of yield records have a floor equal to 75 percent of the T yield, while growers with five or more yield records have an 80
percent of T yield floor. This prevents a year in which a producer has a severe crop failure from having a disproportionately
large influence on the APH yield, especially when only a few years of yield records are available.
Producers also can request that a low yield for a particular year be replaced with a yield equal to 60 percent of the county T
yield. In effect, this becomes the minimum reported yield. This adjustment can be requested for any past year used to
calculate the APH yield.
Although the APH yield is usually just a simple average of the production history for each insurance unit, a grower who enters
farming, adds new land, plants a new crop, or has a crop failure can cause one or more of the special provisions to be
implemented. Therefore, it is a good idea to establish the APH for each insurance unit with a licensed crop insurance agent
long before the sign-up date. Even for the catastrophic level of coverage, an APH value for each farm unit is needed.
Trend Adjustment
•
•
•
•
Optional – must be elected by sales closing date
Adjusts each eligible yield in database (Actual & YA only)
Available on buy up levels of RP, YP, RPHPE - not available on CAT
Cups and yield floors not applicable when TA is elected for the crop
› Even on a unit with a database that does not qualify for TA
› Practices/types excluded from TA by RMA are still eligible for cups/floors
• SA (simple average) T-Yields must be recalculated in subsequent
years if the insured removes the TA election
› Any 2014 SA T-Yield calculated from approved APH yields that were based
on actual yields with Trend Adjustment must be replaced with Variable Tyields if TA is cancelled for 2015
› If RMA cancels TA for the crop/practice, AIP can recalculate SA T-Yield
• Approved APH yield will not be less than what it would have been
w/out the TA adjustment OR greater than the highest actual yield in
the database plus one year of trend adjustment
APH Database Qualifications for TA
• APH database must have at least one actual yield in one of the four
most recent crop years to qualify for TA
• If the APH database contains fewer than four actual yields in the 12
most recent crop years the trend adjustment is reduced as follows:
1.
2.
3.
4.
One actual yield = 25 percent of trend adjustment;
Two actual yields = 50 percent of trend adjustment;
Three actual yields = 75 percent of trend adjustment;
Four or more actual yields = 100 percent of trend adjustment
›
(If 2 actual in last 12 and TA is 2 bushels, adjustment would be 1 bu.)
• 2003 is last year in the database we can use to find our 4 actuals in
the most recent 12 years (2015 – 12 = 2003)
• TA amounts vary from year to year
› Check actuarial
High-Risk Alternate Coverage Endorsement (HR-ACE)
• The HR-ACE allows policyholders to insure high-risk acres at an
additional coverage level that is lower than the coverage level on their
non-high-risk acres but higher than CAT level
• HR-ACE may be elected with the following coverage plans:
› Yield protection
› Revenue protection
› Revenue protection with harvest price exclusion
New Breaking Acreage
Two options for insuring New Breaking (NB) acreage
1. Request for Written Agreement to RMA Regional Office, by Sales
Closing Date
› NB Type details in Paragraph 73 of Written Agreement Handbook
2. Request to the approved insurance provider, by Acreage Reporting
Date
›
›
›
›
Statement must be present in Special Provisions for crop/county
Must meet insurability requirements in Special Provisions
Statements in same format as we had for 2014 Spring
If this option available, NB must come to the AIP first versus an RO Written
Agreement request
New Breaking Coverage via Regional Office Written
Agreement
•
•
•
•
Written Agreements (WA) due by SCD
WA will provide 65% T-yield if true native sod
If ground previously broken, WA will be 80% T-yield
NB acreage must be reported by CLU (FSA farm/tract/field) on
acreage report, production report, and APH database
› If not, policy will not clear RMA edits
› Policies must be Mapped in 2015
• If in a county with the New Breaking Insurability Request option, the
RO will only do NB WA on policies that do not meet requirements that
allow AIPs to approve
› Acreage minimums exceeded
› Soil Type Capability class not met
› Deadline to break out NB acreage was missed
New Breaking SP STATEMENTS
III & No Date
IV & No Date
11/30 CCD
III & 2/28
IV & 11/30
Coverage on Acreage Emerging from USDA Program
• Crop Insurance Handbook now states “Acreage Emerging from a
USDA Program” instead of just CRP
› No procedural changes, however
• If acreage planted within first two years of emergence, insured uses
history prior to CRP or gets 100% of T-yield on CRP acreage for initial
year
• CRP acreage must be reported separately on acreage report, with a
separate APH database, and CLU’s identified and maintained on
units containing CRP
› Must report by FSA farm/tract/field to clear RMA edits
› Policies must be mapped in 2015
• 2nd year after planting, separate databases are combined and
standard APH procedures apply
CRP Procedure
This Chart is for Illustration Purposes Only
1st Year Planted
1.
2.
Acreage is insurable without written agreement.
APH(s) and acreage reports must be identified/reported
separately on the applicable CRP acreage.
3.
4.
CLU’s must be identified and maintained on CRP acreage
Standard unit division/PTV guidelines apply*
1st Year
OR
1st Year
Prior history applicable to CRP
acreage may be (re)certified by
the production reporting date.
100% of county T-Yield will
apply to the CRP acreage.
*SA Ts, PTYs and MYs are
NOT applicable to CRP acreage
the first year.
*SA Ts, PTYs and MYs are
NOT applicable to CRP acreage
the first year.
2nd Year
2nd Year
1.
2.
If applicable, APH
databases within a unit
must be combined.
Standard T-Yield / APH
rules apply.
YES
Is the acreage
planted within 2
crop years of
emergence from
CRP program?
1.
2.
NO
NB WA procedures apply
If applicable, APH
databases within a unit
must be combined.
Standard T-Yield / APH
rules apply.
33
2015 Cover Crops
• Statement and procedures remain essentially the same for 2015
› Always check the Special Provisions for your crop/county and utilize the
IMAP on the NCIS webpage to help identify specific changes in your area
• Statement (shown below) dictates use of NRCS Cover Crop
Termination Guidelines found on the NRCS website
› The NRCS Termination Guidelines did change for 2015 crops
• Insurance shall attach to a crop following a cover crop when the cover
crop meets the definition provided in the Basic Provisions, was
planted within the last 12 months, and is managed and terminated
according to NRCS guidelines. If growing conditions warrant a
deviation from the guidelines, producers should contact either
Extension or the local NRCS for management guidance. For
information on cover crop management and termination guidelines,
refer to the Cover Crop Termination Guidelines published at:
http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/landuse/crops
2015 NRCS COVER CROP TERMINATION GUIDELINES
“September 2014, Version 3” Publication
• These guidelines will be applicable to all USDA programs
• These guidelines only apply to non-irrigated cropland, including
systems that contain a fallow period
› The cover crops in irrigated cropping systems should be terminated based
on the crop system and the conservation purpose, but before the planted
insured crop emerges
• Biggest change for 2015 is in areas of the country with a
Summerfallow practice
› If a cover crop is planted on summerfallow acreage in a fallow year, the
following planted crop will not meet the RMA Summerfallow practice
definition until the acres lie fallow for a full year
› If a cover crop was planted during the fallow year, the acreage may be
insured under a “continuous cropping” practice (if available) or by written
agreement
DECEMBER 2013 & SEPTEMBER 2014
GUIDELINES
ALL ZONE
DESIGNATIONS
REMAIN
UNCHANGED
PM-14-045: Levels by Irrigated /Non-I
• An insured with an agricultural commodity on IRR & NI land may elect
a different coverage level for each practice
› Authorized in 2014 Farm Bill Sec. 11015
› Cannot have CAT as one of the levels
› Available for buy-up policies when provided in actuarial documents,
beginning with 2015 spring crops and the 11/30 Contract Change Date
• For example, insured may choose:
› 65% level for IRR Soybean acreage
› IRR-Conventional cannot be different from IRR-Certified Organic
› 80% level for NI Soybean acreage
› NI-Conventional cannot be different from NI-Transitional Organic
Levels by IRR/NI QA
Q. Can I elect more than one coverage level if I have more than one type of irrigated
practice on my actuarial documents?
A: No, all IRR practices must be insured at the same coverage level and all NI practices
must be insured at the same coverage level. For example:
• SF & CC wheat must be insured at the same coverage level.
• IRR wheat may be insured at a different coverage level.
Q. If I do not plant IRR acreage or do not qualify for an IRR practice but I elected
separate coverage levels, what coverage level will I have for insurance?
A: You will still have the coverage level you elected for the NI practice. For example:
› Chose 65% for all IRR & 80% for all NI Corn
› If no IRR Corn, the 80% level will apply to all acres qualifying for NI
Q. What if I elected enterprise units by irrigated and non-irrigated practices for my crop
and I no longer qualify for the separate EU?
A: Qualification for EU does not impact coverage level elections. The separate coverage
levels elected will apply to the unit structure for which you are eligible.
PM-14-046: Enterprise Units by IRR/NI Practice
• 2014 Farm Bill Section authorizes separate enterprise units for IRR &
NI acreage
• Available for any crop with EU allowed by:
› Actuarial documents;
› Crop Provisions; or
› Special Provisions
• Enterprise unit structure codes:
› “EU”: Single EU by crop/county
› NEW “EP” : Separate EU by IRR & NI
› When allowed in actuarials, & insured elects & qualifies for separate EU
• Effective beginning with 2015 spring crops starting with 11/30 CCD
EU by IRR/NI Deadlines and Qualifications
• Producers must elect separate IRR/NI EU by the Sales Closing Date
› Use EP (Enterprise by Practice) code and elect on Application or Policy
Change form
• We still determine if insured qualifies for EU by IRR/NI when insured
provides acreage report
• EU must contain all insurable acreage:
› (a): of the crop in the county [1 EU]; or
› (b): [NEW] if allowed & elected, 2 separate EUs by IRR/NI practice:
› One EU for all insurable IRR acreage of the crop; &
› One EU for all insurable NI acreage
• Each IRR/NI EU must meet existing EU requirements
IRR/NI EU Miscellaneous
• An insured cannot elect to have EU on IRR acreage and BU/OU on
NI acreage, or vice versa
• If the insured does not qualify for separate EUs on IRR and NI
acreage, one EU is still possible if he/she can still meet the
qualifications for an EU containing all insurable acreage of the crop
• Existing EU subsidy rates apply
• EU discounts are likely to be smaller, as separate EUs will likely
result in smaller tracts of acreage
› The reduction will vary depending upon the amount of acreage in each
practice
IRR/NI EU Requirements
• Must plant crop with a clear & discernible break in the planting pattern
at IRR/NI boundaries to qualify for separate EUs
› Similar to qualifying for OU by IRR/NI, now this language in EU section 733
› Not required for single EU by crop/county
› Though separate APH databases still required by P/T
• Applicable “clear & discernible break” language:
› Original planting, including reseeding & replanting
› Cultivating, disking, mowing, etc., after planting or harvesting does not
qualify
› Exception for NI corners of center pivot irrigation system allows for:
› Planting end rows before or after planting; or
› Cultivating, disking, mowing, etc., after planting
› Breaks must be completed by ARD & be clearly discernible if inspection required
• Precision farming & GPS yield monitors meet discernible break requirement
Coverage Levels and EUs by IRR/NI Practice
• IRR EU at 70% level; NI EU at 80%
• Does not qualify for separate IRR & NI EU but does qualify for single
EU
Q: Which coverage level applies to the single EU?
A: One EU but still IRR acreage at 70% & NI acreage at 80%
› IRR/NI levels & EU are separate elections
› The only requirements for IRR/NI levels:
› Allowed in actuarials for crop/county;
› Insured has buy-up policy & elects level for each practice by SCD
What is APH Yield Exclusion (YE)?
• APH YE is a provision of the 2014 Farm Bill that allows for the
exclusion of an actual yield for any crop year where RMA
determines the county per planted acre yield for that crop year
was at least 50 percent below the simple average per planted
acre yield for the crop in the county for the previous 10
consecutive crop years.
• RMA determines the eligible years and lists them in the actuarial
documents for the crop/county
Eligible Crop Year
• A crop year determined eligible for exclusion for a crop in a
county, will also be eligible for exclusion in contiguous counties,
as identified in the actuarial documents.
• The actuarial documents will identify if the crop year eligible for
exclusion is from the producer’s county (primary county,
designated with a “P”) or from a contiguous county (designated
with a “C”).
Eligibility for YE - Election
• For the current crop year:
• The insured must elect YE by the sales closing date by crop/county.
• Election must be made on an application or policy change form by indicating
the “YE” option code.
• Policyholders who elect YE must understand that ALL
actual yields in an eligible crop year are automatically
excluded
• UNLESS the insured opts out of excluding an actual yield by identifying the
yield not to be excluded in the APH database.
• YE is a continuous election until cancelled.
Yield Adjustment Interaction
• A producer may elect and apply both YA and YE options on a policy
and within an APH database.
• Only one option, either YE or YA, can be applied to an actual yield for
an eligible crop year within an APH database.
• If both YE and YA are elected and applies to all eligible crop years and
a crop year qualifies for both elections, YE will apply to an actual
yield in an eligible crop year unless the insured chooses to not
exclude that yield in the APH database.
Adjusted Yield
• When YE is applicable to an APH database, AIPs must
calculate an adjusted yield.
• The adjusted yield is the average of the annual yields in the
APH database:
• Without yield limitations (cups and yield floors);
• Without any yield exclusions; and
• With yield substitutions, if YA is elected by the insured. If YA is not
elected by the insured, yield substitutions are not included and the
adjusted yield is the average of the annual yields in the APH
database.
Determining Premium Rates on YE Database
• If the approved APH yield calculation chosen by the insured excludes
at least one actual yield in an eligible crop year, the average yield is
used as the rate yield and the effective coverage level (based on the
adjusted yield) is used for determining premium rate.
• Effective coverage level same concept as TA, example:
• 121 Standard Approved APH
• 135 YE APH
• 135/121 = 1.12 factor x 75% coverage level = 84% Effective Coverage Level,
used to determine premium rate on the YE unit
Section 15 – Calculating the Yields for APH Databases When YE
is Elected (D)
Scenario with YE Option with YA and TA
Year
Eligible For Exclusion
T-Yield
60% of Applicable TYield
APH
APH with
YA
APH with All Eligible Yields Excluded,
YA, and TA
2005
No
206
124
628
628
678
2006
No
227
136
746
746
791
2007
Yes – by Contiguous County
268
161
231
231
2008
No
301
181
563
563
598
2009
No
301
181
430
430
460
2010
No
301
181
111
181
206
2011
No
301
181
531
531
551
2012
Yes – by Primary County
301
181
0
181
2013
Yes – by Primary County
361
217
35
217
2014
No
361
217
95
217
222
337
393
501
Approved APH Yield
Notice of Loss Deadlines
• Provisions require notice of loss w/in 72 hours after
discovery of damage, but not later than 15 days after end
of insurance period
› End of insurance period is not always the calendar date!
• PP Notice of Loss must be w/in 72 hours after:
› Final plant date if no intention to plant during the LP
period, or if LP period not applicable
› Insured determines he/she will be unable to plant w/in
any applicable LP period
• Revenue losses must be submitted no later than 45 days
after release of Harvest price
End of Insurance Period
• Insurance ends on each unit, or part of unit (even though the
insurance period may not have ended for other acreage within the
unit) at the earliest of:
› Total destruction of crop
› Harvest
› Final adjustment of loss
› Applicable calendar date in the Crop or Special Provisions
› Abandonment
› As otherwise specified in the Crop Provisions
Note: the policy does not cover the insured crop after it has left
the field (exception for tobacco and potatoes)
It is considered a Delayed Notice if reported after 72 hours of
discovery of damage but no later than 15 days after the end of
the insurance period
Claim Reminders
• In a loss situation
› Production from different optional units must be separate scale tickets in
addition to marketing records (No commingling)
› Or conveyance records in the field (combine hopper, grain cart, etc.)
• If you intend to commingle old crop & new crop, requires
measurement by The company
• Appraisal must be completed prior to destroying any crop or putting
that crop to a different use
Things to Remember
• Entity Changes – FSA, MPCI, Grain Sales
• Marriages / Divorces / Death
• New Breaking / CRP
• Tax ID Changes
• Authorization to sign (Spouses)
Discovery Dates
Projected price- The pre-harvest year’s average daily settlement price for the projected price discovery period for
the harvest year’s futures contract, as shown below, rounded to the nearest whole cent. The projected price will
be released no later than three business days following the end of the projected price discovery period.
Harvest price- The harvest year’s average daily settlement price for the harvest price discovery period for the
harvest year’s futures contract, as shown below, rounded to the nearest whole cent. The harvest price will be
released no later than three business days following the end of the harvest price discovery period.
Wheat
State
CO
KS
Commodity Exchange
KCBT
KCBT
Contract Month
September
July
Projected Price
Aug 15 to Sept 14
Aug 15 to Sept 14
Harvest Price
July 1 to July 31
June 1 to June 30
CBOT
CBOT
December
December
Feb 1 to Feb 28
Feb 1 to Feb 28
Oct 1 to Oct 31
Oct 1 to Oct 31
CBOT
CBOT
November
November
Feb 1 to Feb 28
Feb 1 to Feb 28
Oct 1 to Oct 31
Oct 1 to Oct 31
December
December
Feb 1 to Feb 28
Feb 1 to Feb 28
Oct 1 to Oct 31
Oct 1 to Oct 31
Corn & Grain Sorghum
CO
KS
Soybeans
CO
KS
Sunflowers
CO
KS
CBOT
CBOT
Silage/High Moisture/Appraisal
Requirements
• MUST be appraised before cutting/chopping in order to collect a loss.
• Please call First Tribune Insurance 620-376-4239 before you harvest!!
• Get production in from those units for loss determination.
GRAIN FIRE ENDORSEMENT
Grain fire for wheat
A flat rate of $0.25 per $100 of insurance shall apply to all crop
classes and locations.
Kansas T-Yields
2014 T-Yields - Kansas
Crop
Corn
Grain Sorghum
Silage Sorghum
Sunflower-Oil
Sunflower-Conf.
Soybeans
Oats
Onions:
Red
White
Yellow
Dry Beans:
Great Northern
Light Red Kidney
Pea (Navy, Med. White)
Pink
Pinto
Small White
Barley Winter
Barley Spring
Millet-MPCI
Wheat
Greeley Co
T-Yield
Irr
Non-Irr
Wallace Co
T-Yield
Irr
Non-Irr
Wichita Co
T-Yield
Irr
Non-Irr
Hamilton Co
T-Yield
Irr
Non-Irr
Kearny Co
T-Yield
Irr
Non-Irr
Sherman Co
T-Yield
Irr
Non-Irr
169
84
16.1
1550
1550
49
30
34
43
5.9
877
877
16
30
171
93
16.1
1563
1563
52
30
42
36
5.2
991
991
14
30
177
104
18.1
1518
1519
43
30
52
66
6.4
1182
1182
None
30
148
84
15.6
1499
1501
49
None
32
44
5.4
855
855
None
None
179
84
16.4
1579
1579
46
None
51
52
5.7
855
855
None
None
178
98
15.8
1708
1527
51
30
34
42
6.1
879
739
14
30
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
160
250
265
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
1618
1618
None
None
1442
1442
None
None
1618
1618
None
None
None
None
None
None
1618
1618
None
None
1688
1688
None
None
1618
1618
1618
1618
None
None
None
None
1442
1442
1442
1442
None
None
None
None
1618
1618
1618
1618
None
None
None
None
None
None
None
None
None
None
None
None
1618
1618
1618
1618
None
None
None
None
1688
1688
1688
1688
None
None
None
None
43
43
40
45
29
29
25
28(cc18)
43
43
40
45
29
29
25
31(cc19)
43
43
40
47
29
29
25
36(cc25)
43
43
40
44
29
29
25
28
43
43
40
45
29
29
25
32
43
43
40
52
29
29
25
33(cc21)
ALL quotes are always free of charge!
Colorado T-Yields
2014 T-Yields - Colorado
Kiowa Co
T-Yield
Non-Irr
Crop
Irr
Corn
Corn Silage Colo Ton
Grain Sorghum
Silage Sorghum
Sunflower-Oil
Sunflower-Conf.
Soybeans
Oats
Onions:
Red
White
Yellow
Dry Beans:
Great Northern
Light Red Kidney
Pea (Navy, Med. White)
Pink
Pinto
Small White
Barley Winter
Barley Spring
Millet-MPCI
Wheat
Prowers Co
T-Yield
Irr
Cheyenne Co
T-Yield
A, B, C, D, 4, 5
1, 2, 3
Non-Irr
A, 2, 3, 4
1, 2, 3
Non-Irr
A, B, 3
128
16,19,20,26,26,26
110,116,151
20,24,24,37
161
7,21,25
52
16,19,23,25,35,35
16,19,24
246,642,749,910,910,1070
181,473,552,671,671,789
None
None
15,21,23,26
2.0,2.5,3.1,3.6
516,609,718,845
465,549,648,762
None
None
62
1,425
1,354
None
None
29,36,55
8.6,10.8,16.3
855,1040,1425
814,990,1356
17,26,34
None
1328,1328,1562
1268,1268,1492
523,617,726
464,547,644
None
None
None
None
None
None
160
270
300
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
1727
1727
1537
1537
1727
1727
None
None
None
None
None
None
58
58
40
23
9,12,15,20,20,23
9,12,15,20,20,23
8,10,13,18,18,20
8,10,18,24,21,24
37,42,59
37,42,59
None
28,38,42
11,15,18,21
11,15,18,21
None
14,18,22,32
54
54
40
43
12,14,21
12,14,21
12,14,21
17,19,23
ALL quotes are always free of charge!
Irr
Plant Dates
2014
E = Earliest Plant Date
L = Last Plant Date
LAST PLANT DATES
KANSAS
Wheat
Barley
Corn
Dry Beans
Grain Sorghum
Millet
Oats
Soybeans
Sunflowers
Greeley
20-Oct
10/20 - 4/30
E4/10 - L5/25
E4/26 - L6/25
E4/26 - L6/25
25-Jun
31-Mar
E4/26 - L6/20
E4/25 - L6/25
Hamilton
20-Oct
10/20 - 4/30
E4/5 - L5/25
N/A
E4/26 - L6/25
25-Jun
N/A
E4/26 - L6/25
E4/25 - L6/25
Harper
5-Nov
11/05 - 4/30
E4/1 - L5/25
N/A
E4/26 - L6/25
N/A
31-Mar
E4/15 - L6/25
E4/20 - L6/25
Kearny
20-Oct
10/20 - 4/30
E4/5 - L5/25
E4/26 - L6/25
E4/26 - L6/25
25-Jun
N/A
E4/26 - L6/25
E4/25 - L6/25
Lane
20-Oct
10/20 - 4/30
E4/05 - L5/25
N/A
E4/26 - L6/25
N/A
N/A
E4/26 - L6/20
E4/25 - L6/25
Pratt
05-Nov
11/5 - 4/30
E4/1 - L5/25
N/A
E4/26 - L6/25
N/A
31-Mar
E4/26 - L6/25
E4/20 - L6/25
Sherman
15-Oct
10/15 - 4/30
E4/10 - L5/25
E4/26 - L6/25
E4/26 - L6/25
25-Jun
31-Mar
E4/26 - L6/15
E4/25 - L6/25
Wallace
15-Oct
10/15 - 4/30
E4/10 - L5/25
E4/26 - L6/25
E4/26 - L6/25
25-Jun
31-Mar
E4/26 - L6/20
E4/25 - L6/25
Wichita
20-Oct
10/20 - 4/30
E4/10 - L5/25
E4/26 - L6/25
E4/26 - L6/25
25-Jun
31-Mar
E4/26 - L6/20
E4/25 - L6/25
Wheat
Barley
Corn
Dry Beans
Grain Sorghum
Millet
Oats
Soybeans
Sunflowers
-
COLORADO
Arapahoe
15-Oct
NA
4/30
E4/15 - L5/25
N/A
N/A
25-Jun
N/A
N/A
E5/15 - L6/15
Baca
15-Oct
10/15 - 4/30
E4/15 - L5/25
N/A
E4/16 - L6/20
N/A
N/A
E5/5 - L6/25
E5/15 - L6/25
Cheyenne
15-Oct
10/15 - 4/30
E4/15 - L5/25
E5/15 - L6/20
E5/1 - L6/15
25-Jun
N/A
N/A
E5/15 - L6/20
Kiowa
15-Oct
10/15 - 4/30
E4/15 - L5/25
N/A
E5/1 - L6/20
25-Jun
N/A
N/A
E5/15 - L6/20
Lincoln
15-Oct
NA
NA
E4/15 - L5/25
E5/15 - L6/20
E5/1 - L6/15
25-Jun
N/A
N/A
E5/15 - L6/20
Prowers
15-Oct
10/15 - 4/30
E4/15 - L5/25
N/A
E4/16 - L6/20
N/A
N/A
E5/5 - L6/25
E5/15 - L6/25
E = Earliest Plant Date
L = Last Plant Date
-
Coverage Levels & Premium Subsidies
50
55
60
65
70
75
80
85
Enterprise
Unit
80%
80%
80%
80%
80%
77%
68%
53%
Basic Unit
67%
64%
64%
59%
59%
55%
48%
38%
Optional Unit 67%
64%
64%
59%
59%
55%
48%
38%
Whole Farm
80%
Unit
80%
80%
80%
80%
80%
71%
56%
Coverage Level
Subsidy
Factors
“Top 5” problems we see at FTIA.
1. Share on the settlement sheets is different than it is insured.
2. Delay in production. (Farmers telling us they don’t have a loss, when they do,
resulting in them not getting paid because they didn’t turn production in timely.)
3.Farmers changing shares, acres, or names at the FSA office and not at First
Tribune Insurance.
4.Incomplete acreage reports. (Forgetting to report all acres that are planted,
whether insurable &/or non-insurable.)
5.Farmers forgetting to report seed wheat in their production.
Crop Insurance Companies
• September 30, 2014:
• Wheat Sales Closing Deadline - Deadline to apply, reinstate, cancel or make changes to your 2015 Wheat Crop Insurance contract.
We will have you check all of your information and sign your application by this date.
Earliest Planting Dates: Corn 04/10/2015 Kansas (04/15/2015 Colorado)
•
Grain Sorghum 04/26/2015 Kansas (Colorado 5/1/2015, except Prowers 4/16/2015) Soybeans 04/26/2015
•
Sunflowers 04/25/2015 Kansas (05/15/2015 Colorado)
• Final Planting Dates:
•
Wheat 10/20/2014 (Greeley, Hamilton, Kearny, Lane, Wichita)
Wheat 10/15/2014 (Sherman, Wallace) (Colorado)
•
Corn 05/25/2015 Grain Sorghum 06/25/2015 Kansas Grain Sorghum 6/15/2015 (Cheyenne & Lincoln CO) 6/20/2015 (Kiowa &
Prowers CO)
•
Soybeans 06/20/2015 Sunflowers 06/25/2015 Kansas Sunflowers 6/20/2015 (Cheyenne, Kiowa & Lincoln CO) 6/25/2015
(Powers CO)
• Acreage Reporting Dates: Wheat 12/15/2014 Kansas (11/17/2014 Colorado) Corn 07/15/2015 Grain Sorghum 07/15/2015
Soybeans 07/15/2015 Sunflowers 07/15/2015
• March 16, 2015: Spring Sales Closing
• Deadline to apply, reinstate, cancel or make changes, including adding any new endorsements (SCO or YE), to your 2015 Spring
Crop Insurance contract. We will have you check all of your information and sign your application by this date.
•
July 15, 2015: Spring Acreage Reporting Deadline
• Report all spring planted acres and planting dates. Report any Prevented Planting Acres
• *Please have your FSA-578 Form and Maps at this time. The acres we report MUST match your FSA-578 Certified Acres.
• August 15, 2015: Spring (corn, grain sorghum) Premiums are due
• October 1, 2015: Deadline to pay 2015 spring premiums without interest being charged.
• July 1, 2015: Wheat Premiums are due
• July 31, 2015: Deadline to pay wheat premiums without interest being charged.
• Remember, unpaid premiums go on uninsurable list.