Sep 29, 2022
Harvest is well underway on most specialty crops out west which may mean it’s time to dig out your crop insurance paperwork. 2022 has been a challenging year between ongoing water scarcity issues and untimely freezes for many of our orchard crops. These challenges have led to a much larger number of crop insurance claims being opened with carriers than the past few years. Here are a few key reminders while trying to navigate your potential claim: 1. Open the Claim If there is ANY chance your production will fall below the insurance guarantee, be sure to inform your agent. Claims must be opened with the AIP prior to beginning harvest so an adjuster can inspect any damage. 2. Work with the Adjuster After the claim has been opened, work with the adjuster. It is their responsibility to inspect your crop prior to harvest. During their inspection they will verify that there has been weather related damage to the crop and estimate the extent of the damage. Reach out to your agent if you’ve opened a claim but have not heard from the insurance company. They will be able to help you get in touch with the adjuster assigned to your claim. 3. Provide Production As soon as production records are available, provide them to your agent and adjuster working your claim. The sooner these records are handed off, the sooner your claim can be finalized and any potential indemnity paid out. This is especially important this year due to the number of specialty crop claims opened across the western region. It will also allow your agent to get a head start reviewing your APH and developing a coverage plan for 2023. 4. High Dollar Claims A high dollar claim review is conducted when a crop claim exceeds $200,000 per crop, per county. This is a standard review to double check all of the production that you have turned into your agent. An adjuster will look at the most recent year of production history. If there are no errors, they will stop there. If there are any discrepancies, they will ask for two more years of history. If your claim has the potential to exceed the $200,000 threshold be prepared to gather up those settlement sheets from 2019-2021 to expedite the process. The main point to keep in mind when dealing with a potential crop insurance claim is that communication is key. Timely communication with your agent and adjuster will keep the process moving forward, avoid any unwanted surprises and ultimately settle your claim faster. Take control of your risk and gain greater peace of mind Your FBN® Insurance agent can tailor a specialty crop insurance policy to meet the specific needs of your operation. Learn more about this program or connect with an agent by visiting the FBN Crop Insurance page or calling (877)-576-4468 . Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in all U.S. states.
Sep 28, 2022
Don Moody and Gerold Stephens from FBN® Insurance discuss how Pasture, Rangeland, and Forage (PRF) insurance can help manage your forage needs and the perils to your operation from a lack of precipitation. What you'll learn about PRF Insurance In this webinar, Don and Gerold discuss: What is PRF? What are the different coverage options? How does PRF work? When does PRF pay out? What tools exist to make PRF elections? New updates to PRF Watch now Learn more about PRF insurance Click here for more information about the PRF Insurance program or to speak to an insurance agent . Webinar Transcript Don Moody: Hello, everyone. Welcome to a presentation brought to you by Farmers Business Network®. What we're going to talk about today is how to manage your forage needs and the peril of not enough precipitation. With us today is Gerold Stephens. Gerold is an agent out of west central Missouri and he knows a fair amount about PRF pasture range, land forage, and also produces livestock himself. So he knows what we are talking about when we bring these things up. We're going to go over who we are. We're going to get into detail about what PRF or pasture rangeland forage protection is and we’re going to talk a little bit about different coverage options, how they work, when a potential indemnity may occur and what would trigger it and what tools exist. So you can make an informed decision for your ranch. Never, ever accept a one size fits all unless it's a free ball cap. There are always those infamous disclaimers. You need to know who we are and what we're liable and responsible for. Farmers Business Network was created several years ago to put farmers on a level playing field with the folks that buy our products. People in row crops are very familiar with us. That's where we got our start – Iowa, Illinois, Indiana, South Dakota, Nebraska places where row crops are very prevalent. We just started really getting serious about ranching. This last winter, we brought on one of the major players in pasture range, land and forage protection. On the insurance side, we also brought in a pharmaceutical company and a nutrition company, because again, we realized that agricultural production is a whole lot more than corn and soybeans. We really depend on cattle and the animals that graze our vast pasture lands within the continental U.S.. Specifically, we're the largest farmer to farmer agronomic and business network. We take a hundred percent anonymous data sharing and unbiased benchmarking. We do use the data on purpose and intentionally to develop better programs for you. The producer also makes sure on the pricing side of things, which is not what we're going to talk about today at all. It's another part of our house, but that you are receiving fair prices for your commodities. Also paying fair prices for your inputs. We provide insight on farm practices, seed performance, and what's relevant today is maps and weather. We're doing everything we can to leverage network demand, to decrease input costs. We are available again for online purchasing but that’s another topic for another day. We're trying to come up with creative, innovative marketing options for farmers. Look for more to come in the livestock arena. And we are local. There are more than 500 employees scattered across the lower 48 and we are also expanding into Canada. There's strength in numbers. It's not a new thing. Bargaining power. Think of your local ACE hardware store. The reason folks belong to that is because they can make better purchases controlling their bottom line and passing that on to consumers. We really are not that much different. If you look at some of our key partners, both on the retail wholesale side, both on the input in the marketing side is we try to do our best to best position you, the producer purchasing what you need to do, what you do to make a living, and then also get a better price for that. Please make the world your test plot, if you will. This was developed for probably a corn or soybean, but it's very, very applicable to ranch land. The weather is one of our main make it or break it's. It produces our yield and our yields. It's the pounds of beef produced per acre or the pounds of lamb, depending on what you utilize. Your forages for vegetative indexes are important. Crop moisture is important in some areas. Fertilizer is a very important thing to maintain the nutrition and the volume in the forages, and then the different things that go with it. This is where our membership currently is scattered. You know, we've talked earlier about the fact we started out in row crops that pretty much shows in the concentration through the ice states down in the Platte river valley and on up into, through the Dakotas, Montana and up into Canada. But as we get into livestock, you'll see this heat map change as we get into the plain states, Wyoming, Utah, New Mexico, Idaho, Nevada more than the Dakotas. So we have agents scattered around the lower 48 to assist you with your risk management assessment and coming up with ways to address those risks. Again, today, we're going to listen to Mr. Stevens in just a moment. He covers a pretty good swath of real estate, but can't cover the whole lower 48. So this is kind of where our folks are our specialists, if you will, within crop insurance, PRF, LRP, DRP. Gerold, thanks for bringing my attention to our map that we have our agent of the service maps. So we do have insurance professionals specializing strictly in crop forage and livestock insurance. You'll see where they're located, where our processors are located, where our managers are located. We have several agents that are licensed in the lower 48 covering from Pennsylvania all the way out to California, Oregon, Washington, Montana, Idaho, Wyoming. We have a gentleman in Arizona that ranches, actually two, that are very knowledgeable on the things mother nature can bring to in Nevada, Arizona, New Mexico, Utah. We are licensed and we are able to assist you wherever your need might be in the lower 48. Gerold Stephens: My name is Gerold Stephens. I'm a crop insurance agent with Farmers Business Network from Western Missouri. And we are going to talk about PRF. I'll take a chance here to say that PRF stands for pasture range, land and forage. It's a rainfall index insurance program that the RMA puts out and we're using rainfall as our yield and everything is based on historical data all the way back to 1948, where Noah has gathered rainfall data and for each weather grid across the entire lower 48. And that is how we come up with what your area should receive and rainfall on this slide. We're going to go through the PRF basics. We're going to keep it pretty high level. Step 1 First of all, in step one, we want to identify the acreage and whether it qualifies for this federal program which means that it has to be grazing ground or haying ground. You're going to talk to your agent about what kind of intentions you have for that ground and whether we can sign it up in this PRF. Step 2 We're then going to decide what coverage level is right for you in your operation. For example, if you pick a 90% coverage level, and I know Don's going to go through an example here in a few minutes, but if you pick a 90% coverage level, any rainfall underneath 90% in a two month interval is going to trigger a payment. Step 3 We're going to be looking at a really nice feature if you will, for this program, it's a multiplier. So then we can really adjust the type, adjust that coverage level and how much we're going to cover it anywhere from 60 to 150%. So, that again is pretty high level. Your agents can take care of you on that. Step 4 We're going to choose at least two, two month intervals and coverage. And it's important that we now mention that we make those two elections and have a signed application by November 15th for the 2022 crop year. And finally just hitting this lightly if any indemnity payments are to be after the premium is paid. Those payments are triggered 60 to 90 days after that interval ends. And that's, that's really nice because we're not waiting for the end of the year to get our insurance payments. If we're owed money, we're going to get those pretty close to the time that we actually experienced the lack of rainfall. Don Moody: That's a good point. Another nice point is you're not built for the coverage until barreled. It is August 1st, the bill is sent out, it's due September 1st and must be paid by November 15th. Gerold Stephens: If I remember correctly, September 1st and due by September 30th or must be paid by November 15th. Don Moody: Thank you, sir. And again, the point being there is that it coincides when a lot of folks are selling their spring calves on the fall market. Absolutely. Gerold Stephens: This slide refers to the intentions that I was referring to earlier. The only two types of ground that we can use this program on is grazing ground and haying ground. It's important to note that all grazing ground is that you need to actually own the livestock to qualify for this. It's ground that you run him over and over and bail it, bail it up. And what the reason we have to identify one or the other is that the county-based values that RMA puts out that helps us, helps us determine how much we are insuring. Hay ground has worked a lot more than grazing ground. Don Moody: Thanks, Gerold. Each county has a county-based value. That's set by the RMA based on university information, typically on what an acre of grazing or an acre of hay land is valued at in that county. And again, that's used to determine the coverage per acre. From there, we can do a production factor and really, if you take a step back and look at it, it's based on your land's ability to produce be it hay, or be it grazing, we can choose 1% factors from 60% to 150%. An example I give is I grew up in the Sandhills in Nebraska. The stalking rate on high hill ground out there can be as high as 20 acres per cow calf unit. If you've got metal ground that could drop down to five to 10 based on sub irrigation levels and this and that, and some different factors. So there's quite a difference in, in acres ability to produce. And that's why that factor is there again, Gerold did a brilliant job talking about the coverage levels, if you will, those are your risk tolerance levels. It's what you want to self-insure, which would be your deductible. If you look at it that way, what do you want to defer to the insurance company? 90% is the highest level. So anytime as Gerold talked about the normal average precipitation in that selected interval falling below 90%, it would trigger an indemnity. You can select that all down to way to 70%. The point with it is there's two points, actually one, you have options. And two, the program ought to be a plan that works for you. It's definitely not one size fits all. We have a rate example there from Vernon County, Missouri, as an example, the county based value there's $270 an acre. If you used a selected 90% of coverage level with 150% productivity factor, your coverage per acre would be $364 and 50 cents. That would be the indemnity I would receive if it did not rain at all. And we've got an example coming up, typically how it works. Every year the RMA announces new county-based value rates. We have lobbied as an example in Wyoming, the county-based value for irrigated hay land is not high enough to protect what you have at risk. We've lobbied aggressively for that. I don't know if we're gonna win or lose. We haven't seen the new kind of base values for 2022 come out yet. But the point being is that those do change up and down based on the information received by the RMA. Next, you'll talk about selecting the interval. You have to be into something that can't overlap. You can't do January, February, February, March. You can't double down on a mat in a month, but you do have to have at least two intervals. There are tools and resources out there, again for you to make the best decision. You have to have at least 10% in an interval with no more typically than 50. In some areas, you actually can go up to 70%, but that would be a specific county and a specific state. Again, that's something your insurance professional would know and could show you. But again, you want to put the plan together that best protects the two things you depend on in forage production, which is haying and grazing. That's what this program is intended for. Here's an example on hay coverage, and we're going to keep way up in the weeds on this, on purpose there. This is an example of the formula that is used to determine your actual coverage. You know, the county-based value in this example, $116. The producer selected a 90% level. It's good, good ground produces well. So they select a production factor of 150%. And then their 50% plan would equal coverage of $78.30 an acre. You can do this by hand. It's tedious, it's painful. We have tools available as most agents do to make it an automated process, but you'll see in a moment it's still very visible or visual. Again, this would would be what potentially would trigger an indemnity. The average rainfall is 3.6 inches for that interval that was selected. They receive 1.6 which is roughly half that's where that 50% weighting came in from the previous slide. We have a protection of $78.30 acres. So you would apply the deficit of rainfall times the protection, which was $78.30 would leave you an indemnity of $34.80. It's applied towards the premium first. And then after the premium is satisfied, it is applied or sent out to you in the form of indemnity. Next slide please. So we utilize data-driven elections. And what we mean by that is the RMA has been collecting average rainfall for each interval since 1948. There is a massive, massive amount of numbers out there. Earlier, we showed you an example of how, since some things can be done longhand and they can, but it's far easier. In this example, we're looking at the state of Texas. These individuals grazing within the state of Texas they're in Sherman county and their ranch is actually predominantly in grid 1 9 6 1 4. Remember Gerold talked earlier, grids are 17 by 17 miles at the equator. They get smaller as you move north based on latitude and longitude. This particular individual decided to go with a 90% coverage level, 150% productivity factor. And then from there, this is how they split their coverages out. As you can see on the slide, they pick March, April, which might be a month when it's very much dependent on moisture to develop their grasslands for the upcoming grazing season. They also picked May June, July, August and those were the three animals they picked. My hunch is it was based on when they have the need for precipitation to make or break their grazing year. And then from there, it tells us how that would work out. You know, their total indemnity potentially for this example would be $24,650. We have the ability to take the average rainfall, the different productivity factors, the different coverage levels and tailor make a program for you. And any agent that has the proper tools at their disposal. But the point with it is, it is to make an informed decision based on the data that exists that best protects your forages, which is what you depend on to sell your lands or your cattle, depending on what you do. And given the fact, this is cattlemen, my hunch is it's probably going to be cattle. PRF updates the program changes every year. And what I mean by changes is every year the army analyzes their programs to see what could be done better. What's working, what isn't working and providing clarity. One of the things that's very important about an update that came out a year ago is you have to own the cattle or have an absolute interest in the production of the cattle. This program is for livestock producers, not investors, not real estate brokers. It is for cattlemen, cattlewomen, to protect what they have. You have to make sure that things match up that the person that is utilizing the ranch land or grazing land also owns a cattle or has an interest in them. Things are based off. Locations are based on points of references. For those of you that may farm you're used to use common land units to show where the land is. You're insured with PRF. We are in some states where the grazing lands are so vast. It's actually based on a point of reference on latitude and longitude. They've made some changes to continuous land, different grids, and different weather experiences. And a lot of ranches will straddle 1, 2, 3, 4 grids. If and again, we'll get into the weeds on a one-on-one, we're going to keep it high level, but the point being is there are ways to manage your risk there's ways to assess your risk. The RMA, that's almost a tongue twister, the RMA recognizes this and makes appropriate changes to it. Again, to make it work legitimately best for the producer, but continuous land just simply means that you could have ranch land that starts in Cherry County, Nebraska, and goes across the state line up into Todd County, South Dakota. We all know that mother nature does not pay attention to where state lines end and begin. And so if your home ranch and the predominant acres you produce are in Cherry County, Nebraska, and the land continuously goes up into Todd County, South Dakota, you would have the ability to pick the grid in Cherry County and cover the land up in South Dakota, where that would be an entirely different grid because they do start and stop on state lines. So anyway, more to come on that we can get into the weeds with. Again, this goes back to reporting land. If it is available the RMA and the different AIPs, which are approved insurance providers, are insurance companies approved by the RMA to provide the insurance for pasture range, land forage. If common land units are available or resource land units are available, that is what they would like to have. Some of you have to pay attention to native sod rules, Iowa, Minnesota, Montana, Nebraska, the Dakotas. But you're familiar with that. If you've been working with your FSA offices, there are times when you will be audited, and it's not like an IRS audit. It's actually called a compliance review. And what the RMA is wanting to do is to establish that (A) you do have an interest in the livestock and (B) you do have the legal right to utilize the forage production, be it hay, or be it pasture. And to do that, it's easily done feed receipts, sale barn receipts. Leases, it's not cumbersome. It's not a problem. It's not a bother, but again, it's something your licensed insurance professional. A live person will answer or call you back. We can put you in contact with an insurance professional in your region that can get into the weeds with it. But please remember it's a program brought to you by the RMA, which is part of the USDA. The RMA stands for the Risk Management Agency. They've been around forever. Typically they are known as the folks that provide multi peril, crop insurance, but a need was recognized about 12 years ago to provide risk protection for folks that depend on forages or on forages for their livelihood. And that was the advent of pasture range, land forage production. If you live in South Dakota, North Dakota, Nebraska, Kansas, Oklahoma, Texas, New Mexico, there's actual annual forage production available. Again, the premise is the same. You depend on acres for haying or grazing off annual forage as you plant there's protection available for that PRF is for perennials. That's going to be your perennial native grasses, typically on grasslands or improved pasture, but one's an annual perennial. Today, we talked specifically about the perennial coverage, but with that, hopefully we instilled some questions. We are here to help the programs be developed for your needs. And with that, I thank you for listening. The purpose of the following material is to promote awareness of risk management concepts and to highlight risk management products, features, benefits and availability. This presentation does not provide full details of policy provisions or approved procedures. Producers should consult with a local agent for specific details and program requirements. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN membership is not required to purchase through FBN Insurance LLC, but certain features may only be available to FBN members. FBN Crop Insurance is currently offered in all U.S. states.
What Is Multi Peril Crop Insurance? The USDA Risk Management Agency (RMA) offers Multi Peril Crop Insurance (MPCI) coverage for numerous crops throughout the United States. Available for more than 100 different crops (though not all crops are covered in every region), MPCI protects farmers against crop losses caused by natural events. Crop Insurance Deadlines Important insurance dates vary by crop and region of the United States. The important deadlines are: Sales Closing Date (SCD) Acreage Reporting Date (ARD) Premium Billing Date For crops planted in the fall (e.g. winter wheat, winter barley, oats, rye, triticale), the SCD is generally September 30 with an ARD of December 15. For crops planted in the spring (e.g. corn, soybeans, cotton, grain sorghum, rice, spring wheat, spring barley), the SCD is generally March 15 with an ARD of July 15. Specialty crops (i.e. fruits, nuts, vegetables) have different SCDs and ARDs throughout the year based on the state or county in which they are grown. For the majority of these crops, the premium billing date is August 15. Other Insurance Deadlines There are other commodities or insurance programs (e.g. Pasture, Rangeland and Forage, Apiculture, Annual Forage, Margin Protection) that have a single SCD for the entire United States. The Whole Farm Revenue Protection insurance program has three different Sales Closing Dates depending on your tax filing year, which fall between November and March. Trusted MPCI Protection from FBN® If you haven't gotten a second opinion on your crop insurance in the last few years, now is the time to see how a personalized approach to insurance could make a difference in your operation. To learn more, and to ensure you meet the appropriate deadlines for the crop you are growing for your specific state and county, contact an FBN insurance agent by clicking here or calling (877)-576-4468 today. Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in all U.S. states.
The USDA Risk Management Agency (RMA) offers three federally subsidized insurance programs specific to livestock producers . These programs include: Livestock Risk Protection (LRP) Livestock Gross Margin (LGM) Dairy Revenue Protection (DRP) Additionally, the Rainfall Index insurance program includes Apiculture, Pasture, Rangeland and Forage (PRF) , and Annual Forage . These federal crop insurance programs run on a “reinsurance calendar” year starting July 1 and ending June 30 of the following year. For example, reinsurance year 2023 began July 1, 2022 and will end June 30, 2023. Livestock Insurance Deadlines For the LRP, LGM, and DRP insurance programs, the transfer or cancellation deadline is June 30 prior to the start of the new reinsurance year. If a producer wants to change their agent, switch to a different insurance company or cancel their policy for the upcoming year, the transfer/cancellation application needs to be completed and signed by the June 30 deadline. If the producer is new to LRP, LGM or DRP, an application can be completed and signed anytime during the reinsurance year. Once an application is submitted and approved, the producer can then purchase coverage using a coverage endorsement throughout the year. After coverage is purchased, premium is billed at the end of the coverage period. For LRP, the premium billing date is the first of the month following the month in which the coverage ended. For example, if the coverage period ends October 14, the billing date is November 1. For LGM, the premium billing date is the first day of the month following the last month of the coverage period in which the insured has target marketings or in which the coverage period ended. For example, if the coverage period is February-December, and the insured only has target marketings in March-May, the billing date is June 1. For DRP, the premium billing date is the 25th of the month following the month in which the coverage ended. For example, if the coverage period is October-December, the billing date is January 25. Lack of Rainfall Insurance Programs PRF and Apiculture Insurance Deadlines Pasture, Rangeland and Forage (PRF) and Apiculture insurance are classified under Rainfall Index insurance coverage. PRF, which was developed to support ranchers and hay producers by giving them the opportunity to insure their forage grown for grazing and haying , is available in the 48 contiguous United States. Apiculture insurance, which covers bee colonies, uses a range of indexing systems to assess plant growth, which indicates varying levels of honey production. December 1 is a key date for both PRF and Apiculture programs. This represents the sales closing date (for coverage between the following January through December), acreage reporting date and, if the insured wishes to transfer or cancel their coverage for the upcoming year, the date by which a transfer/cancellation application must be signed. The PRF and Apiculture premium billing date is September 1 of the following year after the sales closing date. For example, a December 1, 2022 sales closing would have a premium billing date of September 1, 2023. Annual Forage Insurance Deadlines Annual Forage insurance , which covers against lack of precipitation on acreage planted annually for use in grazing or as hay for livestock, also falls under Rainfall Index insurance coverage. The sales closing date for Annual Forage is July 15. This is also the date by which a producer must submit a transfer/cancellation application. Under Annual Forage, there are four acreage reporting dates that align with the four different growing seasons: October 15 January 15 April 15 July 15 The Annual Forage premium billing date is August 30 of the following year after the sales closing date. For example, a July 15, 2022 sales closing would have a premium billing date of August 30, 2023. Trusted Protection from FBN® Whether you raise cattle, dairy, apiculture, or swine, Farmers Business Network® has the expertise to serve producers of all sizes. With our Farmers First®approach always top of mind,our agents are here to build a loyal relationship with you, ensuring stability and trust in times of market loss, mortality loss or unexpected peril. FBN is more than just insurance. Our agents work with you to understand your biggest concerns and offer solutions that provide you peace of mind. To speak with an agent and learn more about our available coverage options, please click here or call (877)-576-4468 . Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in all U.S. states.
Whether it’s almonds in California, apples in Washington, or cherries in Michigan, there is Federal Crop Insurance Policy to help manage your risk. In fact, the USDA’s Risk Management Agency (RMA) protects 76 different specialty crops that account for over $20 billion in liabilities. Below we’ll cover three of the most common specialty crop insurance plans . Actual Production History (APH) APH policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease. This is a basic plan of insurance that covers most specialty crop commodities including almonds, apples, blueberries, grapes, peaches, pistachios, and walnuts. The farmer selects the amount of average yield they wish to insure, ranging between 50-85%. The farmer also selects the percent of the predicted price he or she wants to insure, between 55-100% of the crop price established annually by RMA. If final production is less than the yield guarantee, an indemnity is paid on the difference. The indemnity is calculated by multiplying this difference by the price selected at sign up and the insured share in the crop. Sales closing dates vary by crop and region, with most falling between November 20 and January 31 . Actual Revenue History (ARH) ARH policies are very similar to the APH policies outlined above. However, they base the guarantee on revenue per acre rather than yield. This gives producers the added benefit of some market volatility protection due to the revenue component. Crops that are eligible for ARH policies include cherries, oranges and strawberries. While sales closing dates for ARH also vary by crop and region, they primarily happen between November 20 and January 31 . Whole Farm Revenue Protection (WFRP) WFRP provides a risk management safety net for all commodities on the farm under one insurance policy. This insurance plan is tailored for any farm with up to $17 million in insured revenue (up from $8.5 million in insured revenue in years past), including farms with specialty or organic commodities (both crops and livestock), or those marketing to local, regional, farm-identity preserved, specialty, or direct markets. Sales closing dates for WFRP vary by region, with all regions falling between January 31 and March 15 . WFRP can serve as an excellent tool in a specialty crop producer’s risk management toolbelt. A few benefits of the WFRP program include: Ability to cover ALL crops grown on an operation Provides Revenue Protection on specialty crops that historically have only had yield protection options available Subsidy levels as high as 80% depending on commodity count and coverage level Ability to account for expanding operations Take Control of Your Risk with Specialty Crop Insurance from FBN® FBN has experts in specialty crop insurance located nationwide, each of whom are ready to discuss the specific needs of your individual operation. Learn more about these programs or connect with an agent by clicking here or calling (877)-576-4468 . Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider.FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in all U.S. states.
Sep 07, 2022
The USDA Risk Management Agency launched the Rainfall Index Pasture, Rangeland and Forage (PRF) insurance program to provide coverage against the lack of rainfall. The PRF insurance program was developed because ranchers and hay producers historically have not been able to insure their forage grown for grazing and haying. The PRF Insurance program is available in the 48 contiguous United States. How does PRF insurance work? PRF insurance coverage is based on rainfall rather than yields due to accurately measuring forage production and different management practices that affect forage production and yield. There is a high correlation between rainfall and forage production and indemnity payments to producers would offset the cost of purchasing replacement feed. The PRF Insurance program covers only established stands of perennial forages intended for either grazing or haying. A producer has to buy coverage by December 1 for coverage throughout the following year (January – December). Coverage is established on 2-month intervals, or mini insurance periods, county based values and coverage level. County based values are established by grazing and haying intended uses. Who sells PRF insurance? The PRF Insurance program is sold by private insurance agents and coverage is guaranteed by private insurance companies and the USDA. The USDA also provides premium assistance by covering between 51% and 59% of the premium costs, based on the producer’s selected coverage level. Each county, rainfall Grid and 2-month intervals are individually rated and influences the cost of the program as do the coverage level and productivity factor chosen by the producer. What is the Productivity Factor in PRF? The Productivity Factor is the dollar value of forage production per acre set by the Risk Management Agency. Producers can adjust this amount up or down (60% to 150%), depending on whether they want more coverage or not. Coverage and indemnities are based on the amount of rainfall measured in each Grid and 2-month interval. The rainfall measured is based on weather data collected and maintained by the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center. The index reflects how much precipitation is received relative to the long-term average for a specified area (Grid) and 2-month interval. Documented rainfall amounts for a given area are drawn from precipitation data collected at NOAA climate reporting stations using the NOAA grid areas measuring 0.25° latitude by 0.25° longitude, which is about 17x17 miles. The Grid used for coverage are based on where the producer’s acres are located and the acres allocated by intended use. The Grid’s rainfall index value is calculated from rainfall data gathered at four NOAA stations nearest to the center of the GRID and not based on what the producer receives in his/her rain gauge. Rainfall indexes are generated for the two-month periods throughout the year. Producers can then choose insurance levels on individual PRF policies for coverage as high as 90% of the long-term precipitation averages for their grid area during those specific time periods. The producer can choose to increase the County Based Value, up to 150%, to increase the value of their forage. Purchasing an annual PRF policy When purchasing an annual PRF policy, you must select at least two 2-month intervals for insurance coverage. The intervals chosen are determined by the producer and when the producer thinks precipitation is critical for a given forage type. Precipitation data is collected daily and index values are calculated and published about six weeks after the end of each two-month time period. If the rainfall index for a given grid triggers and 2-month interval is below the producer’s selected coverage level, an insurance indemnity is due. Indemnities are applied towards the producer owed premium and once the premium is covered, a check will be sent. Checks are sent soon after those index values are announced. If premium is owed, premium is billed in September of the coverage year. There is no loss adjustment associated with the PRF insurance program because the rainfall data is collected by NOAA and losses are not based on forage yields. Indemnity payments are paid more quickly than most crop insurance policies. FBN® Insurance Agents have access to a privately developed PRF analysis tool to assist producers in determining optimal coverage and display the historical performance of a Grid. Learn more about PRF insurance Click here for more information about the PRF Insurance program or to speak to an insurance agent . Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. "Farmers Business Network" and "FBN" are registered service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN membership is not required to purchase through FBN Insurance LLC, but certain features may only be available to FBN members. FBN Crop Insurance is currently offered in all U.S. states.
Aug 24, 2022
Protecting your wheat in this historic market is now more important than ever. To help you navigate this erratic time, we’ve put together a webinar so farmers know what to expect from wheat insurance for 2022. What you’ll learn The different small grains and their plan options Important dates Insurability requirements Causes of loss Tools for small grains and so much more Watch now Get covered Enrollment ends September 30, 2022 . Let FBN® help find a smart, simple, and personalized plan for you. We use data to ensure you have the right wheat insurance to fit your farm’s needs. So even if it's a second opinion, let's line up what you need from this critical risk-management tool. Call 866-665-0492 to speak with an agent or visit FBN.com/cropinsurance to learn more. Webinar transcript Kelsey Lennon (00:01): Hi, everyone. Welcome to our MPCI Small Grains Insurance webinar put on by FBN® Insurance. I first want to start by reading this disclaimer, the purpose of the following material is to promote awareness of risk management concepts and to highlight risk management products, features, benefits, and availability. This presentation does not provide full details of policy provisions or approved procedures. Producers should consult with a local agent for specific details and program requirements. We do not make any representations or warranties express or implied as to the accuracy or complete completeness of the statements or any information contained in the material and any liability, therefore is expressly disclaimed. So first I would like to introduce our two speakers. We have Mark Miller. He is an FBN insurance agent out of Northeast Arkansas, and also from Northeast Arkansas we have Dustin Faulkner. So thank you both for joining us today and walking us through wheat insurance with our crowd. So everyone knows what we are going over today. The agenda- first, we'll talk about the different small grains and plan options. We'll talk about important dates, insurability requirements, cause of loss and indemnity, examples, new updates, some tools that we have at FBN for small grain producers and processing reminders. And with that, I will turn it over to Dustin and Mark. So thank you guys for joining us. Mark Miller (01:35): Thanks Kelsey. Like she said, today we just wanted to cover some of the opportunities out there on some of the small grain type insurances and winter varieties the slides, as you can see we've got wheat, barley oats and rye. With these commodities, we have a list of products available on the MPCI side of insurance. We've got revenue protection, revenue protection with the harvest price, exclusion yield protection area, revenue protection area, revenue protection with the harvest price, exclusion area, yield protection, margin protection with a harvest price option. And then we have some additive endorsements available on these products called SCO and ECO. We'll start with the barley insurance plans. This offers revenue protection, the revenue protection with the HPE, yield protection and the endorsements of SCO and ECO. I state that you need to check the availability by state and county. We'll cover the owed insurance plans. It offers an APH, which is an actual production history 90 in some areas it does offer the SCO and the ECO endorsements, the same follows with the rye insurance plans. Mark Miller (03:31): Some important dates to point out. We start with a contract change date when we open up the season around the 30th of June, it's followed by a sales closing date of nine 30 acreage reporting dates, which is a date that identifies what you're ensuring would be 12/15. And then the premium date premium billing date would be issued around the 1st of July. It's followed up with around the end of harvest of a 10/31 end of the insurance period date. And then you would follow it up on November the 14th with a production reporting or yield data date. This slide represents the sales closing footprint on wheat and you can see the different color codes that represent your area. This slide would show the same footprint for the barley insurance. Some of the requirements that need to be met to participate in these insurance products is the insured must have a share of the crop. The actuarial documents provide the premium rates on the crop. So that's some web browser information that could give you the premium rates by the commodity. Crop is grown. The crop has to be grown on insurable acreage, and the crop is planted and harvested as grain Mark Miller (05:40): Of the causes of loss on the MPCI side of insurance would this is just a list of examples all which are naturally causing perils. We can read through the list of weather conditions, earthquake failure of irrigation, water supply, if it is caused by an insured peril during the insurance period, fire insects and plant disease, go ahead and click to the next wildlife volcano, volcanic eruption and for the revenue protection only a change in the harvest price from the projected price can sometimes influence an indemnity or a claim. Mark Miller (06:36): At this point. I'm gonna turn it over to my colleague Dustin Faulkner to explain some of the examples of the revenue protection product. Dustin Faulker (06:48) Thank you, Mark. The first in looking at this example here, we have an example of a revenue protection indemnity example for wheat on the left column there in the lighter shaded, we, we have two examples here, one where there is not a loss one where there is a loss on the left side of the, the light shaded side of the PO the slide here. We have an approved yield on, on each of these of 60. The coverage level is 85%. We have a projected price of $7 and 16 cents, and that creates a revenue guarantee of $365. Dustin Faulker (07:28): And looking at the two examples on the left of the lighter shaded on the left side, insured had a 60 bushel approved yield with, like I said, like I said, once again, with 85% policy, he harvested 60 bushels. Therefore there was no indemnity claim, excuse me, because the insured did meet his revenue guarantee on the right hand side, same approved, 60 bushel yield, 85% policy insured had a harvest yield of 42. The harvest price came in at $8 and 22 cents per bushel on this that raised the insured's revenue guaranteed of $419. The insured's actual revenue was $345, which did create an indemnity of $74. Next slide, please, Kelsey, kinda comparing this to the APH 90 example. And then to the example for rye, the approved yield for the insured is 42 insured also had a 85% policy, had a guaranteed yield of 36. If you look on the left hand side, it's showing the example where the harvest yield came in at 40, which was above the guaranteed yield for the insurer of 36 bushels. So there was no indemnity payment on the right hand side with the darker shaded. The insured had a harvest yield of 28. So that created a yield loss of eight bushels and created an indemnity payment of $26. Dustin Faulker (09:10): Let's move on to the next slide there, please kinda move over from, from those examples. And let's talk a little bit about prevent plant. There are two taps or two choices when it comes to a prevent plant acre. The first one is a straight prevent plant on eligible wheat acres, leaving the ground fallow for the remainder of the crop year. The second choice an insured may have is taking prevent plant on eligible wheat acres and planting a subsequent crop behind the prevent plant acre. Next slide, in looking at the first example we discussed, which is a straight prevent plant using this example of you know, number one, like I say, EU discount on premium is based on how many acres are actually planted. Let's kinda walk through this example, if it's okay. Insured had an approved deal of 60 bushels. He had a 85% coverage level. Dustin Faulker (10:05): So therefore there is a 51 bushel guarantee for the insured moving from that 51 bushel guarantee. The projected price was $8 and 90 cents, which created a revenue guarantee of $454. Your prevent plant guarantee in this situation is 60%. So $454 times 60% prevent plant based guarantee equals a prevent plant indemnity of $272. The premium in this scenario was $65 per acre for the crop insurance premium. So when you subtract that from the prevent plant indemnity, that creates a net indemnity situation of $207, okay, let's move on to the next, the second choice you have in a prevent plant situation is to plant, to prevent plant the acre and then plant a subsequent crop. Following that prevent plant acre, the premium will still be based on the amount of acres actually planted to the first crop. The indemnity and premium are discounted to 35%. The negative in this situation is that farmers will have to use a yield in their history that is 60% of their approved yield, which will lower their approved yield in future years. So I wanna show you on the right hand side here, kind of walking through an example where you plant a subsequent crop moving from that prior side, we looked at with a prevent plant indemnity of $272. You take 35% of that amount, which gives you a $95 amount for the new prevent plan indemnity. Dustin Faulker (11:53): And then you, then you take the 35% of it, which creates, you got this $65 crop insurance premium, and that creates a $23 premium for the crop insurance for the prevent plant. Now, because you're paying 35% of the premium, the $95, which is the new prevent plant, which is 35% of the $272 prevent and plant indemnity creates a 73 net prevent plant indemnity at mount, and looking at how that penalty would work for the 60% of their approved yield, which is in the lower section of this slide. You take 60 bushels was their first crop approved yield. You get a 60% APH deduction, and that creates now you have a 36 plugged in for that crop year, which you yield to count for that first crop in the APH history. Next slide, please kind of after looking at, through some of those scenarios, it kind of brings up some opportunities of how FBN can help. Dustin Faulker(13:03): FBN has some tools out there that, you know, insureds can look at or potential clients can look at. You have number one, the first tool is the prevent plant comparison calculator. And the second one is the MPCI loss calculator. These tools are built to identify the right coverage for you. You know, we encourage you, if you would like to take a look at these tools, to reach out to an FBN agent in your area and let them go over these tools and examples for you to, to further help your insurance choice decisions. Like I said, if you would like to learn more, these are examples of how you might be able to reach out to us. You visit fbn.com/mpci or call 877-204-4645 . Like I said, we look forward to being able to visit with you on your wheat needs for the 2023 crop year. If there are any questions, this is a great place to reach out to look. Thank you. Kelsey Lennon (14:12): Thank you, Dustin and Mark. And again, if you're interested in talking to an FBN agent to learn more about FBN Insurance or just some of your options, when it comes to wheat and other small grains, please visit fbn.com/mpci or call 877-204-4645 . Thank you both for joining us today and walking us through that webinar. We really appreciate it. The purpose of the following material is to promote awareness of risk management concepts and to highlight risk management products, features, benefits and availability. This presentation does not provide full details of policy provisions or approved procedures. Producers should consult with a local agent for specific details and program requirements. We are an Equal Opportunity Provider. FBN Crop Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan) and are only available where FBN Insurance LLC is licensed. FBN membership is not required to purchase through FBN Insurance LLC, but certain features are only available to FBN members. FBN Crop Insurance is currently offered in the following states: AK, AL, AR, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY.
Aug 23, 2022
Winter wheat harvest is wrapping up but planting season will be here soon. As we head into the planting season and think about where we may be this time next year, the price environment could be different. But, today we do have prices that are historically high. Wheat futures still are elevated despite the pull back we have had the past several weeks. Markets remain sensitive to news developments out of the Black Sea, keeping volatility present. Now, Chicago and Kansas City markets are trading around pre-invasion levels (along with Minneapolis), suggesting that the market views the risk of losing wheat supplies from the war is alleviated and/or that other countries have sufficient supplies to offset losses in Ukraine. Nearby wheat futures Our bias is that winter wheat futures are undervalued at the moment given the uncertainty about export potential from the Black Sea and the shrinking global stocks outlook. But that does not imply producers will have smooth sailing in the US, especially when considering where prices could be at this time next year. Indeed, many things can and will change between now and harvest season in 2023 that could weigh on futures. Price models point to a modest boot in U.S. winter wheat area Today’s values of new-crop futures suggest farmers could be drilling more wheat this year as compared to last year. Price modeling points to a tally at about 35 million acres that could be planted this fall, which would be a total not seen since the 2016 crop year. FBN® is planning to conduct a winter wheat poll later this year which will offer more insight to what actually is put in the ground. Assuming that we return to trend-like yields, acreage at 35 million puts a hefty harvest projection in next year’s balance sheet - but the crop is not likely to be large enough to add substantially to the US stocks outlook. Regardless, if the US farmer is responding this way, other countries in the Northern Hemisphere may be leaning in the same direction. Current declining stocks-to-use pattern will be hard to overcome On a global scale, the story is different, however. World wheat stocks are tightening, and have been for a few years. The global stocks-to-use ratio for wheat has been declining, meaning that use is out-pacing production. For 2022, USDA’s latest forecast shows global use (plus trade residual) at 789 MMT, or 9 MMT more than production. We ran some analysis on the odds of the world being able to produce at least 797 MMT of wheat, assuming that global use would be near that level. We chose 797 MMT of global use using trends in growth and pushing that to 2023. In essence, to keep global stocks from declining in this situation, we would need to produce that volume of wheat globally, which is something that has never happened. Global wheat production is forecast at a record this year at 780 MMT. To take it to the next step, we looked at each country’s production since 2018 and randomly selected a production total for that country, then combined each selection to calculate a global tally. We then increased that volume by the average increase in production since 2012, or 1.2%. Total global production from the random calculations was nearly always below expected use. Here is a snapshot of nine random grabs, showing that only one scenario was there a surplus - and a surplus of 2 MMT is light indeed. After simulating the situation 1,000 times, in 136 instances we had a situation where global production exceeded consumption, or, 10.4% of the time. Wheat production totals for 2023 plus average increase What it means for the farmer Our analysis suggests that at best, the current price environment is here to stay for a while, but that does not mean that markets will hold at these levels for months on end. There are many risks present and those risks are spread out for wheat. Southern Hemisphere harvest will be here at the end of the calendar year followed by acreage estimates hitting the market for Northern Hemisphere producers. And, according to USDA, Russia has a monster crop this season. Based on all this, wheat markets are likely to remain volatile in the coming months. What does this mean for wheat insurance? With all that is going on in the world today it’s hard not to suggest that commodity prices could continue to see volatility. Some farmers might opt for future and options strategies if they are comfortable with the risk. Wheat insurance is a risk management strategy that can add an extra layer of protection when markets are shaky. Historically, enrolling acres in revenue protection (RP) insurance has been a dominant choice for wheat growers looking to avoid the pitfalls of a down market. RP will protect against one's yield as well as downside drop in the market. This allows the producer to establish a floor of guaranteed revenue giving them the ability to forward market and have peace of mind throughout the growing season. According to recent RMA acreage enrollment data, the majority of winter wheat acres are enrolled in revenue protection (close to 90% in recent years). Price discovery is currently underway with July KC wheat futures averaging at 8.32 per bushel since August 15th and will continue averaging through September the 14th. Learn more If you would like to speak to an FBN agent about wheat insurance or our risk management plans, please call (877) 204-4645 or learn more here . Disclaimers : The views and opinions are solely those of the author as of the date of publication, are subject to change at any time due to market or economic conditions, will not be updated or supplemented after the date hereof and may not necessarily come to pass. The views and opinions expressed herein do not reflect those of all personnel at FBN BR LLC (FBN) or the views of the Farmer's Business Network Inc. as a whole. Any charts and graphs provided are for illustrative purposes only. Any performance quoted represents past performance. Past performance does not guarantee future results. Commodity trading, including futures, hedging and speculating, involves substantial risk of loss and may not be suitable for all investors. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN membership is not required to purchase through FBN Insurance LLC, but certain features may only be available to FBN members. FBN Crop Insurance is currently offered in all U.S. states.
Jun 16, 2022
The USDA recently announced an updated livestock disaster aid addressing increased supplemental feed cost in 2021. The ELRP payment will be based on data from the 2021 Livestock Forage Disaster Program (LFP). Producers do not have to apply for the ELRP aid, but must have the following forms on file with FSA by June 30, 2022 : CCC-853 (Livestock Forage Disaster Program Application) AD-2047 (Customer Data Worksheet) CCC-902 (Farm Operating Plan for an Individual or Legal Entity) CCC-901 (Member Information for Legal Entities, if applicable) FSA-510 (Request for an Exception to the $125,000 Payment Limitation for Certain Programs, if applicable) CCC-860 (Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, if applicable) AD-1026 (Highly Erodible Land Conservation (“HELC”) and Wetland Conservation (“WC”) Certification) Phases of the ELRP payments Phase 1 of the payments is expected to total $577 million, basing the payments on percentage of an eligible producers’ gross 2021 LFP payment — 90% for historically underserved producers and 75% for all other producers. And, the payments will be subject to a payment limit. Phase 2: USDA said it was evaluating impacts of 2021 drought and wildfires on livestock producers as it develops the Phase 2 component. Phase 1 ELRP eligibility Producer and livestock eligibility for ELRP aligns with the Livestock Forage Disaster Program (LFP) eligibility requirements. Only 2021 LFP participants are eligible for an ELRP payment under Phase 1. Livestock producers must have suffered grazing losses in a county rated by the U.S. Drought Monitor as a D2 (severe drought) for eight consecutive weeks or a D3 (extreme drought) or D4 (exceptional drought) during the normal grazing season of the 2021 calendar year. Livestock producers who were not allowed to graze their permitted federally managed lands due to wildfire are also eligible for ELRP payments. ELRP payment calculation and limitations When calculating an eligible producer’s Phase One ELRP payment, Farm Service Agency (FSA) will use the producer reported (CCC-853 form) livestock inventories and forage acreage or restricted animal units and grazing days for the 2021 calendar year. Payments will be equal to the eligible livestock producer’s gross 2021 LFP payment multiplied by a payment percentage. For historically underserved producers (i.e., socially disadvantaged, limited resource, beginning, and veteran), the payment percentage is 90%, with a payment percentage of 75% for all other producers. Eligible producers with a CCC-860 on file with FSA for the 2021 program year qualify for the 90% payment percentage. Under ELRP, Adjusted Gross Income (“AGI”) limitations will not apply, however there are payment limitations for eligible producers. The payment limitations will be determined by the producer’s or legal entity’s average adjusted gross farm income, which is income earned from their agricultural operation. If an eligible producer or entity, other than joint ventures or general partnerships, has an average adjusted gross farm income of less than 75% of their average AGI for tax years 2017 through 2019, they cannot receive an ELRP payment of more than $125,000. For an eligible producer or entity, other than joint ventures or general partnership, with an average AGI of at least 75% that is derived from agricultural activities, they may be eligible for an ELRP payment of up to $250,000. Eligible participants seeking the increased limitation must: File form FSA-510; Provide certification that their average adjusted gross farm income is at least 75% of their AGI; and Provide certification from a licensed Certified Public Accountant or attorney that the participant qualifies to receive the increased limitation. Additional USDA Assistance Opportunities The announcement also included information on a new crop-related disaster effort named Emergency Relief Program (ERP) . USDA announced a two-phase approach for diversified, row crop and specialty crop operations affected by an eligible disaster event in calendar years 2020 or 2021. USDA also indicated there will be additional relief through the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP) . The ELAP program provides emergency assistance to eligible producers of livestock , honeybees and farm-raised fish for losses due to disease (including cattle tick fever), adverse weather, or other conditions, such as blizzards and wildfires, not covered by LFP. The additional ELAP funding will assist producers with the increased cost of hauling livestock to forage. The ELAP compensation is retroactive to 2021 and will also be available for losses in 2022 and subsequent years. The deadline to request all ELAP assistance for 2022 calendar year losses will be Jan. 31, 2023. Important Deadlines The deadline to file for FSA’s LFP program is 30 calendar days after the end of the calendar year the loss occurred (i.e. January 31, 2022 for loss in calendar year 2021). The deadline to file for FSA’s ELAP program is January 30 following the end of the calendar year in which the loss occurred. Producers must file a notice of loss within 15 days after the loss is apparent for honeybee operations and within 30 days for livestock and farm-raised fish operations. More more information on USDA FSA’s Disaster Programs , please contact your local FSA office. To learn more about the Federal Crop/Livestock Insurance programs contact an FBN insurance agent by visiting the FBN Insurance page or calling 877-204-4645 . Source: USDA Farm Service Agency Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. "Farmers Business Network", "FBN", “FBN Direct”, "Farmers First" and the Farmers First flag logo are registered service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider. FBN Crop Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan) and are only available where FBN Insurance LLC is licensed. FBN membership is not required to purchase through FBN Insurance LLC, but certain features are only available to FBN members. FBN Crop Insurance is currently offered in the following states: AK, AL, AR, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY.
Jun 08, 2022
In response to the severe drought conditions in many parts of the United States, the USDA RMA is suspending the Livestock Risk Protection (LRP) 60-day ownership requirement. The lack of rainfall is causing producers to sell cattle earlier than they normally would due to the difficulty in finding adequate forage. The USDA Risk Management Agency (RMA) has released a memorandum stating, for Specific Coverage Endorsements (SCEs) they are suspending the Livestock Risk Protection (LRP) rule requiring livestock owners to own their livestock up to the last 60 days of the endorsement (coverage) period. This is in effect as of May 19, 2022 . What it means for producers With producers facing a shortage of available forage due to drought conditions, the suspension of the LRP 60-day ownership rule allows producers options to consider. These options include feeding additional hay/supplement to maintain the cows and growth of the calves or selling calves before the expected sale date. Selling the calves “early” will also allow producers to reduce grazing pressure on the remaining forage and to maintain their existing cow herd genetic base. The SCEs are still subject to verification of proof of ownership. Proof of ownership can include sales receipts, kill sheets, or other documentation that verifies ownership during the insurance period showing the date the livestock were sold or slaughtered. If you have questions, please reach out to your agent or contact FBN at 877-204-4645 . Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. "Farmers Business Network", "FBN", “FBN Direct”, "Farmers First" and the Farmers First flag logo are registered service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider. FBN Crop Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan) and are only available where FBN Insurance LLC is licensed. FBN membership is not required to purchase through FBN Insurance LLC, but certain features are only available to FBN members. FBN Crop Insurance is currently offered in the following states: AL, AR, AZ, CA, CO, FL, GA, IA, ID, IL, IN, KS, KY, LA, ME, MI, MN, MO, MS, MT, NC, ND, NE, NM, NV, NY, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WI, WV, WY.