Insurance

Nicolet Insurance Services Crop Success Newsletter – Issue 1, 2022

2022 Spring Harvest Policy sales end March 15
March 15 is the deadline to purchase or make changes to the Spring 2022 crop policies. If you wish to add crops to your policy or change your coverage, please notify your insurance specialist by March 15. We need to update your policy if you have made any of the following changes:

  • If your entity name or tax identification number has changed.

  • If someone in your entity has undergone a change in ownership or action.

  • If you need to add/remove authorized signatories.

  • If you have added new land to your operation.

  • If your address, phone number or email address has changed.

Existing policies will automatically renew if you don’t make any changes. We cannot make changes after March 15.

Production Report Deadline – April 29
April 29 is the deadline for reporting 2021 spring crop yields to your insurance specialist. If you plan to add any new crops to your policy this year, please let your agent know as soon as possible so they can establish your yield history by April 29.

Hail insurance
Don’t forget hail insurance. A hail policy can add extra protection to your crop where your MPCI policy falls short. Hail coverage is provided acre by acre and starts paying at 1% damage. Hail Insurance can be combined with other endorsements that provide coverage for: Wind, Green Blast and Additional Harvest Compensation.

NEW 2022!!! Post-Application Coverage Rider – PACE
Corn growers who “split apply” nitrogen now have another insurance coverage option. PACE provides payments for yield loss when growers are unable to apply the post-nitrogen application during corn growth stages V3-V10 due to field conditions created by weather. PACE is available in the following counties in our region:

Wisconsin: Crawford, Grant, Iowa, Lafayette, Richland, Sauk, Vernon
Minnesota: Dakota, Dodge, Fillmore, Goodhue, Houston, Mower, Olmsted, Wabasha, Winona

Learn more about PACE: Post-Application Cover Rider | RMA (usda.gov)

Commodity prices
How are crop insurance prices determined? Here’s how it works.

Forecast prices are used to establish crop insurance guarantees and premiums for commodities that trade on the Chicago Board of Trade (CBOT). Examples include corn, soybeans, barley and wheat. The daily forward settlement prices for these crops are averaged at the end of their discovery period.

Harvest price modify your harvest guarantees (income plans only) to reflect changes in the market price of the product during the crop year. Daily forward settlement prices for these crops are averaged at the end of the crop price discovery period.

For crops that are not traded on the CBOT, prices are set by the Risk Management Agency (RMA). Examples include corn silage, forage production, oats, alfalfa, and red clover.

Projected and harvest prices are determined for the following crops:

Track the projected and harvest prices of your crops here: RMA Pricing Discovery – Home (usda.gov)

Below are historical crop insurance prices for crops in our region:

Supplemental Coverage Option (SCO)
SCO is a crop insurance policy that triggers payments when your county’s yield or revenue falls below the county guarantee. SCO is designed to work in conjunction with your individual underlying policy. Your individual policy covers your farm specifically, and SCO offers higher levels of coverage at the county level. The SCO coverage band begins where your underlying MPCI coverage ends and covers you up to 86%.

NOTE: SCO cannot be elected for farms enrolled in the Farm Bill ARC-County program.

Enhanced Coverage Option (ECO)
ECO is a crop insurance policy that goes beyond SCO, allowing farmers to cover up to 90% or 95% of the county’s expected revenue. ECO works in conjunction with your individual policy by adding county-based coverage starting at 86%. ECO triggers payments when your county’s yield or revenue falls below the county guarantee. Below are examples showing how to use ECO with your underlying policy.

NOTE: SCO coverage does not need to be purchased in conjunction with ECO. Producers can leave a gap in coverage.

Watch a short video about SCO and ECO: https://fb.watch/aWnhIyATr5/

Farm Bill Elections – ARC-County vs. PLC
March 15 is the deadline for farmers to go to the FSA and make their choices for the Farm Bill program for the 2022 program year. We’ve put together a short video for you to compare the programs: https://fb.watch/aWo9a5QLwK/

NEW for 2022 – Prevent factory rule changes
1. Corn is no longer considered a cover crop.
2. The November 1 date for haying, grazing or cutting a cover crop on preventative planting soil has been rescinded. Going forward, a discount to prevent payments for plants will only apply if the cover crop is harvested for grain or seed at any time.
3. Prevent the plant area from having been planted, insured and harvested (if not harvested, adjusted for claim purposes) at least once in the last 4 years to be eligible for a PP payment. This is actually a 2021 rule change; however, it bears mentioning again because of its importance. REMARK: Producers who grow hay as part of their crop rotation will need to watch this carefully, especially if you don’t insure your hay.
4. Preventing plant acreage that is then leased out in cash is now allowed. Rationale: The Federal Crop Insurance Corporation considers the benefits of using a cover crop as animal feed to be similar to those of cash leasing the acreage.

NEW for 2022 – Micro Farm Policy
The micro-farm policy is designed to meet the needs of small farms and/or specialty crop farms. Micro Farm is available to growers whose operations have an approved annual revenue of $100,000 or less and can provide three consecutive years of tax records. Micro Farm gives growers the ability to insure multiple commodities under a single policy (Whole Farm Revenue Protection), making it the ideal solution for specialty crop farmers who sell their produce at farmers’ markets or roadside stalls.

Learn more about micro-farms: National Micro Farm Program Fact Sheet | RMA (usda.gov)

Dairy Income Protection (DRP)
Lock in your dairy income with DRP quotes right on your phone. The micro-farm policy is designed to meet the needs of small farms and/or specialty crop farms.

DRP offers two pricing options that farmers can choose from – class pricing or component pricing. Coverage levels range from 80% to 95% in 5% increments. Quotes provided through the SMS service are for Class III coverage with a protection factor of 1.0. Contact your milk insurance specialist to customize quotes for your specific farm.

Ag Insurance products are not insured by the Federal Deposit Insurance Corporation; are not deposits or obligations of the bank or any affiliate; are not guaranteed by the bank or any affiliated company; may involve investment risks. Equal opportunity employer and provider.