The crop insurance coverage most farmers elected for 2008 has certain provisions and deadlines to pay attention to. A couple of those important deadlines are coming up soon, notes Steve Johnson, Iowa State University Extension farm management specialist in central Iowa.
Dates to remember—for late planted coverage May 31 is the final planting date for corn, and June 15 is the final planting date for soybeans.
June 30 is the deadline to certify your planted acreage at the local Farm Service Agency office. June 30 is also the deadline to complete and file the required paperwork if you signed up for the new Biotech Yield Endorsement program.
Consider the Replant Option
Do you need to replant? That's the first thing some farmers need to be thinking about as they evaluate their corn and soybean stands.
"If you think you might need to replant some of your 2008 corn or soybean crop, you must notify your crop insurance representative before replanting. This is a new requirement for 2008," says Johnson.
Crop Revenue Coverage (CRC), Revenue Assurance (RA) and Actual Production History (APH) crop insurance products all include the replant option, as well as the delayed planting and prevented planting provisions.
If you qualify for it, the replant option provides a payment reflecting 8 bushel of corn or 3 bushels of soybeans per acre. That's around $40 per acre in 2008--since the spring base prices for both the revenue products and the traditional APH products reflect high crop prices.
Delayed and prevented planting
"These same crop insurance products also have delayed and prevented planting provisions," explains Johnson. "In Iowa, late planting coverage begins June 1 for corn and June 16 for soybeans."
These dates may be different in other states and for other crops. "The acres you plant on or after these dates receive a lower yield or revenue guarantee than those acres planted earlier," he says. "The coverage is reduced by one percent per day for each of the following 25 days until the crop is planted."
Minimum areas must meet 20-20 Rule
However, to collect an indemnity payment on a replant, delayed planting or prevented planting provision of a crop insurance policy, a loss must occur on a minimum area of 20 acres in size or 20% of the insured unit.
A unit could be a field or a farm—if you selected an optional, whole farm or basic unit, notes Johnson. An enterprise unit could have also been elected, which reflects all the corn acres or all the soybean acres grouped together in a particular county.
Biotech Yield Endorsement deadline
New in 2008 is the Biotech Yield Endorsement (BYE) option. It was implemented as a pilot program in four states—Iowa, Illinois, Indiana and Minnesota.
Producers who qualify for BYE must plant at least 75% of their insured unit of non-irrigated ground to qualifying biotech corn hybrids.
In order to receive the premium discount, Johnson says farmers should contact their insurance representative regarding the completion of paperwork. This includes a completed and signed BYE Seed Dealer Certification Statement. Copies of purchase and return seed invoices that correspond to the certificate should be attached.
BYE paperwork is due June 30
"In addition, the farmer also must complete and sign a BYE Insured's Certification Statement," says Johnson. These documents must be provided to your insurance agent at the time the farmer's acreage report is filed with the local Farm Service Agency office. In Iowa, that deadline is June 30.
Pay attention to these deadlines and provisions, sums up Johnson. He adds, "The fact that crop insurance premiums will be record large in 2008 is another reason to put your crop insurance representative to work for you."