Harvest Risk Management Newsletter

April 2008

This is shaping up to be a very challenging spring.  Winter ice storms seem to have damaged a portion of the winter wheat crop in our area and saturated fields are making it impossible to start spring field work.  Consequently, it is a good time to remind our crop insurance customers what their options are for failed crops, replanted crops, and crops which are prevented from planting.  We also will take this opportunity to refresh your memory about the Biotech Yield Endorsement (BYE).

We are getting reports that many wheat fields have several dead spots in them.  This is prompting some of our insureds to wonder if they are better off to tear up the wheat and plant corn.  That may very well be a good strategy with corn at $6.00/bushel.  But before you tear up your insured wheat please call your Harvest Risk Management agent to file a claim.  This is important because if you tear it up without an adjuster inspecting it, you will have to report zero bushels on your production report.  An adjuster can give you an estimate of what the wheat would yield based on today’s conditions and that estimate can be used in your production report and in a claim calculation, if necessary.

If you do decide to tear up your wheat, you actually have a choice of insuring the replacement crop or not.  You should once again consult with your Harvest Risk Management agent to discuss your options based on your coverage and yield history.

Replant Coverage
Replant coverage is designed to compensate a farmer who decides to replant previously planted acres to the same insured crop.  This year, the coverage will pay for the insured’s actual cost to replant (including labor) up to $43.20/acre for corn and $40.08/acre for soybeans. 

An APH, CRC, or RA customer qualifies for replant coverage if he replants 20% of a unit or 20 acres, whichever is less.  Once again, you must call your Harvest Risk Management agent before you replant so we can file a replant claim.  An adjuster will call you and discuss why you want to replant, how many acres you plan to replant, and how you plan to replant it.  In many cases, the adjuster can authorize you to go ahead and replant over the telephone without making a physical inspection.  The insured will then be sent forms to complete in order to determine his cost of replanting.  Insured’s should remember that their replant claim check will not come until they have filed an acreage report.

Prevented Planting Coverage
This coverage is designed to compensate a farmer who, because of a covered peril, is unable to plant some of his acres before the final plant date for his crops.  With the saturated fields that we currently have, there may be many acres that could qualify for this coverage this year.  The final planting dates in our area are generally June 5 for corn and June 15 for soybeans, but you should check with your Harvest Risk Management agent to be sure.  If you qualify for a prevented planting claim, you will receive 60% of your APH, CRC, or RA coverage.

To qualify for replant coverage, the insured must be prevented from planting 20% of a unit or 20 acres, whichever is less.  The acres that qualify, however, may be limited due to past practices.  We ask that you call us about any acres prevented from being planted before the final plant date.  That way we can discuss your options for planting during what is called the late planting period or going ahead and filing for a prevented planting claim.

Biotech Yield Endorsement
This is just a reminder for those of you who purchased APH, CRC, or RA coverage, that if you plant seed containing Monsanto’s triple-stack gene over at least 75% of a unit, you are eligible for a discount on your premium.  There will be extra paper work and a chance for random inspections and field testing.  One penalty for those who apply for the discount and do not follow procedures is the cancellation of their corn policy.  Consequently, we ask that you do the following if you plan to apply for the BYE:

  • Save all of your triple-stack seed invoices and returns.  They will need to be turned in with your acreage report.

  • Take very good notes when planting the unit that you want the discount on.  You need to know exactly where the triple-stack corn is.  By the way, if there is a question as to whether the hybrid you are planting qualifies, go to the web site www.biotechyieldendorsement.com or call your Harvest Risk Management agent.

  • Call your agent as soon as possible after planting to get the paper work started. 

  • You will need to know how many units of each triple-stack hybrid you purchased for each county you planted corn in.

We realize that this endorsement is not for everyone.  The penalty for non-compliance is very severe so we urge you to consider it very carefully. 

Thanks for your business and lets hope the rain stops soon.

Save the date
The third annual Illinois Customer Appreciation game for the Kane County Cougars will be held on August 6, 2008.  The game will start at 6:30 p.m.  Join us for the picnic, game, and fireworks!

The Iowa Customer Appreciation game will be held on July 2, 2008 in Davenport, Iowa.  The game will be at Modern Woodmen Park for the Quad Cities River Bandits baseball game.  The game will start at 7:00 p.m.

Harvest Risk Management will be hosting a crop insurance seminar this summer.  We will send more information soon on the dates, time, and place.

Harvest Risk Management is an equal opportunity insurance provider.

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