Crop insurance harvest prices and reminders
The final harvest crop insurance prices for the 2020 crops are $3.99 per bushel for corn and $10.55 per bushel for soybeans, respectively. These are the average futures prices for December CME corn and November CME soybean contracts during the month of October. Since these harvest prices are higher than the spring projected prices, the revenue guarantees will be adjusted higher for those that purchased revenue-based crop insurance products.
These prices and the farm’s actual production are the final pieces in determining the potential crop insurance indemnity claim for both 2020 corn and soybeans. Most farmers purchase a revenue policy at higher levels of coverage (80% or 85%). Farmers experiencing significant yield losses this fall below their farm’s Actual Production History (APH), should keep good production records and report these to their crop insurance agent immediately upon completion of harvest.
Since corn and soybean yields will vary across farms and many insured farmers use enterprise unit coverage, crop insurance indemnity claims will also vary. Farmers should provide their crop insurance agent with actual production by unit so they can determine the potential for an indemnity claim. That same information will be used to update the farm’s APH records in determining guarantees and premiums for the 2021 crop.
With the weather problems experienced across the Corn Belt, the USDA Risk Management Agency (RMA) extended the traditional due date for crop insurance premiums from September 30 to November 30. The accrual of interest on the spring planted crops will have their premiums due at the applicable termination date or for 2 months, until November 30. For any premium not paid by one of those deadlines, interest will accrue consistent with the terms of the policy, usually a 15% annual percentage rate.
In many cases, completion of harvest is the event that occurs first signaling that coverage has ended for the insured crop. Therefore, a notice of any potential loss must be filed within 15 days of harvest completion for the unit. For crops that have revenue protection: if there is no production loss, but a potential revenue loss exists, notice must be provided not later than 45 days after the harvest price is released for the crop.
Good communications will be critical as harvest wraps up and production evidence is submitted. Consider these 7 harvest-time crop insurance reminders in working with your crop insurance agent.
– Report production as soon as harvest is completed to identify potential losses and they can prepare quotes.
– Contact your agent immediately upon discovery of crop losses.
– Before feeding grain to livestock, request bin measurements.
– If you’re going to have a late harvest or unharvested crops, discuss your options.
– The drought or derecho wind damage might have created crop quality issues in some fields. Discuss those quality concerns or questions on how the policy will handle them.
– Talk to your tax advisor about the impact of loss payments and the year those payments are taxable.
– Make sure you pay your premium before the November 30 due date and avoid interest charges.
Crop marketing strategies meetings in central Iowa
ALTOONA – With summer weather problems, corn and soybean futures prices rallied counter-seasonally putting in harvest futures price highs. Most producers are storing some unpriced bushels despite the lack of futures price carry.
– Monday, Nov. 16, 6:30 p.m., Ogden Community Center, 114 SW 8th St.
The featured speaker will be Steve Johnson, ISU Extension farm management specialist, presenting on:
– Current corn and soybean supply/demand and price outlook
– Local basis trends & futures price carry
– Cost of grain ownership
– Crop marketing strategies, tools, and market planning.
Pre-registation is required for these meetings by contacting the host County Extension office.
– For the Ogden meeting, contact Alexis Hooper at 515-432-3882 or email@example.com.
For those unable to attend in-person club meetings, similar information will be presented in a live webinar on Thursday, Nov. 19 at 7:00 pm. Featured speakers Steve Johnson along with Ed Kordick, farmer education program manager, with the Iowa Farm Bureau Federation
Pre-registration is required for this ISU Ag Decision Maker Webinar and can be found at: https://www.extension.iastate.edu/agdm/info/meetings.html
Steve Johnson is an Iowa State University Extension and Outreach farm management specialist. He can be reached at firstname.lastname@example.org.
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