Tag Archive: "crop insurance"

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    July 24th, 2014


    The Effect of Premium Subsidies on Crop Insurance Demand

    The Economic Research Service of the USDA periodically releases reports on various items related to agriculture.  This month, they released a report on the “The Effects of Premium Subsidies on Demand for Crop Insurance“.  The actual report is about 30 pages long and has a very detailed regression analysis for about 10 pages of the […]

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    February 17th, 2014


    ARC & PLC Are Not Crop Insurance

    We had a reader ask the following question: “Paul, I have been reading your blogs about federal crop ins.  Is PLC and ARC the whole program or do we still have the traditional options that we have had the last few years? If the traditional plan is still in place will we have to pick […]

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    February 3rd, 2014


    10% of Benchmark Revenue not Benchmark Guarantee

    A problem with trying to read a 900 page plus farm bill on a small laptop screen is that it is very easy to misread some of the fine print.  A reader gave us a comment regarding ARC that the maximum payout is 10% of benchmark revenue, not benchmark guarantee.  In this case, the actual amount […]

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    February 2nd, 2014


    Crop Insurance Changes in New Farm Bill

    Supplement Coverage Option (SCO) will be available to a farmer who elects Price Loss Coverage (PLC) instead of Agricultural Risk Coverage (ARC).  ARC provides similar coverage, however, there is no premium to be paid by the farmer, but there is a limit on the  amount of payment that a farmer can receive.   With SCO, the farmer can […]

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    December 10th, 2013


    What Crop Insurance Level Should I Get for 2014?

    Crop insurance is a risk management tool for farmers.  Over the last couple of years it has, in many cases, paid off in substantial claims based primarily on the high spring or fall price.  The University of Illinois just released a projection of the crop insurance premiums for productive soil in that state.  Although large claims […]

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    November 6th, 2013


    Crop Insurance Deferral Options

    It appears that at least $5 billion of crop insurance claims have been processed this year and with the approximate $1.20 drop in corn prices from the spring, it is likely that additional corn claims will be made.  Unlike last year when almost all claims related to yield losses, this year, most of the claims […]

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    June 25th, 2013


    Semantics Can Be Important

    It has been brought to our attention that certain AGR crop insurance policy claims are being denied.  These claims are being made by a single member LLC which is being filed on a schedule F on the farmers personal tax return. An AGR policy is based upon the gross revenue of the farm operation. A […]

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    May 30th, 2013


    Update on 2012 Crop Insurance Losses

    Farm Doc Daily from the University of Illinois just release an extremely good article updating the total net crop losses incurred during 2012.  As most of us are aware, 2012 resulted in the highest amount of indemnity payments ever paid under the crop insurance system at slightly more than $17 billion.  2010 was in second […]

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    February 10th, 2013


    Crop Insurance Proceeds on Feed Consumed by Livestock

    We received the following question(s) from a reader: “My husband and I received crop insurance proceeds this year due to drought. It was for hay and pasture losses. The insurance company classifies the crop as “forage”. If this was hay we would normally feed to our cows in the following year may we defer this […]

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    November 1st, 2012


    Updated Harvest Prices

    Although the final corn and bean harvest prices have not been officially revealed, the University of Illinois in their FarmDoc daily blog, just released their final harvest estimate.  Back on October 11, I posted a guess of the final corn price being $7.55 per bushel.  FarmDoc indicates a final price of $7.50 (I was a […]

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