Only 50 days till Spring! For everyone shoveling out or dealing with frigid temperatures, the countdown to the first day of Spring means relief is in sight. It also means that you should start thinking about crop insurance. March 15th (sales closing) will be here before we know it! This is the deadline to update and make any changes to your insurance program.
FSA offices have reopened. The offices will be operating under normal business hours through February 8th and then we will have to see if they get a permanent agreement to prevent another government shutdown.. This is very important for farmers that haven’t reported their production for the market facilitation program (MFP). Originally the MFP had a January 15th deadline but has been extended until February 14th. If you haven’t reported your production to the FSA office yet it would be a good idea to get that done soon.
New this year the risk management agency (RMA) has announced the availability of multi-county enterprise units. This will allow farmers to combine land not eligible for an enterprise unit in one county with an enterprise unit in an adjacent county. This is a good way to spread out the risk and decrease your premium.
Farming can be a risky business that is why it is crucial for farmers to utilize the many risk management options to manage the challenges they face every year when the crops are planted. Crop insurance is the only risk management tool that farmers can take to their banker to prove their ability to pay back operating loans to keep cash flow on point.
Many farmers have had above average yields the past few years, but suffered low grain prices. Since your actual production history is used to set your guarantees, you should evaluate your current coverage levels for maximum revenue protection. If you aren’t satisfied with the amount of coverage your MPCI policy is providing private products could be the answer you are looking for. Private crop insurance products address risks that are not covered with the MPCI products. The combination of a MPCI policy and a private product can protect up to 95% of your revenue guarantee. If you have any questions about your policy, or would like to talk options give me a call. Remember – Sales Closing Deadline is March 15.