Issue 26
February 2000

Prairie Grains is the official publication of the Minnesota Association of Wheat Growers, North Dakota Grain Growers Association, South Dakota Wheat, Inc., and the Minnesota Barley Growers Association.

Copyright
Prairie Grains Magazine
February 2000

Durum CRC program downsized

Otherwise, minor crop insurance changes in 2000

By Tracy Sayler

With the exception of crop revenue coverage (CRC) changes for durum wheat, there are only minor changes to the federal crop insurance program in 2000.

Only 15 counties in northern ND will be eligible for durum CRC coverage in 2000 (see chart).  Bordering counties will be eligible for durum CRC coverage through a written agreement. Producers outside of these areas will still be able to take durum CRC, using the spring wheat price election, says Kathleen Gilbertson, Risk Management Agency Regional Service Office, Billings, MT. 

Last year, All ND counties qualified for durum CRC, as did four counties in MT and 14 in SD.

Also, the base price for calculating the minimum guarantee for durum CRC will, not surprisingly, be lower than the inflated base price last year that sent the Northern Plains into a frenzy.

Unusually warm, dry weather allowed some farmers to plant spring crops last fall. So the question has arisen: Are these crops insurable? Gilbertson says fall-seeded canola will be treated similarly to rules for winter wheat.  A producer must request coverage for this practice in writing from an insurance provider no later than the sales closing date (March 15).

If the insurance company agrees to provide coverage, and an inspection proves there is an adequate stand, the crop will be deemed insurable. However, if fall-seeded canola fails, it will have to replanted without reimbursement to be insurable.

The RMA at this writing was still reviewing the insurability of other spring crops, such as spring wheat or sugarbeets, that were fall-seeded.  A decision will be made prior to the March 15 sales closing date.

Gilbertson says the old malting barley variety Azure has been dropped from qualifying for malting barley price and quality endorsement, while the variety Foster has been added.

Non-irrigated corn for grain is now eligible for coverage in 41 additional counties in ND by written agreement.  To qualify, a grower must have a minimum of three years of non-irrigated corn for grain Actual Production History, and in at least one of those years, 50% or more of the acreage in the county must have been harvested as grain. Coverage previously was limited to southeastern ND counties. 

A new pilot program called the "coverage enhancement option" will be offered in ND this year for canola only.  Essentially, it is a boost in coverage and indemnity that is triggered under certain conditions, similar to buy-up coverage, but at a more affordable rate.  Certain eligibility requirements apply. 

A premium discount for crop insurance will apply again, but will be about 25% in 2000, depending on participation.  The discount was close to 30% in 1999, but the program went over budget, resulting in the lesser discount this year. Duane Voy, RMA-RSO, St. Paul, says most producers took advantage of last year's discount by generally increasing their coverage by 5%; ie, those with catastrophic coverage bought up to 65%, and those with 65% multi-peril coverage jumped to 70%.

Voy says producers can expect minor premium rate adjustments this year, up and down, county by county, depending on experience.

Voy says higher 80% and 85% buy-up coverage levels are available this year for sugarbeets in Minnesota, and for corn and soybeans in some counties, at an additional premium.

Canola coverage was expanded in Minnesota this year into Clay, Traverse and Wilkin Counties.  Forage seeding, potatoes, soybeans, and sugarbeets were also expanded in some Minnesota counties.  Coverage for dry peas is now available in Kittson County and by written agreement elsewhere.

"Producers should keep in mind that if coverage for a certain crop is not available in their area, they can always apply for a written agreement," says Voy.  A written agreement essentially provides "tailor-made" coverage for a particular crop when no other plan is available.  Terms and eligibility are handled on a case-by-case basis.

There are slight changes to quality provisions for corn, soybeans, grain sorghum, wheat, barley, oats, canola, and sunflower.

See your agent for more details on adjustments to final planting dates, production practices, and expanded coverage for various crops in different counties.  The Minnesota Wheat web site, www.smallgrains.org, has a link to fact sheets compiled by the RMA on various crops, including a list of important dates and an outline of basic provisions.

 2000 CRC Counties

Only 15 counties in northern ND will be eligible for durum CRC coverage in 2000.  Bordering counties will be eligible for durum CRC coverage through a written agreement. Producers outside of these areas will still be able to take durum CRC, using the spring wheat price election.