Some Basics on the New Crop Insurance
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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.
REQUIREMENTS -- Producers must have crop insurance of at least the catastrophic level to remain eligible for price support, production adjustment programs, FmHA loans, the noninsured assistance program, and CRP payments on contracts revised or approved after October 13, 1994.
COSTS -- An annual processing fee per producer of $50 per crop, per county, up to $200 per county; total costs not to exceed $600 per producer for ALL counties. Producers with gross incomes of less than $20,000 in each of the prior two years may request a waver of the processing fees.
CROPS -- The insurance requirement applies to all insurable crops that account for 10 percent or more of the total value of all crops grown in the previous year (1994) or to be grown in the present year (1995). The rental value of CRP land is not considered in determining the total value of crops grown.
UNITS -- Farm units are by crop share. A producer with a 75/25 share farm would have a separate insurable unit on land owned/operated at 100 percent share.
ENTITY -- Each entity is responsible for crop insurance. An entity is an individual, partnership, estate, corporation, or joint venture under a legal identifying number.
ACTUAL PRODUCTION HISTORY (APH) YIELDS -- Yields on crops insured in previous years will be updated with 1994 actual or assigned yields. APH yield determinations for new insureds provide some flexibility in the method used to compute the APH yield.
In most cases, producers will benefit by providing at least one year of actual production records, even if the yield was lower than the CFSA (ASCS) yield.
Important: Actual yield data MUST start with the previous year (1994) and successively work backwards to 1993, 1992, etc. Producers cannot pick and choose good years, and exclude poor years, when proving actual yield.
A minimum of four years production is needed for an actual proven yield. A percentage of the CFSA yield may be substituted for years in which production evidence cannot be submitted.
"T" (TRANSITIONAL) YIELDS -- are CFSA program yields (subject to a county factor) or county yields used for years when actual production evidence is not available.
CAT COVERAGE -- 50/60 coverage is determined by multiplying 50 percent times the approved APH yield times 60 percent of the payment rate (expected market price) for the crop. Prevented planted and late planting provisions apply on some crops.
AVAILABILITY -- CAT coverage is available at the CFSA office or from private insurance agents. "Buy up" coverage for increased coverage is available only from private insurance companies.
DEADLINE -- March 15, 1995 is the deadline for crop insurance applications, although there may be allowances for late filing or extenuating circumstances.
For more information on crop insurance details, contact your local CFSA office or a private insurer.