2020 Harvest Insurance Reminders

Combines working in a corn field during harvest
16 Sep 2020

Harvest is almost here!

As our surroundings change from lush green to beautiful shades of reds, yellows, and orange, we are reminded that another harvest season is beginning to take shape.  For some regions, 2020 will be viewed as a year with record yields while others may be disappointed from a roller coaster year of weather conditions. As you begin to store and sell this year’s crop, please keep the following items in mind: 

Commingling Grain – Do you have last year’s grain in the bin?  Do not forget to contact your insurance specialist to request a bin measurement before you commingle this year’s grain.

Production Losses - Please call if you believe production from one or more units may be at or near your guarantee.  Final yields are not necessary to submit a Notice of Loss. However, losses due to a production shortage must be filed no later than 15 days after the field is harvested.

Damage Due to Unavoidable Uninsured Fire (UUF)/Third Party –This allows producers to exclude production on fields impacted by an unavoidable, uninsured cause of loss. Producers negatively impacted by chemical drift should contact their insurance psecialist immediately for more information.

Production Reporting – Your Multi-Peril Crop Insurance (MPCI) policy requires insureds to report production by unit.  Consider your unit structure (Basic, Optional, Enterprise) as you harvest each field. For claims and audit purposes, a load ticket cannot be split. As you report production to your insurance specialist, use actual yields and not an overall average for the farming operation. If you are selected for an audit in the future, you must have records to support every bushel reported. 

Acceptable Forms of Harvest Records

  • Elevator scale tickets with assembly sheets in the name of the insured
  • Company appraisals
  • Livestock feeding records
  • Precision farming technology – if following MPCI guidelines.
  • Combine monitors, bin markings or load records by the truck, cart or hopper to use in conjunction with a bin measurement for the purpose of separating production between units.

Revising Your Production – We understand the difficulty in reporting bushels accurately when grain is farm stored.  Your production can be revised for any crop year by recertifying on a signed production reporting form by the April 29, 2021, deadline.

Feeding Stored Grain – If you will be feeding some or all of this year’s grain, contact your insurance specialist to request a bin measurement so an adjuster can document production utilized as feed. This is important documentation to keep in the event of an audit.

Revenue Protection (RP) Policyholders - The Harvest Price for corn and soybeans is determined during the month of October.  If the established Harvest Price is lower than the Projected (Spring) Price of $3.88 for corn and $9.17 for soybeans, a revenue loss may be triggered even though your production may be above your original guarantee.  Therefore, it is important to report your production as soon as it is known so a loss determination can be made. As you recall, unless you removed the Harvest Price from your RP policy, your Final Revenue Guarantee is the greater of the Projected Revenue or Harvest Revenue.

Crop Insurance Payments - Taxable Income
Please remember that all crop insurance indemnity payments are taxable income.  Depending on the type of loss and your personal situation, you may have options as to which year the income is reported.  As you meet with your tax professional for end-of-the year tax planning please be sure to discuss your crop insurance proceeds. 

Have a safe and happy harvest!