09 Mar 2021
Last year was a year like none other. It is a year that will be remembered. Let’s see what 2021 will bring us. With a new year comes changes in crop insurance.
Forage seeding is now dual county, but what does this change mean? The sales closing date is July 31 for fall forage seeding, which is the final date to cancel or transfer regardless of type. The sales closing date changes for spring forage seeding can only be made on March 15 if zero fall forage acreage is seeded in the county. The types changed to Alfalfa 60-89 and Alfalfa 90-100, which represent the percentage of alfalfa groundcover.
A revision was made to change the definition of second crop in order to clarify what is considered a second crop. This revision removed references of a cover crop that is hayed or grazed. A cover crop will not be considered a second crop unless it is planted for harvest as grain or seed. For example, oats planted at a reduced seeding rate approved for cover crop use and used for forage would not be a second crop. However, oats planted at full seeding rate for harvest as grain would be considered a second crop.
Beginning farmer and ranchers (BFR) and veteran farmer or ranchers (VFR) can now use a previous producer’s production history, if authorized (even if not previously involved) because BFR/VFR has previous involvement in a farming operation that produced the crop.
The policy provisions were updated for grass seed, dry peas, canola, rapeseed, malting barley and sugarcane.
Quality Loss Option (QLO) is used for improving the actual production history (APH) for years in which the crop suffered a quality loss. This allows you to use pre-quality production numbers instead of post quality production. This option must be selected by sales closing (3/15). A notice of loss must have been timely filed for QLO to apply. Only one option, Yield Exclusion, Yield Adjustment or QLO can be applied to an actual yield within a database. It is available on select crops if a QL is provided in the actuarial documents.
Enhanced Coverage Option (ECO) is a new option that provides additional area-based coverage for a portion of the underlying policy’s deductible from 86% (where SCO coverage ends) to 90% or 95%. Yields are based on RMA data and not producer yields. You cannot have ECO with margin protection (MP), area risk protection insurance (ARPI), or catastrophic crop insurance (CAT).
Prevent Plant allows prevented planting of a different crop without needing to prove a two-crop history. A revision was made to allow for an option to use an intended acreage report for the first two consecutive crop years the producer farms in a new county, instead of only the first year. The one in four rule has been expanded nationwide, meaning the farmer needs to get their crop planted, insured, and harvested in one of the most recent four crop years.
If you have any questions about the 2021 changes to crop insurance, please contact your local AgCountry office.
Forage seeding is now dual county, but what does this change mean? The sales closing date is July 31 for fall forage seeding, which is the final date to cancel or transfer regardless of type. The sales closing date changes for spring forage seeding can only be made on March 15 if zero fall forage acreage is seeded in the county. The types changed to Alfalfa 60-89 and Alfalfa 90-100, which represent the percentage of alfalfa groundcover.
A revision was made to change the definition of second crop in order to clarify what is considered a second crop. This revision removed references of a cover crop that is hayed or grazed. A cover crop will not be considered a second crop unless it is planted for harvest as grain or seed. For example, oats planted at a reduced seeding rate approved for cover crop use and used for forage would not be a second crop. However, oats planted at full seeding rate for harvest as grain would be considered a second crop.
Beginning farmer and ranchers (BFR) and veteran farmer or ranchers (VFR) can now use a previous producer’s production history, if authorized (even if not previously involved) because BFR/VFR has previous involvement in a farming operation that produced the crop.
The policy provisions were updated for grass seed, dry peas, canola, rapeseed, malting barley and sugarcane.
Quality Loss Option (QLO) is used for improving the actual production history (APH) for years in which the crop suffered a quality loss. This allows you to use pre-quality production numbers instead of post quality production. This option must be selected by sales closing (3/15). A notice of loss must have been timely filed for QLO to apply. Only one option, Yield Exclusion, Yield Adjustment or QLO can be applied to an actual yield within a database. It is available on select crops if a QL is provided in the actuarial documents.
Enhanced Coverage Option (ECO) is a new option that provides additional area-based coverage for a portion of the underlying policy’s deductible from 86% (where SCO coverage ends) to 90% or 95%. Yields are based on RMA data and not producer yields. You cannot have ECO with margin protection (MP), area risk protection insurance (ARPI), or catastrophic crop insurance (CAT).
Prevent Plant allows prevented planting of a different crop without needing to prove a two-crop history. A revision was made to allow for an option to use an intended acreage report for the first two consecutive crop years the producer farms in a new county, instead of only the first year. The one in four rule has been expanded nationwide, meaning the farmer needs to get their crop planted, insured, and harvested in one of the most recent four crop years.
If you have any questions about the 2021 changes to crop insurance, please contact your local AgCountry office.
