Year-end is upon us. There are a few things to keep in mind as we close out the 2023 crop insurance year and look forward to 2024.
2023 Production Reporting
It is important to submit your production numbers to your insurance specialist as soon as you can. This allows your specialist to review your report to verify you do not have any losses and also update your actual production history (APH) to prepare for the 2024 renewal season.
It has become more important over the last several years to be as accurate as possible with your reported production. Even if you are not in a loss situation, you should keep specific records for each unit/section and report those production numbers on your production certification report accurately. It is possible you could get an APH review at some point in the future. Keeping good records makes the audit process go smoother.
The final production reporting date is not until April 29, 2024, but please do not wait until that date to report your production.
2023 ECO/SCO Projections
We can now make projections on how county based plans could pay out for 2023. The prices used for Enhanced Coverage Option (ECO) and Supplemental Coverage Option (SCO) are the same as we use for Revenue Protection (RP).
Crop prices have largely dropped for 2023 RP with some crops seeing a significant decline. Please note that the harvest price has not yet been announced for a few. The final county yield may come in higher than the county expected yield due to the decline in price. Both ECO and SCO could still pay an indemnity because of this. Your insurance specialist can use our AgCountry Evantage ECO/SCO calculator to run scenarios to calculate potential payouts.
If your county average runs higher than the expected yield, the lessor the ECO/SCO would pay out. If your county average runs at or below the expected yield, you could be looking at significant payouts on the area based plans for 2023. Please note the 2023 final county average yield will not be announced until May or June of 2024. Any indemnities will be paid at that time.
2023 Tax Planning
Year-end also brings tax planning considerations. Contact your insurance specialist to verify your crop insurance premiums and indemnity payouts. They will provide those numbers to you.
2024 Crop Year Planning
Renewals with your insurance specialist are soon upon us. Some of you may even meet for renewals in December or January, while some may wait until closer to the March 15th deadline. Crop insurance has become much more than just a protection of yield; it has evolved into a protection of revenue and price with more options for you to accomplish this.
It is never too early to plan for your renewal. Here are just a few questions to consider:
- What are your planting intentions?
- What is your cost of production for each crop and what amount of revenue do you want to protect?
- Are you concerned about the dryer winter we are having so far and if we could be short of moisture for 2024?
- Would the ECO/SCO be a good option for you?
2024 AgFocus Meeting
AgCountry is putting on a series of local AgFocus meetings across our territory along with three larger AgFocus conferences. We will focus on the topics discussed in this article and more.
Meeting dates begin mid-December and run through mid-February. This is a great way to interact with your AgCountry staff and get your questions answered. You can see a full list of meeting options by clicking here.
Please contact your local AgCountry office to schedule a meeting to meet with an insurance specialist.
