Perfect seedbed conditions and a promising start to a crop can be gone instantly by frost, insects, and other perils. Knowing your insurance options is important when the crop is still early. We will touch upon a few aspects of your multi-peril crop insurance (MPCI) policy, so you are prepared when a weather-related incident impacts your farm.
Special provisions in an MPCI policy allow for replanting of your crop if something goes wrong the first time. If your crop is killed off or struggling, you can destroy all or portions of your field and be compensated for your loss. The most important thing to remember if you find yourself in this situation is to contact your agent before you fire up the tractor and seeder again.
If you want to destroy and replant the same crop, your agent needs to contact your insurance company so an adjuster can properly inspect and consult with the producer about their plans. If you replant acres without these prior approvals, you will not be compensated. Your replant option refers to reseeding the same crop in the same physical location. However, a different variety may be acceptable. Planting a different crop is not considered a replant, and in that case, different insurance rules are in place to keep coverage on the second crop.
It is acceptable to replant if it is within 10 days of the crop's Final Plant Date. Keep in mind, certain criteria must be met:
- It must be physically possible to replant the crop;
- Once the crop is replanted, seed emergence of a healthy plant needs to be likely; and Field conditions must promote the maturity of the crop
To get an indemnity payment, you must meet the 20/20 rule (20 acres or 20% of planted acreage). Note, there are several reasons you will not receive a payment:
- The adjuster’s appraisal exceeds 90% of your crop insurance guarantee.
- The damaged crop was planted before the Earliest Plant Date. Payment was already received on a replant indemnity.
- The adjuster finds it’s not practical to replant.
Replant payments vary by crop but follow similar guidelines. For example, wheat replant payments will pay the lesser of 20% of your guarantee per acre or four bushels multiplied by the current spring crop insurance price. Soybean replant will pay 20% of your guarantee or three bushels per acre, whichever is less. Some of you may be asking, how quickly can insurance adjusters react and get out to my farm? Rest assured, during this crucial time of year when planting windows shrink, crop insurance companies have adjusters ready. So don’t forget to contact your AgCountry insurance specialist to get the replant process moving as soon as possible!
Now that your investment has made it through the critical young stage and is on its way to producing a high-yielding crop, you may consider adding protection on top of your MPCI to safeguard some profit. AgCountry insurance specialists understand the largest threats on the farm. Hail insurance is a private product, and we work with several companies to ensure we are providing our customers with the best service possible.
Some producers may feel they can’t afford hail insurance, and overlook it.. We work with producers to customize a hail insurance plan that is affordable. A high deductible plan could give you protection for that big hail event. You may be able to cover your crops for a few dollars per acre!
Hail insurance provides many options and can be obtained the day you need it! For instance, if it's later in the growing season and you have a good crop in the field, hail coverage is just a phone call away. Within two hours of your agent sending an email, you can have peace of mind when the storm clouds are rolling through.
Popular hail insurance plans include Basic and 10% deductible coverage, but Companion hail plans have recently received a lot of attention. A Companion 2-10 plan, for example, has a 10% deductible and a multiplying factor of two. When your hail damage crosses a 20% damage threshold, the multiplier kicks in. At 30% damage, Companion 2-10 will pay out 40% of your indemnity. At 45% damage, it pays 60%, and when damage reaches 60%, your full indemnity is paid.
The amount of coverage per acre you invest can vary depending on where you want protection. One field of corn can be covered while leaving another field eight miles away without protection. It’s totally up to you. Don’t let that flash hail storm get between you and a great year!
We wish you success with all your spring planting. If you would like to further discuss your options, AgCountry insurance specialists stand ready to help with your crop insurance needs.