Crop Insurance around the Corner

Greg Mockenhaupt ProEdge Risk Management Consultant 

Greg Mockenhaupt
ProEdge Risk Management Consultant

As a ProEdge Risk Management Consultant, I strive to bring blog topics which can benefit all aspects of the operation, not just marketing alone.  With the March 15th deadline for Multi-peril crop insurance less than two weeks away, there a few things to consider.


The first thing, February Prices have been set at $3.86 for corn and $8.85 for beans, and will be revisited in October.

Yield Exclusion

Yield exclusion gives you the opportunity to exclude a bad year from your APH. The criteria is based on county-wide yields, and your agent can tell you which years are excludable. 2012 is commonly an excludable year due to drought. This is only a consideration, just because 2012 is excludable, does not necessarily mean it should be excluded. You should pay close attention to operation specifics. If the excludable crop year is dragging down your operation’s APH, then consider yield exclusion. By doing so, you can increase the farm operations APH. Thus providing better coverage. If you are looking for ways to save money, you could then consider lowering the insured levels to cut costs, but still have the same bushel coverage you had prior to the exclusion.


Look carefully at your hail coverage. Basic hail covers from the top to the bottom and requires a 90% loss to collect. You can ask yourself, how often do I collect on my Multi-Peril? Not very often you might say.  So I ask, “Why to cover the same crop twice with multi-peril and hail?” Talk to your agent about “production hail & wind.” Production hail totals out where multi-peril starts, no overlap in coverage. Thus giving you better coverage, even for the small losses. Only requiring a 2.2% loss to cover paid premiums.


Changes for 2017

These changes will not affect crop insurance this year, however in preparation for 2017, I would strongly suggest discussing CLU reporting with your agent. CLU stands for common land unit. The reporting will consist of farm number, tract number, and field number for each planted field. This increases the paperwork substantially, so I would suggest being proactive here. Your agent should provide you with everything you need to know to prepare for these changes. Beginning in 2017 if CLU data is not reported, coverage will be denied. So be prepared.