Reporting production probably is not top of mind as we begin the new year. However, reporting production early has substantial benefits instead of waiting until the April 29 deadline. Let us explore why you should act now.
Reporting early allows your insurance specialist to look over the production and determine if there is a production or price loss that needs to be turned in to the approved insurance provider (AIP). All production losses should be reported within 15 days of the completion of harvest. A revenue loss is a loss only on a price decline. These losses must be reported within 45 days of the official price announcement. All losses that are not reported on time can result in a denial of claim and with no indemnity being paid.
Those with a Revenue Protection (RP) plan should note that your bushel guarantee will go up for the respective crop if commodity prices come in lower during the fall compared to the spring price. This will get you to the original revenue guarantee.
The table below shows the considerable price declines in 2023. Be sure to check with your agent to determine if you triggered a revenue loss.
| |
Spring |
Fall |
| Barley |
$5.59 |
$4.39 |
| Canola |
$.272 |
$.251 |
| Corn |
$5.91 |
$4.88 |
| Soybeans |
$13.76 |
$12.84 |
| Sunflowers |
Oil $.305
Confectionery $.326 |
Oil $.279
Confectionery $.299 |
| Wheat |
Spring $8.87
Durum $10.11 |
Spring $7.97
Durum $9.09 |
**Dry bean and dry pea prices will be released January 15, 2024 for all types
Another advantage of reporting production early is your specialist can key the data into the AIP system sooner, producing an updated actual production history (APH). Having an updated APH for renewals allows the specialist to optimize your yields by analyzing all available insurance options. The most current yields help the specialist determine which policy options give the farmer the best coverage for this upcoming year.
Fluctuations do occur in production year to year. Insurance options exist to help counter these changes. These options include Trend Adjustment (TA), Floor Option (FO), Personal Transitional Yield (PTY), Quality Loss (QL), Yield Adjustment (YA), Yield Cup (YC), and Yield Exclusions (YE).
Personal Transitional Yield (North Dakota only) and Floor Option have premium surcharges. This means that the producer will pay for it on all acres of the crop it is elected on no matter if the option is being utilized or not. We do not want to see these options on a policy if it is not benefiting the APH. A farmer should not pay for something that is not helping them.
The most accurate quote a farmer will receive for their insurance premium and revenue guarantee by crop will occur when the spring prices are discovered, all production has been reported, and all options are finalized. This information can then be taken to their lender and used during the breakeven meeting to show what crop insurance is guaranteeing them for income, and what is being paid for premium as an expense.
The benefits of reporting your production early can pay major dividends for your 2024 crop insurance decisions. Do not wait until the April deadline. Contact your local AgCountry insurance specialist and report your numbers as soon as possible.
