March 02, 2011
Commissioner Reminds Farmers of Crop Insurance Deadline
March 15 Deadline for Crop Insurance in 2011; Prices for Grain Coverage Announced
New York State Acting Agriculture Commissioner Darrel J. Aubertine today reminded producers of the upcoming March 15 deadline for purchasing or modifying crop insurance policies for the 2011 growing season. Crop insurance provides farmers with a level of assurance against weather, disease and market risk as it relates to the crops produced on their farms.
“I urge all producers to review the prices announced for calculating crop insurance protection for spring planted crops and discuss crop insurance coverage with an agent. Crop insurance coverage can protect farm income in the event of a poor season,” said Acting Commissioner Aubertine. “With corn and soybean prices this high, it makes good sense to consider revenue coverage, which is one way to protect the higher investments being made in the field in terms of fertilizer and seed.”
Crop insurance can protect farm revenue or crop yields depending on your need. In addition, crop insurance coverage is now required for farmers to qualify for federal disaster payments, should a weather disaster occur in your growing area. With the help of a crop insurance agent, you can review your risk exposure and determine the strategy that is best for you; just be sure to do so before March 15.
The March 15 crop insurance deadline applies to most spring-planted field crops, including corn, dry beans, barley, oats, soybeans, fresh market sweet corn, grain sorghum, potatoes, spring forage seeding, processing snap beans, and processing tomatoes, cabbage and sweet corn.
To insure by written agreement, the producer must have production records for the last three years for the crop to be insured or for a similar crop. Spring wheat and other crops for which premium rates are not established for the county may be able to be insured by written agreement if filed by the March 15 deadline. The projected prices established for grains for the purpose of crop insurance coverage are as follows.
- Corn insured as grain is $6.01/bushel
- Corn insured for silage with a tonnage guarantee is $42.25/ton
- Organic corn insured as grain is $10.75/bushel
- Soybeans are $13.52/bushel
- Organic soybeans are $24.20/bushel
- Spring barley is $5.93/bushel
The March 15 deadline also applies to first-time buyers of Adjusted Gross Revenue-Lite (AGR-Lite). AGR-Lite is a revenue insurance plan for diversified growers that provides whole farm production coverage. Producers who purchase AGR-Lite may still enroll in the Farm Service Agency’s Non-Insured Crop Disaster Assistance Program (NAP) on selected crops if necessary.
Producers insuring multiple or large farms may wish to insure using “enterprise units” to receive up to a 50% premium discount. Enterprise units may reduce the cost of traditional coverage and allow producers to purchase insurance at higher coverage levels. Higher coverage can better protect the higher than normal crop prices, should a weather disaster occur.
It is important for producers to know that in order to be eligible for federal agricultural disaster payments in 2010, most crops must be enrolled with crop insurance or USDA’s NAP Program. In general, the higher the insurance coverage, the greater the guarantee that the farm’s crops will be covered in the event of an agricultural disaster.
A list of crop insurance agents who sell crop insurance in your county is available on the web at http://www3.rma.usda.gov/apps/agents/ or at your local USDA Farm Service Agency office.
2011 Press Releases