Recent Changes That Will Impact You The Most
Transitional and Organic Grower Assistance (TOGA) Program
TOGA provides premium assistance to producers who insure their crop during the 2023 reinsurance year. Eligible producers will receive a discount on their premium billing statement:
- For crops in transition to certified organic, producers can receive 10 percentage points of premium subsidy;
- For certified organic grain and feed crops, producers can receive $5 premium assistance per insured acre; and
- For Whole-Farm Revenue Protection (WFRP) policies with crops in transition or certified organic crops, producers can receive 10 percentage points of premium subsidy. In addition to the WFRP benefit, producers who have additional individual crop insurance policies will also receive the applicable premium benefit on those policies
Double Crop Soybean Initiative –
In an effort to make double crop soybean coverage widely available throughout the US, RMA is allowing farmers to apply for coverage using Written Agreement provisions, either by a traditional Written Agreement (deadline for submission is 7/15) or a Blanket Written Agreement (deadline for submission is 3/15).
A traditional Written Agreement is a request to insure a crop that is not typically insurable in the county you are located in. Requesting this coverage usually involves soil maps, adaptability statements, mid season crop appraisals, and providing crop history in addition to the application and other paperwork.
A Blanket Written Agreement gives the farmer the opportunity to insure his double crop soybeans without many of the requirements of a traditional Written Agreement including the mid season appraisal and crop history.
Early Plant Date Changes –
The early plant date affects the replant coverage built into an individual policy only. Crop Insurance MPCI policies will not pay a replant payment if you plant before the early plant date for the crop. Early plant dates are determined by county. Many of the soybeans early plant dates have changed for 2023 and beyond. Additional Replant Coverages can give you more coverage when dealing with early plantings by paying you a claim even if you plant before the early plant dates in your county. Check with your crop insurance agent to find out which dates affect you and for more information on additional replant coverage.
Rounding Out Your Coverage with Gap Coverages
These options help to work with your existing crop insurance policy and supplement your coverage without breaking the bank.
Gap Coverages – Gap coverages are a great way to increase your coverage above and beyond 85% on an individual policy. These coverages allow you to add coverage or expand existing coverage. Many products give you the ability to choose how much coverage you want to add and most allow you to elect Optional Units on your gap coverage with Enterprise Units on your underlying policy.
Combining these with your underlying policy can give you:
- Higher Coverage – When you insure for more, you don’t have to take as big of a loss during the year before you can collect a crop insurance claim
- Expanded Coverage – Using these products on an Optional Unit basis when you carry Enterprise Units on your MPCI policy can help you collect more claims on individual units in the top part of your coverage. Actuarily, this is the place where most losses occur.
- Premium Savings – Expanding gap coverages to insure on an optional unit basis may also be more economic than carrying Optional Units on your MPCI policy.
Pricing Coverages – These coverages modify your crop insurance guarantee by manipulating the price on a revenue policy and are extremely affordable. They offer many different options and can be customized to your needs and budget.
Use these products to add more dollars to your crop insurance guarantee by:
- Adding More Discovery Periods – Instead of the higher of the Projected or Harvest Price, these policies allow you to add additional trading months, guaranteeing yourself the highest of the Projected, Harvest, or your chosen trading period’s price.
- Using A Lookback Feature – Instead of using the average price during a period of time that may span weeks or months, you can lock in the previous day’s closing trade. This uses big gains in the market to your advantage on your guarantee.
Hail & Plant Date Options – When mother nature doesn’t cooperate, it’s good to have coverages that can help farmers collect claims on spot losses and get around restrictions on early planting, replanting, and late planting offered in the MPCI policy. If you frequently experience hail, plant early, plant late, or replant, these products are highly recommended.
Not sure what to do? Talk to an agent today and we can see what products, if any are right for you!
Crop Insurance Basics
Knowing how your policy works can help you choose which products and coverages are right for you. From establishing your guarantee, to setting up your units, these videos are an overview of the major policy types.
Going Electronic – Best Ways To Avoid Mail Delays And Missing Deadlines
Signing up for electronic services is different for each Approved Insurance Provider. Contact our office for instructions on how to:
- Sign up for direct deposit
- Pay you premium online
- Send and receive your documents electronically
- Keep your contact information up to date
- Sign up for email and text services