AGENCY & CROP INSURANCE NEWS
Like a large part of our lives, Crop Insurance is always changing and we want to share with you what's going on. We also want to answer any questions you may have as you meet in the coffee shop in the mornings. Please call, email, or post on our Facebook page any topics or questions you might have.
Prevented Planting (PP) Disaster Payments
If you filed for Prevented Planting (PP) with a 2019 spring crop you probably received an additional PP payment in the fall. This additional payment was because of the USDA's Disaster Payment. Did you know that upon receiving that payment that there was a stipulation that you must have a crop insurance policy for that crop in that county for an additional 2 years? So, don't cancel that policy just yet. For details concerning the Prevented Planting (PP) Disaster Payment go to this link:
Prevented Planting (PP)
With all of the excessive moisture in our area, we have had many questions about Prevented Planting (PP). To try and clear up any questions, the following is what a PP claim would consist of.
To initiate a PP claim, the specific reasoning has to be "general in the area" and you would need to provide documentation of the weather conditions at that time. You would also have to prove you had the intent to plant. For example, you would need seed receipts, proof the ground was prepared, and any other purchases for planting. You can only turn in a PP claim once it is past the final plant date. You then have until the end of the Late Planting Period (LPP), which is 15 days after the final plant date to turn in the PP claim.
If you decide to turn in a PP claim, you will still fill out your acreage report as normal. But instead of putting a plant date, you will write PP in the plant date section.
Once a PP claim is turned in, it would be worked the same as any other Notice of Loss, but the claim would be deferred until July. The PP will cover 60 percent of your guaranteed yield and will be paid out around that time. If you decide to plant a spring crop, on that same ground, it would be considered a 1st crop/2nd crop. Initially you will be paid 35 percent of the 60 percent guarantee from the PP claim. If you have a loss on your spring crop, you would have the choice of taking the loss on the spring crop, or receiving the rest of the PP claim payout.
If you have any questions about Prevented Planting, please give us a call at the office.
What is CLU and Why do We Need it on Your Acreage Report?
CLU (Common Land Unit) is the legal description given by the USDA for agricultural land in the U.S. CLU descriptions include "Farm, Tract, & Field" numbers. When Producers certify their crops at the FSA office they should receive a report (FSA-578) showing the legal listing for their farm ground. Up until a few years crop insurance companies were not required to have this information and in Kansas the insured simply reported their acres by section, township, and range. With the Farm Bill a few years ago, the crop insurance companies were required to have the CLU information on their policies. This process started when we started asking insured's for copies of their 578s along with their Acreage Reports. With the 2017 crop year those regulations now require that Acreage Reports MUST have the CLU information written on the reports. If the CLU is not on the Acreage Report, then those acres will not have insurance coverage. We know that this seems like more work in the acreage reporting process, but please understand this will make sure information is consistent with your insurance and FSA. Once the information is in your APH it should already come pre-printed on your Acreage Reports.
What about Mapping & CLU?
If you do mapping and you receive Mapped Based Acreage Reports, then we do not need a copy of your FSA-578 form. This is because the CLU information is simply telling us where that field is located on a map. If you mark on a map the field location, then you are sharing the same information that the CLU # is telling us. The crop insurance mapping systems are linked with FSA and so when we link the maps to you policy the system also imports the CLU information. For more questions regarding mapping and CLU, please give us a call at 620-792-1261.
We Are Now Also Writing Insurance With Rain and Hail
We believe it's important to give our customers options and as an independent agent we can write with companies that have excellent service for our insureds. Starting in the 2017 crop year you can now write your policy with Rain and Hail at G & H Insurance. Rain & Hail is one of the top rated insurance providers and they have been serving farmers since 1919. We will continue to write with RCIS (also in the top ratings), but now you have an option. To learn more about Rain and Hail you can go to their website at www.rainhail.com or you can call us and we will be glad to answer any questions you may have.
Do I need to Switch to Rain and Hail?
The main question to ask is, "Am I currently happy with the service I get from RCIS?" If that answer is, "yes" then you don't have to switch. If you have been dissatified with RCIS service and want to know more about Rain and Hail, please call us and we will be glad to share with you any differences. Both companies are the top 2 rated Crop Insurance providers and provide great service, we just want to make sure our customers have options.
RCIS Portal Service
Did you know you can access your Crop Insurance policy online? RCIS is continuing to grow this service to a point where you will be able to digitally sign documents to quickly process losses and reports. To begin go to www.rcis.com and click "register now" to setup your online account. Click on these documents for instructions or for more information on the portal service (instructions and information).