Policy endorsements may adjust coverage to reflect current yields

The amount of crop insurance available to farmers is based on your average yields, but the actual production history (APH) used for coverage may not accurately reflect your current potential. Using a policy endorsement can in­crease your APH significantly. In certain cases, APH yields can be modified using Trend Adjusted Yields (TA), Yield Exclusion (YE) and Yield Adjustment (YA) endorsements.

  • Trend Adjusted Yields — When available, TA provides the opportunity to increase your database for the past 10 crop years. For 2021, this can go back to 2001. TA can be helpful to reflect your current ability to raise a crop with today’s technology.
  • Yield Exclusion — When the USDA-Risk Management Agency has deemed a disaster year in your county, those years can be excluded from your database if it is beneficial for you.
  • Yield Adjustment — This can be used when a year does not qualify for yield exclusion but your yield was less than 60% of the county T-yield (transitional yield). Each county has a different T-yield for each crop generated by USDA-RMA based on the 10-year historical county average yield.

With costs of raising a crop continually increasing, it is important to review your crop insurance coverages an­nually. For more a deeper explanation of policy endorse­ments, talk with your MFA Crop Insurance agent. MFA Crop insurance is an equal opportunity provider.
Learn more about MFA Crop Insurance HERE.

Important Dates to Remember

March 15: Sales closing for spring-planted crops (Feb. 28 for some areas)

April 29: Production reports due for 2020 spring-planted crops

July 15: Acreage reports due for 2021 spring-planted crops

LINK TO RELATED STORY: Crop Insurance selections can impact your bottom line.

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Crop insurance selections can impact your bottom line

What’s your breakeven? Whether it be cost of inputs, rent, or labor, it is important to know where your hard-earned dollar is going in any given year. When asked your cost per acre for corn or soybeans, you may not know off the top of your head. But once you have the patience to sit down and truly figure the costs, it doesn’t take much time to determine a net income.

Even with all those calculations, there is still one expense that may affect your bottom line unexpect­edly: the unit structure on your crop insurance policy.

Each parcel of land for which premiums are calculated and for which potential claims are made is called an “insurance unit.” Unit structure is one of the most important choices you’ll make when determining your crop insurance policy. To understand how different types of units can affect the bottom line, you must first understand the differences between them. Specifically, let’s compare Enterprise Units (EU) and Optional Units (OU).

Enterprise Units are common among growers. The premi­ums are cheaper, and unit structure is simple to understand. However, EU can bring additional cost. EU takes all of the grower’s production and lumps it together per crop and county. If a grower has a crop failure in a single field, that production (for claims purposes) is combined with the production on the rest of their acres in that county. This can make a claim more difficult to obtain.

Optional Units have a higher premium and can seem intim­idating. With OU, the key difference is the ability to separate production and farms by section in the unit structure. If there was a crop failure in a single field, OU allows a greater opportu­nity for an indemnity claim because that field is being analyzed separately, with consideration for other fields of the same crop in the unit. In turn, there is potential for more frequent indem­nity payments that can improve your bottom line.

Ultimately, your coverage should be enough to keep you profitable when production falls short. MFA Crop Insurance agents understand the costs of raising a crop. They also under­stand that no two farms are alike. Your crop insurance should be tailored to fit your operation and risk tolerance.

For more information, contact your local MFA or visit MFA Crop Insurance HERE to find an MFA Crop Insurance agent in your area. MFA Crop insurance is an equal opportunity provider.

Important Dates to Remember

March 15: Sales closing for spring-planted crops (Feb. 28 for some areas)

April 29: Production reports due for 2020 spring-planted crops

July 15: Acreage reports due for 2021 spring-planted crops


CLICK HERE TO READ RELATED STORY: Policy endorsements may adjust coverage to reflect current yields.


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Hawkins elected to lead Missouri Farm Bureau as its youngest president in history

The Missouri Farm Bureau selected 40-year-old Garrett Hawkins of St. Clair County as its 15th president during the organization’s annual meeting on Dec. 6, making him one of the youngest Farm Bureau presidents in the nation and the youngest ever to lead Missouri’s largest farm organization. He began serving his two-year term immediately.

He replaces Blake Hurst, who announced in July that he would not seek re-election after serving as the group’s president for 10 years.

Hawkins has deep roots in MOFB, serving as a youth ambassador, participating in Collegiate Farm Bureau at Missouri State University and later serving as director of national legislative programs for nearly 15 years. Hawkins also served as the deputy director for the Missouri Department of Agriculture and most recently worked as an account manager for an agricultural chemical distribution company.

Hawkins and his wife, Jennifer, and their children, Adelyn, Colton and Tate, are the third generation in the Hawkins family to own and operate the farm where they live. Their operation is focused primarily on beef cattle today, but the family has also produced other livestock, row crops and dairy through the years. 

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