LOWER CORN AND SOYBEAN RATES

The Risk Management Agency (RMA) has updated the methodology used to set crop insurance premiums that has effectively reduced premium rates for corn and soybeans for 2012.  The new rates reduce corn farmers’ rates by as much as 11%.  Soybean farmers will see a rate reduction of up to 13% in some counties.  It may be possible to increase your coverage level for the same amount of premium as last year.

TREND-ADJUSTED ACTUAL PRODUCTION HISTORY( APH)

Trend-Adjusted APH (TA) is available for the 2012 crop year for corn and soybeans in qualifying APH databases.  The Trend-Adjusted APH adjusts yields in APH databases to reflect long term increases in the county’s historical yield.  To be eligible there must be at least one APH database with an actual yield in one of the four most recent crop years.  The TA option must be selected by March 15 sales closing date and is continuous election until cancelled.  It must be elected on a county/crop level.  Specialty and Organic Soybeans are excluded.

SPECIALTY SOYBEAN CHANGES FOR 2012

All non-specialty type soybeans now become “Commodity” (Type 091).  99% of all soybeans are this type.  All types must now go under a single plan and can no longer be excluded.  Specialty Soybeans can be insured for the price contained in the contract provided the acreage is under contract.

POPCORN REVENUE COVERAGE

Revenue coverage for Popcorn is available for 2012.  A “Projected” and “Harvest” price will be converted from bushels to pounds based on the CBOT corn price.  Popcorn Revenue Coverage must be elected by the MARCH 15 sales closing date.

(BE) PILOT PROGRAM DISCONTINUED

The Biotechnology Endorsement (BE) for Corn has been discontinued for the 2012 crop year.  The program provided a premium rate reduction for producers who planted certain qualifying corn hybrids.  The discount is now reflected in the new corn rate reduction effective for 2012.

BILLING DATE CHANGES

As a result of the last farm bill, the new premium billing date for spring crops will be AUGUST 15.  Interest will not attach until OCTOBER 1.