The Gift That Keeps On Giving
Obviously, the buzz words in the grain belt this year are “prevented planting” (PP). However, the weather challenged growers throughout the growing season, and the challenges continue into harvest. Many locations started out too wet then became too dry and hot. Then, just as many started gearing up for harvest, came the hail, wind, and heavy rain. These weather events, combined with low commodity prices, presented new challenges and frustrations for growers as they worked to harvest and turn their growing crops into dollars.
Reimbursement for Losses
While many areas throughout the country deal with some prevented planting every year, those growers who may never have experienced PP before had a to learn the rules quickly! Thankfully, basic multiple peril crop insurance (MPCI) policies have some PP coverage for most crops on qualifying acres.
In addition to the MPCI payment, the USDA is also paying growers who participate in the MPCI program an additional amount called “top-up” payments, based their 2019 prevented planting indemnity. Market Facilitation Program payments are available again for the 2019 crop year, and the accrual of interest on your MPCI policy premium is being deferred for 2 months (November 30) on those policies with an August 15th billing date. It seems every day brings more news as the government tries to help growers through this tough year.
What does the 2019 crop look like?
As harvest accelerates, growers may experience a multitude of crop results on the acres that they were able to plant. There are reports of great yields as well as very low yields, grain quality issues, and low test weights.
Growers may not be done talking to agents and adjusters. As harvest progresses, potential claims on yield need to be reported within 72 hours of discovery of a loss. If low test weights or other quality adjustments are discovered when grain is delivered, it is appropriate to let your agent know to report a potential claim. Many quality issues—especially those caused by molds—may become bigger issues if stored on farm and then delivered or sold later, as most are covered only to the initial point of storage or delivery. In other words, if you pull grain from a bin next spring and then discover toxins or other quality issues, your MPCI policy may not provide coverage.
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