Every January, I find myself walking through the Sioux Falls Farm Show to see what the latest and greatest technology is. There are always new and better ways to fine-tune a planter or see the latest GPS items for a sprayer or combine.
Just like technology, ways to protect your crops are ever-changing. February is a great time to make sure you have the latest “technology” for your crop insurance policy.
Yield Cup Option
The most important change this year is the yield cup option. What once was standard on your insurance policy will now have to be an elected option, much like Trend Adjustment and Yield Exclusion. Having the cup applied ensures your 10-year APH does not decrease by more than 10%. If the cup is not used, there is no extra cost. I highly recommend electing this option on your 2018 policy.
Additionally, there has been a lot of South Dakota ground that hasn’t been planted in the past two years. If these acres have had a prevent plant claim the last two consecutive years, they are no longer eligible for prevent plant payments; these acres are still insurable if they are planted and harvested. In order to be eligible for prevent plant in the future, the land will have to be planted and harvested for two consecutive crop years.
Spring Insurance Prices
February is when the spring insurance prices are set using the average of the December Corn and November Soybean futures. Last year, the spring prices were $3.96 for corn and $10.19 for soybeans. Currently, prices are trading near last year’s spring guarantee.
If you have any questions on any changes or how to fully understand your insurance policy, contact me. I will work with you to make sure they are answered. Have a safe planting season!
Have questions? Contact Tyler; he would be happy to help.