What Factors to Consider When Determining if You’re Eligible for an Indemnity Payment
As harvest progresses, it’s a good time for farmers to assess their yields as it relates to their crop insurance protection. This helps with determining year-end revenue and planning for the coming year. For example, while September brought favorable corn and soybean prices, the higher crop prices may impact the level of crop insurance payments for some farmers. Those at or just below their 2021 Annual Production History (APH) may not receive an indemnity payment. However, those who expecting a decrease in crop yields may be eligible to recoup losses if certain factors are covered within their policy. Questions to determine include:
• What type of crop insurance policy with revenue protection do you have?
• Are the final harvest prices above the spring base price?
• Was your yield affected by drought or by summer storms?
• What level of crop insurance coverage and unit structure do you have?
It’s also recommended to always properly document yield losses, regardless of the level of coverage or policy you currently hold. Producers are reminded that they have 72 hours from the initial discovery of crop damage to file a Notice of Loss with their crop insurance agent. Detailed, proper documentation will assist in determining any potential 2021 crop insurance indemnity payments, as well as help evaluate any crop insurance options for the coming year. See more tips and scenarios here.
For any questions, talk to your trusted ProAg agent or reach out to our team. When you partner with ProAg, you are always ready for what comes next.