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2019 Crop Insurance Updates and the New Farm Bill – Overview

(upbeat music) – Well, when you think about 2019, one of the key things is
that with crop insurance, March 15th is the deadline day
to have your crop insurance changed, updated, do anything
different, cancel it. Anything that you need done
with your crop insurance policy must be done in writing by March 15th. So during these cold, winter months, it’s a great opportunity to talk to your crop insurance agent, talk to your lender, find
our what do you need, review your coverage,
make sure that everything is ready to go for this year, before we get to April planting, when it might be too late. So, when I talk about ’18, going into ’19 and being cautiously optimistic, in 2018, we came off a year where, as whole, the Northwest Ohio area really had some good
production, corn and soybeans. So that’s a real positive thing. And then they had, Trump bucks, for lack of a better term, that helped to kick in on the soybeans. It really helped boost things up. So there was a lot of positive things coming out of ’18 and as we get into ’19, the bean market stayed a little higher, maybe than it was anticipated. And the same with the corn markets, staying close to that $4. And so, there’s talk of
maybe it going higher. So that’s something, I think, that we’re cautiously optimistic. We’ve had a couple good
years of production, yet the markets are still
staying up at a level where we’re close being to being able to maybe see some positive sales. So we don’t know that that’s gonna happen, but we’re kind of hopeful that
that could be a good thing, giving guys an opportunity to sell and take advantage of that market at a break-even or better level. The 2018 Farm Bill that
we just came through did not make a lot of changes to the crop insurance industry. There were a few things,
but it was very minor. They tweaked it. And so what we’ve looked at
as an agency is just to say, well what did change
in the 2018 Farm Bill, versus 2014? In 2014, they called that
Farm Bill revolutionary. They really went about
some different things. They came up with an
ARC-County plan of insurance, as instead of a direct payment, they can get a payment
based on the ARC-County, or Price Loss Coverage
which they call PLC. And a lot, well, the majority, over 80%, 90% of the farmers
went into the ARC-County for both their corn and
their soybean acres. Starting now, in the 2018 Farm Bill, it isn’t revolutionary, it’s evolutionary. They basically took what was there from 2014 and tweaked it. So now, farmers will have
the option again to elect, well do I wanna put my corn
under this farm’s serial number in the ARC-County program? Or do I do wanna put that
in the Price Loss Coverage or the PLC program? When it was done prior, it
was a one-time commitment. You chose and and you had to live with it. Starting in 2019, 2020,
you will elect again, either ARC-County or ARC, or
the PLC for those two years. Beginning in 2021, you’ll
be able to elect every year by crop, by farm serial number, we assume, what you wanna do, whether it’s ARC-County, ARC-Individual, or Price Loss Coverage. And so because of that, we think it’s gonna be
very important for farmers to go up the Farm Service Agency, get your report of what does
each farm serial number, what is the base acres,
and what is the yield assigned with that farm serial number? And if you can update
your yield from 2017, back to 2013, if you
can improve that yield, I think folks are gonna wanna do that. Just because maybe this year, you don’t want that Price Loss Coverage, but starting in 2021 or 2022, you might look at Price
Loss Coverage and say, you know, I have a greater opportunity to get a payment there,
than I do on the ARC-County. So, maximizing that payment
or that potential payment will be big. And so, I think folks are
gonna wanna update their yield at the Farm Service Agency. When I think about 2019
and with crop insurance, I guess the biggest
key that I wanna stress to some of the farmers
is just be prepared. Go over everything thoroughly. It doesn’t matter who your agent is, make sure you sit down with them and review it. Review your policy. Make sure that we have the
correct entity on there. Make sure that the type
of coverage you have is what you need. And I think knowing your financials, knowing your break-even
outside of crop insurance, and then fitting your crop
insurance coverage to match that, to help that, to work
with your marketing plan is gonna be imperative because it doesn’t look like a year where as we go into the year, you’re saying, wow this
is a very profitable year. This is gonna be a tight, tough year where preparation,
knowing your break-even, and knowing how to fit
marketing with crop insurance to at least get to the
break-even is gonna be crucial. And so that preparation now, I think will be key.

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