Risk Management Options: Crop Insurance and Accessing Credit
The 2014 Farm Bill brought a variety of changes and opportunities for both small and mid-sized farmers. This workshop is designed to offer an overview of what it means to manage risk for your farm and options for both beginning and experienced farmers. Area experts will help you navigate crop insurance choices and opportunities for accessing credit, offering the information and tools you need to determine the best options for your farm.
Public grain reserves: International experience and lessons for MalawiIFPRIMaSSP
On 27 January 2017, Dr. Nicholas Minot, Deputy Division Director of IFPRI’s Markets, Trade, and Institutions Division led a seminar at IFPRI-Malawi on, “Public grain reserves: International experience and lessons for Malawi.” His presentation explored the objectives and tradeoffs of creating public grain reserves and various policy options that affect their performance and cost.
“Food Price Volatility and Resilience in Africa” presented by Nicholas Minot, Senior Research Fellow, Markets, Trade and Institutions Division, IFPRI at 2014 ReSAKSS Annual Conference, Addis Ababa, Ethiopia, October 9, 2014
Public grain reserves: International experience and lessons for MalawiIFPRIMaSSP
On 27 January 2017, Dr. Nicholas Minot, Deputy Division Director of IFPRI’s Markets, Trade, and Institutions Division led a seminar at IFPRI-Malawi on, “Public grain reserves: International experience and lessons for Malawi.” His presentation explored the objectives and tradeoffs of creating public grain reserves and various policy options that affect their performance and cost.
“Food Price Volatility and Resilience in Africa” presented by Nicholas Minot, Senior Research Fellow, Markets, Trade and Institutions Division, IFPRI at 2014 ReSAKSS Annual Conference, Addis Ababa, Ethiopia, October 9, 2014
Farm Plus Financial (http://www.farmloans.com/), is a financial institution for helping the farmers get the most useful farm loans for their operations.
Study of “Flipkart.com”: India’s Leading E-business PortalSagar Agrawal
The Research provides information about an overall analysis of a leading ecommerce platform in India and thereby examines their strategies with respect to E-business and marketing. The growth of this portal has been precedential in defining the E-business parameters in India.
Risk and uncertainty are related, but different concepts that many people struggle to understand. This presentation defines and explains the difference between risk and uncertainty and how they are measured, so that they can be properly managed in a business context.
Please add any comments or feedback, and share this presentaiton with your colleagues, thanks!
Feel free to contact me via LinkedIn if you have any questions:
http://www.linkedin.com/in/kelvinstott
Alternatively, please visit or join our LinkedIn group, ’Big Ideas in R&D Productivity & Project / Portfolio Management’:
http://www.linkedin.com/groups/Big-Ideas-in-Pharma-R-4322249
Project report on- "A study of digital marketing services" MarketerBoard
To begin with, as a part of the curriculum a summer internship programme was to be conducted for a period of two months. Given a choice one was allowed to choose the field in which he/she was interested. As my interest and curiosity was in online or digital marketing I choose to work with a startup company named Return on web. Return on web is three year old Pune based online marketing & web development firm focused on providing you business-centric strategic solutions to the companies. I choose the startup company because with start I can explore myself and why digital marketing? Because it is booming industry, the growth of digital marketing is tremendous and expected to grow more.
Due to this summer internship, I learnt every aspect of digital marketing include (business development process, content writing, social media). The company asks me to do their competitive research and told to found return on web USP. And research of our target segments digital habits. With the help of the research we got a flow of what are the major criteria’s we need to have. One had to identify various sectors in the market that actually have a need of digital marketing services. And then your task is to approach them before your competitors.
Digital marketing startup companies follow a standard process of approaching clients. There are certain steps which cannot be altered or skipped. These are followed in sequences and executed after evaluating the process again and again. In digital marketing your team should be strong enough to deliver what your client expecting, as under digital marketing everyone work is interconnected and with a team only one campaign can get ready.
An extensive literature review is done on the concepts and theories related to web advertising. A review of Research papers, articles is undertaken to take note of and acknowledge work that has been done in the field of web advertising as such. The Researcher has collected secondary data from reputed Journals and Magazines, Newspapers, articles, Internet websites and Archives. The Researcher has visited
Libraries in Pune and out of Pune, to collect literature.The researcher has identified seven research papers along with thirteen articles published in renowned journals on various topics such as Web ad, Web based ad market, E-commerce impact, trends of online marketing, consumer attitude to Web ad and sales/marketing strategy
It was an amazing experience working virtually and on field. I came to many new terminologies of digital marketing, corporate world etc. The project contain the task which has been done by me during my internship as well as what I have learnt from it.
The internet is being developed rapidly since last two decades, and with relevant digital economy that is driven by information technology also being developed worldwide. After a long term development of internet, which rapidly increased web users and highly speed internet connection, and some new technology also have been developed and used for web developing, those lead to firms can promote and enhance images of product and services through web site. Therefore, detailed product information and improved service attracts more and more people changed their consumer behaviour from the traditional mode to more rely on the internet shopping. On the other hand, more companies have realized that the consumer behaviour transformation is unavoidable trend, and thus change their marketing strategy. As the recent researches have indicated that, the internet shopping particularly in business to consumer (B2C) has risen and online shopping become more popular to many people. According to the report, The Emerging Digital Economy II, published by the US Department of Commerce, in some companies, the weight of e-commerce in total sales is quite high. For instance, the Dell computer company have reached 18 million dollars sales through the internet during the first quarter of 1999. As a result, about 30% of its 5.5 billion dollars total sales were achieved through the internet (Moon, 2004). Therefore, to understand internet shopping and its impact on consumer behaviour could help companies making use of it as a form of doing e-business.
There are many reasons for such a rapid developing of internet shopping, which mainly due to the benefits that internet provides. First of all, the internet offers different kind of convenience to consumers. Obviously, consumers do not need go out looking for product information as the internet can help them to search from online sites, and it also helps evaluate between each sites to get the cheapest price for purchase. Furthermore, the internet can enhance consumer use product more efficiently and effectively than other channels to satisfy their needs. Through the different search engines, consumers save time to access to the consumption related information, and which information with mixture of images, sound, and very detailed text description to help consumer learning and choosing the most suitable product (Moon, 2004). However, internet shopping has potential risks for the customers, such as payment safety, and after service. Due to the internet technology developed, internet payment recently becomes prevalent way for purchasing goods from the internet. Internet payment increase consumptive efficiency, at the same time, as its virtual property reduced internet security. After service is another way to stop customer shopping online. It is not like traditional retail, customer has risk that some after service should face to face serve, and especially in some complicated goods.
An outline of the basic elements of a farm financial management plan. Using the farm's Schedule F and balance sheets, a farmer can develop an Income Statement and Annual Statement of Cash Flows. This set of documents allows a farmer to assess the strengths and vulnerabilities of the farm's financial situation.
Farm Plus Financial (http://www.farmloans.com/), is a financial institution for helping the farmers get the most useful farm loans for their operations.
Study of “Flipkart.com”: India’s Leading E-business PortalSagar Agrawal
The Research provides information about an overall analysis of a leading ecommerce platform in India and thereby examines their strategies with respect to E-business and marketing. The growth of this portal has been precedential in defining the E-business parameters in India.
Risk and uncertainty are related, but different concepts that many people struggle to understand. This presentation defines and explains the difference between risk and uncertainty and how they are measured, so that they can be properly managed in a business context.
Please add any comments or feedback, and share this presentaiton with your colleagues, thanks!
Feel free to contact me via LinkedIn if you have any questions:
http://www.linkedin.com/in/kelvinstott
Alternatively, please visit or join our LinkedIn group, ’Big Ideas in R&D Productivity & Project / Portfolio Management’:
http://www.linkedin.com/groups/Big-Ideas-in-Pharma-R-4322249
Project report on- "A study of digital marketing services" MarketerBoard
To begin with, as a part of the curriculum a summer internship programme was to be conducted for a period of two months. Given a choice one was allowed to choose the field in which he/she was interested. As my interest and curiosity was in online or digital marketing I choose to work with a startup company named Return on web. Return on web is three year old Pune based online marketing & web development firm focused on providing you business-centric strategic solutions to the companies. I choose the startup company because with start I can explore myself and why digital marketing? Because it is booming industry, the growth of digital marketing is tremendous and expected to grow more.
Due to this summer internship, I learnt every aspect of digital marketing include (business development process, content writing, social media). The company asks me to do their competitive research and told to found return on web USP. And research of our target segments digital habits. With the help of the research we got a flow of what are the major criteria’s we need to have. One had to identify various sectors in the market that actually have a need of digital marketing services. And then your task is to approach them before your competitors.
Digital marketing startup companies follow a standard process of approaching clients. There are certain steps which cannot be altered or skipped. These are followed in sequences and executed after evaluating the process again and again. In digital marketing your team should be strong enough to deliver what your client expecting, as under digital marketing everyone work is interconnected and with a team only one campaign can get ready.
An extensive literature review is done on the concepts and theories related to web advertising. A review of Research papers, articles is undertaken to take note of and acknowledge work that has been done in the field of web advertising as such. The Researcher has collected secondary data from reputed Journals and Magazines, Newspapers, articles, Internet websites and Archives. The Researcher has visited
Libraries in Pune and out of Pune, to collect literature.The researcher has identified seven research papers along with thirteen articles published in renowned journals on various topics such as Web ad, Web based ad market, E-commerce impact, trends of online marketing, consumer attitude to Web ad and sales/marketing strategy
It was an amazing experience working virtually and on field. I came to many new terminologies of digital marketing, corporate world etc. The project contain the task which has been done by me during my internship as well as what I have learnt from it.
The internet is being developed rapidly since last two decades, and with relevant digital economy that is driven by information technology also being developed worldwide. After a long term development of internet, which rapidly increased web users and highly speed internet connection, and some new technology also have been developed and used for web developing, those lead to firms can promote and enhance images of product and services through web site. Therefore, detailed product information and improved service attracts more and more people changed their consumer behaviour from the traditional mode to more rely on the internet shopping. On the other hand, more companies have realized that the consumer behaviour transformation is unavoidable trend, and thus change their marketing strategy. As the recent researches have indicated that, the internet shopping particularly in business to consumer (B2C) has risen and online shopping become more popular to many people. According to the report, The Emerging Digital Economy II, published by the US Department of Commerce, in some companies, the weight of e-commerce in total sales is quite high. For instance, the Dell computer company have reached 18 million dollars sales through the internet during the first quarter of 1999. As a result, about 30% of its 5.5 billion dollars total sales were achieved through the internet (Moon, 2004). Therefore, to understand internet shopping and its impact on consumer behaviour could help companies making use of it as a form of doing e-business.
There are many reasons for such a rapid developing of internet shopping, which mainly due to the benefits that internet provides. First of all, the internet offers different kind of convenience to consumers. Obviously, consumers do not need go out looking for product information as the internet can help them to search from online sites, and it also helps evaluate between each sites to get the cheapest price for purchase. Furthermore, the internet can enhance consumer use product more efficiently and effectively than other channels to satisfy their needs. Through the different search engines, consumers save time to access to the consumption related information, and which information with mixture of images, sound, and very detailed text description to help consumer learning and choosing the most suitable product (Moon, 2004). However, internet shopping has potential risks for the customers, such as payment safety, and after service. Due to the internet technology developed, internet payment recently becomes prevalent way for purchasing goods from the internet. Internet payment increase consumptive efficiency, at the same time, as its virtual property reduced internet security. After service is another way to stop customer shopping online. It is not like traditional retail, customer has risk that some after service should face to face serve, and especially in some complicated goods.
An outline of the basic elements of a farm financial management plan. Using the farm's Schedule F and balance sheets, a farmer can develop an Income Statement and Annual Statement of Cash Flows. This set of documents allows a farmer to assess the strengths and vulnerabilities of the farm's financial situation.
Learn about the state of Canada's agriculture industry for 2015 / 2016 in this insightful presentation, as well as ways to protect your operation and gain support from MNP's Farm Management Consultants.
FCS Financial staff provided an update on the 2014 crop insurance changes at the FCS Financial Ag Seminars held in February 2014. View our website, www.myfcsfinancial.com, to find a crop insurance agent near you.
U.S. Department of Agriculture conducts Agricultural Resource Management Survey each year to measure financial well-being of the U.S. farm sector. This presentation outlines several key impact of the results of this survey.
Examination of the design and funding of federal agricultural policies, focusing on Farm Bill law within a context of the contemporary economic and political environment.
Proceedings available at: http://www.extension.org/67732
Understand the business planning and development issues confronting small-scale livestock and poultry producers.
Presented by: Martha Sullins
A four-hour workshop taught at the 2018 Organic Association of Kentucky Conference. Development of a full set of financial statements for the fictional Happy Farmer CSA, from enterprise budget, through month-by-month projection of cash flow, to Schedule F, balance sheets, income statement, and annual statement of cash flows. Includes some key financial ratios that indicate financial strengths and vulnerabilities of the farm. The workshop concludes with a discussion of farm investment analysis using Internal Rate of Return (IRR) to choose between options.
A brief presentation of how the tax laws are changing concerning sales of ag products at farmers markets, and how this will affect producers and retailers.
Overview of Common Agriculture ContractsCari Rincker
This presentation gives a cursory overview of agriculture production contracts, custom feeding arrangements, farm leases, farm machinery leases, animal leases (e.g., bull and horse leases) and partnership agreements
Sunburst Trout Farms - Farm Story 2018 Business of Farming Conferenceasapconnections
Presentation by Anna Eason of Sunburst Trout Farms for Crafting Your Farm Story Workshop.
People support your vision and the principles you champion because of an emotional connection. Create a new strategic mindset for your farm storytelling that will unleash untapped assets while working with facilitators to begin crafting or further develop your own farm story.
Mud to Money: Lessons from 15 Leading WNC Local Food Farms Appalachian grown ...asapconnections
By Mountain BizWorks
Appalachian Grown farmer case studies.
Authors & Editors: Lead consultant: Noah Wilson, Emergent Opportunities, Inc.
Mountain BizWorks staff & business coaches: Barry Gupton, Madelyn Hjertmann, Kimberly Hunter, Sarah Myers, and Matt Raker
Putting Storytelling To Work: 2018 Business of Farming Conferenceasapconnections
What makes your farm stand out? No matter where you sell, communicating your farm story is critical for success in local markets and for tapping into consumer demand for authenticity. Learn how to use your stories to create media exposure over many platforms.
Marilyn Ball of 12TwelveMarketing, Anna Eason of Sunburst Trout Farms
Presented by ASAP, Mountain BizWorks, and USDA-FSA
1. Share relevant tools & strategies to improve marketing, experiences for visitors, and profitability for farms.
◻
2. Identify challenges and opportunities for expanding agritourism as part of a farm business
3. Provide metrics to evaluate your current agritourism model
4. Examine considerations for scaling up, including holistic farm planning
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
10. The Rural Advancement Foundation International (RAFI)
combines on-the-ground services with policy and market advocacy in order to ensure
that farmers have the opportunity to make the right choices for their farm and families
and that these are also the right choices for the environment and farming
communities.
11. Sections
1. Crop Insurance Overview: Why does RAFI work on crop
insurance?
1. Whole Farm Revenue Protection (WFRP): An Overview
1. The Nuts and Bolts of WFRP: How does it work?
• Crop Insurance 101
• Application Process
• Claims Process
• Model Farm Premiums
15. A farm’s risk management strategy
and overall level of risk is directly
linked with what financial concept?
Credit Worthiness
16. The structure of lending and crop insurance programs drives investment and
production decisions long before a disaster takes place.
Farmer Decisions
• Specialty crops?
• More diverse cropping
systems?
• Other production-
based risk
management
practices?
Creditors
• Limited recognition of
production-based risk
management, like crop,
and income diversification
• So, creditors reduce risk by
requiring crop insurance
Crop Insurance
• Historically not designed
for specialty crop, diverse,
or livestock producers
Farmers Find
Limited Credit
Opportunities for
Specialty Crop,
Diversified and
Livestock
Operations
17. What does this mean for specialty
crop, diversified, and livestock?
• If obtaining credit is difficult for specialty crop and diversified
producers, then it is:
• Harder to access land,
• More likely producers farm under production contracts,
• And harder to expand operations.
19. Why is WFRP Important?
• Multi-peril Insurance
• Pest related losses
• Weather related losses
• Losses in price caused by “natural” events
• Incentivizes Diversification
• Insures multiple crops without requiring a producer to purchase multiple
policies
• Premiums reduced for growing up to 7 additional crops
• Covers crops and livestock
20. What’s Covered by WFRP?
• Crops
• Any agricultural product established or produced on your farm
operation, except timber, forest, and forest products, animals for
sport, show or pets
• Covers livestock up to 35% of revenue or $1 million
• Events
• Insures against loss of approved revenue due to unavoidable natural
causes that occur during the insurance year
• Includes declines in both crop yield and price as long as the decline
can be linked to a natural cause (i.e., weather-related)
• “Decline in local market price will be presumed to be from unavoidable
natural causes unless the Company or FCIC is able to specifically identify
a man-made cause that resulted in a measurable change in the price.”
21. What’s Not Covered by WFRP?
• Yield
• Negligence, mismanagement, wrongdoing
• Act of person rather than nature (chemical drift, fire)
• Water contained by dam or reservoir
• Damage to machinery or equipment
• Breakdown in irrigation equipment or practices when not related to
natural cause
• Theft and vandalism
• Price
• Quarantine, boycott or refusal of anyone to accept commodities
• Lack of labor
• Deterioration of commodities in storage, unless due to unavoidable
natural cause
22. Why Did Prior Whole Farm Revenue
Crop Insurance Policies Not Work?
• Adjusted Gross Revenue (AGR) & Adjusted Gross Revenue-
Lite (AGR-Lite)
• Geographically Limited- Policies were not available in some major farming
states
• Coverage- limited to 72% of average adjusted gross revenue
• Expensive- Producers frequently reported the policy was not cost-
effective
• Difficulty Expanding Coverage- producers were required to show a history
of crop expansion in prior years before being able to expand coverage
• Low Liability Limit- $1 million liability limit
• Only 3 policies sold in NC each of the last three years
24. WFRP Comparison
WFRP AGR-Lite AGR
Type of Coverage Revenue Revenue Revenue
5-year Tax History Yes- Schedule
F
Yes- Schedule
F
Yes-
Schedule F
Diversification
Incentive
Yes Yes Yes
Coverage Level 50%-85% 65%-80% 65%-80%
Payment Rate 100% 75%-90% 75%-90%
Maximum Subsidy 80% 59% 59%
Covers Post Production
Expenses
Yes, on-farm,
post-production
expenses that do
not add value
No No
Liability Limit $8.5 Million $1 million $6.5 million
25. Additional Needed Reforms
• Beginning farmers do not have
access to WRFP until 7th year of
farming
• 5 years of Schedule F tax records
• Plus 1 lag year
• No option to build a history using
transitional-yields
• How can we reform the policy
during the pilot phase to increase
access for beginning farmers?
27. Crop Insurance 101
• Past records → On average, you earn $1,000 in revenue on the farm, so
expect to earn this in 2015
• You decide to buy a policy that insures 85% of your expected revenue:
• $1,000 * 85% = $850
Hail hits a week before
harvest, wiping out 50% of
the crop and leaving you
with only $500 in revenue
for the year.
$1,000 expected revenue
$500 actual revenue
$350 Pa
$850 coverage level
$350 indemnity
28. Crop Insurance 101
• Past records → On average, you earn $1,000 in revenue on the farm, so
expect to earn this in 2015
• You decide to buy a policy that insures 85% of your expected revenue:
• $1,000 * 85% = $850
Minor flooding in a single
field brings your revenue
down to $900 in 2015.
$1,000 expected revenue
$900 actual revenue
$350 Pa
$850 coverage level
NO INDEMNITY
29. Application Process: Tax
Records
• Requires 5 consecutive years of Schedule F
• Sales of products raised on your farm for sale (or bought for resale),
such as livestock, produce, or grains
• OR you may use another person’s tax returns if you
purchased, inherited, or leased 90% of their farm operation
• Prices must be from verifiable sources and come with
documentation
31. • The lower of historic and expected revenue
• Historic revenue from 5 years of Schedule F
calculated using Allowable Revenue and
Expense Worksheets
• May include adjustment for recent or future
growth
• Expected yield based on expectations for the
coming year and the Farm Operation Report
Approved
revenue
Coverage
level
Actual
revenue
32. Year Revenue
2009 $5,608
2010 $6,789
2011 $4,578
2012 $3,567
2013 $7,890
5-Year Average = $5,686
*Can also expand by 10% with approval of insurance provider
Calculating historic revenue
Approved
revenue
Coverage
level
Actual
revenue
33. Approved
revenue
Coverage
level
Actual
revenue
Calculating expected revenue
• Farm Operation Reports
• Submitted at sales closing date for each insurance year
• Detailed information for each commodity you intend to produce
or purchase for resale on your farm
• what the farm can reasonably produce during the insurance year
• expected revenue for each commodity, reflecting expected sale
price in markets where the crop is normally sold
• 3 Versions
• Intended and Revised – Submitted before season begins and
before coverage level is finalized, used to calculated expected
revenue
• Final – Submitted after season is closed, reflects actual
production and sales
35. Commodity
Name
Method
of Estab. Yield/Acre Expected Value
Expected
Value/Ac
Intende
d
Quantity
Expected
Revenue
Cucumbers Acres 425 carton $20/40 lb carton $8,500 0.10 $850
Greens Acres 800 carton $16/20 lb carton $12,800 0.10 $1,280
Strawberrie
s
Acres 1,750 cont $17/8 lb
container
$29,750 0.10 $2,975
Total Expected Revenue $5,105
Calculating expected revenue
Approved
revenue
Coverage
level
Actual
revenue
• Expected values must be realistic and consistent with available local market
information, supported by verifiable records and take into account current
local markets, cycles and trends.
Historic revenue = $5,686
Expected revenue = $5,105
What is the
approved revenue?
39. 1. Timeline: What to do after experiencing a loss?
1. Documentation: What forms will I need to file a claim?
1. Claims Calculation Process: How is my indemnity calculated?
1. Miscellaneous Claims Information: When am I eligible for a
replant payment? What happens if I amend tax forms after a
payment is received? What happens if I’m audited?
Claims Process
40. Timeline
• 72 hours after initial discovery to
notify insurer of loss
• 60 days after farm tax
forms filed
41. Required Documentation
Claim Year
Updated
Application
forms
• Allowable Expenses Worksheet
• Allowable Revenue Worksheet
• Final Farm Operation Report
Additional
Forms
• Inventory and Accounts Receivable
• Market Animal and Nursery Inventory if applicable
• Replant Payment Worksheet if applicable
Claim for Indemnity Form
46. Claims For Indemnity Form
Insured Revenue – Revenue-to-Count =
I bought coverage for $140,000. My farm’s actual
revenue was $130,000. What’s my claim?
47. Insured Revenue
What you bought insurance for,
expected revenue during application process
• Claim = Insured Revenue – Revenue-to-Count
• Insured Revenue
- Approved Revenue * Coverage Level
- Both from application process
- Approved revenue based on farm’s history
- Coverage level elected by farmer
• Potential adjustment for crop losses
48. Revenue-to-Count
• Claim = Insured Revenue – Revenue-to-Count
• Allowable revenue from claim year Schedule F
- As determined by Allowable Revenue and
Allowable Expenses worksheets
• Adjustments with forms for changes in
- Inventory
- Accounts receivable & payable
- Market animal and nursery inventory
- Other
What actually happened?
49. Revenue-to-Count
• Claim = Insured Revenue – Revenue-to-Count
• Allowable revenue from claim year Schedule F
- As determined by Allowable Revenue and
Allowable Expenses worksheets
• Adjustments with forms for changes in
- Inventory
- Accounts receivable & payable
- Market animal and nursery inventory
- Other
What actually happened?
51. Inventory grows
(End > Beginning)
Add to revenue-to-count Lowers claim
Inventory falls
(End < Beginning)
Subtract from revenue-to-count Increases
claim
Claim = Insured Revenue – Revenue-to-Count
Inventory Report
WFRP only covers revenue from
commodities produced within the
current tax year
52. Revenue-to-Count
• Claim = Insured Revenue – Revenue-to-Count
• Allowable revenue from claim year Schedule F
- As determined by Allowable Revenue and
Allowable Expenses worksheets
• Adjustments with forms for changes in
- Inventory
- Accounts receivable & payable
- Market animal and nursery inventory
- Other
What actually happened?
54. Revenue-to-Count
• Claim = Insured Revenue – Revenue-to-Count
• Allowable revenue from claim year Schedule F
- As determined by Allowable Revenue and
Allowable Expenses worksheets
• Adjustments with forms for changes in
- Inventory
- Accounts receivable & payable
- Market animal and nursery inventory
- Other
What actually happened?
55. Market Inventory and Other
Adjustments
• Market animal and nursery inventory
• Other
- Revenue loss from uninsured cause of loss
▪ Quarantine, neglect, etc.
- Abandoned acreage
- Other indemnity payments
- Gains from hedging
- Anything else discussed by insurer and farmer
56. Claims For Indemnity Form
Approved Revenue * Coverage Level =
Allowable revenue with
adjustments =
58. Model Farm Examples
• What is Diversification?
• WFRP offers a premium discount for more diverse
operations
– But what does this mean?
• Crop Diversification
– Count of crops grown
• Income Diversification
– How much farm income comes from each crop
RMA WANTS BOTH
59. But How Much Does it Cost?
• It depends!
– How much revenue you want to insure
– The premium level
– The specific crops you grow and how they interact
– How many crops you grow (more diversity = lower
premium!)
• Ultimately, this must be settled with your agent
• For your own purposes, http://tinyurl.com/USDA-
WFRP
60. Crop Revenue % of Revenue
Cucumbers $400,000 33%
Bell Peppers $400,000 33%
Tomatoes $400,000 33%
85% 80% 75% 70% 65% 60% 55% 50%
Total $71,808 $40,090 $24,300 $19,992 $16,692 $14,256 $12,012 $10,200
Per
Acre $334 $186 $113 $93 $78 $66 $56 $47
• Mid-scale specialty crop commercial operation:
– $1.2 million in revenue, 215 acres
Model Farm Example
Producer-Paid Premium
69. RECAP
• Sign-up for more info on sign-in sheet
• Talk to crop insurance agents, try out the tools
yourself and please please let us know how it goes
• WFRP – Completed application must be submitted
no later than the sales closing date specified in the
actuarial documents (corresponds to spring sales
closing dates for the county).
– February 28th, March 15th
71. USDA – Farm Service
Agency
Charles E. Zink
County Executive Director
Madison/Buncombe County FSA Office
72. Farm Number (Why)
• Voluntary.
• ID’s the land.
• Required to apply for USDA programs.
• Many NCDA and Soil and Water grants
and programs require a Farm Number.
• Other benefits depending on the
county.
73. Farm Number (How)
• Landowner file a request with local FSA
Office.
• Copy of the deed. (Address of property,
survey, tax maps, or adjoining property
owners helpful.)
• ID numbers and address for each
owner listed on the deed.
• Entities have additional requirements.
74. NAP
• Non Insurable Crop Disaster
Assistance Program
• Provides coverage for crop losses on
crops when crop insurance is not
offered.
• Covered losses are caused by natural
disaster.
• Apply for the program at your local FSA
Office.
76. NAP (Eligibility)
• Application and administrative fee must
be filed by sales closing date for the
crop.
• Eligible producer is a landowner,
tenant, or sharecropper who shares in
the risk of producing the eligible crop
and the individual or entity’s average
adjusted gross income (AGI) cannot
exceed $900,000.
77. NAP (Coverage)
• Basic Coverage guarantees 50% of normal
yield at 55% of established price
– Cost for basic coverage is $250 per crop.
– Not to exceed $750 per county.
– Not to exceed $1,875 total in all counties.
• Starting in 2015 you will have the option of
buy up coverage, up 65% yield guarantee
at 100% of established price.
– Cost for buy up coverage is 5.25% of
guarantee not to exceed $6,562.50.
78. NAP (Coverage)
• Producers who elect buy up coverage
must pay the administrative fee plus a
premium equal to:
– The producer's share of the crop; times
– The number of acres of the crop; times
– The approved yield per acre; times
– The coverage level; times the average
market price; times
– 5.25% premium fee.
79. NAP (Eligibility)
• Limited resource, traditionally
underserved, and beginning farmers
are eligible for a waiver of the
administrative fee and a 50% premium
reduction when they file form CCC-860,
Socially Disadvantaged, Limited
Resource and Beginning Farmer or
Rancher Certification.
80. NAP (Eligibility)
• Beginning Farmer – a person or entity
who:
– Has not operated a farm or ranch for more
than 10 years, and
– Materially and substantially participates in the
operation.
• For an entity to qualify as a beginning
farmer, all members must be related by
blood or marriage and each must be a
beginning farmer.
81. NAP (Eligibility)
• Limited resource farmer – a person or
entity that:
– Earns no more than $176,800 in each of the 2
previous tax years, and
– Has a total household income at or below the
national poverty level or less than 50% of the
county Median household income for the 2
previous years ($23,850 for most WNC
counties).
• Online tool located at
www.lrftool.sc.egov.usda.gov
82. NAP (Eligibility)
• Socially disadvantaged farmer – a person or
entity that consider their identity to be in one of
the following groups:
– African Americans;
– American Indians or Alaskan Natives:
– Asians or Asian Americans;
– Hispanics;
– Native Hawaiians or Pacific Islanders;
– Women
• For entity to qualify the majority interest must
be held by socially disadvantaged individuals.
83. NAP (Loss)
• Eligible crop losses include the
following;
– Damaging weather, such as drought,
freeze, hail, excessive rain, wind, etc.
– Adverse natural occurrences, such as
flood or earthquake
– Conditions related to damaging weather or
natural occurrences, such as excessive
heat, plant disease, or insect infestation.
84. NAP (Loss)
• Producers with NAP coverage must notify
FSA within 15 days of the earlier of:
– A natural disaster occurrence;
– The final planting date if planting is prevented
by the natural disaster;
– The date that damage to the crop become
apparent;
– The normal harvest date
– Hand-harvested crops and perishable crops
must notify FSA within 72 hours of when a
loss becomes apparent.
85. NAP (Loss)
• May report loss by:
– phone (follow up with office visit).
– Office visit.
• FSA will schedule an adjustor to visit
the farm or farms to determine if the
loss was due to natural disaster,
amount, and if the crop can be
salvaged.
94. NAP (Crop Reporting)
• NAP producers are required to make crop
acreage reports each year. Must report by
crop reporting deadline (most crops July 15);
– Name and type of crop planted.
– Farm, field location and acreage.
– Who shares in the crop.
– Date crop is planted.
– Intended use.
• In most cases this requires an office visit
because the producer must identify the fields
on aerial photography.
95. NAP (Record Keeping)
• Producers are required to provide record of
production of the crop. Records must be:
– Verifiable - such as sales receipts with dates,
name of buyer, product sold, and amount.
– Reliable - such as pick records, farm book
keeping records.
– Records must be easy to read and
understand.
• Producers should contact FSA for
questions regarding acceptable production
records.
96. NAP
• Failure to make crop acreage report and
provide production information for NAP
covered crops may result in reduced or zero
NAP assistance.
• The acreage and production reports are used
to calculate the approved yield. The approved
yield is an average of the producer’s actual
production history (APH) for a minimum of 4 to
a maximum of 10 crop years.
• A producer’s approved yield may be calculated
using substantially reduced yield data if
acreage and suitable production records are
not provided.
97. FSA Loans
• FSA’s loan programs are designed to
help family farmers to start, purchase or
expand their farming operation.
• Several loan options are available and
each person’s needs are different so
visit our booth during lunch to get
detailed information.