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.

1. Growing Relationships. Creating Opportunities.™

2. 2013 INDEMNITIES
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3. Growing Relationships. Creating Opportunities.™

4. Product Guide 2014
Policy Type
Benefits
YP(Yield Protection)
Protects against a production loss for crops which revenue protection is
available but was not selected.
RP(Revenue Protection)
Protects against price and production losses. Establishes a dollar guarantee
based on the CEPP projected price.
RPHPE(Revenue Protection with
Harvest Price Exclusion)
Similar to RP except excludes the benefit of harvest price. Establishes a
dollar guarantee based on the CEPP projected price.
CAT(Catastrophic)
Production based coverage protects the producer against major yield loss.
ARPI (Area Risk Protection
Insurance)
Group insurance policy with coverage based on the production of the
county. No individual protection.
LRP(livestock Risk Protection)
Protects against declining livestock prices.
LGM(Livestock Gross Margin)
Protects the gross margin between the value of insured livestock or milk
and the cost of feed inputs.
PRF(Pasture, Rangeland and
Forage)
Protection for losses of forage for haying or grazing due to the lack of
rainfall.
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5. Major Changes for 2014
• Area Risk Protection Insurance (ARPI)
• Cover Crops
• Signature Authority
New for
2014
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6. Area Risk Protection Insurance (ARPI)
• New names for group insurance policies
– Area Yield Protection (GRP)
– Area Revenue Protection (GRIP w/HRO)
– Area Revenue Protection with Harvest Price
Exclusion (GRIP)
New for
2014
• If you have one of these policies it will
automatically convert to the new name
• It is now mandatory to report production
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7. Cover Crops
• Changes for 2014 to allow cover crops to be hayed or
grazed, as long as NRCS Guidelines are followed
New for
2014
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8. Signature Authorization
New for
2014
• Purpose of Signature Authorization on Crop Insurance
Policy Application
– To allow the person listed to have authorization to sign
documents for any crop/counties listed on the application
at the time of signing
– Considered more of a Limited Authorized Representative
that could sign all documents for the applicant except any
document that was adding another crop/county coverage
– Anyone designated as an Authorized Representative for a
Corporation, Partnership, Estate or Trust within that
entity’s paperwork does not need to be listed under the
Authorized Statement
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9. Trend Adjusted Option
• Available for corn, soybeans, and grain
sorghum in eligible counties.
• Option that aligns product coverage with
production expectations of current practices
• Option has to be selected by the applicable
sales closing date (March 15th).
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10. Specialty Crops
• Corn
– Special provisions provide insurability for High Amylase corn as a
specific type
– Do not confuse with High Amylose corn
• Soybeans
– Numerous specialty types available
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Large Seeded Food Grade
Small Seeded Food Grade
Low Linolenic Acid
Low Saturated Fat
High Protein
All other food grade
Commodity
Organic
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11. High Risk – Alternative Coverage
Endorsement (HR-ACE)
• How it works:
– Provides better coverage than previous offer CAT
– Insure high risk acres separately at a coverage at
least 5% lower than the “base” policy
– Only Optional or Basic units available – no
Enterprise Units
– Offers replant coverage
– Must be elected by March 15th
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12. New Break Acreage
• These acres are not insurable without approval from the
crop insurance company or RMA.
• CRP coming out of the program are not considered new
break as long as it is farmed within the first two years.
• For 2014 the assigned yields on New Break acres will
range from 65% of the T-yield to 80% of the T-yield.
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13. CRP ACREAGE
• Any ground being planted in 2014 that has
come out of CRP within the last two years will
receive 100% of the applicable county T-Yield.
• Subsequent years
– Acres will be absorbed into existing database if
they do not qualify for their own unit.
– If the acres qualify for their own unit that unit will
receive the SAT yield if it is applicable.
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14. Claims Reminders
• If an insured crop incurs damage, it must be
reported to the company within 72 hours of
initial discovery of damage, but no later than
15 days after the end of the insurance period
for the crop and unit.
• Failure to provide notice within this time
frame could jeopardize an indemnity for any
loss on the unit
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15. Private Insurance Products
• Crop Hail Insurance
– Policies usually offer protection against hail, fire
transportation, storage, mischief, and theft.
• Named Perils
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Additional Replant Policies
Green Snap Insurance
Wind
Additional Harvest Expense
• Total Weather Insurance (The Climate Corporation)
– Insurance targeting perils that impacting growth during
specific stages of the crop.
– Policies are intended as a compliment to MPCI coverage.
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16. Price Flex
New for
2014
• Provides added protection from fluctuating prices by
offering more price discovery periods
– Enables producers to potentially receive additional policy
benefits if the average of the price period they select
exceeds the RMA projected and harvest prices
• Available for corn, grain sorghum, soybeans and spring
wheat
• Must have MPCI policy
• Growers must insure all of their acres of a crop in a
county
– Must have at least 25 acres
• Offered through Great American Insurance Company
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17. CLIMATE.COM
• Provided by the Climate Corporation
• Provides field-level data
• Available to everyone, regardless of AIP
company
• www.climate.com
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18. The Agricultural Act of 2014
• The 2014 Farm Bill sets crop insurance as the primary
help for farmers to deal with production and price risk
• Eliminates direct and countercyclical payment programs
from FSA and implements Price Loss Coverage and
Agriculture Risk Protection
• Price Loss Coverage: makes a payment when the market
price for a crop is below a fixed reference price
• Agriculture Risk Protection: makes a payment when
either the farm’s revenue from all crops or the county’s
revenue is below 86% of a predetermined benchmark
http://www.cropinsuranceinamerica.org/just-the-facts
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19. The Agricultural Act of 2014
• Added two supplemental policies to help producers
expand their protection against losses due to natural
disasters or price declines
• Supplemental Coverage Option (SCO): gives producers
the option to purchase area coverage in addition to their
individual MPCI policy
• Stacked Income Protection Plan (STAX): for upland cotton
acreage only
http://www.cropinsuranceinamerica.org/just-the-facts
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20. The Agricultural Act of 2014
The 2014 Farm Bill is still in its beginning stages. For more
information as the bill evolves please visit the following
sites:
http://www.cropinsuranceinamerica.org/about-crop-insurance/just-the-facts/
http://www.agmanager.info/
http://www.farmdoc.illinois.edu/index.html
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21. FCS Financial Insurance Providers
• ADM – A- (Excellent) Agrinational Insurance
Company
• Farmers Mutual Hail – A (Excellent)
• Great American Insurance – A (Excellent)- for
over 100 years
• Rain and Hail Insurance – A+ (Superior)
• The Climate Corporation – A (Excellent)
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22. The Crop Insurance Specialists
would like to say Thank You to our
current customers. We enjoy
working with you and appreciate
your business!
Why Choose FCS Financial Crop Insurance?
At FCS Financial, we are Focused on our customers by providing Customized crop
protection plans that meet individual needs and provide Solutions for their operations.
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Our crop insurance experts have more than 100 years of combined experience.
We are dedicated solely to this industry.
It doesn’t matter if you have 100 or 10,000 acres to protect.
We will meet with you at your farm.
FCS Financial is an Equal Opportunity Provider
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