Agro National was established by Agro International, Inc. to serve the U.S. crop insurance market and to take advantage of the skills and management developed over the last 15 years in providing crop consulting expertise worldwide.</li></li></ul><li>Who is<br />
Why do business with<br /><ul><li>Experience and Financial Stability
CIMS</li></li></ul><li>CIMS<br />Comprehensive Information Management System<br />116<br />Agro National Inc. has recently started the process of requesting and downloading of the Comprehensive Information Management System (CIMS) data from RMA. Our agents now have the ability to access this data in eCrop, which is a compilation of information from FSA, RMA and Agro National Inc. <br />CIMS will allow an agent access to FSA information for their insured producers<br />which can reduce the reporting burdens on producers, agents and Agro National Inc. with the delivery of the crop insurance program. Access to the CIMS information will help in the reduction of costs associated with data collection, assist in the identification of data inconsistencies, and reporting errors.<br />Agro National Inc. has placed a great deal of importance on the implementation and availability of CIMS data to our agents and will continue to enhance our systems to take full advantage of this information. <br />As additional CIMS information and functionality is made available in Agro National Inc.’s suite of software systems, documentation will be made available.<br />
CIMS Policy borders, though not complete, have been released and are available in AgroWebMap.
When field borders are NOT present on a Policy, plus CIMS field borders are present for a policy, user will be prompted to load CIMS.
To load CIMS field borders, select (click) OK.
To by-pass the loading of CIMS field borders, select (click) Cancel.</li></li></ul><li>119<br />CIMS<br />Field Borders<br />Replica of the FSA 578<br />based on CIMS data<br />MapView / FarmView<br /><ul><li>After selecting (clicking) OK to load ‘CIMS data to the Policy’
AgroWebMap Hail Probability<br />122<br />AgroWebMap gives users the functionality to integrate FSA field borders, FSA imagery and hail probability, based on date, on current Agro National Inc. agency crop hail policies. This will allow users to visually depict, as well as, print maps for individual crop hail policies with the Hail Probability layer for a specific date, color-coded by hail intensity. <br />Hail Probability report’s available:<br /><ul><li>Hail Report
An overview of all sections farmed for the policy
Can be viewed on a national level down to a section level.
A map-based report with a cover page that shows an overview of all sections farmed for the policy, followed by the individual locations with the FSA field borders and acres, FSA imagery and the Hail Probability layer for a selected specific date.</li></li></ul><li>Hail Probability<br />Hail Report<br /><ul><li>US View
Ability to enter Replants without acres being reported yet for the current year</li></li></ul><li>ACRES <br />Automated Claims Routing Electronic System<br />A new Loss Production Summary Form was developed this past year. When this is <br />printed out of ACRES, the insured is only required to sign the last page of this form<br />rather than ALL the applicable Production Worksheets for the loss.<br /><ul><li>Note: All appraisals are still required to be signed.)</li></li></ul><li>Private Products<br />BPM, UP, and IRO<br />130<br />
132<br /><ul><li>The BPM Policy increases the price election selected under the applicable MPCI Policy, whether APH, Crop Revenue Coverage (CRC) or Revenue Assurance (RA).
The BPM Policy does not protect against price fluctuations, and the BPM price election will not increase regardless of the price fluctuation under the CRC and RA policies.</li></li></ul><li>133<br />ELIGIBLE COVERAGE LEVELS<br />The BPM policy is only available on the following coverage levels: 65, 70, 75, 80, or 85.<br />BPM PRICE FACTORS<br />To determine the maximum amount of price coverage you can purchase for BPM refer to the Price factor table associated with the level of coverage purchased under the MPCI policy.<br />
134<br />BPM PRICE FACTORS<br />The Base Price Factor is multiplied by the MPCI, CRC, or RA base price to determine the BPM added price election. ie: <br />Mpci corn base price of $3.50 X the 75% level factor of .3333 = would equal $1.17 per bushel. <br />Multiply $1.17 cents per bushel times the MPCI guaranteed bushels to determine coverage per acre.<br />
136<br />FOR MORE INFORMATION ON BPM!!!<br />CONTACT AN AGRO NATIONAL AGENT <br />
MARKET “UP”<br /> Umbrella Named Peril Policy<br />
Umbrella Policy “UP”<br />The Umbrella Policy (UP) provides yield coverage for two consecutive years at 90% of an Enterprise APH. UP coverage starts at 90% and ends at 75%, where an underlying MPCI policy would provide coverage on an annual basis. <br />The policy is designed to cover back to back shallow losses and also to provide protection for hedging input costs further out than existing annual insurance products. <br /> UP is only available on corn in select states. Check with your Agro agent for availability in your area. The UP is a private policy and is not reinsured by FCIC. <br />138<br />
Increased Replant Option forCorn and Soybeans (IRO)<br /><ul><li>The Increased Replant Option (IRO) policy for corn and soybeans supplements the coverage provided by the Multiple Peril Crop Insurance (MPCI) policies authorized and reinsured by the Federal Crop Insurance Corporation (FCIC).
The IRO policy is a private policy and is not reinsured by FCIC. However, with limited exceptions described in the policy and this manual, the guidelines applicable to the MPCI policy apply equally to the IRO policy. </li></li></ul><li>Increased Replant Option forCorn and Soybeans (IRO)<br /><ul><li>By purchasing the IRO policy, an insured may be eligible for replant coverage and payments on a small parcel of land that would not qualify for coverage or a payment under the provisions of the applicable MPCI policy.
Unlike the replant provisions of the various MPCI policies, IRO does not have a minimum 20% or 20 acres acreage requirement.</li></li></ul><li>Increased Replant Option forCorn and Soybeans (IRO)<br />IRO is available on polices covered under the APH, Crop Revenue Coverage (CRC), and Revenue Assurance (RA) Plans of Insurance. <br />
Increased Replant Option forCorn and Soybeans (IRO)<br /><ul><li>The intent of the IRO policy is to allow the insured the opportunity to supplement any replant payment they may receive under their MPCI policy.
The total replanting reimbursement per acre – MPCI plus IRO – shall not exceed the Selected per-acre dollar amount of coverage or the per acre actual cost incurred in replanting insured acreage.</li></li></ul><li>Increased Replant Option forCorn and Soybeans (IRO)<br /><ul><li>The IRO corn and soybean policy offers three dollar amounts of coverage per acre. $30, $40, and $50. The amount of coverage selected will determine the premium rate. RATES ARE PER ACRE</li></li></ul><li>145<br />
Increased Replant Option forCorn and Soybeans (IRO)<br />QUESTIONS?<br />
Increased Significantly – 3 years</li></ul>Marketing Ahead is Correct 85% of the Time!<br />
What is it worth?<br />The 5 Year Ave. of Dec corn during <br />Roach Mar – June Sell Signals = $3.73<br />The 5 Year Ave. of Dec corn during <br />Oct – Nov $3.07<br /> 0.66<br />
What is it worth?<br />175 bpa X 0.66 = $115 per acre<br />
Why don’t Farmers Market Grain Aggressively?<br />Yield Risk<br />“I can’t sell what I haven’t produced.”<br />Price Risk<br />“If I sell, Prices might go higher.”<br />Marketing Risk<br />“If I oversell, I won’t have enough money to buy-back my sales.”<br />
Roach Ag Planning Process<br />Begins with a Plan for your farm<br />Detailed for consulting clients<br />More general for Basic Level of Service <br />Review of storage, inventory and forward sell ideas<br />
Can be Used to Insure Your Input Costs and forward sales
Excellent Collateral for Farm Loan</li></li></ul><li>Revenue Insurance is cost effective for some farms :<br />
Revenue Insurance is cost effective for some farms :<br />QUESTIONS? PUTS….?<br />Revenue Guarantee of $576 ÷ 175 bu APH = Net Price Guarantee of $3.29<br />
Uninsured Grain <br />Why use Put options to cover bushels we don’t sell? <br />Crop insurance buys you dollars per acre coverage based on (Price X Yield)<br />Put options insure only price – On most farms the greater risk lies in price loss, not yield losses. <br />Options are used in our plan to put a floor under bushels a farmer is not ready, willing or comfortable selling.<br />We average them in at the seasonal high on Sell Signals. <br />
Options often expire without value at contract expiration.
We work with you one on one to educate & train. </li></li></ul><li>Marketing Example: <br />200/bu expected yield with 85% coverage on 175 APH<br />100 bu/acre - Cash/HTA/Futures Contract – Farmer chose percentage <br /> 50 bu/acre - Non margin plain vanilla puts – Profit 30 cents = $15 per acre<br /> 50 bu/acre - Sell $5.00 Call Option - Profit 17.5 cents = $8.75 per acre<br />Strategy earns $15 + $8.75 = $23.75<br />
Roach Ag marketing example: <br />200/bu expected yield with 85% coverage on 175 APH<br />150 bu/acre - Cash/HTA/Futures Contract – RAM chose percentage <br /> 25 bu/acre - Non margin plain vanilla puts – Profit 30 cents = $7.50 per acre<br /> 25 bu/acre - Sell Call Options - Collected 17.5 cents = $4.37 per acre<br />Strategy earns 50 bushels X 0.66 per bushel = $33 per acre + $11.87 = $44.87 per acre<br />
Roach Ag Tier Plans for managing Risk<br />Participate in each Tier based on your comfort level :<br />I . Daily Grain Plan – our basic level of service. Includes a basic marketing plan, Roach Ag Sell Signal alerts for corn, soybeans and wheat. <br />II. Non-margin Put options bought on Sell Signals to insure price on bushels we do not sell ahead.<br />III. Margined Options strategy to help offset Insurance premium. <br />IV. Crop Insurance – completes the risk management core services for Roach Ag to assist you with managing all your farm marketing risk.<br />V. Consulting services include a formal plan and close contact with an ag. consultant regarding execution of the plan, capital planning and closely held financial decisions. <br />
Roach Ag’s Tool Box for Marketing<br />Grain Plan for selling grain on Sell Signals<br />Option strategy to support unsold grain at higher spring levels. <br />Local crop insurance support to make sure your policies are accurate and managed properly.<br />Resources are available to all year. <br />
Why do business with Roach Ag?<br />In business for 30 years – we are not new to the grain markets! <br />We combine a simple, grain selling plan with levels of service (Tiers) developed to bring your farm better ability to market your grain. <br />Our crop insurance carrier provides us the best technology to make sure your coverage is right. ( Mapping, CIMS, Online claims & Marketing plan). <br />Crop Insurance products are all the same from whomever you buy them. Why would you buy a marketing tool from a non marketing agent? Your Roach Ag consultant has a unique set of skills that are difficult to match. <br />We have regional consultants designated for your area (Ogden/Peterson)<br />