Revisions to Crop Insurance for 2011
The Federal Crop Insurance Corporation (FCIC) recently released a new Common Crop Insurance Policy (known as the COMBO rule) and related crop provisions that will be the basis for insurance coverage starting with the 2011 crop year. This new policy combines the Actual Production History (APH), Crop Revenue Coverage (CRC), and Revenue Assurance (RA) policies into a single policy.
NO ACTION IS REQUIRED TO CONTINUE COVERAGE FOR THE 2011 CROP YEAR.
The new revisions have combined several different policies that had similar features into a single policy. Key features most important to producers from previous policies were retained, along with simplifying insurance options for the crops you plant.
The producer’s policy will automatically convert to the new policy. No additional paperwork will be required as long as the producer does not want any changes made to his policy for the 2011 crop year, The chart below shows how the 2010 policy will be converted to the new policy for the 2011 crop year.
Both the Revenue and Yield Protection plans will use regional exchanges to determine the base price which is used to establish the insurance guarantee and premiums for the crop. For example, the base price for Hard Red Winter Wheat will be determined by averaging the closing futures price of the July 2011 Kansas City Board of Trade Wheat Futures from August 15th to September 14th for both the Revenue and Yield Protection Plans. The harvest time price for the Revenue Protection policy will be determined during the month of June, once again, by averaging the closing futures price of the July 2011 Kansas City Board of Trade Futures. The base price and harvest price determination for the Revenue Protection policy is similar to the CRC policy.
TMA Crop Insurance Specialists are available to meet with producers personally to discuss how the new COMBO policy provisions and other crop program updates may affect their farming operation. To schedule an appointment, contact one of the following agents:
David Yenni – Cell phone 620-669-7338
Natalie Means – Cell phone 620-747-2441
Steve Hughbanks – Cell phone 620-345-8988
