Dowler Encourages Producers to Sign Up for Crop Insurance

Deadline March 15

CAROL ANN GREGG
Northwestern Pa.
Correspondent

MERCER, Pa. — As the March 15 deadline approaches, Dave Dowler, extension educator, farm and dairy management, outlined the advantages of the federal program as well as the benefits provided by the commonwealth’s support for this risk management tool.

At a presentation at the 2007 Dairy Update, Feb. 28 at the Leslie N. Firth Education Center, home of Mercer County Penn State Extension, Dowler encouraged western Pennsylvania dairy producers to use crop insurance as the foundation for their 2007 risk management plan.

With corn and soybeans generating record-breaking prices and local weather being abnormal, demand planning for risk management strategies.
The 2007 high-valued crops will be of greater importance to the farm profitability than at any time over the last decade.

Because feed grains have become so valuable, it is more important than ever to practice management strategies that will maximize yields and quality that will reduce the need and cost of purchasing feed. This will increase profitability.
Crop insurance provides a cushion in case of some type of crop interruption.

The high prices of feed grains present greater financial impact when there is a yield or quality reductions or there are missed price opportunity when having to purchase feed. When there is a yield or quality loss, not only is there the lost value to the grain, but expense is incurred when the lost feed must be replaced.

Dowler pointed out there are three crops to consider for insurance: corn can be insured either revenue, or grain yield and silage yield losses; soybeans as revenue or grain yield; and legumes for forage seeding or production. This is the first year that legumes will be covered. This will protect new seedings and established crops that are at least 40 percent legume.

The insurance program can provide payment for crop yield losses (actual production history, APH) or Crop Revenue Coverage (CRC) with the coverage based on the value of the crop on the Chicago Board of Trade (CBOT) prices in February or October.

Dowler outlined the importance of being willing to pay the higher premiums for more coverage. The research has shown that farmers are more likely to receive payment if they have covered their crops at the maximum allowed. When reducing the coverage to reduce premium costs, farmers are reminded that they are increasing their risks.

Rolling the costs of premiums into spring operating loans was encouraged by Dowler. He also reminded farmers that the commonwealth is providing $3 million for the 2007 crop year so that producers can better afford crop insurance protection. This averages out to about a 15 percent reduction in crop insurance premiums. This is the seventh year that the state has provided this cost sharing program.

Crop insurance policyholders are responsible for choosing the appropriate protection for their operation. They are required to update and keep current their APH and report crop yields before the deadlines. In the case of a loss, they are to file notice of crop damage within 72 hours of discovery, 15 days before harvesting, at the end of harvest and never later than the end of the insurance period which for corn is Dec. 10.

Penn State University has information to assist farmers at this Website: cropins.aers.psu.edu. Farmers need to contact their crop insurance agent now to purchase insurance for the 2007 crop year.