Farm Credit Illinois recently welcomed three new staff members to three regional offices throughout its 60-county territory. The Paris regional office hired Danielle Craig on June 6 and Craig Neimerg on July 11, Jessica Schulze started with the Mahomet regional office on June 20, and Nicole Thomas began working in the Marion regional office on June 15.
Archives for July 2016
A new poll of senior leaders from Midwest Farm Credit lenders shows commodity prices as the greatest challenge facing their customers. Farm Credit lenders are responding to this by providing services to restructure the financial situations of their customers. In addition, in a new AgriThought report, Jerry Lehnertz, senior vice president of Credit at AgriBank, examines the challenging farm economy and how lenders are helping farmers navigate it.
The poll’s results showed that 69.1 percent of senior credit and risk officers from the 17 Farm Credit Associations in the AgriBank District selected commodity prices as the top challenge. The next biggest challenges were input costs, credit availability and adverse weather effects. [Read more…]
The Farm Credit System’s 100th year of service to rural communities and agriculture is highlighting leaders throughout the nation who are positively influencing the future of agriculture through the Fresh Perspectives program. The State of Illinois is proud to host eight of the top 100 and one top 10 honoree – Penny Lauritzen of Lanark in youth education for her work in beginning the Women Changing the Face of Agriculture career discovery event.
Lauritzen received $10,000 to invest back into Rural America and chose to give each of her children and grandchildren $1,000 to support a community group close to their heart. [Read more…]
The topic of transition management is heating up in the agriculture industry. From production agriculture to agribusinesses, the baton is being passed from the baby boomer generation to the 18-34 year-old millennials. Members of the millennial generation will make up 50% of the workforce by 2020 and an astounding 75% by 2025. Many are the next business and land owners in an economic environment full of financial volatility, expanded technology, changing consumer trends, and uncertain public policy domestically and abroad. Let’s examine the upcoming management transition in greater detail, including possible suggestions as well as fatal flaws to avoid in the evolution of the business. [Read more…]
Multi-Peril Federal Crop Insurance does have a replant provision. Replant benefits are only available on a Yield Protection (YP) or Revenue Protection (RP) policy type. This benefit is designed to only pay one time per crop, per year. Below is the exact wording from the Basic Crop Insurance Provisions as it relates to when replant payments are not made:
No replanting payment will be made on acreage:
- On which our appraisal establishes that production will exceed the level set by the Crop Provisions;
- Initially planted prior to the earliest planting date established by the Special Provisions; or
- On which one replanting payment has already been allowed for the crop year.
For corn, the planting date must be between April 1 or 5 and June 5. For soybeans, the planting date must be between April 15 or 20 and June 20. The benefit will pay 8 bushels per acre for corn and 3 bushels per acre for soybeans using the spring price for each crop. For 2016, corn will pay $30.88 (8 bu. x $3.86) per acre and soybeans will pay $26.55 (3 bu. x $8.85) per acre. This will only pay if the acres to be replanted is the lesser of 20 acres or 20% of the unit. Also, a replant claim must be filed prior to replanting the field.
Aside from the replant benefits associated with Multi-Peril Federal Crop Insurance, there are additional endorsements/products you can purchase that can allow for more flexibility and coverage if replanting is needed. These are not designed to provide multiple payments, but would be additional coverage and/or cover earlier planting.
Question: How much should I expect from ARC-CO Payments? And when?
Answer: The 2015 Agriculture Risk Coverage at the county level (ARC-CO) program payments will be made this fall. Since the program’s start following the 2014 Farm Bill, an estimated 90% of corn and soybean base acres nationwide were enrolled in ARC-CO.
Given current market conditions, there are many Illinois counties expecting a 2015 payment for both corn and soybeans.
- Per base acre payments for corn and soybeans are estimated to range from $0.00 – $80.00 and $0.00 – $55.00, respectively.
- Prices will be finalized in September and payments will go out in October.
- It is likely reductions will be made to the estimated 2015 payments due to Congressional sequestration limiting the size of the federal budget.
For more information on your county’s estimated payments, check out this farmdoc daily article and speak with your crop insurance specialist.
Question: When do I have to have my acreage reported?
Answer: July 15
Question: When is the sales closing date?
Answer: March 15
Question: What has changed in the crop insurance program from last year?
Answer: Producers are required to sign an AD-1026 conservation compliance form by June 1, 2016 to be eligible for federal crop insurance subsidies. Failure to do so would require the producer to pay the full amount of the premium.
There was a clarification by the Risk Management Agency (RMA) as to how to calculate APH on added land when taking the yield exclusion(YE). If a producer decides to exclude an approved year of production from their data base as allowed by the RMA and they add land, the calculation for determining the APH data base for added land uses the adjusted yield from existing farms and not the trend adjusted (TA) average.
Question: When are the crop insurance bills due?
Answer: The Approved Insurance Providers (AIPs) that Farm Credit Illinois works through sends out bills in early September and payment is due by October 1.