Understanding crop Insurance options & USDA risk programs: Part 2
Farm business management considerations after prevent plant and delayed.
The severe weather this year has put a tremendous amount of pressure on Michigan farms. From delays in planting to spraying timely for weeds or diseases, each farm has felt the impact of these conditions, and you can see examples here at, https://www.canr.msu.edu/agriculture/delayed-planting-resources/. The common thought is that because conditions across the state were similar that the impacts to farms would be, too. The reality is that each farm is a very different situation.
At the end of the season, what does your farm’s situation mean when it comes to profitability and cash flow? In this segment, MSU Extension recommends the following considerations:
- Review crop insurance programs and their anticipated impact on this year’s cash flow and profit. What revenue are you protected to?
- Take advantage of USDA MFP (Market Facilitation Program). County rates are now available. 50% in October and balance depending on market conditions. https://www.fsa.usda.gov/programs-and-services/market-facilitation-program/index
- Evaluate, choose and sign up for alternative USDA Risk programs. Specifically choices between PLC and ARC-County. 2019 and 2020 will be together but 2021 will be a separate choice from previous two years. (Several FSA/Extension programs will take place in Michigan starting in September)
Crop Insurance Considerations
Crop insurance is utilized on a majority of row crop acres in Michigan and other states. If you have crop insurance, use the Revenue Guarantee coverage level to help determine minimum expected revenue.
Crop Insurance Revenue Guarantee (2019)
The Projected Spring Harvest price for corn is $4.00 for corn, $9.54 for soybeans, and $5.72 for wheat. The current projected final harvest prices are lower so use these values.