At Ag Partners, we recommend that Multi-Peril Crop Insurance (MPCI) always be an integral part of any farm's risk management strategy. There is no other way to protect the number of bushels or revenue per acre that the MPCI program can at the premiums per acre that it costs. That is due to a shared governmental investment in those premiums to help mitigate disasters in a much better way than the ad hoc programs can.
Ag Partners offers a complete selection of crop insurance products to help cover the unknown risks that can be problematic for a profitable year. Risks like weather or falling markets can be greatly reduced or eliminated by putting a guarantee on the minimum amount of revenue per acre you will receive. The list of Federal MPCI programs that we offer include:
We also offer an extensive line of private products as well, including:
The Wildfire and Hurricane Indemnity Program Plus (WHIP+) will be available for eligible producers who have suffered crop losses in counties with a Presidential Emergency Disaster Declaration or a Secretarial Disaster Designation. Disaster losses must be triggered by hurricanes, floods, tornadoes, volcanic activity, snowstorms, or wildfires in 2018 or 2019. BUT, drought will be an acceptable trigger for the 2018 season.
If you received crop loss payments in 2018 based on drought, you will likely qualify for a WHIP+ payment. This includes PRF payments on ground listed as ‘HAYING’. 2019 did not trigger a drought payment, but there may be a few excessive moisture payments. Hail damage bad enough to trigger a yield loss could result in a WHIP+ payment for 2019. Please contact your local FSA office as soon as possible because the signup deadline is October 30, 2020. I have been in contact with the FSA offices making sure that those with crop insurance through Ag Partners that had qualifying losses are on the list. If you have any questions, please give me a call.
The Marketing Year Average (MYA) prices are final as of September 30 for the 2019/2020 marketing year.
Corn was set at $3.56, resulting in a $0.14/bu payment for those signed up for PLC. If you chose PLC for grain sorghum, you have a $0.61/bu payment, the difference between a reference price of $3.95 and the MYA price of $3.34. The soybean reference price is $8.40, which is less than the MYA price of $8.57, and means no payment. PLC is paying out $0.92/bu to those with wheat since last month the MYA price was set at $4.58.
PLC payments, made later this month, can be calculated by multiplying the payment rate, times your FSA-approved yield, times 85%, times your base acres.
K-State has also calculated an estimate for the 20/21 wheat price using the 5-year average marketing percentages and futures price for the upcoming year. If the estimate holds true there will be a $0.74/bu payment next year.