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05-20-2011 07:50 AM
I received this email yesterday explaining how PP coverage is different on Enterprise Acres. It could be costly if you don't plant anything. This is a must read.
> I have been informed by Ruth Gerdes, a high respected agent in the crop
> insurance industry, that there is a ‘MAJOR potential issue with Prevented
> Planting” that very few people understand regarding the new Combo Policy
> that replaced the Crop Revenue Coverage and Revenue Assurance plans
> earlier this year. Under the new Combo Policy Basic Provisions, she has
> learned that if a farmer has elected Enterprise Unit coverage for his
> policy, he must plant at least two separate sections (or in some parts of
> Ohio, section equivalents) to the same crop in order to qualify for
> Enterprise Unit reduced premiums. According to this same agent, “the
> bottom line is if a farmer plants nothing on a policy and declares
> Prevented Planting on all acres, he will be charged a full premium and
> will not receive the Enterprise Unit subsidy” that he is expecting. Ruth
> advised of one case in Ohio where the new Combo provision would change the
> premium from around $250,000 to almost $1,000,000.
> RMA officials in Kansas City are well aware of this problem and have
> worked it through the system completely. The agency recognizes the
> problem as one that will need to be corrected for next year. Ruth has
> forwarded her information out of concern for growers in Ohio and other
> Eastern Corn Belt States. She also noted that her clients in Ohio and
> elsewhere have been notified and the rule has been explained in detail.
> Given the ramifications of the current rule for growers who have yet to
> begin planting due to the wet spring, she wants to help ensure that “all
> farmers know about this when they can still do something about the issue.”
> Since receiving the email alert from Ruth Gerdes, I have contacted the RMA
> offices in Kansas City to request additional information on this
> particular glitch with prevented planting claims and the new Combo policy’s
> Enterprise Unit option. We will forward any new guidance or additional
> information on this issue as it becomes available so that you can share it
> with your members.
05-20-2011 09:26 AM
Thanks for sending this message along. Even if this helps just one farmer, you have done a great favor for that person. I know you are not looking for a pat on the back, but this is top-of-mind information.
05-20-2011 11:15 AM
No pat on the back please.
It sucks to even be contemplating this situation. In our corner of Ohio it looks like most have done at least a little planting. But. I keep hearing horror stories from other parts of the state. Toledo area for instance has nearly 2" since Sunday while we "only" had a half inch. Most of those guys will not be able to make any progress before Sunday-Friday rains come in. If any are in this situation it may make sense to mud some seeds in.
I have about 40% corn planted 0% beans. Sun and wind today is doing a good job of drying off the top and hope to run a few acres of both on Saturday on the drier ground. The rest will have to wait until June.
05-20-2011 11:32 AM
You're right about Northern Ohio, we can't seem to buy a break. I know some guys with 90% in..and some like me with 0% in (both corn and beans)..only bright spot I can see..is I planted a few more acres of wheat last fall than I usually do...and finally got my nitrogen on it this spring. If one drives from Sandusky, OH along the turnpike to Toledo..I'm wagering they won't see 3 fields planted...that's Great Black Swamp territory..and when it rains like this, you get an idea of how it was 150 years ago. The woods on our farms..where there are no ditches or tile drains all have water laying in them, 6-12" deep.....it's really a mess up here in the flatlands...
05-23-2011 06:01 AM
Pup, do you remember last fall when I posted about how dry my woods is? I took the dog back there Saturday, what a mistake. It's half under water. Good thing the golf cart has a 5" lift kit and ATV tires or it'd still be sitting back there. Southwest, I went to school in Genoa. Class of '69.