PP Payment Formula
Boy, I feel like a rookie here, this is the 1st PP Claim I have ever filed in my 25+ years of owning Iowa farmland. I believe the formula below is correct from reading some of the other posts. Please correct me if I am wrong. Thanks!!!
197 APH * 80% Coverage * $5.65 Spring Price= $890.44
$890.44 * 60%=$534.26
Please put in your 2 cents worth if I have screwed up. Thanks!!!!
Re: PP Payment Formula
I, too, am a rookie. I farm is far western KS and felt it was simply too dry to expect wheat to germinate. So I filed a PP on those acres due to drought. It is my understanding that your formula is correct. I've been waiting since Novermber for my claim to be paid.A letter came in early April stating that my claim was denied because mine was the only PP claim filed in my area. By the end of April it was clear that my decision not to plant due to drought was the correct one, as planted fileds in my neighborhood were blowing away. The insurance company, after my contacting RMA, decided to reopen the claim. I still waiting. It has been my understanding that if I chose to plant a spring row crop on those acres my claim would be reduced to 35%, instead of 60% as you say. It has remained dry and there was no sense in planting anything. I also understand there may be some reduction in premium for a PP cliam. You should check that one for yourself.
Re: PP Payment Formula/ R John
R John- thanks for the input, from one PP rookie to another!!!! LOL
Guess I should feel lucky that this is my 1st PP Claim in the 25+ years I have owned farmland. The $500+/acre PP Payment will allow me to continue and try again next year. I was very lucky not to have wasted $100/acre in nitrogen on these PP Corn Fields this spring.My only farmland costs are Iowa Property Taxes of $23 to $26 per acre, thank God I was able to pay-off all my farmland loans a few years ago. The guys paying $500/acre in cash rent and not being able to plant are going to have a rough year. But maybe it will lower the land cash rent market locally in my part of Iowa by $100/acre for the 2014 crop year. It will be interesting to see when the insurance company send our PP Checks. If anyone has more experience on PP Claims when you get your money, just post it here. Thanks!!!!
Re: PP Payment Formula/ R John
You must really be running close to the edge if you own 1600 acres free and clear in the heart of agricultural nirvana and there is some doubt about you being able to farm again in 2014.
In the first place,not all of your acres remain unplanted. Secondly 16 hundred acres of $15k land should be enough to collateralize an operating loan for 2014, should you need it.
I was about drawn to tears when I first hear od your financail plight. But reason and logic tell me you just might survive for another year. I'll save my tears for those really in distress because they might actually need a little empathy.
Re: PP Payment Formula/ kraft
No kraft, I am not on the edge in terms of money. I have learned in farming to have a large rainy day fund in the bank. I will be back next year with no problems. But the $500+/acre PP Payment is nice and will help.