A production report will be included for each operator and their will be a new box to fill in called ‘Record Type.’ Beginning this fall, all insureds will have to report a record type for each unit. Each APH form will have a column for ‘Record Type’ and a list of 12 options in small print at the bottom. You can put as many types in the column as apply to each field. The most common will likely be (1) production sold / commercial storage and (2) farm stored measured by insured.
Acceptable records for commercially sold/stored bushels must include (1) Crop (2) Quantity (3) Name of Insured (4) Date of Transaction (5) Name of Buyer (6) Field/Unit/Location Produced (7) Practice and Type (8) Crop Year Produced.
Most farmers will eventually have a scale ticket and assembly sheet as production evidence. If this is the case, we advise you to identify the field/unit where each load came from and the crop year it applies to as you haul it in. The rest of the 8 requirements are typically listed on the elevator’s sheet.
Accuracy is also being pushed by RMA audits. Each insured is required to report production within 5% of actual production. Assigned Yield provisions will be applied if any corrected yield is 5% more than the reported yield.
The PRF sales deadline is November 15. PRF is great for covering pasture and hay ground. We rarely get excited about any policy beyond the basic MPCI form, but this is one we really like. See an agent now for 2019 coverage.
OLD CROP STORAGE
Production from previous years will need an adjuster to measure the bin. If old crop measurements are not done, the insurer must count all bushels in storage as current year production. Call one of our agents to notify the company of old crop to measure that will be carried through this year’s harvest season.
All corn insured as grain needs a silage appraisal or an approval to leave strips. Call in a notice of loss before you chop, preferably a few days prior to allow the adjuster team time to process.
As agents, we still do not advise that someone purchase the margin protection plan. Of the 1.1 million policies sold nationwide, there were only 4,933 MPPs sold last year. If anyone would like to review the policy, we can run quotes until the MPP sales deadline of November 15 and provide you with the best, unbiased information on the policy. Sales reps and agents have been knocking on doors extra early this year – some like to use these early signup deadlines to entice you to sign all of your 2019 insurance with them.
Unavoidable/Uninsurable/Fire clause is affecting producers in our area as spray drift and volitization incidents increase. Damage to your crop by a third party is an uninsurable cause of loss and the company cannot pay a loss on any land negligently damaged by a third party.
One thing we can do is exclude affected areas from your APH database. You must report the loss to us and prove it is due to the actions of a third party outside of your control. If you do choose to exclude third party damage, all affected acres must be excluded and any bushels harvested must be kept separate from the remainder of the unit.
ADD ON PRODUCTS
RCIS has updated the Revenue Protection Policy to allow for optional unit coverage under an Enterprise Unit. We feel this is a much better option than RpowerD when you compare the premium to liability when protecting against price loss.
Hail Production Plans sold in Minnesota had an 84% loss ratio with RCIS in 2017. Comp Plans had a 144% loss ratio. Ever since HPP became popular, we’ve been saying it is possible for high yields to reduce payments. Comp Plans have no yield component. If you would like to compare hail plans, sit down with one of our agents this winter and we’ll outline the advantages of Comp Hail.
RCIS.com is can now payment of premiums with no requirement to sign up for a producer account.
Madison 320-598-3332 Ortonville 320-839-2896
INDEPENDENT INSURANCE AGENTS SPECIALIZING IN MULTI-PERIL AND CROP HAIL COVERAGE SINCE 1986