What Crop Insurance Updates Can You Expect For 2021?

As with any crop insurance year, 2021 enters with a few changes to current programs and policies PLUS a couple new coverage options.  When making decisions on your crop insurance, it is always best to be fully informed.  With that in mind, below is a recap of the changes for the 2021 Crop Year.

Policy Changes

  • Whole Farm Revenue Protection - Commodity Direct Market changes to allow those insureds that sell their commodities at roadside stands to generally combine production records.
  • Hemp - Coverage availability in new counties/states, reporting date changes
  • Tobacco - Contract pricing and quality adjustment changes
  • Pecan Revenue - Coverage level and subsidy increases
  • Sprinkler Irrigated Rice - Coverage requirement changes
  • Sweet Potato - unit structure changes, removal of Storage Endorsement certification and Canner types

Program Changes

Beginning or Veteran Farmer & Rancher (BFR/VFR) - criteria revised to clarify that a BFR or VFR may use the previous producer's APH on any acreage obtained by the BFR or VFR when all of the following apply.

  1. BFRVFR was previously involved (in decision making or physical activity) in a farming operation for the crop or livestock;
  2. Acreage has history for the crop or livestock; and
  3. Previous producer consents.

Prevent Planting

Eligibility - Revised to provide that if following a failed first insured crop an uninsured second crop is planted on the same acres within the same crop year, the planted acres of the uninsured crop will not be subtract from the eligible planting (PP) acreage.

Field Rule - Added another exception to the 20/20 rule:  Insured provides proof of intent to plant another crop or crop type on the acreage.

One in Four (“1 in 4”) Requirement:  This was revised to expand the rule nationwide.  This requirement impacts acreage “available to plant’ as it relates to PP claims.  To be considered ‘available to plant for PP purposes, the acreage must:

  • In at least 1 of the last 4 most recent crop years immediately preceding the current crop year, have been plantee to a crop;
  • Using recognized good farming practices;
  • Insured under the authority of the Act; and
  • Was harvested, or if not harvested, was adjusted for claim purposes under the Act due to an insurable cause of loss (other than a cause loss related to flood, excess moisture, drought, or other cause of loss specified in the Special Provisions).

Intended Acreage Report - Revised to allow the option to use an intended acreage report for a second year.  Insured who were eligible to file an intended acreage report the first year will be eligible to file for the second year.  You may file for the second year whether you filed for the first year or not.  If you file for the seon year, eligibility will be based on second year filing and not prior year history.

Cover Crop:  Corn planted on acreage following a crop that has been prevented from being planted will not be considered a cover crop.

New Products

Enhanced Coverage Option (ECO)

  • A NEW optional endorsement that provides area-based coverage for a portion of the deductible of the underlying MPCI policy.
  • ECO is available at 95% or 90% coverage level (trigger).  Both options offer a coverage band down to 86% providing 9% or 4% coverage, respectively.  ECO functions similarly to SCO, although ARC/PLC participation has no effect on eligibility.  You have the option to add SCO, on an area basis, down to the underlying MPCI coverage level. 
  • ECO is available on 31 spring planted crops (available on fall-planted crops in 2022) and must be elected by Sales Closing Date.

Coverage Options

Quality Loss Option (QL)

  • Allows you to replace actual yields based on post-quality production in your APH Database(s) with actual yields based on pre-quality total production.
  • A Notice of Loss must have been filed timely and had quality-adjusted production, regardless of whether an indemnity payment occurred.
  • This is available on several corps, including coarse grains and small grains.  Election must be made by Sales Closing date on a crop/county basis, but by Production Reporting Date, you can choose to opt out on specific databases or CropYears.

If you want more information on any of these items above or are interested in a detailed analysis of your Crop Insurance, call (877) 567-4468 or visit fbn.com/insurance.

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Source: Farmers Mutual Hail Insurance Company of Iowa, 2021.

We are an Equal Opportunity Provider. FBN Crop Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solution Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan) and are only available where FBN Insurance LLC is licensed. FBN membership is not required to purchase through FBN Insurance LLC, but certain features are only available to FBN members. FBN Crop Insurance is currently offered in the following states: AR, CA, CO, FL, GA, IA, ID, IL, IN, KS, KY, LA, MI, MN, MO, MS, MT, NC, ND, NE, NM, OH, OK, OR, PA, SC, SD, TN, TX, WA, WI.