Crop Insurance Options For dairy farms Ag-Analytics.org

Crop insurance Introduction Helps producers manage risk. You pay an annual premium (subsidized by the government) to buy an insurance policy. If your yields or revenues fall below a certain level due to covered losses (for example, too much or too little rain), you receive an indemnity payment.

Crop Insurance Products for Dairy Farms Introduction Crop Insurance Products for Dairy Farms Single-crop policies for corn (for grain and silage), as well as most grains and oilseeds Pasture, Rangeland, Forage Livestock Gross Margin Insurance

Single-Crop Insurance Products Single-Crop Insurance Corn grown as feed can be insured either as grain or silage Several other grains and oilseeds are covered Generally, losses related to weather, natural disasters, or price are covered Losses for which the farmers is at fault are not covered Example: A loss due to improper herbicide use would not be covered Losses are verified by your insurer You select your coverage level (generally 65-90% of yields or revenue), costs increase with high coverage levels, but in the event of a loss, indemnities will be higher

Pasture, Rangeland, Forage Products Pasture, Rangeland, Forage Insures forage production against drought Payments are triggered when rainfall drops below historical levels NOAA’s Climate Prediction Center’s monthly rainfall data is used Indemnities are paid automatically when local area rainfall is low – no recordkeeping required To receive a loss payment the entire grid must experience below average rainfall, not the individual producer No historical production records are required Producers choose acreage and months to cover Producers must choose at least a 2-month period where precipitation is important to their operation

Livestock Gross Margin Products Livestock Gross Margin Provides protection when feed costs rise or milk prices drop Gross margin is the market value of milk minus feed costs Enrollment occurs monthly, covers 11 months Indemnities paid when total actual gross margins over the covered, 11-month period are less than the gross margin guarantee Farms participating in MPP are ineligible For LGM, mentioned that there is a cap/threshold on participation that is sometimes met.

Premium Calculator Estimate your costs Estimate your annual premium costs using the Crop Insurance Premium Calculator tool at Ag-Analytics.org/CropInsurance

Sign-up Fill out your location and yield information based on your production history This comment is for this and the next slide that shows increasing premium based on the level of coverage– you might consider adding a slide that defines in general terms how farm units are insured– for example define generally what a basic unit, optional unit, and enterprise unit is. A very basic understanding of units will help your audience know how unit division influences premium cost.

Sign-up Then the tool will show you premium estimates for different levels of coverage… This comment is for this and the next slide that shows increasing premium based on the level of coverage– you might consider adding a slide that defines in general terms how farm units are insured– for example define generally what a basic unit, optional unit, and enterprise unit is. A very basic understanding of units will help your audience know how unit division influences premium cost. As a graph

Sign-up Then the tool will show you premium estimates for different levels of coverage… And a chart

2017 Crop Insurance Deadlines Sign-up: select deadlines 2017 Crop Insurance Deadlines 3/15: Corn, Forage Seeding (spring), Soybeans, Whole Farm Revenue 7/31: Forage Seeding (fall) 9/30: Forage Production 11/15: Pasture and Hay Monthly: Dairy, Swine (Livestock Gross Margin)

Talk to an insurance agent Sign-up Talk to an insurance agent Find crop insurance agents on the United States Department of Agriculture Risk Management Agency website at: www.rma.usda.gov/tools/agent.html Ask a neighbor for a recommendation Call your local Farm Service Agency to get a list of agents

Cornell University delivers crop insurance education in New York State in partnership with the USDA Risk Management Agency. Diversity and Inclusion are a part of Cornell University's heritage. We are an employer and educator recognized for valuing AA/EEO, Protected Veterans, and Individuals with Disabilities.

Jennifer Ifft jifft@cornell.edu