1. This institution is an equal opportunity provider. Crop Insurance for 2016 Corn & Soybeans Using 2016 Projected Prices

2. 2 We will cover Perils – what are the causes of loss that are insured Units – the structure of your farm and crop and how that impacts crop insurance options Examples of Revenue and Yield crop insurance Supplemental Coverage Option

3. 3 Insured Perils Adverse Weather Conditions Insects - but not damage due to insufficient or improper application of pest control measures Plant disease - but not damage due to insufficient or improper application of disease control measures Wildlife - unless control measures have not been taken Others: Fire, Earthquake, Volcanic Eruption, Failure of irrigation water supply

4. 4 Basic Unit All insurable acreage of the insured crop in the county on the date coverage begins for the crop year In which you have 100% crop share or Which is owned by one person and operated by another person on a share basis

5. 5 Basic Unit 3 Farms, 1 Unit Own All Farms FSN 101

6. 6 Optional Unit A Basic Unit may be divided into Optional Units if you meet one of the following: Each Optional Unit is located in a separate FSA Farm Serial Number (FSN), or by written agreement as sectional equivalents Optional Units may be based on irrigated and non- irrigated acreage Acreage of the insured crop grown under organic farming practices Optional units are not available for crops insured under a Catastrophic Risk Protection Endorsement (CAT)

7. 7 Optional Units (3) Own FSN 101, Rent FSN 102 &103 FSN 103 FSN 102FSN 101

8. 8 Enterprise Unit – For those with Optional Units An Enterprise Unit must contain all of the insurable acreage of the same crop in Two or more FSA Farm Serial Numbers, sectional equivalents, or by other criteria At least two of the FSA Farm Serial Numbers must each have at least the lesser of 20 acres or 20% of the insured crop acreage in the Enterprise Unit

9. 9 Enterprise Unit (1) Own FSN 101, Rent FSN 102 &103 FSN 103 FSN 102FSN 101

10. 10 Additional Features Replant Payment Lesser of 20 Acres or 20% of Insured Acres 8 Bu./Acre X Projected Price (Grain Corn) 1 Ton/Acre X Projected Price (Silage) 3 Bu./Acre X Projected Price (Soybeans) Late Planting – occurs after 6/10/2016 Guarantee Reduced 1% per Day (for up to 25 Days) Prevented Planting - is any insurable cause of loss that keeps you out of the fields prior to 6/10/2016, providing the cause is general in the area, and other requirements are met 60% of your guarantee for Timely Planted Acres 65% option available for an additional 2% premium 70% option available for an additional 4% premium

11. 11 Prevented Planting options Default, +5% or +10%

12. 12 Crop Insurance Subsidy

13. 13 Enterprise vs. Optional Units Government Subsidy * since 2009

14. 14 Revenue Protection (RP) Protects against revenue loss due to yield loss and/or price changes. Converts your bushel guarantee to a dollar guarantee per acre. Same as Yield Protection Uses APH or County T Yields Coverage choices range from 50 to 85% Premium subsidized, based on coverage Replant & prevented planting included

15. 15 Offers 3-way protection Coverage if yields are low Coverage if prices fall Coverage if a yield loss and prices rise Revenue Protection (RP)

16. 16 Projected Price Projected Price Announced early March. Used to calculate the minimum revenue guarantee. APH x % Coverage x Projected Price

17. 17 Harvest Price (RP & RP-HPE) Harvest Price Announced early Nov. If higher than projected price, used to calculate a new higher revenue guarantee for RP.

18. 18 Yield And Revenue Protection Prices CropProjectedHarvest Corn (2016)$3.86 Corn Silage (2016)$35.50 Soybeans (2016)$8.85 Corn (2015)$4.15$3.83 Corn Silage (2015)$38.50 Soybeans (2015)$9.73$8.91

19. 19 Crop Insurance Comparison Same PriceYield (YP)Revenue (RP) APH Corn150 Bu./A Coverage70% Projected Price$3.86 Guarantee105 Bu.$405.30 Harvest Yield54 Bu./A Difference51 Bu./A------- Harvest Price$3.86 New Guarantee-------- Harvest Value$208.44 Indemnity/Acre$196.86

20. 20 Crop Insurance Comparison Price DecreaseYield (YP)Revenue (RP) APH Corn150 Bu./A Coverage70% Projected Price$3.86 Guarantee105 Bu./A$405.30 Harvest Yield54 Bu./A Difference51 Bu./A-------- Harvest Price$3.15 New Guarantee------- Harvest Value$170.10 Indemnity/Acre$196.86$235.20

21. 21 Crop Insurance Comparison Price IncreaseYield (YP)Revenue (RP) APH Corn150 Bu./A Coverage Level70% Projected Price$3.86 Guarantee105 Bu./A$405.30 Harvest Yield54 Bu./A Difference51 Bu./A -------- Harvest Price$3.86 New Guarantee$477.75 Harvest Value$245.70 Indemnity/Acre$196.86$232.05

22. 22 Crop Insurance Comparison Same PriceYield (YP)Revenue (RP) APH Soybeans40 Bu./A Coverage70% Projected Price$8.85 Guarantee28 Bu./A$247.80 Harvest Yield15 Bu./A Difference13 Bu./A------- Harvest Price$8.85 New Guarantee-------- Harvest Value$132.75 Indemnity/Acre$115.05

23. 23 Crop Insurance Comparison Price DecreaseYield (YP)Revenue (RP) APH Soybeans40 Bu./A Coverage70% Projected Price$8.85 Guarantee28 Bu./A$247.80 Harvest Yield15 Bu./A Difference13 Bu./A-------- Harvest Price$8.00 New Guarantee-------- Harvest Value$120.00 Indemnity/Acre$115.05$128.80

24. 24 Crop Insurance Comparison Price IncreaseYield (YP)Revenue (RP) APH Soybeans40 Bu./A Coverage70% Projected Price$8.85 Guarantee28 Bu./A$247.80 Harvest Yield15 Bu./A Difference13 Bu./A ------ Harvest Price$9.85 New Guarantee$275.80 Harvest Value$147.75 Indemnity/Acre$115.05$128.05

25. 25 Comparison of Projected Price vs Harvest Corn Prices by Year

26. 26 Corn Silage APH Yield22 Tons/ac CoverageX 70% = Guarantee15.4 Tons/ac Harvest Yield -10 Tons/ac Harvest Loss= 5.4 Tons/ac Projected PriceX $35.50/ton Indemnity / Acre= $191.70

27. 27 Supplemental Coverage Option (SCO) SCO is an option that provides additional coverage for a portion of your underlying crop insurance deductible. You must buy it as an endorsement to the Corn Crop Provisions Policy. The Federal Government pays 65 percent of the premium cost for SCO.

28. 28 SCO Protection, Cost and Coverage SCO increases the level of coverage to 86% of Producer’s APH Yield SCO results in additional premium and an additional administrative fee SCO Premium is subsidized at 65% Amount of Protection & Cost is based on underlying policy coverage Lower underlying coverage, greater SCO Protection & Cost Higher underlying coverage, lesser amount of SCO protection and cost Coverage No coverage overlap between individual and SCO coverage Covers all planted acreage of the crop.

29. 29 SCO Indemnity Basis of indemnity Area yield loss for yield plans, area revenue loss for revenue plans Payments begin if area revenue/yield is less than 86% (area loss more than 14%) Amount based on individual plan indemnity Maximum based on SCO Coverage (86% - Individual Coverage Level) SCO Premium Example Cayuga County NY APH 130 Bu./Acre Projected Price $3.86 85% Coverage - $21.02 75% + 11% SCO - $10.87 65% + 21% SCO - $5.86

30. 30 Important Dates For Corn and Soybeans Sales Closing, Policy Change, Cancellation & Termination Date March 15,2016 Final Planting Date:June 10,2016 Acreage Report Due Date July 15,2016 Premium Billing DateAugust 15,2016 Notice of Loss: -15 days prior to Harvest -Within 72 hours of Damage -3 days prior to when harvest should have started if no harvest End of Insurance PeriodDecember 10,2016 Failure to report = loss of coverage

31. NYS Crop Insurance Performance 31

32. 32 Crop Year Losses PaidTotal Premium Producer Premium CAT Payments 2015$13,214,416$16,613,933$5,020,266$157,091 2014$20,153,878$16,457,958$4,763,088$226,651 2013$17,398,128$17,417,573$4,644,539$672,262 2012$8,047,669$13,635,690$3,638,818$102,664 2011$17,220,776$14,751,014$3,700,437$1,262,759 Totals$76,034,867$78,876,168$21,767,148$2,421,427 Loss Ratio $.96 Producer Indemnity to premium ratio $3.49 New York Corn Crop Insurance Performance

33. 33 Crop Year Losses PaidTotal Premium Producer Premium CAT Payments 2015$6,153,647$4,861,008$1,566,620$28,317 2014$7,273,119$4,875,630$1,528,195$18,494 2013$6,059,792$3,959,076$1,217,826$187,305 2012$2,308,081$3,275,494$962,710$26,022 2011$5,395,771$3,605,658$1,054,836$160,340 Totals$27,190,410$20,576,866$6,330,187$420,478 Loss Ratio $1.32 Producer Indemnity to premium ratio $4.30 New York Soybeans Crop Insurance Performance

34. 34 Additional Information USDA Risk Management Agency (RMA) www.rma.usda.gov/ To find a crop insurance agent, go to www.rma.usda.gov/tools/agent.html NYS Department of Agriculture and Markets Crop Insurance & Risk Management Education www.agriculture.ny.gov/AP/CropInsurance.html 1-800-554-4501 This institution is an equal opportunity provider.

35. 35 The alternative to having crop insurance.