2012 Crop Insurance Update
This brief overview of changes made to crop insurance plans for 2012 is provided by Jason Williamson of Williamson Insurance Agency, 101 E. Merrin St., Payne, OH. For more information, call 419-263-0168 or visit them on the web at http://www.cropcoverage.com.
- Revenue protection (RP) – This coverage replaces Crop Revenue Coverage (CPC) and Revenue Assurance+Fall Harvest (RA+FH) coverage. Prevented planting under RP will be settled using the February price. It is now available for popcorn.
- Yield protection (YP) – Replaces Basic insurance (Actual Production History, APH) for corn, soybeans, wheat and now popcorn.
- Area plans vs Individual plans – Area plans are based upon county yield averages. There are no major changes for 2012 to area plans. Individual plans are based upon your specific farm yields based on your documentation. These now require specialty soybeans be noted and reported separately from traditional soybeans. There are now 7 different classifications.
- Insurability following a cover crop – Crops planted following a cover crop are insurable as long as the cover crop is killed on or before June 5. Whether the cover crop has headed, budded or has been harvested no longer effects insurability.
- Conservation Reserve Program (CRP) – Acres emerging from CRP must be reported separately. They are insurable if they are being planted to a crop for the first time within the 2 most recent crop years since being in CRP.
- Subsidies – Subsidies for 2012 coverage are unchanged. However, Ohio received one of the largest rate reductions in insurance premiums in 2012, 11% for corn and 13% for soybeans.
- Premium billing dates – Bills will now be mailed August 15. This is approximately 6 weeks earlier than 2011. Interest attaches October 1.
- Trend adjusted qualifications – You may now add additional coverage for soybeans and corn based upon your actual yields and taking into account county average yields from the past 12 years. In most cases this will positively affect your bushel guarantee.