Crop Insurance Today May 2015 - (Page 18)

funding for crop insurance was increased by $5.7 billion, primarily due to the addition of two new supplemental revenue programs, the Stacked Income Protection Plan, or STAX, and the Supplemental Coverage Option, or SCO. The new Farm Bill is another major evolutionary step toward cementing crop insurance as the key mechanism for public support of U.S. production agriculture. (For a discussion of 2014 Farm Bill implementation, see: "Finally a Farm Bill . . . So What's Next," Crop Insurance TODAY, September 2014, pp. 26-30.) STAX and SCO enable a producer to buy two policies on the same insurance unit, with the idea being to provide greater protection for smaller losses that are often not covered due to the policy's deductible. STAX is an area plan for upland cotton acreage only that begins in selected counties in the 2015 crop year and covers revenue losses of not less than 10 percent and not more than 30 percent. STAX may be purchased alone or on top of a traditional MPCI plan. Because cotton was excluded from farm programs, except for the marketing assistance loan program, STAX may be a popular option for many producers. SCO is an area plan for other crop producers. SCO is being offered for sale in selected counties in the 2015 crop year for corn, cotton, grain sorghum, rice, soybeans, spring barley, spring wheat, and winter wheat. SCO may be purchased on top of an underlying individual policy allowing indemnities to be equal to part of the deductible of the underlying policy. SCO indemnities are triggered if losses in the area exceed 14 percent of expected revenue or yield, with SCO coverage not to exceed the difference between 86 percent and the coverage level selected by the producer for the underlying policy. SCO coverage is not available for acreage covered by STAX or for crops enrolled in the Agriculture Risk Coverage program (ARC), a supplemental revenue farm program also created by the Farm Bill. Thus, the farmer's choice of enrolling in ARC affects the demand for SCO. As of this writing the only data available for SCO sales is for 2015 winter wheat and SCO sales were limited, accounting for five percent of the winter wheat policies sold, one percent of the insured liability and three percent of the premium. RMA's implementation of these provisions was admirable, as communication with in- Errors and Omission Insurance For Your Agency Full lines of coverage including MPCI Crop Insurance We will work diligently to offer you quotes with reputable companies at competitive prices To obtain a quote for your agency call 1-800-769-6015 American Insurance Services, LLC. Premium financing is available We have over 35 years experience in all lines of insurance w w w. t o m s t a n l e y i n s u r a n c e . c o m 18 MAY2015 dustry and producer organizations was ample and timely. RMA provided detailed provisions on SCO and STAX by July and August 2014, respectively, which were implemented under existing regulatory authority. RMA had earlier issued interim regulations for most of the other provisions by July 1, 2014. The Farm Bill also authorized many new studies; provisions; crop insurance products, including for specific crops, such as peanut revenue; and concepts, such as margin insurance and whole farm insurance. Readers are referred to the 2014 Farm Bill page on RMA's website as well as to an excellent summary of the provisions prepared by the Congressional Research Service (CRS) (see Shields, D., "Crop Insurance Provisions in the 2014 Farm Bill (P.L. 113-79)", CRS, 7-5700, April 22, 2014 and available at http://nationalaglawcenter.org/wp-content/uploads/assets/crs/ R43494.pdf. An emerging Farm Bill issue in late 2014 was the implementation of the provision that allows producers to exclude any year from their insurable production (APH), if the county's yield per planted acre for the crop in that year is at least 50 percent below the previous consecutive 10-year average of the yield per planted acre for the crop in the county. This provision, known as APH Exclusion, also applies to contiguous counties and allows for the separation of irrigated and non-irrigated acres. The motivation for the provision was to avoid penalizing producers whose APH is reduced by an atypical low-yield year, thus providing them with an APH that may more accurately reflect their expected output. However, there already exist limitations on APH annual reductions, including a maximum annual reduction (cup), a minimum level (floor) and a substitute for any low yield (plug). The concerns with APH exclusion are that it may result in excessively high levels of coverage in high risk areas triggering larger and more frequent indemnities. Also, the rating method may not accurately reflect the risk, since there is no historical data on which to base rates for very high levels of coverage. These factors mean an increase in risk of loss for the program. Another issue is that the increase in coverage for high-risk producers and areas may result in smaller sales of STAX and SCO, as producers opt to cover more of their deductible by using higher individual http://nationalaglawcenter.org/wp-content/uploads/assets/crs/R43494.pdf http://nationalaglawcenter.org/wp-content/uploads/assets/crs/R43494.pdf http://nationalaglawcenter.org/wp-content/uploads/assets/crs/R43494.pdf http://www.tomstanleyinsurance.com

Crop Insurance Today May 2015

Table of Contents for the Digital Edition of Crop Insurance Today May 2015

“Leg Godt,” or as the Danes would say, “Play Well” (Legos and Crop Insurance)
2014 Year in Review
Florida Hosts Industry Leaders
Four Presented with Industry Awards
Dean Benson Receives Outstanding Service Award
Jeff Meyer Receives NCIS Industry Leadership Award
NCIS Hosts Committee Leaders
Crop Insurance in Action Kiodette and Rich Stroh, Powell, Wyoming
Crop Insurance Today May 2015 - Cover1
Crop Insurance Today May 2015 - Cover2
Crop Insurance Today May 2015 - “Leg Godt,” or as the Danes would say, “Play Well” (Legos and Crop Insurance)
Crop Insurance Today May 2015 - 2
Crop Insurance Today May 2015 - 3
Crop Insurance Today May 2015 - 2014 Year in Review
Crop Insurance Today May 2015 - 5
Crop Insurance Today May 2015 - 6
Crop Insurance Today May 2015 - 7
Crop Insurance Today May 2015 - 8
Crop Insurance Today May 2015 - 9
Crop Insurance Today May 2015 - 10
Crop Insurance Today May 2015 - 11
Crop Insurance Today May 2015 - 12
Crop Insurance Today May 2015 - 13
Crop Insurance Today May 2015 - 14
Crop Insurance Today May 2015 - 15
Crop Insurance Today May 2015 - 16
Crop Insurance Today May 2015 - 17
Crop Insurance Today May 2015 - 18
Crop Insurance Today May 2015 - 19
Crop Insurance Today May 2015 - 20
Crop Insurance Today May 2015 - 21
Crop Insurance Today May 2015 - 22
Crop Insurance Today May 2015 - 23
Crop Insurance Today May 2015 - Florida Hosts Industry Leaders
Crop Insurance Today May 2015 - 25
Crop Insurance Today May 2015 - 26
Crop Insurance Today May 2015 - 27
Crop Insurance Today May 2015 - 28
Crop Insurance Today May 2015 - 29
Crop Insurance Today May 2015 - Four Presented with Industry Awards
Crop Insurance Today May 2015 - 31
Crop Insurance Today May 2015 - 32
Crop Insurance Today May 2015 - Dean Benson Receives Outstanding Service Award
Crop Insurance Today May 2015 - 34
Crop Insurance Today May 2015 - 35
Crop Insurance Today May 2015 - Jeff Meyer Receives NCIS Industry Leadership Award
Crop Insurance Today May 2015 - 37
Crop Insurance Today May 2015 - NCIS Hosts Committee Leaders
Crop Insurance Today May 2015 - 39
Crop Insurance Today May 2015 - 40
Crop Insurance Today May 2015 - 41
Crop Insurance Today May 2015 - 42
Crop Insurance Today May 2015 - Crop Insurance in Action Kiodette and Rich Stroh, Powell, Wyoming
Crop Insurance Today May 2015 - 44
Crop Insurance Today May 2015 - Cover3
Crop Insurance Today May 2015 - Cover4
https://www.nxtbook.com/allen/cint/54-1
https://www.nxtbook.com/allen/cint/53-4
https://www.nxtbook.com/allen/cint/53-03
https://www.nxtbook.com/allen/cint/53-02
https://www.nxtbook.com/allen/cint/53-01
https://www.nxtbook.com/allen/cint/52-04
https://www.nxtbook.com/allen/cint/52-03
https://www.nxtbook.com/allen/cint/52-02
https://www.nxtbook.com/allen/cint/52-01
http://www.brightcopy.net/allen/cint/51-04
http://www.brightcopy.net/allen/cint/51-03
http://www.brightcopy.net/allen/cint/51-02
http://www.brightcopy.net/allen/cint/51-01
http://www.brightcopy.net/allen/cint/50-04
http://www.brightcopy.net/allen/cint/50-3
http://www.brightcopy.net/allen/cint/50-2
http://www.brightcopy.net/allen/cint/50-1
http://www.brightcopy.net/allen/cint/49-4
http://www.brightcopy.net/allen/cint/49-3
http://www.brightcopy.net/allen/cint/may2016
http://www.brightcopy.net/allen/cint/february2016
http://www.brightcopy.net/allen/cint/november2015
http://www.brightcopy.net/allen/cint/september2015
https://www.nxtbook.com/allen/cint/may2015
https://www.nxtbook.com/allen/cint/february2015
https://www.nxtbook.com/allen/cint/november2014
https://www.nxtbook.com/allen/cint/september2014
https://www.nxtbook.com/allen/cint/may2014
https://www.nxtbook.com/allen/cint/february2014
https://www.nxtbook.com/allen/cint/november2013
https://www.nxtbook.com/allen/cint/august2013
https://www.nxtbook.com/allen/cint/may2013
https://www.nxtbook.com/allen/cint/february2013
https://www.nxtbook.com/allen/cint/november2012
https://www.nxtbook.com/allen/cint/august2012
https://www.nxtbook.com/allen/cint/may2012
https://www.nxtbook.com/allen/cint/february2012
https://www.nxtbook.com/allen/cint/44-4
https://www.nxtbookmedia.com