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modirt 
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Joined: 18 Jul 2018
Location: Missouri
Points: 7323
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 Topic: Crop Insurance Question
Posted: 03 Feb 2022 at 4:19pm |
So farm in question was about 200 acres. Half corn, half beans.
We had a flood what wiped out all the beans and half the corn. Remaining corn yield was about half what it should have been.
Revenue protection at 60% yield.
When calculating damages, adjuster used the earnings from half corn crop to cancel out damage from corn crop lost. So basically got practically nothing from a 75% loss of corn crop. No beans harvested, so they paid the 60% revenue on that side.
This was first time I was involved in a crop insurance settlement. Does corn settlement process sound right?
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klinemar
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Joined: 14 Sep 2009
Location: Michigan
Points: 8002
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Posted: 03 Feb 2022 at 6:42pm |
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From your post I got you were insured for 60%? Revenue Protection Crop Insurance Claim is figured by your guarantee. Actual Production History x Acres x Price x percent of insurance = guarantee. Were you paid for the acres flooded? If so that would have been paid out of guarantee.
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klinemar
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Location: Michigan
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Posted: 03 Feb 2022 at 6:47pm |
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When the flooding occurred and the water went down a Claim should have been filed so that an Adjuster could appraise the damage.
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tomNE
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Joined: 13 Sep 2009
Location: dorchester, ne
Points: 1225
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Posted: 04 Feb 2022 at 9:11am |
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crop insurance cover the whole field. so if the rest of the field yielded well, there is no payment on the loss part. easy figures (not real) 100acres of corn that has proven yield of 100bpa. equals 10,000 bushel times 60% equals 6000 bushel. so if the remaining corn yielded 6000 bushel, then no payment. there are some more figures with revenue protection but the jest is, crop insurance basicly makes sure to cover enuff to allow coverage of inputs. I was just running figures on corn as we are heading into a dry year. I didn't like any off the figures but will buy something between 50-70%. above that, you are buying the crop!
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modirt
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Joined: 18 Jul 2018
Location: Missouri
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Posted: 04 Feb 2022 at 10:30am |
That is the way they figured it for settlement. They used our partial crop to cover the loss. Until you see how they do it, there is a false sense of security.
Knowing now how it works, I'm wondering if I would be better off putting my premium into a sinking fund and self insure?
The flood was a rare event as water should have been held back by a levee that had been damaged and not yet repaired. With levees up and intact, flood hazard is usually very low.
Edited by modirt - 04 Feb 2022 at 10:30am
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Tbone95
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Joined: 31 Aug 2012
Location: Michigan
Points: 11600
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Posted: 04 Feb 2022 at 10:43am |
 modirt wrote:
That is the way they figured it for settlement. They used our partial crop to cover the loss. Until you see how they do it, there is a false sense of security.
Knowing now how it works, I'm wondering if I would be better off putting my premium into a sinking fund and self insure?
The flood was a rare event as water should have been held back by a levee that had been damaged and not yet repaired. With levees up and intact, flood hazard is usually very low.
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Next time you see/ hear somebody chirping about how somebody gets rich off crop insurance, remember this experience. 
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DMiller
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Joined: 14 Sep 2009
Location: Hermann, Mo
Points: 31048
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Posted: 04 Feb 2022 at 11:34am |
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Last year when local streams flooded and crops were lost Early the insurer would not pay IF could get a second planting down, by their determination so many did put a second planting in, lost that to the next high water but insurance only covered expense of First Planting. Recover ANY value and it comes off the settlement value. Insurance, still a big scam shell game.
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klinemar
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Location: Michigan
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Posted: 04 Feb 2022 at 5:33pm |
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Crop Insurance is no different than any other Insurance. You are not going to make a profit when you can't Insure for 100%.
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victoryallis
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Joined: 15 Apr 2010
Location: Ludington mi
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Posted: 05 Feb 2022 at 6:12am |
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Based on what you said no you got screwed
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8030 and 8050MFWD, 7580, 3 6080's, 160, 7060, 175, heirloom D17, Deere 8760
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SteveM C/IL
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Joined: 12 Sep 2009
Location: Shelbyville IL
Points: 8235
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Posted: 05 Feb 2022 at 10:56am |
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In 40 yrs farming I only "needed" it once. Drought 2012. Didn't have it. 75% of revenue was running around $1000 for 88A since that and not even been close to a claim. So for that I've spent 10 grand over ten years I didn't need to. Logic would say "bank it". Me? I can afford it and write it off so.....
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