Crop insurance

sassafras manor · #1 08/08/12, 11:17 AM

We are fortunate this year since our tenant farmer will actually have a crop to harvest from our field. We have a sharecrop agreement where we recieved 1/3 of the harvest, but what happens to the landlords where there will not be anything there to harvest? Does the landowner get 1/3 of the tenant farmer's crop insurance payout or not? Or can the landowner take out crop insurance of the crops on their land even if they are not farming it themselves? Ideas and/or further conversation is appreciated.

oregon woodsmok · #2 08/08/12, 12:01 PM

It's going to depend upon what your lease says about crop insurance.

I suggest you talk to an insurance agent about buying insurance for your 1/3 of the crop. Insurance agents love the chance to talk to anyone and maybe sell them something. He'll be happy to hear from you.

sassafras manor · #3 08/08/12, 12:06 PM

Our lease is not in paper and based on a simple handshake with a fellow co-worker. He has been farming our ground for the last 6 seasons and we have had an excellent relationship. I know that some folks will say to have it in writing but it has not gotten to that point around here and we will bring that gap when the time arrives.

ksfarmer · #4 08/08/12, 12:19 PM

I can't speak to your situation, but I think you should have your own crop insurance. We rent our farm to a young farmer on 60-40 shares. He reports the acerages to the insurance agent and it is up to me if we want to insure our 40% and at what level we wish. Then I pay for whatever we insure. He insures his 60% independent of what I do.

edit: We also have only a verbal agreement and it has worked just fine for several years now.

sassafras manor · #5 08/08/12, 12:29 PM

ksfarmer - if you don't mind me asking, what would be an approximate cost per acre for a landowner to insure their share? And what are the payout options/levels?

Lazy J · #6 08/08/12, 12:32 PM

In my crop share arrangements the Landlord is responsible for their portion of the crop insurance.

luvrulz · #7 08/08/12, 12:43 PM

Quote:

Originally Posted by sassafras manor

We are fortunate this year since our tenant farmer will actually have a crop to harvest from our field. We have a sharecrop agreement where we recieved 1/3 of the harvest, but what happens to the landlords where there will not be anything there to harvest? Does the landowner get 1/3 of the tenant farmer's crop insurance payout or not? Or can the landowner take out crop insurance of the crops on their land even if they are not farming it themselves? Ideas and/or further conversation is appreciated.

In order to have crop insurance, you have to have some basis of what your field will yield. You have to have some sort of history in order to get a payout. That's what we've been told. Can you insure someone else's crop on your farm?? Don't think so - unless you have history and they've rented your field before.....if you have those records, then can you calculate what it would be? You would still have to insure your own portion of the yield....

My blueberries and asparagus fields are jusat now coming up to full production, we have had issues with the drought, the turkeys, etc, etc - so we haven't got the records to back up even having crop insurance yet.... All in good time, for us!

Lazy J · #8 08/08/12, 12:48 PM

Quote:

Originally Posted by luvrulz

In order to have crop insurance, you have to have some basis of what your field will yield. You have to have some sort of history in order to get a payout. That's what we've been told. Can you insure someone else's crop on your farm?? Don't think so - unless you have history and they've rented your field before.....if you have those records, then can you calculate what it would be? You would still have to insure your own portion of the yield....

My blueberries and asparagus fields are jusat now coming up to full production, we have had issues with the drought, the turkeys, etc, etc - so we haven't got the records to back up even having crop insurance yet.... All in good time, for us!

If you don't have records for the field then you are insured at the county average as your APH (Average Production History). If you have records such as weigh tickets or settlement documents from the elevator they will suffice for establishing your APH.

Jim

ksfarmer · #9 08/08/12, 01:29 PM

Quote:

Originally Posted by sassafras manor

ksfarmer - if you don't mind me asking, what would be an approximate cost per acre for a landowner to insure their share? And what are the payout options/levels?

Offhand I can't say just what the cost is. It depends on your area, proven yields or county averages, the level you want, based on crop prices, or % of average yields, etc, etc. Only your agent can give you accurate figures for your situation.

You might should talk to your renter, he can probably tell you a lot more details.

rambler · #10 08/08/12, 01:41 PM

Crop insurance for grain farming has become complicated.

Private companies do the crop insurance, butr the govt regulates and subsidies the premiums of it.

There are several diffierent types of coverage, can cost as little as $7 an acre, can cost much more than $50 an acre. Very many variables.

My understanding is in a crop share the landlord is responisble for their own insurance on their portion. You can have the tennent take care of it paperwork wise, but you would need to sign stuff or do the limited power of atterny to them.

Check with your local FSA office for guidelines, things are a tad different in different regions of the country for the details of this rather complicated stuff.

--->Paul

RonM · #11 08/08/12, 07:35 PM

Crop insurane is around $42. per acre, ballpark

julieq · #12 08/08/12, 08:16 PM

If food prices keep going up I'm going to have to get crop insurance for my garden veggies?!

Chris. · #13 08/08/12, 09:23 PM

there isnt crop insurance for specialty crops, aka food people eat.

julieq · #14 08/08/12, 10:08 PM

Quote:

Originally Posted by Chris.

there isnt crop insurance for specialty crops, aka food people eat.

I was trying to be funny Chris.

ksfarmer · #15 08/10/12, 01:01 PM

Quote:

Originally Posted by Chris.

there isnt crop insurance for specialty crops, aka food people eat.

Actually there is. Multi-peril crop insurance is available in areas with a history of production for those crops. Maybe not on your backyard garden, but if you produce potatoes in Idaho, cantalopes in Colorado, veggies in California, and other areas on a commercial scale, it is available.

Chris. · #16 08/10/12, 09:33 PM

didnt know that. But for the most part its not

. A local farm here was on one of the big news networks, on the subject of the drought, about how they lost 20 acres of sweet corn which has not been uncommon around here. They lost 40k. Most years they would be fine, but not this year. But thats farming. Only difference is comodity growers can get insurance if the reality of farming rears its ugly head. On that note, I know a guy who farms 300 acres of corn and soybeans, and sells crop insurance. So either way, he is covered.

luvrulz · #17 08/10/12, 09:41 PM

Quote:

Originally Posted by Lazy J

If you don't have records for the field then you are insured at the county average as your APH (Average Production History). If you have records such as weigh tickets or settlement documents from the elevator they will suffice for establishing your APH.

Jim

But if there isn't any basis for your crop in your county, then what?

Allen W · #18 08/11/12, 08:50 AM

Quote:

Originally Posted by luvrulz

But if there isn't any basis for your crop in your county, then what?

Not all crops are insurable in all counties.

Jalopy · #19 08/11/12, 05:54 PM

1st Landlords must cover their portion of the crop if they want to be insured.

2nd If as you indicate you are on a share arrangement you can use the production history of your tenant. If you have been on a cash rent basis you can not use your tenants history. If you are still on cash basis then you cannot get crop insurance because the tenant is taking the weather risk not you.

3rd Talk to a crop insurance agent, one reccomended by your tenant or one you have personal connection with for insurance information. FSA offices do not always provide the best crop insurance information.

4th The cost is based on your production history,value of the crop and amount of risk you will keep or pass to the insurance company. If you have a history of 90 b/a and want to be guaranteed 85% of that at $6/bushel it will cost more than if you only want to be guaranteed 65% of the 90 b/a avg.

5th For spring planted crops you need to make your decisions for coverage in either Febraury or March depending on the area of the US you are in.

rambler · #20 08/12/12, 03:12 AM

Sweet corn & peas have been pat of the insurance plans for a long time.

Perhaps the person wasn't in the farm program, then couldn't get an insurance plan, But, the crops are insurable, if you play the rest of the gov games.

And, the insurance doesn't pay out diddly for the first 4 years, set up thqt way so you pay in a few years before you can collect.....

--->Paul