Straight from the Horses Mouth

Duane A. Lienemann

  Oh my, where do I start?  We are already into March. We are moving the clock ahead one hour (Spring ahead – right?) The Farm Bill has passed, but nobody knows much about it. We need moisture and are not getting it. There are all kinds of bull sales to attend and you are starting to see those spring auction flyers and of course the spring and early summer progress shows are in the process of starting and being advertised.  So what may be a good thing to visit about this week?
     I just got back from the Nebraska Governor’s Ag Conference that was held the last couple of days in Kearney. I love going to these kinds of events as I come away with great information, resources and the chance to network with a virtual “Who’s Who in Agriculture” in Nebraska. Of course there are some very good speakers that you can draw from to partially satisfy the inquiring mind.  It was nice hearing from our governor and past governor; visiting with other like-minded people; learning about issues facing us; bumping into old friends/colleagues; and even talking to aspiring governor candidates and other public servants wanting to climb up the political ladder at this conference. Let’s take a quick look at this venue.
     It was enlightening to hear about the ethanol industry and learn about the efforts of groups like the Animal Agriculture Alliance (AAA) and the US Farmers and Ranchers Alliance (USFRA). Any person interested in the animal agriculture industry should utilize the information and resources availed to you by these web based groups. They can be found respectively at http://www.animalagalliance.org/main/index.cfm   and  http://www.fooddialogues.com/ .  You may also want to consider looking at a major ‘white paper’ that explores the issues and policies that have constrained livestock development in the state and the economic benefits that accompany livestock expansion. You can find this new research based document entitled - "Nebraska Livestock Industry White Paper" at:  http://agecon.unl.edu/livestock  . The NDA also unveiled a new video featuring the scope and depth of the agriculture industry in the state. The video, simply called "Nebraska Agriculture," will be used to promote the state's top industry in the domestic and international marketplace. You can find it on the web at: www.youtube.com/user/NeDeptAg  I encourage everyone to watch it. I think it is a great video!
     Crop Insurance Deadline March 17: There is some confusion on insurance because the new 2014 offers a shallow-loss crop insurance policy called the Supplemental Coverage Option (SCO). Some people thought that these new SCO policies would apply to this year, so there has been some delay on the part of many producers in making their insurance decisions for this year. The good news is that the 2014 Farm Bill does not change any Federal crop insurance programs for 2014 and should be relatively unchanged from 2013. The same programs, specifications, and rates that existed before passage are still intact for this year.  Hence, passage of the 2014 Farm Bill will not impact 2014 crop insurance decisions. Furthermore, the 2014 Farm Bill did not change the products or subsidy levels that currently exist.  So basically if you were satisfied with the type of policies and coverage levels you elected last year, you may choose to continue those policies as is. Producers may want to take note that this year’s crop insurance has a final sign-up date of March 17 for spring-planted crops. The date is advertised as March 15 - but since that falls on a weekend, I believe we now move to March 17. Changes to existing policies and any new policies must be completed by then. Be sure to check with your county FSA and local insurance provider.
     I think pretty much everyone knows that we in South Central Nebraska are abnormally dry, or perhaps I should say “normally dry” if you consider the last 14 years. The US drought monitor shows extreme drought areas reaching into the central part of the state and we have never really recovered in particular from the last two years of decided drought. With that in mind producers should explore all options for assessing their risk management needs for the 2014 crop season.  This includes crop insurance coverage and coverage under the Noninsured Crop Disaster Assistance Program (NAP) through the Farm Service Agency. Any landowner, tenant or sharecropper who shares in the risk of producing a NAP eligible crop and is entitled to an ownership share of that crop is considered eligible to purchase NAP program which provides financial assistance to producers on non-insurable crops when low yields, loss of inventory or prevented planting occur due to a natural disaster. You might also note that fee waivers are available for limited resource producers. Because of the uncertainty of our moisture, I think that all of the insurance decisions will be most important to our dryland farmers.
     It is important to note that revenue coverage guarantees this year, as I see it, should be considerably lower than last year due to lower preliminary prices realized during the month of February. Lower coverage also comes with lower premiums. For about the same premium as last year, producers should be able to purchase coverage at one level higher than in 2013. Producers might want to look at using the 75-85% coverage this year. The various crop insurance policies will have some minor changes this year, as is the case every year. There is an on-line calculator that may help you make those decisions at: http://farmdoc.illinois.edu/cropins/toolbox/common_files/calculator_2014.asp .  The biggest shift in risk management strategies isn't government-subsidized insurance this year, but what is offered by private insurers. Many insurers are offering 2014 flexing price periods so your entire protection doesn't ride on February or October futures. Plugging leaks in the crop insurance safety net is a necessity for many producers this year. Not since 2010 have crop insurance guarantees been this low, yet growers are carrying much heavier burdens from cash rent and other overhead expenses in the interim. Please note however, that a producer’s insurance provider is the best source of information on individual policies and coverage options. These decisions should not be taken lightly. Good luck with your first major decision of the 2014 Farm Bill!
   The preceding information comes from the research and personal observations of the writer which may or may not reflect the views of UNL or UNL Extension. For more further information on these or other topics contact D. A. Lienemann, UNL Extension Educator for Webster County in Red Cloud, (402) 746-3417 or email to: dlienemann2@unl.edu or go to the website at: http://www.webster.unl.edu/home