SPRING SALES CLOSING DATE DECISIONS (MARCH 15, 2019)
• Numerous crop insurance products are offered in Missouri; however the majority of
producers are purchasing a Revenue Protection (RP) insurance policy. RP policies have
two pricing periods throughout the year where commodity prices help establish insurance
guarantees. The first pricing period (called the projected price) is used to establish spring
insurance guarantees. The projected price uses the Chicago Board of Trade (CBOT)
prices calculated daily, and averaged during the month of February, based upon the futures contracts
for December corn and November soybeans. The second pricing period (harvest price) uses the CBOT
prices calculated daily, and averaged during the month of October, based on the same futures contracts
for December corn and November soybeans. For the standard RP policy, your insurance guarantee
will use the higher of the projected or harvest price. Historically, during times of volatility we have seen
RP policies work well for producers. In light of the continued tariffs and uncertainties in agricultural
markets, an RP policy could be advantageous in helping mitigate an unseasonable change in prices.
• During your annual review, please speak with your agent regarding the use of policy options that may
allow an increase in your approved yields. It is important to note that these options do come with a
cost; however, it is often beneficial to utilize the options to increase coverage rather than buying a higher
coverage level.
• Review available unit structures and make sure they match the goals of your risk management plan. Unit
structure can have a dramatic impact on the cost of insurance but they also have an impact on how losses
are calculated.
PRECISION AG
• We are beginning to see higher adoption rates of producers using precision ag
equipment for crop insurance acreage and production reporting. Likewise, crop insurance
companies continue to expand software capabilities that allow for a more seamless
transition from your monitor to crop insurance data entry systems. In an environment of
tight margins, accurate acreage reporting numbers are important to be sure you are not
being overcharged or under protected. If you have questions about how your precision equipment might
be able to be used for crop insurance reporting, please ask your agent.
PLANTING DATES
• The spring 2019 initial and final planting dates that were recently released for Missouri
do not appear to include many changes. However, as a result of our extended harvest
season and field damage caused by wet weather, some producers have considerable field
work to complete before they will be able to plant next spring. Changes over past years
reduced the late planting period for corn to 20 days, and may have also changed the final
plant dates for your county. Please be sure to take this into consideration as you review your management
plans and contact us if you have questions about specific dates for your area.
We hope that 2019 is a safe and prosperous year and encourage you to contact FCS Financial with your
crop insurance questions. We have a team of agents located through the state to assist you.
HEARTBEAT | WINTER 2018 21