February, 2016
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Some Crops See More Premiums Paid Than Claims
Crop Insurance continues to come under attack from certain members of Congress. They will have less ammunition based upon claims for 2015 crops. Through February 8, 2016, the RMA has paid out total claims of about $5.482 billion. Total premiums assessed to farmers were about $9.714 billion. This results in a loss ratio of .56. […]
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We Knew It Was Coming!
The passage of Obama Care created the 3.8% net investment income tax on all unearned income such as interest, dividends, rents, passive income, etc. This extra tax only applies if your income is over a certain threshold ($200,000 single and $250,000 for married couples). This tax does not apply to earned income of partnerships and […]
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Be Careful What You Wish For!
Chris Clayton of DTN Progressive Farmer just did a post on their website regarding possible lawsuits for those counties where no ARC-CO payments were made for the 2014 crop year. The attorney’s are complaining that the FSA did not follow the directions of the Farm Bill when it came to determining crop yields for each […]
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Is Crop Insurance Values That Much Lower Than Last 10 Years
Expanding on our previous post, I decided to work up a table showing the insurance values over the last 10 years plus an estimate for this year. I based it on an APH for 2015 of 185 with a 2 bpa adjustment for each year going back. Below is the chart showing these values for […]
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Lowest Spring Crop Insurance Price in Last 10 Years?
February is the month for determining the final “spring” discovery price for crop insurance purposes. This year is shaping up to the be the lowest insurance price for the last 10 years. From 2007 to 2015, the lowest corn spring insurance price was $3.99 in 2014, $4.04 in 2009 and $4.06 in 2007. Last year […]
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Does Cottonseed Oil Qualify for Other Oilseed Treatment Under 2014 Farm Bill
The USDA just announced that they will not include cottonseed as an oilseed. The cotton industry and other farm groups have been lobbying USDA to include this as an other oilseed and likely then allow cotton growers to elect PLC on these acres and receive a payment at least for the next few years assuming […]