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Cheers to the New Year and a prosperous growing season! We appreciate each and every one of you for your business and taking the time each month to read our newsletter. We hope that it provides you with some information that you can use in your operation.
Rates:
MPCI rates change with the price each spring. With the spring price projected to be lower than the 2024 spring price of $4.66 for corn and $11.55 for soybeans, we anticipate the MPCI rates to be slightly less however, do not know for certain yet.
Hail/Wind rates:
There have been a lot of changes within NE this past year. So far, NAU and RCIS are making drastic changes to their wind/hail product offerings. Each are going to a 10 deductible for their wind products and reducing their production hail offerings. RCIS is moving to a max of a production 110 plan. We will keep everyone up to date on what is
being offered, price levels and further information as we receive it.
Optional Top Half Products:
Optional unit top half coverage is available to lock in a price today for the upcoming growing season.
These plans are based upon a number of available policies in the coverage area. Some examples of these policies are:
Rev D, GAP, MPower D, APO, and RPO
If you would like to learn more or have questions, please reach out.
Livestock Risk Protection:
Pricing has continued to stay high in the cattle market this past month.
Prices 12/30/24:
Feeder cattle wt class 1- ended at $287.24
Feeder cattle wt class 2- ended at $261.13
Heifers wt class 1- $261.13
Heifers wt class 2- $235.02
Unborn steers and heifers- $274.18
Information needed to have a policy written and/or to quote are: type (fed, feeder, unborn, etc.); effective date; end date; number of head covered; coverage level; insured share.
Crop Farm Bill Updates:
Congress passed a disaster aid, short-term budget and farm bill extension early Saturday (12/21/24) morning and was later signed by President Biden. I am going to do my best to break down the bill and what that means to you below as well as a couple of links if you would like to read up and/or listen to a podcast regarding the bill.
1.Extension of the farm bill through September 30, 2025.
2.Economic Aid for producers for the 2024 crop year.
a. This provides $10 billion in economic assistance to producers according to USDA data of planted acres. Prevent planted acres reported to the USDA will be paid at 50%. These checks are required to go out within 90 days after the signing of the bill. (You should expect payments on or before ~March 20th).
b. Estimated payments are: CN- $43.80/acre; SB- $30.61/acre; Wheat $31.80/acre; Oats- $78.42/acre
c. Payments are subject to $125,000 payment limits that could increase to $250,000 for producers who receive 75% or more of their gross income from farming.
3.Disaster Aid payments
a. These would be for the 2023 and 2024 crop year and similar to the ERP payments received in 2020 and 2022. They took out the language that reduced payments for non-insured acreage (example alfalfa, haying ground) saying that the farmer can have deminimus acres not covered by crop insurance (this is how 2022 was paid. These are the payments you received this year).
b. USDA has not announced how they plan to issue these payments, the formula, etc. yet. These would be for acres with drought, wildfires, etc. similar to past ERP payment past requirements.
4.Additional 2 billion in Livestock aid
a. USDA has not announced how these payments will be calculated yet.
Special Webinar on Ag Economic Aid and Disaster Assistance
Congress Passes Disaster Aid, Short-Term Budget and Farm Bill Extension, Narrowly Avoids Shutdown
FSA Updates:
Livestock Indemnity Program (LIP) is a financial assistance program to help with the impacts of livestock lost above normal mortality rates, or injured and sold, due to natural disaster. USDA also recently waived this program’s requirement to contact FSA within 30 days of when losses become apparent, so if you suffered livestock losses due to extreme weather in 2024, contact FSA for more information about this program to see whether you qualify for assistance. The deadline to apply is Feb. 28, 2025. (FSA Newsletter, December 2024).
Producers who received an Emergency Relief Program (ERP) payment need to meet ERP insurance linkage requirements by purchasing crop insurance, or Noninsured Crop Disaster Assistance Program (NAP) coverage where crop insurance is not available.
Purchase coverage must be at the 60/100 coverage level or higher for insured crops or at the catastrophic coverage level or higher for NAP crops for the next two available crop years, which will be determined from the date you received an ERP payment and may vary depending on the timing and availability of coverage. The insurance coverage requirement applies to the physical location of the county where the crop was located and for which an ERP payment was issued.
The U.S. Department of Agriculture (USDA) is bolstering support for farmers facing crop setbacks by announcing an increase in replant payments for most producers beginning with the 2026 crop year. This initiative aims to provide financial assistance to farmers who need to replant insured crops damaged by early insurable causes of loss. USDA to Enhance Support for Farmers with Increased Replant Payments | Risk Management Agency
Cover Crop Programs:
We have gotten some inquiries regarding cover crop programs with incentives for producers. From some research and talking with the local NRD we have found the following:
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