2013 Risk Management Check Up

Is YOUR 2012Risk Management Plan Adequate to Manage

2013 Risks?

(Increasing Input Costs, Prices & Weather Volatility)

Protection is Available for Almost All Crops and Some Livestock Production!

• Crop Insurance Protection – is available:– Individual Crop Policies – available for many crops– Producers with 3 years of production history may import

policiesnot generally available in the area

– Whole farm gross revenue protection

• Non-insured crop Assistance Protection is available for almost all non-insurable crops &Other benefit programs may also be available from FSA

Producers can be assured of a pay day (Production sales &/or USDA protection benefits)

How Good is your Risk Management Plan ?

What do you want your Crop Insurance Based Risk Management Plan

to do For YOU

when disasters occur? • Protect crop value $ ? A.• Protect input cost $ ? A.• Protection to secure operating loan (security) $?• $$ To replace livestock feed $?• $$ Buy-out preharvest sales contracts $?• Strengthen the business plan and avoid an income

interruption $?

IS YOUR Current Risk Mgt. Plan Adequate?

How Good is your Risk Management Plan ?

AGR-Lite Gross Income Whole Farm Protection Example

* 5 year avg. Adj. revenue = $100,000

* 75% coverage level = $75,000 loss trigger

* Revenue produced = $30,000* Revenue ins. loss = $45,000* 90% payment = $40,500 loss payment

* Income With Ins. = $70,500* Income Without Ins. = $30,000

• Revenue for guarantee may include intended commodities to be purchased for resale, after basis adjustment. New enrollment deadline March 15.

.

AGR-Lite Gross Income Whole Farm Protection Example

• Revenue for guarantee may include intended commodities to be purchased for resale, after basis adjustment. New enrollment deadline March 15.

.

Approved Adj. Gross Recenue $100,000 $100,000 $100,000Coverage Level* 65% 75% 80%Loss Trigger (Guarantee) $65,000 $75,000 $80,000Actual Gross Revenue for Year $30,000 $30,000 $30,000Revenue Loss $35,000 $45,000 $50,000Indemnity @ 75% Payment Rate $26,250 33,750 $37,500Indemnity @ 90% Payment Rate $31,500 $40,500 $45,000* Must have min. of 3 commodities for 80% coverage

Coverage Options and Loss Senerio

Apple Policy Options

9“It’s a program that can help a producer survive

a disaster and return to profitability!”

Farming has always been a risky business.

Crop insurance helps you level the playing field by protecting you and your family from substantial losses.

Crop insurance is a wise investment for your peace of mind, and a valuable financial planning tool for your farm.

Don’t have an agent? Ask a neighbor who they use, or visit www.rma.usda.gov, and use the agent/company locator tool.

Call an agent today.

2013 Risk Management Check Up

For more information & farm level details:Contact crop ins. agent (list: www.rma.usda.gov/tools/agent.html)

Or:Steve Connelly

Maryland Department of Agriculture(410)841-5824

steve.connelly@.maryland.gov

“This institution is an equal opportunity provider.”

                     

(Increasing Input Costs, Prices, & Weather Volatility)