New! FSA Milk Program Changes Dairy Revenue Protection

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1 CROP SUCCESS News & trends from Investors Insurance Services for crop farmers ~ January, 2019 New! FSA Milk Program Changes The Agriculture Improvement Act of 2018 (The Farm Bill), made significant changes to the former milk Margin Protection Program (MPP) at FSA. The program is now called Dairy Margin Coverage (DMC) going forward. The amount of milk you can insure per year has changed. Premiums and coverage level options have changed, and some producers will be eligible to receive discounts, refunds, and retroactive payments. Furthermore, producers can now participate in various milk programs simultaneously. Our team of agents at Investors, have studied the changes and we can help you tailor a milk revenue protection plan utilizing federally subsidized milk programs including: Dairy Margin Coverage, Livestock Gross Margin-Dairy, and Dairy Revenue Protection. We created a short video to highlight the changes and posted it to our Facebook page for all to view. Search Investors Insurance Services LLC, on Facebook, or contact your agent to learn more. Dairy Revenue Protection Dairy Revenue Protection (DRP) continues to be a hot item among dairy producers. Producers have found value in the subsidized premiums and they have protected nearly 12 billion pounds of milk since the program opened in October Producers who signed up for DRP coverage when the program first opened, set a Class III floor of $15.07/cwt for the 1st quarter As I write this article, the average Class III price for the 1st quarter 2019, is currently $14.43/cwt. If markets continue on this path, those producers could potentially see a $0.64/cwt payment on their 1st quarter milk. Additionally, as I write this article, the average Class III price for the 4th quarter 2019, is currently $16.57/cwt. That being said, producers who elect 95% coverage could set a floor of approximately $15.74/cwt for the 4th quarter. Our agents are very knowledgeable about this program, so be sure to contact them with your questions. Also, visit our Facebook page to view videos where we explain how the program works. Aaron Gransee: agransee@investorscommunitybank.com; Krissy Johnston: kjohnston@investorscommunitybank.com; Lauren Kostello: lkostello@investorscommunitybank.com; Kyle Salter: ksalter@investorscommunitybank.com; INSURANCE SERVICES, LLC Ag Insurance products are not insured by the Federal Deposit Insurance Corporation; are not deposits or obligations of the bank or any affiliate; are not guaranteed by the bank or any affiliate; may involve investment risks. Equal opportunity employer and provider.

2 Prevent Plant Coverage - Deadline March 15 As we head into spring, we may encounter challenges that result in farmers having difficulty planting crops on a timely basis. If this turns out to be the case, it is important that you contact your agent as soon as possible to learn about prevent plant options. Certain rules must be met to qualify for prevent plant payments, so it is extremely important that those conversations be held early with your agent. Prevent plant guarantees vary by crop. Producers have the option to increase prevent plant coverage by 5% over and above the standard coverage that comes with your plan of insurance. That election needs to be made prior to March 15th. Replant Coverage Similar to prevent plant, certain qualifications must be met in order to receive a replant payment. Producers who plant prior to the earliest plant date for the crop, will forfeit their replant coverage. Be sure to check the plant date maps in this newsletter or in our 2019 Crop Insurance Calendar. Contact your agent if the crop you are planting is not listed. It is very important that you contact your agent BEFORE replanting any crop! Planting Dates By County

3 Planting Dates By County Multi-County Enterprise Units Farmers can now qualify for enterprise units using land from another county. This will apply to producers who have a majority of their land in one county, and only a small amount of land in an adjacent county. In prior years that small amount of land in the adjacent county might not have qualified for enterprise units on its own. We can now combine the acreage in your majority county to help you qualify for enterprise units on the secondary county. The counties must be contiguous, and one county must qualify for enterprise units on its own, while the other does not. If you are a producer who farms in more than one county, and you do not qualify for enterprise units in one of the counties due to insufficient acreage, this option may be for you. This option must be elected on your policy no later than March 15th! Be sure to reach out to your agent to learn more. Private Revenue Products Investors Insurance Services LLC, writes insurance with several different insurance companies, each of which offers their own add on revenue products that can be purchased to supplement your existing multi-peril policy. These revenue products have the ability to increase your guarantees established by your federal crop insurance policy. Each company has their own rules, premiums, and qualifications for their products. Please reach out to your agent to learn which private product is right for your farm.

4 Green Snap - Wind - Extra Harvest Did you know you can protect your corn crop from damage resulting from greensnap, wind damage, and the extra harvest cost that comes with it? Increased wind damage events over the past few years have farmers questioning whether their corn crop is covered against wind damage. Coverages can be added to your hail policy to protect against direct losses due to Green Snap and Wind. Plus, you can also add Extra Harvest protection to your hail policy to help with the extra costs that come with harvesting wind damaged corn. Add Green Snap, Wind, or Extra Harvest Protection to your hail policy for as little as $0.20/$100 of coverage/acre, and rest a little easier the next time it starts to get gusty out. Contact one of our agents today for more information. Hail Insurance Hail storms can often be scattered and can cause extensive damage to isolated areas of your crop while leaving other areas untouched. Many times the damage may not be widespread enough to trigger a claim on your multi-peril insurance policy. Luckily a crop hail policy is an inexpensive way to compliment your MPCI insurance policy and insure your crop on an acre-by-acre basis. Hail policies also offer coverage for perils not covered by your MPCI policy such as fire and lightning, vandalism, malicious activity, fire department charges, storages, and transportation- at no additional cost to you. In many cases attractive cash discounts can be given to customers who purchase their hail policy early in the year. Wheat/Forage/New Seeding-Winter Kill If you see signs of winterkill when spring arrives please notify your agent immediately. DO NOT destroy any damaged acreage prior to an appraisal being completed by your adjuster. If you destroy any alfalfa or winter wheat before an appraisal is completed, it will have a negative effect on potential indemnity payments and it can hurt your average yield (APH). Insurance on new seeding planted in the spring of 2018 ends May 21st, A notice of loss must be filed with your agent prior to that date if evidence of winterkill exists. Keep in mind that new seeding losses are calculated on a per acre basis. Therefore, even small areas of winterkill in your new seeding fields can trigger payments. * Sales Closing Date - March 15th Farmers who want to sign up for new crop coverage, or who wish to make changes to current coverages, must do so by March 15th, Multi-peril Crop Insurance (MPCI) policies automatically renew every year unless the insured makes changes.

5 Debt Termination Date - March 15th Unpaid 2018 premiums must be postmarked by March 15th to avoid being placed on the Ineligible Tracking System (ITS). Producers placed on ITS for unpaid premiums will be ineligible to purchase multi-peril crop insurance for the 2019 crop year. Crop Insurance on Hemp? The 2018 Farm Bill removed hemp from the Controlled Substances Act and now classifies the crop as an agricultural commodity. However, no crop insurance policy has been developed for hemp, therefore growers are not able to insure the crop currently. We anticipate a crop insurance policy will be created for hemp in the future. Whether that policy will be a Multi-Peril Crop Insurance (MPCI) product similar to RP or YP, or a private product similar to hail insurance- we do not know at this point. Our team of agents will continue to monitor the hemp topic. Watch our Facebook page for all the latest information on insuring your hemp crop. Important 2019 Dates March 15 Sales Closing Date Spring Policies March 15 April 29 May 21 July 1 July 15 August 15 Sept. 30 Oct. 15 Oct. 31 Dec. 10 DEBT TERMINATION DATE- Unpaid premiums from the 2018 crop year must be postmarked by March 15th in order for you to remain eligible for coverage in Deadline to report your 2018 production (corn, soybeans, barley, oats, ect.) to your agent. Insurance ends Spring Seeding. Premium Billing Date for 2019 fall crop policies. Deadline to report your 2019 spring acres (corn, soybeans, new seeding, barley, oats, ect.) to your agent. Premium Billing Date for 2019 spring crop policies. Sales Closing Date Fall Policies. End of insurance Fall Forage Production Policies End of insurance Wheat & Barley Policies End of Insurance Spring Policies facebook.com/investorsinsuranceservices Follow our milk insurance experts for updates and changes to federal milk insurance programs. Like us on Facebook! Ag Insurance products are not insured by the Federal Deposit Insurance Corporation; are not deposits or obligations of the bank or any affiliate; are not guaranteed by the bank or any affiliate; may involve investment risks. Equal opportunity employer and provider.