How Your Federal MCPI Revenue Policy Works For You This Fall (2014)

 

With the current average prices of $3.40 for corn and $9.40 for soybeans. The projected price for both crops were $4.62 and $11.36 respectively. Due to this, your MPCI revenue policy has a chance of paying out this year. This will only occur if you do not meet your total revenue guarantee, which is a combination of the yield you had and whatever the final average price ends up being.

So, if you had a 150 bushel guarantee on corn at the $4.62 price, your revenue coverage is $693 per acre. If you do not reach your 150 bushel guarantee you will have both a production loss and a revenue loss. However, if you produced 180 bushels you still would have a loss because your revenue (based off of the current average) is only $612. $693-$612= $81 per acre loss.

This example can be used to calculate your soybean coverage as well, you will just have to replace the bushel guarantee and dollar amounts. As always, please contact your trusted Crop Insurance Agent if you feel you will have a loss of any amount due to the decrease in price or your production falls short of the bushel guarantee.

For more information, join 30,000+ other farmers at Growers Edge. It's 100% free, forever. Sign up in less than 2 minutes: http://growers-edge.com/

Crop Insurance and Replant Decisions

Recent adverse weather conditions may force some growers who have already planted to replant.

If you believe replanting may in your best interest, check the replant provision in your crop insurance policy and immediately contact your insurance agent to get the paperwork started. [Catastrophic (CAT) and Area (Revenue) protection policy do not have replant provisions.] 

The following guidelines, which come from the USDA Risk Management Agency's Loss Adjustment Standards Handbook, will give you an idea of what to expect from crop insurance for replanting.   To qualify for a replanting payment:

1.     The insured crop must be hit with an insured peril (excess moisture, frost, hail, etc.).

2.     Your approved insurance provider must determine that it is practical to replant. (This is why it's best to contact your insurance agent immediately.)

3.     Acres being replanted must have been initially planted on or after the earliest planting date.  

4.     Appraised expected yield must be below 90% of the guarantee yield on acreage intended for replant.

5.     Acreage replanted must be at least the lesser of 20 acres or 20% of the insured planted acreage for the unit.  

6.     Approved insurance provider must give consent to replant. 

7.     The replanting payment will be equal to the projected price multiplied by a maximum bushel factor.  For 

2014 corn and soybean projected prices are $4.62 and $11.36, respectively. Maximum bushel factors are eight bushels per acre for corn and three bushels per acre for soybeans. 

For example, your insured corn crop was hit with excessive moisture. You planted corn on May 1, which is past the earliest planting date ofApril 10.  Appraised expected yield is now 70 bushels per acre (bpa). Actual production history (APH) is 140 bpa. You insured using a Revenue Protection policy at a 75% coverage level using the projected price of $4.62 per acre.  Your yield guarantee would be 105 bpa (140 APH yield x 75% guarantee).  Applying Rule 4 from above, 90% of your yield guarantee is 94.5 bpa (105 x 0.9).  Your expected yield of 70 bpa is less than 94.5 bpa (90% of guaranteed yield).  Consequently, you would receive a replant payment of $36.96/acre (8 bpa x $4.62, the projected price). 

From the example we can see that qualifying for a replanting payment hinges on the producer's yield guarantee.  Selection of a lower coverage level implies a lower yield guarantee and a smaller chance of qualifying for a replant payment.  However, when extreme events occur it is likely everyone will qualify for a replant payment.  If you are unsure whether you may qualify for a replant payment, your first step is to contact your crop insurance agent.

Cory Walters
UNL Extension Crop Economist

Cumulative Precipitation Forecasts 5 Day Total

Growers Edge App Now Available For iPad

Farmers are adopting mobile technology at an ever-increasing rate, and it makes sense: farmers need access to their data, markets, and real-time prices while they are working in the field. So when Growers Edge users asked for the popular Growers Edge app to be available on the iPad, we listened.

Growers Edge users can now download the app via the App Store. The app is free, just like every other tool associated with Growers Edge. Our app is not a "free trial" or and it doesn't ask you to pay for "premium features"; it is a 100% fully-functioning farming app designed to help farmers increase their profits and manage their operations from anywhere at any time. And it's 100% free.

If you haven't joined the 26,000+ farmers across the country who currently use Growers Edge tools like Profit Manager, daily market updates, text messaging services, pinpointed weather, and more... then you can sign up right now for free by clicking here.

Using Growers Edge In The Winter: GrainTV

Don't be left in the cold!

Winter is in full force in the Midwest. Freezing temperatures, snowy conditions and biting wind fight against our memories of June sunsets and warm days in the field. You've seen the benefits of joining the 26,000 other farmers in the Growers Edge community, and all the advantages of being a Growers Edge user during planting and harvest seasons, but what about now?

Is there anything to gain from being a Growers Edge user in the winter?

Of course there is! Winter is a great time to fire up some hot cocoa and improve your knowledge base to begin planning for planting season in the spring. Growers Edge users have a variety of resources within the Growers Edge website and Growers Edge app.

One nice benefit of being a Growers Edge user is daily access to GrainTV, a free webcast featuring the latest commodities' trading news and updates. GrainTV is filmed every weekday morning, bringing the latest news to directly to you on your phone or computer, for free. You don't even have to get out of your warm flannel pajamas!

How can you see these informational webcasts each day? You have two different options:

1. View GrainTV right from your Growers Edge home page

When you log in to your Growers Edge account, you'll automatically land on your Growers Edge home page. If you scroll down, you'll notice a square box containing the most recent episode of GrainTV right in the middle of your page. Clicking on the video will redirect you to your Market Commentary page and will begin playing the video.

2. Access GrainTV from your Growers Edge "Market Commentary" page

After logging into your Growers Edge account, click on "Market Commentary" on the top navigation bar. Within your "Market Commentary" page, you will see the most recent GrainTV video embedded on the page after scrolling down. Click on the video to play it!

3. Access GrainTV via Growers Edge Mobile Apps

You can access GrainTV while on the go! If you have our free mobile app for Android or iPhone, you can view GrainTV anytime from your mobile device (phone, tablet, etc.) Check out the App Store or Google Play Store to download the app!

An episode of GrainTV from December 16. 2013

So there you have it: an easy, free, and entertaining way to keep up on your latest market and trading information all winter long! And the best part? You don't have to brave the cold weather. So put on those slippers and tune into GrainTV!

How To Utilize Your Precipitation-Tracking Features Within Your Growers Edge Account

Welcome back to our “How-To” series, showing you how to get the most out of your free Growers Edge account! Last time, we detailed how to download the free Growers Edge mobile app to manage your farm while on-the-go. In this edition, we will be focusing on the valuable precipitation-tracking features found within GrowersEdge.

With your Growers Edge account, you receive a free daily Your Weather Report email every morning. This email details weather events at your specific farm locations, including:

-       Precipitation reports of recent and cumulative totals by farm location

-       Soil moisture for your area compared to your specific farm location

-       Current hourly forecast for the next 24-hour period detailing temperature, precipitation expectations, and wind speed/direction

-       6-day extended forecast

This email gives you information you can use to take action, every single day. With the very best information in the industry, you can improve your operation’s profitability for free.

Below, we detail how to access several other fantastic features. This includes your Current Rainfall Totals, your Area Soil Moisture, Custom Weather Reports for your locations, and Custom Precipitation Reports by your locations. Take a look:

Getting To "Your Weather"

After logging in to your Growers Edge account at Growers-Edge.com, click "Weather" from the top navigation bar. Underneath "Weather", click "Your Weather" from the submenu.

Looking At Your Local Forecast

From within the "Your Weather" screen (above), click on "Daily Weather Forecast" from within the "Tools" menu on the right side of the screen. This chart will give you an hourly and daily forecast.

Finding The Current Rainfall Total For Your Fields 

From within the "Your Weather" screen, click "Current Rainfall Totals" from within the "Tools" menu on the right side of the screen. This chart will show you the rainfall total in your field's location over the past 24 hours, 48 hours, and 72 hours. It will also show you monthly totals and a breakdown of the chance for precipitation within the next 24 hours. 

Generating Custom Precipitation Reports

  From within the "Your Weather" screen, click "Custom Rainfall Reports" within the "Tools" menu on the right side of the screen. On this screen, you can view precipitation by day, month, since plant date, or year-over-year from the drop-down menu. You can then choose which farm locations you want this report generated for, the dates you want included, and the type of graphyou want generated (line or bar). An example is of a line graph is below.

Viewing Area Soil Moisture

From within the "Your Weather" screen, click on "Area Soil Moisture" from within the "Tools" menu on the right side of the screen. The "Area Soil Moisture" screen shows you weekly precipitation totals and soil moisture. It also shows you how this crop year compares to the past two years.

Viewing Your Soil Moisture

From within the "Your Weather" screen, click on "Your Soil Moisture" from within the "Tools" menu on the right side of the screen. This screen will show you how your field's specific weekly precipitation compares to your area precipitation. It will also give you your fields' soil moisture. It also gives you a nice visual breakdown of your precipitation needed, your area precip, evaporation, and soil moisture.

Signing Up For Daily Precipitation Alerts

You can set up alerts to email you when precipitation is higher than your selected amount. It's easy and takes less than a minute. From within the "Your Weather" screen, click on the "Email Alerts" from within the "Settings" menu on the right side of the screen. Here you can enable email alerts, choose the precipitation amount, set the timing of your alerts, and even choose when to suspend alerts. 

Now, if you still haven't signed up for all these free resources, what are you waiting for?! 26,000 farmers nationwide are already managing their farms and increasing profits with these free tools, and you can too. Sign up by clicking here!

Growers Edge Featured in the Des Moines Register

The Des Moines Register recently profiled Growers Edge in it's Sunday edition of the Register! The article features a nice photo of Growers Edge President Craig Mouchka, along with a thorough description of the Growers Edge app and how it aims to help farmers become more profitable. You can read the full article by clicking here!

Farm Bill Goes To Committee Wednesday, October 30th

The Farm Bill finally goes to committee tomorrow (Oct 30^th). The main difference between the two branches of Congress is the SNAP program, or better known as Food Stamps. The House is looking to cut the funding of Food Stamps by 4 billion a year whereas the Senate is looking to cut the funding by 400 million a year. 

 

The highest impact on daily life if there is no new Farm Bill or extension of the 2008 Farm Bill will be the impact on Dairy prices which will revert back to 1930’s and 1940’s permanent farm law. The effect this will have is that the government will pay quadruple the current prices it pays for dairy products, thusly switching the buyer of dairy products from the consumer to the government and therefore raising prices to the consumer as well.

Regardless of which version of the bill that is passed or whether or not a compromise is met. There will be significant savings to the government in the next Farm Bill. With the current hardships the government is facing it just makes common sense to get this piece of legislation completed. Leaving one big question....

Does common sense still exist in Congress?

Downloading the Growers Edge App from Your Android

This is the view of the home screen of your Android device.  The first step in downloading the Growers Edge mobile app is to click the button that says "Play Store."

Once you have clicked to open the Play Store, you will be on this screen.  To the left is the home screen of the Play Store.

 In order to locate the Growers Edge App you will need to type "Growers Edge" into the search bar at the top.  An example is provided to the right.




















The photo to the left shows your options within the Play Store after searching for Growers Edge.  The Growers Edge app should be the first choice.                                                
















After clicking on the Growers Edge App you will then be asked to "Install" the FREE app.  In this step you will simply click "Install" as shown to the right.

 The photo to the left is what you will see when the Growers Edge app begins downloading inside of the Play Store.




















The photo to the right shows what the downloading process of the Growers Edge app looks like on your Android device.
















The photo to the left shows how the Growers  Edge app shows up on your Android device after it has been downloaded.  It is the most recent which means that it is displayed last in the list.                                              

 You can now click on the Growers Edge app from your Android device.  Once you click it will lead you to the landing page shown on the right.  This is where you can either register as a new user, or sign in to your current Growers Edge account.

 To the left is the homepage of the Growers Edge app.  From this point you have complete access to all of the resources provided to you for FREE.

You can join 26,000 farmers across the nation who are using these free resources to gain more profits from their farming operation. Click here to sign up for the free desktop version of Growers Edge!

Downloading the Growers Edge Mobile App for iPhone

The first step in downloading the FREE Growers Edge iPhone app is to go to the App Store from your iPhone device.

Once you are inside of the App Store you can click search at the bottom.  The photo to the right shows this button highlighted in blue.

To locate the Growers Edge mobile app you will need to type "Growers Edge" into the search bar.  You will then click search.

















Once you have searched for Growers Edge you will see the Growers Edge App displayed as the top result.  To install the Growers Edge app for your iPhone a simple click on the 'free' button will download the app.

Once you have clicked the download button you will be able to see that the Growers Edge app is downloading.  Shown is the view of the app downloading within the App Store.
















The photo to the left shows the downloading process from your iPhone.

Once the Growers Edge app has fully downloaded it will show up like this on your iPhone.

















You can now access Growers Edge from you iPhone.  By clicking the Growers Edge app you will first be prompted by this welcome screen.

You will now have the option to sign in, if you are an existing member.  You can also sign up for Growers Edge within the app.  The photo to the left shows the sign in screen for the FREE Growers Edge iPhone app.











If you are new to Growers Edge and need to sign up as a new member, the photo to the right is what you will see.  Just enter you information into the required fields to gain access to all of the FREE resources that Growers Edge has to offer.

The photo to the right shows the home screen within the Growers Edge app.  From here all of the great Growers Edge resources can be accessed.












Join 26,000 farmers already using these free resources to gain more profits from their farming operation. Click here to sign up for the free desktop version!

Farming, Taxes, and Planning for the Future (Part I)

In parts of the Midwest we had snow in May and excessive rain and flooding in June, not to mention a drought over the summer months. As a result, many farmers were unable to plant their crop or will have a short crop to harvest. Thankfully, due to federal crop insurance, numerous producers had the ability to make a prevented planting crop insurance claim. As the prevented planting claims have now been worked and the checks are either in the bank or on the way, now the question on producers’ minds turns to the tax consequences associated with the prevented plant insurance indemnity and possible harvest losses.

Like other crop insurance indemnities, prevented plant insurance proceeds are subject to deferral under certain conditions. Also, deferring insurance proceeds is an all or nothing election; both prevented plant and other crop insurance indemnities are tied together for the purpose of the election. The conditions required for deferral are as follows:

1. The producer must use cash method of accounting;

2. The producer receives insurance proceeds in the year the crop is damaged; and

3. The producers can show that it is their normal business practice to market the majority of the crop in the subsequent year.

Many farmers have chosen to defer income to the subsequent year. Using current year expenses to offset prior year income has worked well as both commodity prices and expenses have fluctuated. However, changes in tax law may warrant a deeper look into your tax situation. Key provisions of the American Taxpayer Relief Act of 2012 are set to expire at the end of the year. In addition, 2013 ushered in higher income and capital gains tax rates.

Accompanying the higher tax rates, the investment income surtax took effect. All of which could create a substantial tax liability if income isn’t managed properly. With uncertainty surrounding the expiration of depreciation provisions in 2014 and substantial fluctuations in commodity prices, tax planning has become increasingly more important. As with all good tax planning, a multi-year approach should be adopted to ensure that a positive tax situation in one year does not result in a negative tax situation in future years.

Remember, the best advice is to contact your tax advisor for questions related to your operation.

Stay tuned for Part 2! And sign up for Growers Edge by clicking this link... it's free and always will be, and it only takes 1 minute!

Farm Bill Progress

 With the government shutdown officially over, real talks on the farm bill can begin. The House has appointed 29 members to the conferees following the Senates lead who appointed 12 members as conferees. While there are vast differences to the proposals brought by the two chambers of Congress, hopefully this is the step needed to bring compromise and finally give us our new farm bill. We are in desperate need of a solution so that American farmers can finally have some piece of mind and plan accordingly.

Stay tuned to this blog and our Twitter for more information on this developing story.

 To learn more on the differences of the two proposals visit FAPRI at the following link. http://www.fapri.missouri.edu/outreach/publications/2013/FAPRI_MU_Report_06_13.pdf

#GEHarvest Photo Contest

As the calendar turns to October, we are excited to welcome fall weather and all that comes along with it. We trade out berry flavors for apple and pumpkin, we trade humidity and boating for crisp air and hayrack rides, and we trade green leaves for trees bursting with yellows, oranges, and reds. It's harvest time!

To celebrate, the team here at Growers Edge wants to run a fun, friendly competition. Every farmer works the entire year to get to this point: harvesting their fields. Well, it's time to show off your yield!

During this harvest season, take a picture of your operation, your yields, your fields, or all three! Then, share those pictures on our Facebook wall or tweet those pictures using the hashtag #GEHarvest (follow us on Twitter here). You could even send pictures to growersedge@gmail.com if that's easier for you.

Along with the picture, please include what state you are located in. Also, rate your yield this year compared to your average yield (10 being your best year ever; 1 being far below your expectations). If you want to include your bushels per acre, feel free!

Below is an example of someone who tweeted a picture and included the #GEHarvest hashtag:

#GEHarvest... 45-47 b/ac. Newton ia pic.twitter.com/G53ZBS0L0w

— alan guy (@amguypom) October 1, 2013

Then at the end of harvest season, the team here will create a map of all the participating states with the average yield rating from you, the farmers! You will be able to compare harvest years across states and see how you and your state stack up!

Good luck this harvest season, and remember to check this blog and our Facebook page for updates on the harvest map!