2014 in Review / 2015 Weather Outlook

FARMERS:  Make sure that you are ready for what Mother Nature has to throw at you next year!  Here is an amazing resource outlining what the weather looked like in 2014 and how it may have effected yields.  It also has a preview of what weather will look like in 2015.

We especially want to hear what your thoughts were regarding the 2014 weather and how that effected your crop yields.  What do you expect from next year?  What will you do differently in 2015 to prepare for certain weather.

We encourage you to share your thoughts on the 2015 weather outlook on our Facebook page or on Twitter.


Click Here: 2014 in Review / 2015 Weather Outlook

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

Manage Your Cash Transactions In One Place

Now that you know how to add your crops to your Growers Edge account and find the best prices for these crops, you need a place to track your profit and loss.  Growers Edge makes it easy to input your cash transactions, identify which ones have been the most profitable, and measure your results against the goals you set.  Best of all, this can all be accomplished in one place: Profit Manager. 

It’s easy.  We will show you how in 4 simple steps:

1) Sign into your Grower Edge account and click on Profit Manager tab.  Here you will see your production summary table showing your crops and the best prices for these crops.  (We talked about this in our previous blog).

2) Click on the Cash Transaction tab at the top of the screen.  This will take you to the Cash Transactions menu.

3) Create a Cash Transaction.  Click on Add New Cash Transaction.   Here you can select your crop you previously entered, the number of bushels you sold, the price you sold them for, as well as when and where you sold them.  Finally, click submit.

4) Read Your Profit/Loss Statement.  To view your Profit/Loss statement click on the Profit/Loss tab in the top left of the screen.

Within your Profit/Loss statement, you can see all of the production and input details of your selected crop (left column).  You can also see the value of your sold bushels including average price per bushel and revenue per acre.  You can see your profit margin and how it compares to your target price per bushel.  This is a great resource for measuring your actual results against the goals you set at the beginning of the season.

Finally, you can also see your best cash prices for your remaining unsold bushels (bottom right).  Growers Edge shows you your best price and your local price for these unsold bushels, enabling you to get the most profit out of your remaining bushels.