In a year of aberration, which seems to becoming more the norm than the exception, a growing number of producers are thankful for the risk management protection provided by their crop insurance.

"Replant and prevented planting claims jumped this year due to excess moisture early on, and we expect yield claims also to rise in light of the hot, dry weather and corn pollination problems experienced in many counties," states Jeff Calvert, vice president of financial services for 1st Farm Credit Services (1st FCS). Hail also has pounded many areas this growing season, and windstorms have flattened a significant number of fields, he reports.

Adding to this year’s production uncertainty is the seemingly arbitrary rain patterns that have some producers anticipating good yields while their neighbors not too far down the road are facing dramatically reduced yields, even to the point of making harvest unworthwhile.

"As far as rain goes, we’ve had an average year’s amount. Unfortunately, we received seven inches at one time in early June, followed by 40 straight days of no rain, then another seven inches at one time in late August," reports Brett Gieseke who farms near Marengo in McHenry County. The torrential rain in June drowned out low spots that had already been replanted and the 40-day drought stretching through pollination has hammered the corn crop, particularly on the lighter, sandy soils Gieseke farms.

"The crop condition is very, very poor." Gieseke says he has 300-400 acres with an estimated yield of below 50 bushels; another 150 acres will produce zero bushels this year. All other yields will be down dramatically, as well. "In addition to the weather, we’ve also seen a lot of insect pressure this year," he adds.

Gieseke is part of a family operation that farms 4,000 acres, plus another 1,000 acres of custom work in McHenry, Boone and DeKalb counties. The operation includes his brothers Ryan and Jeremy, father Jerry, uncle George Freise Jr. and grandfather George Freise Sr. It includes a 50-50 rotation of corn and soybeans, along with a little wheat.

The family has been FCS clients for more than a half-century, using real estate, operating and equipment financing, as well as leasing. Brett and Ryan have been clients for five years. Four years ago, Brett added crop insurance protection from 1st FCS. It’s been a good decision. He has collected on claims all four years. "The first year was due to low prices; the rest have been due to weather." That includes a nearly identical year in 2001 when the operation went 36 straight days without rain.

Gieseke is a strong believer in crop insurance protection. "With fixed expenses of land, seed, chemicals and equipment, one bad year can really break you. I’d just as soon spend a little bit to save a lot. It’s like driving down the road and knowing you have car insurance. It’s peace of mind. You don’t want to dig yourself a hole you might never get out of," he emphasizes.

Gieseke has been farming since 1986 and thinks it is particularly important for younger producers to protect themselves with crop insurance. Since he started using crop insurance through 1st FCS, other family members also have opted for 1st FCS coverage.

This year Gieseke moved from Crop Revenue Coverage (CRC) to Revenue Assurance (RA) coverage at 85 percent for corn, and continued Multi-Peril Crop Insurance (MPCI) coverage at 80 percent on soybeans. In working with his 1st FCS crop insurance specialist Kelley LeFevre, he felt that provided the best coverage for his dollar.

Gieseke terms his experience with crop insurance coverage through 1st FCS as excellent, particularly the service provided by LeFevre. "One year we didn’t think we had sufficient loss for a claim, so we weren’t going to file. Kelley called us and recommended we file. We ended up receiving a loss payment."

The Giesekes are looking at chopping some of the worst corn for silage and selling it to a nearby dairy farm. LeFevre reminds any producers contemplating harvesting their corn for silage to check with their crop insurance specialist first to arrange for an adjuster to look at the crop prior to chopping it so as not to imperil any loss payment.

She also reminds crop insurance clients that estimated 2002 harvested production figures are due by December 10 to determine claims payable for this year. Also, if there is prior year production left in a bin, it needs to be measured by an adjuster or third party so it isn’t held against this year’s production.

New for 2002 is the requirement for written approval by the insurance company prior to harvest to commingle grain in bins. Crop insurance clients planning to commingle grain from different units need to contact their 1st FCS crop insurance specialist, states LeFevre.

While it is an individual decision, Gieseke recommends that producers should at least check out crop insurance coverage, especially if they have not done so since recent changes to the program. "The government subsidy has helped a lot. Some producers don’t realize what they can get now for a reasonable price." Coverage also helps when you go in to talk to your lender, he adds.

"Don’t get me wrong, I’d just as soon not collect. I’d rather have the yields," he says. But after four straight years of uncooperative weather and markets, he is grateful for the risk management protection crop insurance has provided.

Story by John Leatherbury. Photos by Jon Cunningham.