SPECIAL ISSUE ON SOYBEAN RUST CLAIMS

FOLLOW LOCAL RECOMMENDATIONS FOR SOYBEAN RUST TO VALIDATE CLAIMS IF DAMAGE OCCURS

Soybean Rust damage is covered under your MPCI policy, as long as prudent farming practices are followed.

The Risk Management Agency (RMA) has issued a notice that control methods recommended by local agriculture experts, such as extension agents, agricultural departments of the state universities, or certified crop consultants, must be used to scout for, identify and control the disease.  Damage due to insufficient or improper application of available disease control methods will void or reduce your compensation. 

Under the terms of the Common Crop Insurance Policy, a good farming practice is when agricultural experts agree that the production method used will allow the crop to make normal progress toward maturity and produce at least the yield used to determine the production guarantee.

RMA pointed out that failure to purchase and apply adequate control methods due to economic reasons is not an insurable cause of loss. The RMA considers improper farming practices when a producer chooses not treat because:

1. The cost of treatment outweighs the value of the crop.

2. The producer does not want to incur the costs of treatment.

3. Financing is not available.

This will result in the forfeit of your compensation. It is the insurance provider’s responsibility to verify the losses are unavoidable to naturally occurring events, such as adequate rainfall.

It is crucial to document all actions taken to control the disease from planting on, including advice received and the source of that advice.  Keep a logbook, including dates scouted, applications used, and other important information. The logbook is sufficient proof that prudent action was taken.

If you discover soybean rust on your farm, call your chemical applicator first. Timing for fungicide application is crucial to saving a crop.  RMA has acknowledged that producers must make all efforts to obtain applicators to receive compensation.   These efforts must also be documented. 

After calling your applicator, call your 1^st FCS insurance specialist, who will schedule an appointment for the insurance adjuster to inspect your field.  RMA recommends insured producers document the following:

However, if you have exhausted your efforts and cannot obtain timely application, your infestation will be covered. The RMA has indicated that more detailed guidelines will be available soon. When complete, the guidelines will be posted on their web site www.usda.gov/soybeanrust or http://www.rma.usda.gov.

Most insurance companies plan to handle a large volume of claims at one time, similar to how they handle a large hailstorm.  Most likely, an adjuster will call immediately upon receiving notice of confirmation of rust on your farm.  However, every company is different, and we are still waiting for the internal formal policies of each company to be issued.

Obtain consent from the insurance company before:

Dates to remember for your MPCI policy

Each crop has a date not to plant before and a final plant date.  If you fall within the timeframe, your losses will be assumed in full.  If you plant before the dates listed (which vary by crop), you will not have replant coverage for that crop.  If you plant later than the date listed, you will have a reduction in your guarantee.  For 1^st FCS counties in Illinois the final plant date for corn is June 5 and soybeans is either June 15 or 20. Check with your insurance specialist for details.

New Acreage Reporting Requirements

As you know, your crop insurance policy requires you to fill out an acreage report. These forms are due to your insurance specialist by July 15. 

Accurate reporting is essential in 2005. A client is allowed a 10 percent variance from what is reported as to what actually exists.  If the final amount differs more than 10 percent from the reported acreage, it will affect your total claim payment.

Any misreporting or discrepancies could result in penalties so it’s important to pay attention to your acres. Also because more acres are going to cash rent and changing hands each year make sure your share percentage of the crop is correct on the acreage report.

If the reported acreage information is inconsistent with what is determined to actually exist for a unit, then a number of sources could be used for verification including the Farm Service Agency 578 or GPS maps.