Field Goa ls
Farm Credit Illinois
Risk Management at a Glance
34 full-time
risk management
professionals
i l l i n o i s
WINTER 2017
The Most Valuable Input Cost
The
Cooperative
Advantage
Many regional office now host vice presidents and assistant vice presidents of risk management,
dedicated to providing the expertise you need. All policy processing is completed at the cooperative’s
central office, allowing the VP and AVPs to better serve members on the farm and in the office.
3600 farm families covered
by Shaun Murray,
Regional Vice President
in FCI’s 60-county service area
2017 Crop Insurance Dates
1.27 million
t o
acres insured
Dependable AIPs
www.farmcreditIL.com
February 1–28
April 1 or 5
June 20
Price Discovery Establishing period for the
projected price of corn and
soybeans
Corn Initial Plant Date
(Contact FCI Professional for
County Specific) - Earliest date
a crop may be planted and still
be eligible for a replant payment
Soybean and Grain
Sorghum Final Planting Date
- Last date to plant unless
insured for late planting
February 15
Nearly $1 Billion in crop insurance coverage
The FCI risk management team believes in providing
the most appropriate crop insurance products through
sound advice and service as members work to protect
their bottom line, maintain a high standard of living, and
ultimately reach their financial goals and objectives.
Area Risk Protection
Insurance (ARPI)
Production Reporting - Last
date to report production for
ARPI policies
April 29
March 15
May 31 or June 5
Corn & Soybean Sales
Closing - Last date to
purchase, change coverage
level, or cancel coverage on
spring-planted crops
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www.farmcreditIL.com
r e m e m b e r
Corn & Soybean Production
Reporting - Signed reports
required for production reporting
due for all spring-planted crops
Corn Final Planting Date
(Contact FCI Professional for
County Specific) - Last date
to plant unless insured for late
planting
July 1
Premium Bills Mailed for
Fall-Planted Crops - Premium
is due when the policy is billed
July 15
Signed Acreage Reports
Due for Spring-Planted
Crops - Last date to report
acreage planted. If not
reported, insurance will not be
in effect
As FCI staff visit members throughout the
region, they hear the question, “does having
my crop insurance business with FCI help
the Association and its members?” The
answer is yes; a strong and profitable risk
management division has a direct impact on
the cooperative, its members, and the rural
communities FCI serves.
Just as increased margins on your farm
allow for more capital retention and growth
opportunities, the earnings provided by the
risk management division allow for enhanced
membership benefits.
Members are directly impacted by retained
earnings through FCI’s customizable
products and competitive rates. As owners of
the cooperative, members have opportunities
to be involved in steering the direction of
FCI’s business, attend educational programs,
and work closely with staff dedicated to
Helping Farm Families Succeed.
While the entire member-base benefits from
the risk management division, the most
value is delivered by the risk management
professionals dedicated to serving you and
your family, and focused solely on helping
you select the most effective crop insurance
for your operation.
www.farmcreditIL.com
by Caleb May, Product & Training Specialist
As farmers look forward to what the
2017 crop year will hold, they must
pause and consider the risks faced
and how best to manage them. The
biggest of these risks is the low
revenue predicted for production
agriculture caused by an increasing
supply (growing world grain supply and
domestic surpluses) which is outpacing
demand. These conditions force
producers to scrutinize every dollar
spent on inputs for 2017.
The University of Illinois’ 2017 crop
budgets are currently estimating the
average non-land production costs
per acre of corn equal $534. The top
three costs in this total are fertilizer,
chemicals, and seed – which can make
up more than half of total input cost.
But none of these input costs provide a
guaranteed return on investment.
When evaluating your operation’s
input costs, don’t overlook the unique
benefits crop insurance provides. Your
premium makes up five percent or less
of the total input cost while providing
a valuable guarantee. In fact, crop
insurance is the only
input investment that
guarantees a return – in
the form of bushels.
As an example, say you
choose an 80 percent
revenue protection (RP)
policy, and your corn
premium is $25 per
acre. With an average
production history of 180
bushels per acre, and
a budgeted $3.50 per
bushel based on 2017
crop budget estimates,
it will take 7.14
bushels of corn
to pay for your
premium. The 80
percent RP policy
then guarantees
144 corn bushels
to market.
Of all your operation’s
input costs, an RP policy
is the only one allowing
you to invest seven
bushels and get a return
of 144 bushels.
Would you give seven bushels of corn
to have 144 bushels to market? Should
you have more coverage, increasing
your guarantee?
These are questions your local risk
management professional can help you
answer as you make input decisions for
the next growing year.
FIELDING FORWARD
Financial Protection Partners
2017
Updates
by Sherri Tomhave
Product & Training Specialist
Enterprise Unit Coverage
Expanded
The enterprise unit (EU) structure
is now an option on the high-risk
alternate coverage endorsement
(HR-ACE) option which insures highrisk land on a separate, additional
coverage policy. In order to have
an EU on HR-ACE, you must elect
and qualify for EUs under the base
policy, and the coverage on the HRACE must be less than the base.
Production Evidence Required
for Each Unit
When reporting production, you must
maintain and provide acceptable
production evidence for each crop
year by unit upon request. If you
do not have acceptable records
to support the information on the
production report, you are subject to
assigned yield procedures.
It’s pertinent to let your risk
management professional know if
part or all of your 2016 production
is prorated. All prorated production
must be designated on the
production report to avoid penalties
if you are asked for supporting
evidence.
Transitional Yields Used to
Establish Organic Yields
When adding transitional and
certified organic practices for the first
time to a farming operation, yields
will be established using transitional
yield (t-yield) information as they are
introduced to the actual production
history database.
Prevent Plant Coverage
Changed
The Risk Management Agency
announced the corn prevent plant
coverage level, or payment factor,
has been adjusted from 60 to 55
percent for the 2017 growing year.
www.farmcreditIL.com
January
Featuring FCI’s Approved Insurance Providers
Farm Credit Illlinois’ dedication to
providing the highest level of crop
insurance expertise and service to the
southern 60 counties of Ilinois wouldn’t be
possible withouth the Approved Insurance
Providers (AIPs). Partnering with these
companies allows the risk management
team access to advanced technology
and up-to-date information regarding
your policies. Together FCI and the AIPs
can provide timely, expert service to crop
insurance customers.
Great American
Insurance Group
Great American wrote its first crop policy in
1915, and has been protecting America’s
farmers ever since. The insurance
company is one of the original AIPs
chosen by the USDA when the multiple
peril crop insurance (MPCI) program was
first introduced in 1980 and has remained
an AIP for more than 36 years.
Headquartered in Cincinnati, Ohio, Great
American’s Property and Casualty Group
is among the oldest in the country, dating
from the founding of its flagship company,
Great American Insurance Company, in
1872. It is ranked among the top 5 crop
insurers in the United States.
TUES.
17
owing Season
Outlook and Opportunities for the 2017 Gr
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THURS.
Join FCI for a “Fielding Forward” meeting near you. As you begin planning for the 2017 growing season and beyond, hear from
industry experts on topics crucial to your farm business, including grain markets, agronomy, land values, managing finances,
and weather forecasts. Plus, FCI risk management staff will discuss everything you need to know about 2017 crop insurance
updates. There’s no cost to attend and a meal will be served in each of the 14 locations.
There’s Reliability in Great
American’s Products:
Great American’s Crop Division
consists of six regional offices, and
offers a full suite of supplemental risk
protection products:
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TUES.
Meet the Speakers
Price Flex supplements an existing
MPCI policy and allows greater
flexibility in marketing crops by
providing added protection from
fluctuating prices.
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Matt Bennett, Channel Seed grain marketing consultant, is a Windsor, Ill., farmer and former grain
elevator owner. He owns Bennett Consulting, a firm specializing in formulating risk-management strategies
for corn and soybean farmers and livestock producers, as well as offering commodity brokerage expertise.
Enterprise Plus provides additional
coverage for corn and soybeans
beyond an active MPCI common crop
insurance policy. By adding it to an
existing enterprise unit crop insurance
policy, farmers gain additional
protection for each individual unit.
THURS.
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MAHOMET: 10 am — 12 pm, lunch at 12 pm | Farm Credit Illinois, 1100 Farm Credit Drive
DECATUR: dinner at 5 pm, program 6 — 8 pm | Decatur Conference Center, 4191 US 36 West
Grain Market Outlooks — 2017 | Kim Holsapple
ALTAMONT: 10 am — 12 pm, lunch at 12 pm | Carriage House Event Center, 8 W. Carriage Lane
COLLINSVILLE: dinner at 5 pm, program 6 — 8 pm | Double Tree Hotel, 1000 Eastport Plaza Dr.
An Infallible Technique to Avoid Weed Challenges in 2017 | Aaron Hager
WATSEKA: breakfast at 7 am, program 8 — 10 am | Miss Karol’s, 1140 E. Walnut Street
SHERMAN: dinner at 5 pm, program 6 — 8 pm | Farm Credit Illinois, 1200 Old Tipton School Rd.
An Infallible Technique to Avoid Weed Challenges in 2017 | Aaron Hager
RAYMOND: breakfast at 7 am, program 8 — 10 am | Magnuson Hotel, 19067 W. Frontage Rd.
ASHLAND: lunch at 12 pm, program 1 — 3 pm | Beard Implement, 2293 Co Hwy 123
Aaron Hager is an associate professor of extension weed science in the Department of Crop Sciences
at the University of Illinois. Dr. Hager’s research focuses on examining the biology and management of
weed species that are common in Illinois agronomic crops.
Private Area Revenue (PAR)
supplements an existing MPCI
policy and provides the insured with
additional protection in the event that
causes the area revenue to be less
than a trigger amount.
February
Kim Holsapple is the lead merchandiser for Total Grain Marketing, one of the largest non-multinational
TUES.
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grain companies in the state of Illinois, with the headquarters in Effingham. He is responsible for
merchandising the grain of 35 country elevators with a combined storage capacity of over 40 million
bushel and the hedging of approximately 80 million bushels of cash corn, wheat and beans per year.
Great American Insurance Company is an equal opportunity provider. The U.S. Department of Agriculture (USDA) prohibits discrimination
against its customers, employees, and applicants for employment on the bases of race, color, national origin, age, disability, sex, gender
identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of
an individual’s income is derived from any public assistance program, or protected genetic information in employment or in any program or
activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities).
WED.
Eric Snodgrass is a professor in the Department of Atmospheric Science at the University of Illinois
SIGN
UP
Farm Financial Trends & The Latest in Land Values | Brad Zwilling and Kent Reid
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and co-founder of Agrible, Inc. He explores current weather patterns to help you prepare for next year’s
growing season.
Win a 900 Amp Jump Starter
Four winners drawn on January 31
MON.
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Kent Reid is chief appraiser at Farm Credit Illinois. He joined the appraisal team in 2008 with
more than 15 years of real estate appraisal experience. Today, he manages a team of 11 appraisers
throughout FCI’s 60-county territory.
The Performance Tool’s W1665 is a 900 amp jump
starter alongside a 300 psi air compressor/inflator
and an LED work light. The W1665 includes two 12V
power adaptor outlets, an on/off safety switch for
jumper cables, and an automatic shut-off.
TUES.
Sign Up at
www.farmcreditIL.com/jump
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Brad Zwilling is the farm business analyst for Illinois Farm Business Farm Management (FBFM).
He compiles, analyzes and reports results from FBFM cooperator records to be used for cooperator
benchmarking and farm record data studies.
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www.farmcreditIL.com
Grain Market Outlooks — 2017 | Kim Holsapple
MT. VERNON: 10 am — 12 pm, lunch at 12 pm | Farm Credit Illinois, 410 Potomac Blvd
MCLEANSBORO: dinner at 5 pm, program 6 — 8 pm | The Big Red Barn, Rt 5 Box 6
Managing Weather Risk: Preparing for 2017 | Eric Snodgrass
MARION: breakfast at 7 am, program 8 — 10 am | The Pavilion, 1602 S Sioux Dr.
SPARTA: lunch at 12 pm, program 1 — 3 pm | Seasons Event Center, 1 Main Event Ln.
Managing Risk in Volatile Markets | Matt Bennett
OLNEY: dinner at 5 pm, program 6 — 8 pm | The Holiday Motel & Restaurant, 1300 S. West St.
Managing Risk in Volatile Markets | Matt Bennett
MATTOON: 10 am — 12 pm, lunch at 12 pm | Lake Land College — West Bldg., 5001 Lake Land Blvd.
Sign up online at www.farmcreditIL.com/field
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www.farmcreditIL.com 3
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