FAQ: We grow specialty soybeans. I've been told we will be able to separate these soybean acres from our conventional soybeans for crop insurance purposes beginning in 2010. What is the benefit of doing this?

Answer: Provided by William Edwards, Iowa State University Extension farm economist.

Some varieties or types of specialty soybeans may have a yield drag. Separating those acres from conventional beans for crop insurance purposes allows you to have a higher actual production history or APH on conventional soybeans and therefore, a higher revenue guarantee.

The specialty soybean provision is for:

Because most specialty soybeans are grown under contract, these beans have to be insured with an APH or yield policy, not a revenue policy. Otherwise, growers might find lower premiums this year compared with 2009. However, the premiums will not likely drop as much as the drop from 2008 to 2009.

The premiums are yet to be determined. The futures price average through February sets the premium costs and revenue guarantee. Check the prices between Revenue Assurance (RA) and Crop Revenue Coverage (CRC).

In 2008, 67% of the crop insurance acres in Iowa were RA and 15% were CRC. In 2009, 74% of the acres were CRC and 12% were RA. The premiums or cost of the insurance are the main reason for the switch.

Other crop insurance changes to note for 2010

Also, many farmers last year took advantage of the increased subsidy for switching to enterprise units. Interest in using enterprise units is high this year too.

Due to the increased federal crop insurance subsidy for crop policies where farmers choose to use enterprise units instead of optional or whole farm units, farmers can save money on the premiums. They can use this cost savings to increase their level of coverage. Thus, they get more crop insurance coverage for the same cost.

If you have specific questions or need details regarding USDA farm programs, contact your local USDA Farm Service Agency office. You can also get news and information about DCP, ACRE and other USDA programs at www.fsa.usda.gov.

Two Iowa State University Extension Web sites have farm program information and analysis. They are ISU's Ag Decision Maker site at www.extension.iastate.edu/agdm and ISU Extension Specialist Steve Johnson's site at www.extension.iastate.edu/polk/farmmanagement.htm.

And be sure to read the regular column "Frequently Asked Questions about the Farm Program" that appears in each issue of Wallaces Farmer magazine and at www.WallacesFarmer.com