Now that you know what the fall harvest prices are for crop insurance purposes, what should you do next? Hopefully, insured farmers have already submitted their final crop insurance yield on all the insured farms to their crop insurance agent, says Johnson. Once that is done, the indemnity payments can be calculated so you and your agent will be able to proceed with the claims process.
It's time to determine final 2012 crop indemnity payments farmers will receive
A reminder: Anyone who has over $200,000 in loss per crop per county in 2012 will be subject to an APH review of their actual production history yields all the way back to the 2009 crop. "Again, it is important to work with your crop insurance agent," emphasizes Johnson. "They are very busy these days but be sure to ask questions if you are unsure of something. And make sure your premiums are paid for the 2012 crop. Those payments were due October 31 without penalty."
Now it's time to determine what the final indemnity payments will be for crop insurance, sums up Johnson. With the fall harvest price for corn at $7.50 and soybeans at $15.39 as announced by USDA's Risk Management Agency, those indemnity payments for 2012 look pretty big.
That brings up another timely point. Crop insurance income is taxable in the year received. You can defer a check received in 2012 to the year 2013 but you have to provide proof you normally don't sell more than half your crop in that year, says Johnson. A lot of farmers are going to get their crop insurance indemnity check either in December or likely in January or February. "The main point now is to be working with your crop insurance agent," he adds. "If you have tax questions, contact your income tax preparer."
For farm management information and analysis go to ISU's Ag Decision Maker site and Extension farm management specialist Steve Johnson's site.