RISK MANAGEMENT AGENCY This institution is an equal opportunity provider. New York State Department of Agriculture & Markets Localized Flooding Destroys Crops in Early Stages of Development Chenango Co Farmer 2013 Example of Crop Insurance Payments had the Farmer been Insured

2013 Locally intense rain storms caused localized flooding (not major rivers) May/June/early July

Photo by David Travis

Binghamton, NY TV news, July 8, 2013 "The land is here," said Mr. X, owner of X Farms. "It's wonderful land.” A river by his farm along Route 12 started to swell after days of rain and flooded his fields. "It looks like it's a complete loss at this time," said Mr. X. "We can't replant. There's not enough days growing, degree days, to have a decent crop at the end.“ He had 400 acres of corn and 100 acres of soy beans. He's already lost 30 acres of the soybeans. "When you lose a crop, you lose it," said Mr. X. "The water comes up too high and you have this cloud of mud and dirt. You just can't handle the crop.“ Mr. X spent between $200 and $300 per acre to plant his crop. Without a yield, he'll be left in debt. "For some of these farms, this crop damage not only entails the loss of current crops expenditures they've spent into it," said Brad Vickers, President of the Chenango County Farm Bureau. "Many of them don't have insurance that will cover that." Mr. X said the crop insurance is too expensive for him. He'd rather gamble on the land.

Cost of corn crop insurance in Chenango Co Range of cost $5.45 to $48.28 per acre

Illustration Corn Crop Insurance Chenango County Yield :120Bu./Acre APH* Projected Price:$5.65per Bu.100 Acres *APH is “Average Production History”

At 70% coverage 120 bu./acre APH X.70 coverage level X $5.65 projected price = $ per acre guarantee at the cost of $16.79* per acre * This is what the farmer pays. The federal share of crop insurance varies based on the level of coverage, but is about 1/2 to 2/3rds of the cost.

This Chenango Co. farmer would have received about $475 per acre, from which the per acre cost of the insurance can be subtracted. $ $16.79 = $ $ x 100 = $45,781 $457,81 x 400 acres = $183,124

What’s better than a 70% crop insurance payment?

a good crop… bushels/acre x $5.65/ bu = $678/acre $678/acre x 100 acres = $67,800 $678/acre x 400 acres = $271,200

A good yield on an insured crop still brings in $ 120 bushels/acre x $5.65/ bu = $678/acre $678/acre - $16.79 crop ins premium = $661.21/acre $661.21/acre x 100 acres = $66,121 $661.21/acre x 400 acres = $264,484

Insurance or Disaster Programs? The 2008 Farm Bill made nearly all farm disaster program eligibility contingent on already having crop insurance. Today (late December 2013), with no new Farm Bill, none of the disaster programs EXCEPT NAP are funded for Some -- not all -- old disaster programs might be funded retroactively, with a new Farm Bill. Some will surely be eliminated.

Additional Information can be found at: USDA Risk Management Agency (RMA) This institution is an equal opportunity provider. To find a crop insurance agent, go to to use the agent/company locator tool.o NYS Department of Agriculture and Markets Crop Insurance and Risk Management Education surance.html

The alternative to having crop insurance The alternative to having crop insurance.