Taking an environmentally sensitive approach to pest management


Integrated Pest & Crop Management



AUTHOR

Raymond E. Massey
University of Missouri
Agricultural and Applied Economics
(573) 884-7788
masseyr@missouri.edu

Drought Impact on 2013 Crop Insurance

Raymond E. Massey
University of Missouri
(573) 884-7788
masseyr@missouri.edu

Published: September 13, 2012

To add insult to injury, the drought’s effects on this year’s yields will affect next year’s insurance. Low yields reduce your Actual Production History (APH) yields that determines your level of protection.

Low yields in 2012 will reduce 2013 APH yields on many farms. However, there are two factors that could potentially reduce the size of the APH yield declines. The first is that that a producer can request to have any yield in the yield history replaced by 60% of the T yield. The T yield is specific to a crop in a county. Table 1 shows 2012 non-irrigated corn, soybean and grain sorghum T yields for Missouri counties. In 2012, some farms will have yields below 60% of the T yield. These farmers should request to have their actual yield replaced by 60% of the T yield.

To illustrate, take a farm in Saline County where the T yield for corn is 154 bushels per acre (see Table 1). If the farm has a yield below 92.4 bushels (154 bushel T yield x 60%), that farm could ask to have its actual yield replaced by 92.4 bushels per acre. This substitution will limit yield declines.

Take a Saline County farm with a 10-year yield history where the historic yields exactly equal the county averages in each year. This farm would have had a 2012 APH yield of 154 bushels per acre. If this farm has a yield below 92.4 bushel yield in 2012, a 92.4 bushels yield could be used in the APH yield calculation, resulting in an a 2013 APH yield of 148 bushels per acre. This farm’s APH will decline by 6 bushels between 2012 and 2013. Using a lower actual yield than 60% of the t yield would result in more of an APH yield decrease.

The second factor limiting APH yield declines is that there is 10% limit on a decline in the APH yield from one year to the next. Take the Saline County farm with a 2012 APH yield of 154 bushels per acre. The 2013 cannot be below 138.6 bushels per acre (154 APH yield x 90%).

While APH yields will decline, the Trend-Adjustment Endorsement will be available in 2013. This endorsement will act to increase yields used in guarantee calculations in the recognition that average corn and soybeans yields have increased over time.

Note: this is an adaption for Missouri of an article written by Gary Schnickey of the University of Illinois

Table 1. 2012 Crop Insurance Transition Yields
County Corn Soybeans Grain Sorghum
Bushels per acre
Adair1313982
Andrew1364374
Atchison1474772
Audrain1224095
Barry1142555
Barton1252078
Bates1232678
Benton1053275
Bollinger1283569
Boone1193884
Buchanan1414277
Butler1273453
Caldwell1083469
Callaway1193985
Camden97  
Cape Girardeau1433482
Carroll1404179
Cass1193472
Cedar1042171
Chariton1414281
Christian114  
Clark1374078
Clay1454175
Clinton1304269
Cole1313877
Cooper1294081
Crawford713255
Dade1162678
Dallas99  
Daviess1153680
DeKalb1123772
Dent71 50
Douglas  40
Dunklin1222657
Franklin1354070
Gasconade1163773
Gentry1233875
Greene11725 
Grundy1193782
Harrison1243872
Henry952476
Hickory973066
Holt1554775
Howard1434178
Jackson1283879
Jasper1212578
Jefferson1264067
Johnson1153467
Knox1384182
Laclede1092955
Lafayette1484570
Lawrence1162261
Lewis1324288
Lincoln1173881
Linn1213878
Livingston1243792
McDonald114  
Macon1384188
Madison1142655
Maries912971
Marion1384385
Mercer1303972
Miller1083469
Mississippi1583465
Moniteau1083671
Monroe1274188
Montgomery1184089
Morgan1093676
New Madrid1453459
Newton1002557
Nodaway1314472
Osage1334080
Pemiscot1243456
Perry1453476
Pettis1153575
Phelps71  
Pike1223888
Platte1394280
Polk99  
Pulaski109  
Putnam1323982
Ralls1264094
Randolph1244081
Ray1413969
Ripley1453468
St. Charles1434578
St. Clair1072775
Ste. Genevieve1383473
St. Francois1083257
St. Louis13741 
Saline1544671
Schuyler1323882
Scotland1364182
Scott1593454
Shelby1324298
Stoddard1323456
Sullivan1173677
Vernon1252680
Warren1324077
Wayne1453561
Webster117  
Worth1313878
Wright114  
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REVISED: September 14, 2012