Protect Your Crop Investments

When a crop is damaged, the decisions made during the first few days can be just as important as the damage itself. Late notice, missing production records, commingled grain or destroying a crop before an appraisal can delay a claim or affect whether a payment is available. Delta Crop Insurance helps farmers in Eastern Arkansas and Western Mississippi report potential losses, understand the claims process and organize the documentation requested by the approved insurance provider and adjuster. If you believe an insured crop has been damaged or may fall below its guarantee, report the situation immediately—even if you are unsure whether the loss will be large enough to produce a payment. **To report a potential loss, call Delta Crop Insurance at 870-376-0781.** What Is a Notice of Loss? A notice of loss tells the approved insurance provider that an insured crop may have been damaged or may produce less than its policy guarantee. Reporting a notice does not automatically mean: - A claim will be paid - The loss has been approved - The crop must be destroyed - The farmer has committed to filing a final claim - The loss is large enough to exceed the policy deductible A notice simply allows the insurance provider to document the situation, assign an adjuster when necessary and protect the producer’s ability to pursue a claim. It is generally better to report a questionable situation early than to wait until the crop has been harvested, destroyed or put to another use. When Should Crop Damage Be Reported? For a planted crop with damage or a potential production loss, the producer must generally provide notice by insured unit within 72 hours of initially discovering the damage or loss of production. Notice cannot normally be provided later than 15 days after the end of the insurance period, even if the crop has not been harvested. A notice made by telephone or in person must generally be confirmed in writing within 15 days. Do not interpret the 72-hour requirement as permission to wait three days when harvest, replanting or destruction is about to begin. Contact Delta Crop Insurance as soon as the problem becomes apparent. Revenue-Only Losses Revenue Protection can sometimes produce a loss even when there is no physical crop damage. If the crop does not have a production loss but declining prices may cause an insured revenue loss, notice must generally be provided no later than 45 days after the latest applicable harvest price is released for a crop in the unit. Revenue claims cannot normally be finalized until the harvest price and production to count are established. Events That Should Prompt a Call Contact Delta Crop Insurance when you experience or observe: - Excessive rainfall - Flooding - Drought - Hail - Wind damage - Frost or freeze - Poor emergence or a damaged stand - Prevented or delayed planting - Irrigation-water problems caused by an insured event - Certain insect or disease damage - Lodging - Grain-quality problems - Mycotoxins or other covered quality concerns - Abandonment of acreage - A likely yield shortfall - A potential revenue loss - Damage requiring replanting - A need to destroy or put the crop to another use - Any situation that may cause production to fall below the policy guarantee Not every event is insured, but the coverage determination should be made through the claims process—not by assuming the loss will or will not qualify. What Happens After a Loss Is Reported? 1. The notice is submitted Delta Crop Insurance provides the initial loss information to the approved insurance provider. Information may include: - Crop and county - Farm or unit - Damaged acres - Approximate date of damage - Suspected cause - Current condition of the crop - Whether harvest has started - Whether the producer plans to replant, destroy or put the crop to another use The initial report does not need to contain the final amount of loss. Its purpose is to provide timely notice. 2. The insurance provider assigns an adjuster The approved insurance provider assigns a crop adjuster to inspect, document and adjust the loss. The adjuster may contact the producer to schedule a field inspection or request production and acreage records. 3. The crop may be inspected or appraised The adjuster may: - Inspect the damaged fields - Verify the cause and date of damage - Measure affected acreage - Count surviving plants - Appraise remaining production - Take crop samples - Review planting and irrigation practices - Examine production and marketing records - Determine whether replanting is practical - Authorize destruction or another use when appropriate An adjuster may make more than one inspection if the final amount of damage cannot yet be determined. 4. The producer continues caring for the crop A producer must generally protect the crop from further damage by providing sufficient care. Filing a claim does not allow the producer to stop irrigating, controlling weeds, managing insects or taking other reasonable steps needed to bring the crop to harvest. Additional damage resulting from failure to properly care for the crop may not be covered. 5. Production records are collected After harvest, the adjuster uses acceptable records to establish production to count for the insured unit. Production to count may include: - Harvested production - Appraised unharvested production - Production left in the field - Production sold or delivered - Farm-stored production - Production from uninsured acreage that was commingled - Other production required to be included under the policy 6. The claim is calculated The adjuster applies the policy provisions, insured acreage, share, approved yield, coverage level, applicable prices, production to count and any authorized quality adjustments. The final calculation depends on the plan of insurance. 7. The producer reviews the claim Before signing claim documents, the producer should review: - Insured acreage - Ownership share - Unit structure - Production to count - Appraised production - Harvested production - Quality-adjustment information - Applicable projected or harvest price - Cause and date of loss - Any uninsured causes or assigned production Ask questions about any number or determination that is unclear. 8. The claim is finalized The approved insurance provider—not the agent—determines whether the claim is payable and calculates the final indemnity under the policy. Delta Crop Insurance helps the producer communicate with the adjuster, understand requested documents and keep the process moving. The Agent’s Role Versus the Adjuster’s Role The crop-insurance agent and crop adjuster have different responsibilities. Delta Crop Insurance can help: - Submit the notice of loss - Explain the general claims process - Review the producer’s policy and coverage - Identify records that may be requested - Help organize acreage and production information - Communicate with the approved insurance provider - Follow up on outstanding claim requirements - Explain how the policy guarantee generally works - Help the producer prepare for an adjuster’s visit The adjuster and approved insurance provider: - Inspect the damaged crop - Determine the cause of loss - Decide whether the cause is insured - Appraise remaining production - Establish production to count - Apply quality adjustments - Determine whether policy requirements were satisfied - Calculate the claim - Approve, modify or deny the payment An agent cannot waive policy provisions, promise that a claim will be paid or direct an adjuster to approve a particular result. Do Not Destroy or Replant Before Receiving Consent A producer must generally obtain consent before: - Destroying an insured crop - Replanting damaged acreage - Abandoning the crop - Putting the crop to another use - Putting the acreage to another use - Grazing, haying or cutting the crop - Taking an action that prevents an accurate appraisal The adjuster may need to inspect and appraise the crop before it is destroyed. If a producer acts without the required consent, the insurance provider may assign production to count or deny payment when the loss can no longer be accurately adjusted. Representative Samples or Check Strips If harvest must begin before the adjuster can inspect the entire damaged unit, the producer may be required to leave representative samples of the crop standing. These samples are sometimes called check strips. When required, the samples must: - Represent the damaged acreage - Be located as instructed - Remain unharvested and undisturbed - Be large enough to meet policy requirements - Remain intact until inspected or formally released Under general provisions, representative samples for row crops may need to be at least 10 feet wide and extend the entire length of the rows, unless the Crop Provisions or Special Provisions require something different. Do not assume that a few short strips or corners will satisfy the requirement. Ask for instructions before harvesting through damaged acreage. Production Records Needed for a Claim The producer is responsible for providing complete harvesting, production and marketing records by insured unit. Useful records may include: - Scale tickets - Settlement sheets - Elevator assembly sheets - Rice mill records - Gin records - Warehouse receipts - Grain-cart records - Load logs - Yield-monitor data - Planting maps - Field records - Bin measurements - Moisture tests - Grade certificates - Quality tests - Sales contracts - Feed or on-farm-use records - Records of production transferred to another farm - Custom-harvest records - FSA acreage reports and maps - Lease and ownership-share documents - Irrigation records - Input and application records Records should identify the crop, farm, unit, field, acreage, delivery date and quantity whenever possible. Precision-ag data can be valuable, but it must meet applicable RMA standards to replace or support traditional production records. Keep Production Separate Production should be maintained separately when the policy requires separate records. Problems can arise when a producer mixes: - Production from different insured units - Irrigated and non-irrigated production - Insured and uninsured production - Production from different entities - Current-year grain with grain already in storage - Production from first-crop and second-crop acreage - Production covered under different policies When production is commingled without acceptable measurements or records, the insurance provider may allocate production or include additional production in the claim calculation. Before combining grain, obtain measurements and maintain written records showing exactly what was placed into storage. Farm-Stored Grain Farm-stored production should be measured and documented before: - New grain is added to an existing bin - Grain is transferred between bins - Grain is fed - Grain is sold - Grain is moved to another location - Production from another unit or farm is added The adjuster may use bin measurements, load records, scale tickets, grain-cart weights or approved precision-ag records to establish production. Damage that occurs after the crop’s insurance period ends—such as deterioration while harvested production is in storage—is generally not covered under the crop policy. Quality-Adjustment Claims A crop can have measurable production but still suffer an insurable quality loss. Depending on the crop and policy, quality concerns may involve: - Low test weight - Excessive moisture - Kernel damage - Heat damage - Sprouting - Mold - Mycotoxins - Other grading or quality deficiencies recognized by the policy Quality adjustment is not based solely on the price offered by a particular buyer. The producer may need official grading, testing, samples, discount schedules or other documentation from approved or disinterested sources. Before selling, blending, feeding, destroying or moving damaged production, contact Delta Crop Insurance. Once the grain is gone or blended, it may be difficult to establish the quality that existed when the insured damage occurred. How Yield Protection Claims Are Figured A Yield Protection claim generally compares the production guarantee with production to count. A simplified calculation is: **Production guarantee − Production to count = Insured yield loss** The yield loss is then multiplied by the applicable projected price, selected price percentage, insured acreage and ownership share. A decline in commodity prices alone does not create a Yield Protection claim. How Revenue Protection Claims Are Figured A Revenue Protection claim generally compares the revenue guarantee with the value of production to count. A simplified calculation is: **Approved yield × Coverage level × Applicable guarantee price = Revenue guarantee** Production is generally valued using the harvest price: **Production to count × Harvest price = Revenue to count** The potential indemnity is: **Revenue guarantee − Revenue to count = Potential indemnity** Standard Revenue Protection generally uses the higher of the projected or harvest price when establishing the final guarantee. Unit Structure Matters Most individual crop-insurance claims are calculated at the insured-unit level—not field by field. If several fields are combined in one enterprise, basic or optional unit, good production from one field may offset poor production from another field. A field can suffer severe damage without creating a payment if the total production for the insured unit remains above the guarantee. This is why accurate unit structure and separate production records are important. Area-Based Claims Work Differently Claims under SCO, ECO and other area-based plans are determined using county or area results rather than the producer’s individual farm results. A producer can experience an individual loss without receiving an SCO or ECO payment. The reverse can also occur. Because final county yields are released after production data is collected, an area-based payment may not be finalized until the year following harvest. Important Claims Deadlines Different deadlines apply to the initial notice and the final claim paperwork. Under the general Common Crop Insurance Policy provisions: - Planted-crop damage should generally be reported within 72 hours of initial discovery. - Notice cannot normally be later than 15 days after the end of the insurance period. - A telephone or in-person notice should generally be confirmed in writing within 15 days. - A revenue-only loss should generally be reported within 45 days after the latest applicable harvest price is released. - Claims other than Revenue Protection claims generally must be submitted no later than 60 days after the insurance period ends for all acreage in the unit. - Revenue Protection claims generally must be submitted by the later of the applicable 60-day deadline or 60 days after the last applicable harvest price is released. These are general requirements. Crop Provisions and Special Provisions may modify the deadlines. The safest practice is to report a potential loss immediately. Common Mistakes That Can Affect a Claim Waiting too long to report damage Late notice can prevent the adjuster from determining the cause or amount of loss. Destroying the crop before an appraisal Once the crop is destroyed, the adjuster may be unable to verify its condition or remaining production. Replanting without authorization The original stand may need to be inspected before replanting begins. Harvesting all damaged acreage Representative samples may be required when the adjuster cannot inspect before harvest. Mixing production Commingling grain from different units, practices, crop years or uninsured acreage can create major recordkeeping problems. Failing to document quality A low cash bid does not automatically establish an insured quality loss. Testing and grading records may be required. Inconsistent acreage information Differences between crop-insurance acreage reports, FSA records, planting maps and actual field boundaries can delay the claim. Failing to report all production Production used for feed, stored on the farm, sold privately or delivered under another name must still be properly reported. Failing to continue normal crop care The producer must generally protect the crop from additional avoidable damage. Assuming every financial loss is insured Federal crop insurance covers losses described in the policy. It does not insure every loss involving basis, marketing, input costs, contracts or poor management. When Will a Claim Be Paid? The timing depends on the type of claim and whether all information needed to calculate the loss is available. A production claim may be delayed until: - Harvest is complete - Production is measured - Quality information is received - Records are provided - Ownership share is verified - The adjuster and producer agree on the claim A Revenue Protection claim may require the applicable harvest price. An SCO or ECO claim may require final county information that is not released until the following year. Under the general policy, a properly established loss is generally paid within 30 days after the later of the required agreement, final decision, completed investigation or other applicable event. That does not mean every claim will be paid within 30 days of the initial notice. If You Disagree With a Determination Ask for a clear explanation of: - The policy provision applied - The cause-of-loss determination - Production assigned or counted - Acreage or share used - Any quality-adjustment decision - The applicable deadline for disputing the determination Some disagreements are subject to mediation, arbitration, reconsideration or other formal procedures. Those procedures have strict deadlines. Request and review the written determination immediately. Producers facing a significant dispute may also need advice from an attorney or other professional familiar with Federal crop insurance. How Delta Crop Insurance Helps Our goal is to help producers avoid preventable claim problems and understand what is happening at each stage. We assist by: - Reporting potential losses promptly - Explaining the producer’s next steps - Reviewing policy information - Helping identify the correct farms and units - Preparing producers for adjuster visits - Providing documentation checklists - Following up on missing information - Helping producers understand claim calculations - Maintaining communication with the approved insurance provider The final coverage and payment determination belongs to the approved insurance provider and adjuster, but producers should not have to navigate the process without assistance. If you believe you may have a crop loss, call Delta Crop Insurance at 870-376-0781 before harvesting, replanting, destroying or putting the crop to another use.** *This information is provided for general educational purposes and does not change or replace the terms of any crop-insurance policy, Crop Provisions, actuarial documents, Special Provisions or approved loss-adjustment procedures. Claims requirements, deadlines and calculations vary by crop, county, plan, practice and crop year.*