Insurance tips: What to do about damaged crops

By Lucas Conmey, Compeer Financial state insurance product officer

Mother Nature is once again providing challenges for producers throughout the United States. Pockets of very severe drought, excess moisture and wind damage have tested both grain and livestock farmers.

Here are a few crop insurance questions livestock farmers should consider as they battle the weather.

What’s the first step to take?

Before you do anything other than harvest an insured crop (chop for silage, disk under, high moisture corn), call your insurance agent and give notice of a potential claim. An adjuster from the insurance company that holds your policy will contact you and discuss options. Even if you think there is nothing left in the field, the adjuster must appraise it first.

We are referencing harvest claims, but this rule should always be kept in mind if you carry crop insurance. It is never too early to call your agent. It is much easier to open a claim and withdraw later, than attempt to open a claim after the field has been destroyed. Unlike other insurance policies, opening claims does not affect your future premiums.

If you don’t have MPCI crop insurance, and are considering it for the future, don’t hesitate to reach out to a crop insurance agent now. MPCI policies are offered at various times throughout the year. If you are brand new to insurance, start by building a crop history with harvest records.

What steps must you take to receive a crop insurance payment?

The first and most important step is opening a claim. Once that is done, gather your harvest records and make sure you have accounted for production across all acres where you anticipate a loss. This will aid in getting the claim worked and paid in a timely manner. The adjuster will take any appraisal and harvest records into account for all production of the insured crop. If you anticipate a large loss payment, you may need to provide past production records in conjunction with a claim review. This is nothing to worry about as claim reviews are required to ensure program integrity. Your insurance agent can assist you in planning for a review.

What can you do with the insured crop after it has been appraised and approved for claim payment?

Once the adjuster has appraised the insured crop, you are free to chop, feed or plow under the crop. If you decide to harvest an appraised crop, let your insurance agent know as the adjuster will need to come back out to account for the production before finalizing a claim.

As a reminder, you can also sell your crop directly to other farmers who may need the crop for feed. If you are selling silage, make sure it is appraised. If you are selling grain, make sure there is some type of record of that sale.

If you have any questions, call your insurance agent. They will provide you with the appropriate steps to ensure the best possible outcome when Mother Nature doesn’t cooperate.