Hail policy offers additional protections

DANVILLE, Ill. — Farmers who make a crop hail insurance policy part of their risk management portfolio have an additional benefit that they, hopefully, will never have to use.

“One of the biggest pluses of a hail policy, that a lot of people don’t realize, is that a hail policy will protect you from manmade fires. If a neighbor is burning near your field and your field catches on fire, that wouldn’t be covered by your insurance policy — that is only covered by your hail policy,” said Kelli Lyons.

Lyons is the president of and a crop insurance agent for Midwest AgriCredit, based in Danville. The agency services 33 counties throughout east-central Illinois and west-central Indiana.

With drought on the minds of many in the farm sector, Lyons said the possibility of a continuing drought or a drought in 2023 will be a priority topic as she and her team start crop insurance conversations with their customers.

“Everybody is hot on the drought topic right now, they’re watching how it has progressed through the Midwest and to the west of us and they are talking about the possibility of it moving further east,” she said.

With drought and the other extreme of sudden, heavy-flooding rainfall events being the two biggest perils for farmers, their crop insurance policies cover both of those events. But the level of coverage varies.

“It is definitely something we talk about and take into consideration as far as their coverage levels for the coming year,” Lyons said.

As harvest wraps up, so too will the crop insurance year.

“Right now we’re working with everybody to get an assessment of where their yields are. When we have our prices set and we know their yields, we then can know whether any indemnities are due,” Lyons said.

Dec. 10 is the end of the crop insurance calendar year for corn and soybeans, Lyons said. Final crop insurance decisions have to be made by March 15.

“When we start to talk about next year, we go over what perils existed this year, what they were worried about and then we get into what selections they need to make for the next year,” Lyons said.

Two areas where interest in crop insurance has expanded are for cover crops and for double crop systems.

“The state of Illinois and the Farm Service Agency now give an additional subsidy on your crop insurance premium if you do plant cover crops and you certify them,” Lyons said.

Sign-up for the “Fall Covers for Spring Savings” program through the Illinois Department of Agriculture will begin Dec. 15 and conclude Jan. 15.

The program is offered for cover crops installed outside of state and federal incentive programs, such as cost-share and the Environmental Quality Incentives Program.

Eligible applicants receive a $5 per insured acre premium discount on the following year’s crop insurance invoice, according to the IDOA.

Another area that has attracted more interest is crop insurance for dual or double crop systems.

Earlier this year, the U.S. Department of Agriculture’s Risk Management Agency announced it was expanding the area for crop insurance availability for double crop systems, including soybeans, including counties in Illinois and Indiana.

“We used to have to do what was called a written agreement to get them insured, but it is supposed to be a little easier for producers wishing to do that next year, so I think we’ll see that gain in popularity,” Lyons said.

And with another farm bill cycle approaching, Lyons said it remains important for farmers to talk with their elected officials about the importance of crop insurance, both to their own farms and to their farm communities.

But with recent major crop insurance events, ranging from prevent plant to derecho damage and drought challenges, Lyons said she thinks crop insurance has proven its value.

“I really do think there is a lot of support for it right now. Crop insurance really has been utilized in a large way the last few years and I think it has showcased its importance,” she said.