FOR IMMEDIATE RELEASE - June 16, 2004
For more information contact Jan Eliassen at 410-787-0120
Farmers have a lot at stake in acreage reporting
Crop insurance details matter
As soon as America's farmers finish planting, they will get to work on a
piece of paperwork that can also make a big difference on their bottom line.
Necessary for most federally subsidized crop insurance policies, the annual
Acreage Report can save money, if it is done right, or cost money if it is
done wrong.
The Acreage Report is essential when determining the amount of crop insurance
provided and the amount of premium charged.
If they fail to report on time, they may not be covered. Each crop has its own
deadline.
If they report too much acreage, they may pay too much premium.
If they report too little acreage, they will recover less if they have to file
a claim for loss.
Crop insurance agents are available to help farmers complete the acreage
reporting forms. They have to sign off on the forms as well as the farmer. But
the legal responsibility is the farmer's, to check and make sure that the
acreage report is accurate.
In addition to acreage, the report shows the crops planted, or prevented from
being planted; what share they have in those crops; how many acres were
planted, and the dates they were planted. Farmers are required to report all
acres in the county for the crops listed on their policy, even if those acres
are uninsurable.
It will also show what kind of "units" the farmer is using for insurance
purposes, what the farmer's approved yield is, and, the farming practice used,
such as whether or not the acres are irrigated.
Because the weather can change planting patterns on a daily basis, the acreage
report can be revised as planting goes on, up until the acreage reporting
deadline.
Farmers must also file an acreage report with their FSA office for other USDA
programs. The information on the two reports must match, or contain an
explanation why not. USDA computers will compare the data from both reports.
Farmers are racing the clouds and the deadline, to get it just right. Getting
it right can make a big difference on the bottom line.
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