Acreage Reports matter to farmers

NATIONAL CROP INSURANCE SERVICES

8900 Indian Creek Parkway, Suite 600

Overland Park , KS 66210

FOR IMMEDIATE RELEASE June 14, 2006
For more information contact Jan Eliassen at 410-778-0120. Some of the information contained in this release was provided by the Risk Management Agency (RMA).

A lot at stake in crop insurance forms

Across America’s farm fields, most spring planting is nearly done. This is when most producers begin work on what may be the most important piece of paperwork, next to their taxes, that they do all year... the annual Acreage Report.

The Acreage Report, necessary for most federally subsidized crop insurance policies, can save money, if it is done right, or cost money if it is done wrong. It determines the amount of crop insurance provided and the amount of premium charged.

If producers 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 too little, they will recover less if they have to make a claim for losses.

If there are any doubts about what to do, producers should contact their crop insurance agent to help them 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.

The acreage report declares: what crops were actually planted; what share they have in those crops; how many acres were planted, the dates they were planted, the kind of “units” the producer is using for insurance purposes, the approved yield, the farming practice used, like irrigation, and any acres by crop unit that they were prevented from planting.

The acreage report can be revised as planting goes on, up until the acreage reporting deadline. July 15 is the most common acreage reporting deadline, covering many of the major crops across the country.

Not only must participating producers file an acreage report with their crop insurance agent, but also with their local FSA office. The two reports must contain the same information or an explanation why not.

Producers have tested soil moisture, checked weather reports, and worked long hours to get their crops planted, but without an accurate Acreage Report much of that work might never reach the bottom line.

###