By
Bonnie Coblentz MISSISSIPPI
STATE -- Producers with insured crops in South Mississippi
damaged or destroyed by Hurricane Georges can get relief for
the loss by following the proper claims process. Dr. John
Robinson, ag economist with Mississippi State University's
Extension Service, said Mississippi has about 60,000 acres
of corn, cotton, soybeans and wheat in the 15 southeastern
counties. "In
these counties, the corn is already harvested and the wheat
isn't planted, so the only row crops that could be damaged
were cotton and soybeans," Robinson said. "I suspect the
rain and wind of Hurricane Georges totally destroyed these,
leaving nothing for harvest." Mike
Manning, Mississippi field supervisor for Rain and Hail LLC,
a multi-peril crop insurance company, said insurance agents
should be the first told about crop damage. "If they
report damage immediately, the company should get an
adjuster right out and will probably be on the scene before
the farmer is able to do anything," Manning said. Document
damage if work is done in the field before the adjuster
arrives. This includes taking pictures and leaving
representative samples of the crop untouched. "Leave a
10 foot strip the length of the field in each field for the
adjuster to inspect," Manning said. Joe
McFadden, Farm Service Agency executive director for Wayne
and Greene counties, said insurance adjusters assess damage
to fields in part using information provided by
FSA. "Where
there is a loss, the loss adjuster comes to our office to
look at aerial photographs of where the crop is located,
acreage, land use and when it was planted," McFadden
said. Local
FSA offices also assess area damage and report this to the
state office to determine the extent of statewide damage.
McFadden said anyone with farm losses should report these to
the local FSA for possible assistance from the Emergency
Conservation Program. Robinson
said row crops are eligible for various levels of
federally-subsidized, private crop insurance. Premiums are
subsidized by the U.S. Department of Agriculture. "In
1998, only 226 policies were sold in this 15 county area
covering just 16,000 acres of corn, cotton, soybeans, wheat,
and nursery and blueberry crops," Robinson said. "The total
insured value of the insured crops was about $3
million." Some of
these policies were the minimum catastrophic policies, but
others offered higher levels of coverage. Catastrophic
policies apply when yield losses exceed 50 percent. Higher
coverage policies take affect when losses reach 30 to 40
percent. "The
likely level of damage to cotton and soybean farmers from
the hurricane implies that all the insured acreage will be
eligible to collect insurance," Robinson said. Catastrophic
coverage does not cover the first 50 percent of the loss.
When it does take effect, it pays 60 percent of market value
on a loss more than 50 percent. For example, a producer with
an 80 percent loss would receive a 60 percent market return
on just 30 percent of his crop. The 20 percent left standing
can be harvested and sold for whatever the producer can get
for it. "Farmers
have tended to look at insurance as something like an
investment that ought to pay off for them," Robinson said.
"They have that mind-set because in the past, federal
programs have provided benefits such as income support and
disaster payments. In contrast, the proper way to view
insurance is as a necessary cost of production." Since
1995 when USDA required farm program participants to carry
crop insurance, the majority of row crops in Mississippi
have had only catastrophic coverage. Robinson said varying
levels of much better coverage are available for just $3 to
$4 more per acre. Plan now
for future crop insurance needs. "Catastrophic
coverage is essentially free, but it is inadequate
coverage," Robinson said. "Some higher levels of coverage
may be worth the cost. Farmers should visit with their crop
insurance agent this winter to see which level of coverage
is best for them." Released:
Oct. 2, 1998
Mississippi
Agricultural News:
Good Insurance
Can Lessen Crop Losses
Contact: Dr. John Robinson, (601) 325-7992
Visit: DAFVM
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Last Modified: Friday, 19-Dec-08 10:28:10
URL: http://msucares.com/news/print/agnews/an98/981002jr.htm
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