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Insuring
Non-Irrigated Continuous Summer Crops
Update: May
2010
No changes for 2011. Future
changes will be kept to a minimum.
Terry
Holdren Blog:
Grassroots Victory
Results Letter from RMA
The Issue
Specifically,
crop insurance companies and the Risk Management
Agency (RMA) are concerned with high, loss cost
ratios in many dryland, summer crops in Western
Kansas. Loss cost ratio (LCR), also known as
pure premium rate is the ratio of indemnities to
liability (dollars of coverage). Note:
Generally speaking, LCR’s represent an estimate
of what gross premiums “should be” in order to
result in an actuarially sound insurance
program. An LCR greater than .35 is considered
a concern because if the policy is “rated”
correctly, farm level premiums would likely be
so high that producers may not be able afford to
purchase crop insurance.
While no
changes in crop insurance provisions will be
made for crop year 2010, RMA is soliciting input
for possible solutions that could be implemented
for the 2011 crop year. Input must be into RMA
no later than March 16, 2010.
The links below
provide background information that may be
helpful, the “Presentation from
meetings held 2/25/10 at Goodland/Ulysses,”
includes several charts and tables along with a
summary of potential solutions.
Background
Information
Insuring Western Kansas Crop Rotations
Managing Intensive Non-irrigated Cropped Systems in
Western Kansas
Presentation from meetings held 2/25/10 at
Goodland/Ulysses
Letter to Risk Management Agency from a Farm Bureau
member in Kansas
KSU Ag Econ Letter to RMA
National Sunflower Association letter to RMA
Insuring Acres Emerging From CRP
To best position our organizations’ input to RMA,
Kansas Farm Bureau leaders and staff organized
two face-to-face opportunities this past
February 25, for discussion and input, along
with soliciting input via the KFB website.
Linda Franklin and Craig Cooper, 10th
District Board member and Administrator,
organized a session in Goodland, Jim Sipes and
Kori Davis, 9th District Board member
and Administrator organized a session in
Ulysses. Nearly 100 concerned Kansas Farm
Bureau members from the impacted areas attended
and offered input.
At the sessions, members were asked to break up
into smaller groups, discuss the issues, review
possible alternatives and surface their ideas
and preferred solutions. We also asked them to
complete an informal survey of cropping
rotations and cultural practices employed on
their farms. The
links below represent the summary of our member
surveys and our resulting letter to RMA.
Summary of Member Surveys
KFB
Letter to RMA
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