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January 14, 2015
Commodity Program Presentations
Best fit for your farm will depend on your preferences for risk management
• Protection against catastrophic price declines (PLC)
• …
September 14, 2017
Crop Insurance Papers
1
Margin Protection: Crop Insurance Premiums and Credits
Monte Vandeveer (montev@ksu.edu)
Kansas State University Department of Agricultural Economics ‐ September 2017
A recent article here on AgManager.info discussed the basic operations of Margin Protection, a new
form of crop insurance coverage coming to Kansas for the 2018 corn and soybean crops. This article
takes a brief look at expected premium costs for Margin Protection, including the credits allowed for
also purchasing a traditional Revenue Protection (RP) or Yield Protection (YP) policy.
To review, Margin Protection, or MP, protects against an unexpected decline in “margin,” defined here
as crop revenue minus operating costs. So MP not only protects against a decline in crop price or yield
(as does the traditional RP coverage), but it also protects producers from an unexpected increase in
certain operating costs.
MP coverage does not use individual farm yields or producers’ own records of input costs. Instead, it is
an area‐based plan which uses county‐level estimates of yields and inputs used to calculate crop
revenue, operating costs, and the resulting margin. While it intends to reflect the general experience
of most producers in a county, it may not exactly match the results of any particular individual.
Producers should remember that they could experience a loss on their own farm and yet receive no
indemnity from MPR coverage.
MP coverage for 2018 corn and soybeans in Kansas actually begins in the fall of 2017. The Projected
Price discovery period for both crops and inputs runs from August 15 to September 14. The final or
Harvest Price discovery for the inputs diesel, urea, and diammonium phosphate then occurs in April
2018, and Harvest Prices for the crops and interest costs are determined over October 2018.
The Risk Management Agency has provided a wide range of resources on its website to explain MP
coverage. Links to fact sheets, policy documents, and other supporting information are available at
https://www.rma.usda.gov/policies/mp/.
In addition, growers can find more information at www.MarginProtection.com, including premium
quotes. Here, they can enter their location (county), insured crop, and other details to obtain the
latest premium estimates. After the end of the Projected Price discovery period on September 14, the
website quotes will be actual premium amounts, not just estimates.
Margin Protection can be combined with the traditional RP or YP coverage used by most corn and
soybean growers in Kansas. The RP or YP policy bought next spring is referred to as the “base policy” in
this arrangement. Purchase of a base policy will result in a premium credit for MP coverage, to reflect
the situation that an indemnity from the base policy will offset a portion of the indemnity from the MP
policy. The amount of premium credit is based on the expected reduction in MP indemnities that
instead will be paid under the base policy, which will be determined when all information needed to
Kansas State University Department Of Agricultural Economics Extension Publication …
August 1, 2018
Breakout Sessions
contributions –active labor and management
Grassley amendment to tighten … willingness-to-paySystemic v. idiosyncratic risk, role of subsidyStandard …
October 1, 2018
2018 Ag Lenders Conference Presentations
contributions –active labor and management
Grassley amendment to tighten … willingness-to-paySystemic v. idiosyncratic risk, role of subsidyStandard …
October 15, 2018
2018 Crop Insurance Workshop Presentations
contributions –active labor and management
Grassley amendment to tighten … willingness-to-paySystemic v. idiosyncratic risk, role of subsidyStandard …
July 30, 2019
2018 Farm Bill
The Dairy Margin Protection Program (MPP) was created in the 2014 Farm Bill– Voluntary Risk Management program through Farm Service Agency– …
August 1, 2019
General Sessions
https://www.rma.usda.gov/News-Room/Press/Press-Releases/2019-News/USDA-Announces-Enhancements-to-Livestock-and-Dairy-Insurance-Programs)
https://www.agmanager.info/k-state-feeder-
cattle-risk-management-tool
https://www.fsa.usda.gov/programs-and-
services/disaster-assistance-program/livestock-
indemnity/index
The …
September 19, 2019
https://www.rma.usda.gov/News-Room/Press/Press-Releases/2019-News/USDA-Announces-Enhancements-to-Livestock-and-Dairy-Insurance-Programs)
https://www.agmanager.info/k-state-feeder-
cattle-risk-management-tool
https://www.fsa.usda.gov/programs-and-
services/disaster-assistance-program/livestock-
indemnity/index
The …
October 1, 2019
2019 Ag Lenders Conference Presentations
VOG: $95.62/cwt–Compare to COG & Assess “stomach” for volatility
USDA LRP Changes July 1
(https://www.rma.usda.gov/News‐Room/Press/Press‐Releases/2019‐News/USDA‐Announces‐Enhancements‐to‐Livestock‐and‐Dairy‐Insurance‐Programs)
https://www.agmanager.info/k‐state‐feeder‐cattle‐risk‐management‐tool
https://www.fsa.usda.gov/programs‐and‐services/disaster‐assistance‐program/livestock‐indemnity/index
The Agriculture Improvement Act of 2018 (the 2018 Farm Bill) authorized the Livestock Indemnity Program (LIP) to provide benefits to eligible livestock owners or contract growers for livestock deaths in excess of normal mortality caused by eligible loss conditions, including eligible adverse weather, eligible disease and attacks by animals reintroduced into the wild by the federal government or protected by federal law, including wolves and avian predators. In addition, LIP provides assistance to eligible livestock owners that must sell livestock at a reduced price because of an injury from an eligible loss condition.
https://www.fsa.usda.gov/programs‐and‐services/disaster‐assistance‐program/livestock‐indemnity/index
“Yes …