the higher prices.  If the answer to that question is “yes”, you need not do anything and your policy will adjust to the new prices automatically.  If you feel that the higher prices give more coverage than you need, you may do one of three things to make adjustments in your coverage.

1. Decrease your coverage by a level or more.  Typically, each time you reduce your coverage by one level (e.g. 75% to 70%), your premium will be reduced by roughly 30%.

2. Reduce your price election.  Currently, everyone insures to 100% of the prices for the plan that you have.  However, you may choose to insure to a percentage of the price election.  For example, a corn grower in NC could choose to insure 70% of the $3.76 price election and therefore, would be paid $2.63 per bushel rather than the $3.76 price election.  This would decrease the premium by 30% and would put the farmer in a

Due to recent events such as high gas prices, high beef prices, etc., the commodities markets have been an extreme roller coaster ride.  Many prices that we use for crop insurance are very high relative to prior years.  Correspondingly, you can expect increases in dollar coverage on your crop insurance policy and increases in premium.  Following are the prices that have been announced and the percentages of increase over last year’s prices.

Crop             07 Price    Increase

Burley Tobacco           $1.62          8%

Corn (CRC, NC)        $3.76        60%

Flue Cured Tobacco     $1.52        13%

Soybeans  (CRC,NC)  $7.11        14%


As you can see from the above numbers, coverage and premiums will be substantially higher with most every crop, especially corn.  The question that everyone must ask is whether you want and need the additional amount of coverage offered by

2. similar premium to that which he experienced in 2006.

3. Move to a different plan of insurance.  For the grain crops, there are 3 plans of insurance available.  Most are currently insured on the CRC (Crop Revenue Coverage) plan.  The APH (Actual Production History) plan and the RA (Revenue Assurance) plans are available.  While a change in plans is an option, it will perhaps allow you to meet the need of reducing premium but may not meet your other needs.

For Virginia corn and soybean farmers, the prices for CRC and RA coverage are tracking even higher than the prices that have been established in NC.  VA CRC and RA price will be established the first week of March.  By the time that we have the dinner meetings in mid February, we should be able to better advise you due to the fact that we’ll have a much better idea of what the revenue crop insurance prices will be.

Important News Regarding Your Crop Insurance

Working Hard To Keep You Growing

                FARMER’S INSURANCE AGENCY

5048 US Highway 29, Blairs, VA  24527

Phone: (434) 835-0107    Toll Free:(800) 458-3440   Fax:(434) 835-0109

 

Crop Insurance Dinners Scheduled

As we have done in years past, we will be holding several crop insurance dinners throughout the area to discuss the above changes and other changes in the crop insurance program.  The meetings are scheduled as follows:  (Please note that

 

E-Mail’s Wanted

From time to time, we have the need to get information out to our customers on a short time frame, which is the reason for this newsletter at this time of the year.  It would be extremely helpful to develop a mailing list of those with e-mail so that we can get information to you.

McLeansville, NC – Gerald Fryar’s Barn  @ 6298 McLeansville Rd (Look for the large red barn on the east side of McLeansville Road)  Tuesday, February 13, 2007 @ 6:00 pm

 

Roxboro, NC – Outer Banks Restaurant   Thursday, February 15, 2007 @ 6:00 pm

 

Danville, VA – Mary’s Diner  Tuesday, February 20, 2007 @ 6:00 pm

 

Rocky Mount, VA – Fisherman’s Galley  Thursday, February 22, 2007 @ 6:30 pm

Volume 7, Number 1

February 5, 2007

there will not be a meeting in Reidsville, NC or Halifax, VA this year.  You may RSVP by calling us at the toll free number shown above to or you may e-mail us at: farmersinsagency@earthlink.net.

We ask that you do call or e-mail so that we

can make provisions for your attendance.  By letting us know that you will be attending, we will have documents specifically prepared for you so that you may better evaluate your coverage.