New Break Ground: Beginning in 2025 ground that has not been planted and harvested or insured in one of the last four crop years is insurable at 85% of the applicable county T-yield. Previously producers were required to submit a new break written agreement requesting insurance on new break ground that was greater than 5% of the insured planted acreage in the unit. New break ground is not eligible for prevented planting coverage and insuring these acres will be required for policyholders in 2025 and beyond.
Changes to Minor Policies: A minor child (under the age of 18) with a separate farming operation is only eligible to have a separate policy if the following stipulations are met:
- The minor cannot have a share in the crop with one of their parents or any entity that their parents are part of. This includes any interest in the minor’s farming operation OR in any production from such an operation.
- The minor must personally carry out the farming activities and summarize their insurable share and activities in a written statement submitted to the insurance company.
- The minor must maintain individual accounting and record keeping for their operation.
- The minor and their parent must certify that the above requirements have been met (even if the minor policy was written in previous years).
If a minor child does not meet the above requirements, they will be required to insure their ground under their parent’s policy.
Enterprise Units (EU) Expanding to Organic: New for 2025, organic producers can now choose to group their enterprise units by organic and non-organic farming practices by electing the EU-EO option prior to sales closing. The option gives insured the opportunity to elect:
- One enterprise unit for all acreage of the insured crop in the county grown under an organic farming practice.
- One enterprise unit for all acreage of the insured crop NOT grown under an organic farming practice.
- Elect enterprise units on either their organic or non-organic ground and basic or option units for the other or enterprise units on both.
To qualify for an enterprise unit discount, the producer must have 20 acres or 20% planted in two sections. Electing this enterprise option does limit producers from further dividing unit elections by practice or type.
Following Another Crop (FAC) Soybeans: In response to Russia’s invasion of Ukraine, President Biden announced plans to simplify the process to insure FAC (double crop) soybeans for the 2023 crop year. Since that time numerous producers across Missouri have applied for that coverage through the written agreement process. While not all details have been released, we expect FAC soybeans to be REQUIRED to be insured in 2025 in most Missouri counties. This will have an impact on the formation of FAC soybean databases, insurance guarantees, and the way units interact to settle claims.
Reminder
Wildlife Damage as a Cause of Loss: Multiple Peril Crop Insurance provisions explain coverage for naturally occurring causes of loss, however in recent years there was a change in these provisions related to wildlife damage we would like to remind you about. Crop damage caused by wildlife in subsequent years on the same acreage will be considered avoidable, thereby making the ground uninsurable, unless recognized Good Farming Practices or appropriate wildlife control measures have been followed. Insureds are encouraged to reach out to their local county extension offices or the state conservation department to obtain their recommendations for treating and eradicating the infestation.
