FSA office and Government programs for farmers

I have row cropped farmed for 2 years now, made hay for 4 years before that. The last 2 years row cropping, I just put the crop in, paid for land rent, inputs, insurance, everything out of my own pocket. I didn't take out any loans, and only bought hail insurance, no other coverage. I got by pretty well with the limited insurance on my crops, but I did have wind blow down some of the last corn that I had standing this fall. I got it harvested, but I know there was some loss, not alot. This got me to thinking what if I had a large crop failure, or even a total loss. That would be a real financial kick in the pants. I'm thinking maybe I should insure my crops better in the future. What programs are available to help me with my crops? besides, insurance, are there other programs that can help me cashflow my operation? I guess I just don't know what to ask for if I should walk into the FSA office or any other office to ask for any help on programs available. I hear other farmers mentioning the FSA office and talk about receiving checks in the mail, but I'm not sure how any of this works. Can anyone offer any insight?

I will be putting in a total of 200 acres next year split between corn and soybeans. Also I make about 60 acres of hay, some upland, some meadows. Mille Lacs county MN if that matters.

I'm not looking for anyone to go off about farm programs or subsidies here, I am just asking how to use what is available to allow me to continue doing what I love. I'd like to get some generalizations on things before I walk in there and start asking questions.

Thanks!

Off topic, but beautiful area up there.

I have wanted to take boat up there for a couple of years.

The current program is goofy. They change it every 5 years, this one is a mess. It is more of a gambling program, not a safety net.

It does offer a good crop insurance deal, if you want crop insurance. Would be valuable to you for that.

The rest is like pulling a lever on a slot machine, some hit big and some miss out. No rhyme or reason. It is supposed to garentee a safety net for both bushels produced and for dollars per bu. Somehow it came out messy, depending what county you are in. As well payments, if any, happen in October or November of the year following, so if you have a bad year you don't get anything for an entire crop year - foolish.

First thing, has your crop ground been in a program at some point since the mid 1980s? Your land needs to have a crop base recorded at the FSA office, and it started in the mid 80s, those numbers from back then are important.

If your land has never been in the program or 'certified' along the way, you may be on the outside looking in. That would be the first thing to ask at the FSA office. Does your farm ground have an FSA number and does it have base acres? Without that, you might not get in.

After that, it will be a lot of jumbo jumbo, come back and ask more questions.

I have stayed out of the insurance programs, I got burned in the 1990s with that and haven't seen a way to get in.... You need a proven yield, otherwise you only get 60% of 75% of 85% of you probable yield, which means you spend more than you can get in return for several years.... Since I have been improving my farm the past decade, my yields are growing faster than that insurance startup deduction, so I have not seen the value -for me-. But if you have established yields and farm that is stable, I hear it is a valuable thing to get into, despite a couple year wait for it to kick in.

I hear you may be able to get in the insurance program without having the base acres and all that? It is worth checking if you want crop insurance.



So, go to the FSA office on a slow day (they get very flustered on some of the deadline days, all different programs for crops, milk, etc.).

Ask them if your farm land is in the program - a map with it outlined would help to start, they will ask for documents you might not have but they can get there from a map of the fields - and ask if that land has any base acres.

Then ask if you can qualify for insurance as things are set up.

Last I would ask about the farm program, and be prepared to be very confused.

Come back and ask more questions.

Paul

Federally subsidized crop insurance through one of your area insurance agents. It is more effective in situations where you typically run high yields and only incur a serious loss one out of five years so as not to knock off your yield average. Does not tend to pencil out where yields are marginal most years. In those situations it would be better to self insure if possible which means setting aside a portion of your yearly profits into savings or short term investments that could be cashed out in a few months time to deal with a disaster.

The entire crop insurance program and FSA programs are complicated/confusing. You will have to like giving all the information you have about just about everything you have ever done farming. IF the farms your wanting to insure do not have recent records be ready to gather up 3-5 years of your actual crop sales receipts to prove your actual records. I played the game for years but got totally out about 20 years ago. I do acreage reports but that is it. My sons have the crop insurance and spend on average about two days each year in the FCA office doing paperwork.

I ask, do you want to work for the insurance company or yourself? 1978 was the last time I had crop insurance.

You need to talk to the FSA people about DCP and ARC. Those are the two current subsidy programs. I'm not sure what the requirements are to sign up in between farm bills. Insurance is another, but it is not a gimme (unless you are an agent).

It's the history that will make you. One year I aerial sprayed wheat that looked good and ended up making not much above even because of what I put in it. The yield was good and helped my average, though. It's a trade off. You either slowly pay them and get it back eventually or hold back some on your own and take a wallop all at once and use what you have self-insured with. This farm has been insured since before I started working this land and the rapport with FSA was established. I've just kept doing it as I don't want to burn that bridge and it's worked out even for me. I don't see me doing it for another 10 years, though.

I really don't care to get in bed with the gubbermint. I'm glad to hear that others get by without insuring their crops. Have you ever had a 100% crop failure?

I'm sure there is lots of red tape in these programs as well. I'm guessing its a lose 90% of the time kinda deal, but glad you have it the 10% of the time that you need it. IF you can whether the 10% times, your probably way ahead for those 90% times. is that about right?

For the record, most all of the ground I farm has been in "the program" in recent years. About 40 acres of recently broken ground likely has not been in the program.

I'll likely keep taking my chances without insurance, hopefully it doesn't hurt too bad when the year that I wished I had it comes.

The general answer is, it depends, there are so many variables in the government programs, and what you have described as your operation, that a good answer is not really possible. My suggestion would be to gather up your cropping history, and be able to describe what you need for insurance on your farm, and expect from the FSA , insurance, disaster, and general support programs.Then go in and talk to the folks at the FSA office,it's their job to provide the information you need.Then you can make your own decisions. Mike

If you call the FSA office, ask for an appointment....starting from scratch re the programs...you don"t want to just show up. Very time consuming to explain various programs. Ask them what info would be beneficial to bring along. Simply more professional to set up the initial visit. Also contact a crop insurance agent for his views.

The best way to find out what is available is to go to your FSA office and talk to them. There are some that seem to make out like bandits and some don't. I don't know the difference. In my area it seems to be a club for huge farmers. Most of the smaller and mid sized farmers around here only use them when absolutely necessary. I haven't been there in several years and have taken my name off their mailing list.