March 2017

Crop Insurance: There has been some confusion this spring over the new 2017 definition of “practical to replant.”  However, it does not apply to sugarbeets.  The change was made to the FCIC “basic provisions” covering all crops, but the sugarbeet policy has its own “special provisions” that contain a separate definition of “practical to replant” that remains untouched. The following is an explanation of the issue by our crop insurance legal counsel Ken Ackerman.

Basic background:

• Currently, under the FCIC policy, a farmer can plant their crop until the “final planting date” and receive a full guarantee based on their APH production history.  They can also plant during the “late planting period” that stretches 25 days beyond the “final planting date” and still be covered, but their guarantee is reduced by one percent each day beyond the “final planting date.”  After those 25 days, they can no longer plant and be covered.  To qualify for a “prevented planting” indemnity, a farmer similarly must be prevented (by an insured cause) from planting until either the “final planting date” or the end of the “late planting period.”  This system, applicable to all crops, has not changed for 2017, nor have any of the specific “final planting dates” for sugar beets been changed for 2017.

 

• What RMA did change involved replanting.  Up until 2016, the FCIC “Basic Provisions” (which apply to all crops) contained a definition of “practical to replant” for insurance companies to use in determining when a farmer must replant a crop in order to qualify for coverage.  The old definition, however, failed to actually point to any specific date.  Rather, it simply required the insurance company to determine when growing conditions justified replanting the crop.  As a result, different companies did it differently: some used the “final planting date” as their benchmark, others used the “late planting period,” resulting in both confusion and abuses.  To address this concern, RMA adopted a regulation on June 2016 (just before the 2017 contract change date) that changed this old “basic provisions” definition.  Now, for 2017, a crop “will be considered practical to replant” until the end of the “late planting period” unless the company chooses an earlier date because of growing conditions.  Here’s the link: https://www.gpo.gov/fdsys/pkg/FR-2016-06-22/pdf/2016-14735.pdf

 
Impact of sugarbeets:

• For sugarbeets specifically, however, the FCIC policy includes a set of crop-specific “Special Provisions” with its own separate definition of “practical to replant” that replaces the one in the more-general “basic provisions.”  For sugar beets, a crop is not considered “practical to replant” if production cannot (a) be delivered under the terms of the processor contract, or (b) after 30 days after the initial planting date unless a “late planting period” applies, unless replanting is generally occurring in the area.  This special definition reflects RMA’s recognition that sugarbeets differ from other crops in that they are grown under contract to a processor, and this special definition remains unchanged by the new FCIC rule.  Here’s the link:   http://www.rma.usda.gov/policies/2017/17-039.pdf

 

• There has been some confusion in the field this year as agents and AIPs are applying the new rule nationwide for the first time, and RMA may consider some adjustment for 2018 based on questions that arise.  Any such adjustments must be completed by the appropriate contract change dates (generally June 30 for spring crops and November 30 for spring crops).  Sugarbeet growers should keep us apprised of any problems that come up so we can raise them with RMA in a timely way.

 
2018 Farm Bill:  Hearings have already begun in both the House and Senate on the new farm bill. We will have industry representatives testifying whenever and wherever it is appropriate. The hardship that our industry faces in the depressed market at the moment are not a result of farm bill provisions, but rather due to the failure of the suspension agreements with Mexico to stop the subsidies and dumping of sugar into our market. Grower leaders for both beet and cane industries will visit more than 300 congressional offices to meet new members and staff to begin the formal engagement of writing a new farm bill. Our thanks to all of those who spend the time and effort to come to DC and tell our growers’ story. Every grower should express their appreciation to them. There is a good deal of work in preparing for and making these visits on your behalf. 

Mexico: The delay in cabinet and subcabinet appointee confirmations through the Senate has delayed action in resolving the problems with the Mexican suspension agreement. We will make it very clear to Administration officials and members of Congress that we are in a crisis, and the Administration needs to take the appropriate action as quickly as it can to fix the Mexico trade problem and get our market back in balance. 

2017 Internship: Remember that internship applications are available from our website and must be completed and in our office by March 30.

2018 Annual Meeting: For those of you planning ahead for next year, the 2018 ASGA Annual Meeting will be in Washington, DC, February 4-6. It will be a great time to hear from top legislators and Administration officials about the Farm Bill and other important trade and nutritional issues that impact our industry. It is also an excellent time to visit the many historical sites and museums. We will be at the J.W. Marriott Hotel, which is two blocks from the White House.  http://www.marriott.com/hotels/travel/wasjw-jw-marriott-washington-dc/?scid=bb1a189a-fec3-4d19-a255-54ba596febe2