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| RMA’s Biotech Yield Endorsement could defray insurance costs |
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<b>By TIM ALEXANDER<br>
Illinois Correspondent</b> </p><p>
PEORIA, Ill. — More than 50 Peoria County Farm Bureau (PCFB) members attended a crop insurance outlook seminar on Feb. 11 featuring an Illinois Farm Bureau (IFB) expert who addressed the recently announced Biotech Yield Endorsement (BYE) program.<br>
Doug Yoder, IFB’s senior director of marketing and affiliate management, met with officials from the Risk Management Agency (RMA) earlier this month to learn more about the program, which could allow growers of nonirrigated corn to save some money on their crop insurance this year.<br>
“We’ve had a lot of questions about (BYE),” Yoder said. “The program could end up saving you money, which of course is very important during a year like this when we’re all looking to save what we can due to (rising) input costs.”<br>
On Sept. 12, 2007, the Federal Crop Insurance Corp. board of directors approved the BYE pilot program submitted under section 523(d) of the Federal Crop Insurance Act. The program will allow producers to receive a premium rate discount on nonirrigated corn for grain planted to hybrid varieties of corn that contain Monsanto triple-stack technology.<br>
Currently only in Illinois, Indiana, Iowa and Minnesota, the program is available for qualifying farmers through their crop insurance providers for the 2008 growing season.
“Eligibility for the program revolves around the use of Monsanto triple-stack genetics, and there are currently around 250 companies licensed to use those genetics,” Yoder announced, adding that a complete list of eligible brands (along with other info on the BYE program) is posted at www.biotechyieldendorsement.com<br>
“Obviously there are other triple-stacks out there that you may be using, but to qualify for this discount, the brand must appear on this list. Syngenta, Pioneer and other triple-stacks will not (qualify).”<br>
Farmers must possess either APH, RA or CRC types of individual crop insurance to qualify; those with group plans such as GRP/GRIP cannot enroll. A minimum of 75 percent of a producer’s total corn crop must be planted to Monsanto’s triple-stack technology.
“You also must adhere to the EPA’s 20 percent refuge requirement, so you don’t have a lot of wriggle room,” Yoder said. “You have to manage well to make sure you comply.”<br>
Farmers could expect to save up to 20 percent off of their usual crop insurance costs for a yield-only policy, Yoder predicted.
“If you have a revenue-based policy, your savings are going to vary. Using triple-stack does nothing to reduce your price risk, so the discount only applies to the portion of your premium that goes towards yield,” he said, adding that RMA estimates an average of 13 percent savings for holders of revenue-based policies in the four eligible states.<br>
Though the deadline for crop insurance this year is March 17, to be eligible for BYE, producers have until the annual acreage reporting date of July 15 to notify their agents of their intention to apply for the discount.<br>
“You have to provide your agent with three forms of documentation. First, you need written certification of your triple-stack purchase from your seed dealer. You will also need your sales invoice from your purchase, and finally you will need a self-signed certification statement of your own,” Yoder explained.
Once a farmer is enrolled in the BYE program, their crop fields are subject to spot-checks to ensure compliance, Yoder warned.
“If you’re spot-checked and found to be noncompliant, the penalties can be pretty severe. Your crop insurance will be made null and void and there could be other penalties as well,” he said. “Three percent of liability policies under $500,000 will be spot-checked, along with five percent of fields insured for over $500,000, so manage your fields well.”<br>
Yoder said he and the IFB neither endorse nor dislike the BYE program and are simply trying to educate producers about its pros and cons. He said RMA is also not directly endorsing Monsanto’s triple-stack genetics, which claim to protect against damage from moths and larvae, rootworm and weeds.<br>
“Although the program is called the Biotech Yield Endorsement, the RMA says it isn’t an endorsement for Monsanto,” Yoder said, drawing chuckles from many in attendance.<br>
“RMA stated that under the Federal Crop Insurance Act of 2000, an opportunity was offered to (all genetics makers), but Monsanto was the only company to step up.<br>
“Monsanto spent three years proving to RMA that their triple-stack reduces yield risk. Other companies are now trying to catch up.”
Following Yoder, Monsanto technology development representative Chris Kamienski addressed the PCFB on refuge acre requirements for biotech crops. For more information on corn refuge requirements, visit www.monsantoperformance .com to click on your state and access “local technical information.” |
| 2/27/2008 |
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