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November Grain Tip

Nov 02, 2020

Time to hit the books!
With fall harvest in the rearview mirror, time has come to focus on the books.  For most producers this is their least favorite aspect of farming.  In the year of 2020, its probably the most important.  Government programs that are too numerous to count, federal crop insurance, and taxes will be front and center as you close out this peculiar year.  Let’s review:

Government Programs

There are numerous government programs available for row crop, livestock, and specialty crop farmers.  Also, if a COVID stimulus package is passed after the election, check to see if any funding is earmarked towards agriculture.  Another program that farmers should have on their radar is WHIP + for the 2020 crop year.  Iowa Secretary of Agriculture Naig talked about accessing this fund due to the derecho.
CFAP 2.0                   
WHIP+ (18-19)        
WHIP+ (20)                        Signup likely sometime next year

Crop Insurance

If you were in the path of the August derecho, chances are that you will have a claim on crop insurance.  Here are a couple of bullet points to make the claims process easier:
  1. Keep accurate details of production from as many source documents as possible.  For example, scale tickets, yield monitor reports, auger scale reports, feed records, bin documentation, etc.  There is no such thing as too much information.
  2. Talk with your agent to see if you will have a APH review audit.  Any claims over $200k by crop by county are subject to an automatic 3-year APH review.  It will not take too many destroyed acres to generate liability over $200k.  Mid-Iowa Cooperative can assist in going back to previous crop years to generate production.
  3. Talk with you tax advisor on how to handle the crop insurance proceeds.  Remember, you can’t “defer” crop insurance proceeds.
  4. Lastly, think about your experience this past year.  Are there holes in your crop insurance program?  If so, Mid-Iowa Cooperative can help you find solutions.

There has been a lot of grain sold this harvest as the market rallied.  In conjunction with crop insurance payments and government program payments there is a lot of cash or potential cash in the system right now.  Make sure you are on the same page as your tax advisor.  Of course, Mid-Iowa Cooperative can assist with deferring of grain sales.

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