The Derecho Storm on 8/10/2020 caused widespread damage and left farmers with decisions to make on damaged crops.

Let’s talk about federal crop insurance. The first question is… can the crop be mechanically harvested? If normal harvesting methods and equipment can be used to harvest the crop, the crop would be considered harvestable. Normal harvesting methods would include specialty equipment like reels, if normally used during harvest. The farmer and the adjuster are able to determine if the crop can be harvested. Keep in mind if conditions change, the ability to harvest can also change.

Harvest Options

If the crop is unable to be mechanically harvested,  there would be zero production for the unharvested acres. The farmer can destroy the crop using any method except harvesting for grain or earlage.

If the crop is able to be mechanically harvested, the farmer has the option to harvest or destroy the crop. If the farmer harvests the crop, normal production reporting procedures would apply. If the farmer decides it is not worth harvesting, the crop adjusters would like to wait until the crop is mature to complete the appraisal. The appraisal consists of production and quality. Quality cannot be applied until the crop is mature. If the farmer wants to destroy the crop prior to maturity, authorization is required by the crop insurance company. Check strips need to be left in the field to be appraised at a later date.

Quality

Quality of the grain affected by this storm is yet to be determined. The corn must be mature before the quality can be determined. If the quality has zero market value, the crop will need to be destroyed. Zero market value is determined with rejections letters by two local elevators and one salvage buyer.

Claim Payment

If the entire unit has zero production, the crop insurance company can pay the loss now based on the Projected Price. Once the Harvest Price is established, there is potential for another check to be issued. If part of the unit is harvestable, the claim will not be finalized until the harvest production or appraised production is completed. Unit structure becomes an important factor in the total claim adjustment.

 

The purpose of this article is to provide general information. If you have a potential claim, contact your agent to file a notice of loss. The crop insurance adjusters will determine the loss procedure and loss settlement.