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Grand Rapids, MI | Houndog:
I just got done reading your last post and this one. Wow..it certainly sounds like you are in a tough spot. Sorry I wasn't on earlier to respond, but I wanted to be sure to clarify some issues. I am an agent and believe in being proactive with my clients to be sure they get the claims they deserve, so I have some experience in this area.
First let me say that many people have been telling you that you have to harvest the crop. This is not correct. If you choose not to harvest, that is your option. Tell the adjuster to refer to the LAM Par 85 (B) (2). That being said the adjuster will appraise the crop and not pay you on whatever bushels are in the field. From your description it sounds like you will be able to harvest enough bushels to pay for the combining so it would be worthwhile for you to harvest. There are provisions if you cannot physically get it harvested by normal means to pay you for all the loss. Here is what the LAM says about that:
"When crop acreage which is routinely mechanically harvested is damaged
by INSURED cause(s) to the extent that it can NEVER be mechanically
harvested with normal harvest equipment, no production will be counted for
such acreage. If mechanical harvest is feasible with normal harvest
equipment on any portion of the unharvested acreage, appraise and count
only the production that you determine could have been mechanically
harvested. However, if the insured elects to hand harvest, such as
handpick corn, or use specialized harvesting equipment, the
harvested production will be counted"
As for self-insuring, it may be possible, but it likely would not pay. In my consulting business I have developed some pretty sophisticated software to analyze payback on crop insurance and there are very few farms, if they have the right type of policy for them that will not get back more than they pay in over the years. This is because crop insurance is so heavily subsidized by the US government. Certainly we all know that a CAT policy is heavily subsidized, but there are some of the higher levels of revenue coverage where the farmer is paying only 20% of the true premium.
As others have commented, adding to the problem it seems like your agent really didn't do a very good job of helping you understand what kind of coverage you were getting or what type of coverage you needed. Also he or she should be helping you with the sort of information like do you have to harvest the crop, etc. If this is true I would recommend getting a better agent, there are good ones out there, although sadly sometimes I wonder if good agents are the exception. (And for a shameless plug, I am licensed in OH)
I hope this helps some and I wish you the best. My e-mail is in my profile if you have more questions specific to your situation.
Loren | |
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Thanks to all for crop insurance advise
