2005 Year in Review

Asian Soybean Rust Calls for Crop Insurance Review

During the 2005 growing season, U.S. farmers may face more potential production risk than ever before. Asian soybean rust (ASR) represents a new threat to yield and profitability. With the devastating disease in the mix, experts say farmers should review their need for multi-peril crop insurance, which can protect against financial damage.

Every growing season unpredictable conditions including rainfall and pests combine to influence soybean yield. This year, the airborne fungus causing ASR may or may not travel to Illinois to prompt the state’s first outbreak. However, producers should be prepared for rust’s potential impact, in their fields and on their ledgers.

Illinois Soybean Association (ISA) President Earl Williams, a Cherry Valley, IL, farmer advised that preparation should include reviewing the need for a Federal Crop Insurance Corporation (FCIC) multi-peril policy. As farmers confront ASR for the first time, ISA will function as a resource and support system.

“Experts are advising producers to try to take care of their own risk as best they can,” Williams said. “Farmers who have felt in the past that they were unlikely to have an insurable loss may need to rethink that this year.”

University of Illinois Farm Management Specialist Gary Schnitkey is one expert handing out that advice. “With Asian soybean rust, farmers have a higher chance of yield loss. They should consider getting FCIC insurance if they don’t have it,” Schnitkey said.

FCIC multi-peril insurance, offered through 17 private insurance providers, provides farmers financial protection in the event of “unavoidable” losses resulting from natural causes. These include ASR, confirmed Michael Alston, Regional Director for the U.S. Department of Agriculture’s Risk Management Agency. In order to receive compensation, farmers carrying FCIC insurance must employ “accepted farming practices” to treat rust, should it emerge in their area. “That means treating the disease in a timely, responsible manner with products deemed effective,” Alston said.

“If producers understand that Asian soybean rust is in their area, they should take every precaution to apply the fungicide, If they take every precaution and they’ve made every attempt, then that will insure them,” Alston said.

One question looming today is what constitutes an “accepted farming practice” for rust control, Schnitkey noted.

“Given that we’ve never dealt with soybean rust, we don’t know what an acceptable practice is,” Schnitkey. “Usually that is based on previous experience. Right now, we don’t have that experience.”

Alston said a national task force is working to resolve that dilemma. The group is expected to release a definition of accepted practices later this month. Producers will find details at Risk Management Agency or Animal and Plant Health Inspection Service

As the growing season begins, Alston suggested farmers carefully monitor fields for rust, and stay abreast of local media reports and news from Cooperative Extension and the Illinois Department of Agriculture. Growers also should keep records detailing the date of rust’s emergence, and dates of fungicide orders and applications, for verification purposes.

If in doubt about accepted treatment options or record keeping, the insured should contact their insurance provider. Rain & Hail, the nation’s second largest purveyor of FCIC insurance are already fielding questions, said Jay Jacobi, Claims Quality Control Manager, Midwest Division.

“The biggest question we are getting is, What if (fungicides) can’t be applied?” Jacobi said.

Alston said producers should be certain there is a paper trail proving product or application service orders were placed, but could not be filled in a timely manner.

by  Editor, theCity1.com
January 21, 2005