Student Board Brochure & Application

There are specific guidelines on what type of insurance is eligible for deferral. Farmers are not eligible to defer crop insurance proceeds related to the revenue portion of crop protection insurance. If you received insurance proceeds related to a Revenue Protection (RP) policy, you may not be eligible to defer. Farmers may still continue to defer crop insurance proceeds related to qualifying weather related events like droughts, floods, wind, hail, or frost. Farmers must incur a physical loss of yield from a weather related event in order to defer the income. If you received insurance proceeds related to both, only the portion associated with the weather related event is eligible for deferral.

If you have any questions regarding the deferral of your insurance proceeds, please contact your Tax Accounting Specialist.

“With the exceptionally hot and dry summer we have been experiencing, the presence in aflatoxin in corn is becoming a bigger concern,” said Eric Wiles, Crop Insurance Specialist with Frontier Farm Credit. “It is important to call your crop insurance agent if any presence is suspected.”

For production that will be stored on the farm or in commercial storage, the appropriate samples must be obtained by the adjuster (or a trained disinterested third party approved by the crop insurance company) prior to the production entering storage, because aflatoxin has the potential to increase in stored production. Other substances or conditions may also have the potential to increase in storage. If appropriate samples are not obtained prior to storage, such production will not be adjusted for quality due to a substance or condition injurious to human or animal health.

Checklist for an aflatoxin adjustment:

• Check fields
• If aflatoxin is suspected, contact your insurance agent to turn in claim (do not store until tested)
• Tell adjuster of aflatoxin concerns
• The adjuster will pull samples from field and send to an approved laboratory for third party testing
• If the level of the aflatoxin in the production is at a high enough level to qualify the production for quality adjustment, the production to count will be adjusted for quality.

The RMA discount factors for Aflatoxin are:
20.1—50.0 ppb = .100 Reduction to Yield
50.1—100.0 ppb = .200 Reduction to Yield
100.1—200.0 ppb = .300 Reduction to Yield
200.1—300.0 ppb = .400 Reduction to Yield
300.1 ppb & above = .500 or 0 factor. Reduction to Yield

A Frontier Farm Credit crop insurance specialist can be reached 24-hours-a-day, seven-days-a-week by calling (888) 598-8329.