Viewing posts categorised under: Agribusiness

How to Reduce the Risk of Salmonella on Poultry Farms

Posted August 6, 2018 by Administrator

The CDC estimates Salmonella causes 1 million foodborne illnesses per year. Of those incidents, 19,000 result in hospitalization and more than 300 end in death. Individuals suffering from Salmonella often experience abdominal pain, diarrhea, and a fever. More often than not, individuals who contract the disease had multiple elements at play such as not cooking the poultry to the correct temperature. However, poultry farmers have a duty to reduce the risk and spread of Salmonella by adhering to best practices on the farm.

6 Ways to Reduce Bad Bacteria Contamination

Bacterial contagions come from a variety of sources. The most common include:

  • Water
  • Wild birds or pests
  • Visitors
  • Farm personnel’s hygiene and sanitation

To stop the spread of Salmonella on the farm, farmers and workers need to focus on the following areas:

  1. Cleanliness and hygiene. Growing houses are a significant source of contamination on farms. Workers need to ensure they clean these areas between flocks to prevent the spread of residual bacteria. Keeping pests such as flies and rodents under control can help with these efforts as well.
  2. Managing water sources. Water is an easy way for Salmonella bacteria to spread from bird to bird. Some tactics that prove effective are utilizing chlorinated water or organic acids.
  3. Reducing dust. Much like water, dust can contribute to the spread of Salmonella. Farmers should aim for dust levels at 3mg per cubic meter or less.
  4. Contaminated grains can result in Salmonella in the final feed product. Farmers should only purchase grain and feed from mills that adhere to rigorous quality control standards.
  5. Encouraging proper gut flora. Farmers need to establish a good gut flora balance in chicks within days of hatching. This can prevent Salmonella from colonizing them. Ways to achieve this include organic acids, enzymes, and yeast technologies.
  6. Cocci management. Coccidiosis is a disease that affects the intestines of birds and causes diarrhea. It also contributes to the spread of Salmonella so farmers need to implement effective controls to reduce instances of coccidiosis.

Raising healthy poultry free from contagion isn’t just a good farming practice; it also helps keep consumers in good health. Salmonella is just one of the risks poultry farmers have to manage. To learn more about protecting your poultry farm, contact the experts at Cline Wood.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

HOS House Bill Proposes to Alter Regulations for Livestock and Agriculture Haulers

Posted July 2, 2018 by Administrator

There have been a series of bills proposed this year that target Hours of Service (HOS) reforms in response to the Electronic Logging Device (ELD) mandate that went into effect in December 2017. The latest bill, filed in the U.S. House of Representatives on Thursday, June 21, 2018, aims to reform the regulations for livestock/agriculture haulers. The bill would also allow the Federal Motor Carrier Safety Administration (FMCSA) to move faster on any rulemaking that would provide drivers with split sleeper berth flexibility. The new rule would make it faster and easier for drivers to maintain records under the ELD mandate.

The new bill, called The Honest Operators Undertake Road Safety Act (H.R. 6178), was introduced by Representatives Sanford Bishop (D-Georgia), Rick Crawford (R-Arkansas) and Bruce Westerman (R-Arkansas). The bill is the first to be backed by the American Trucking Association (ATA) this year. The ATA announced its support for the legislation on Thursday.

The bill targets the livestock and agriculture hauling sector specifically, like other HOS reform bills filed recently. This bill provides relatively small reforms, instead of a complete overhaul of the HOS rules and regulations. The HOURS act would provide exemptions to truck drivers that are hauling livestock and agriculture commodities, allowing them to be exempt from HOS limits and duty status records. The bill, if passed, would apply year-round as long as the driver is within a 150 air-mile radius of the source of the livestock or agriculture product. Some of the other bills have included time-limitations during state-designated planting and harvesting seasons.

A big part of the HOURS Act is the reduction in supporting documents drivers would be required to maintain. Current regulations require drivers to keep at least eight supporting documents on hand for the previous 24-hour work period. HOS supporting documents include:

  • Fuel receipts
  • Bills of lading
  • Dispatch records.

The new regulation, if passed, would allow drivers to legally maintain only two documents per day, one verifying their start time and the other the end of their workday. The bill would also allow FMCSA to permit more flexible split sleeper options, such as 5-5, 6-4 and 7-3. Current regulations dictate a strict split sleeper berth time to 8 and 2 hours, for the required 10 hour off-duty period every 24 hours.

If FMCSA does propose a rule to alter split sleeper times, the HOURS Act would allow the agency to skip the required process of rulemaking and move directly to rule proposal and accepting public comments.

The HOURS Act would directly impact short-haul as well as long-haul drivers. A short-haul driver is defined as someone who operates within 150 air-miles of their work reporting location. Under the proposed bill, short-haul drivers would be exempt from HOS regs and the ELD mandate if they complete their work day within 14 hours. Current regulations allow this only for non-CDL drivers operating under the short-haul exemption.

To learn more about transportation industry news, trucking coverage and risk management, contact Cline Wood here.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

How to Manage Financial Risk on the Farm

Posted June 26, 2018 by Administrator

Managing a farm is a risky venture. Farmers can encounter production problems, environmental hazards, and financial risks. In fact, recent years underscored just how dramatically farming finances can fluctuate. From 2011 to 2014, farm income averaged $105 billion annually. By the close of 2015, this number plummeted to $56 billion. In an environment where profits can decrease by almost half in a short span of time, farmers need a solid plan in place to survive economic difficulties. The following suggestions can help farmers stay afloat during periods of financial uncertainty.

  1. Always pay attention to the little things. In prosperous times, it’s easy not to worry about the small stuff. A few extra dollars here, not getting the best deal there—it’s not concerning when cash flow is positive and ledger margins are in the black. However, when crunch times strike without warning, these behaviors will make a difficult situation worse. Making every dollar every day count can be the difference between surviving an economic downswing and folding under the pressure.
  2. Develop a reliable accounting system. Farmers can’t hope to build a successful agribusiness if they don’t track their finances with an appropriate system. Investing in enterprise accounting software can help farmers manage accounts payable, accounts receivable, billing, payroll, and more.
  3. Don’t rely on the value of the land. When the value of goods and services goes down so too does the value of land. Not only that, but land is not a liquid asset. Farmers can’t easily convert land into cash, and a rapid sale can result in a loss of profits. In addition, banks are less than impressed by real estate as a means of repaying loans. Instead, farmers should focus their efforts on products and services that generate cash so they can pay down debt.
  4. Make decisions. When the economy begins to turn, family businesses such as farms often feel the squeeze before major organizations operating on huge margins do. Many farmers feel crippled by the fear of making a wrong financial decision. However, inaction can prove much more lethal to a family farm than action can. For example, lenders will grow frustrated and less willing to work with farms that skirt their inquiries than those that at least respond. A willingness to navigate an uncertain future is much better than remaining frozen during an economic storm.

Managing finances on tight margins isn’t easy, but Cline Wood can help. As a top provider of agribusiness insurance, we go beyond providing coverage. We work with agribusinesses to understand their risks and implement strategies to manage them during difficult times. Contact us today to learn how we can help your agribusiness.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

How to Reduce the Likelihood of Sexual Harassment in Agribusiness

Posted June 13, 2018 by Administrator

Sexual harassment isn’t an issue that is unique to farming. However, the conditions common to farming present a significant number of opportunities and the victims often lack resources to make it stop. A significant portion of the problem occurs when farmers contract out their labor rather than hiring their workers directly. These farmhands are often unfamiliar with harassment laws or don’t know their rights. They also fear retaliation for speaking out so they remain silent.

How to Recognize Sexual Harassment

Sexual harassment isn’t always overt, as it can be verbal as well physical. It can occur before, during, or after working hours when a supervisor or co-worker makes unwelcome advances while operating within the scope of employment. Examples of sexual harassment include:

  • Unwanted sexual commentary, jokes, written notes, or derogatory remarks of a sexual nature
  • Unwanted and intentional touching of a sexual nature or on an intimate area of the body
  • Wielding a position of authority to extort sexual favors in exchange for a promotion or preferential treatment

Any sexual action that creates a hostile work environment opens an employer up to a sexual harassment lawsuit.

Employers’ and Supervisors’ Obligations to Farm Workers

Any authority figure on the farm needs to take pains to avoid committing harassing behaviors as well as identify and correct inappropriate employee conduct. Supervisors who fail to put a stop to sexual harassment can be held liable in a lawsuit for tolerating offensive behavior. As such, all farming operations need to have a complaint procedure that allows victims to report harassment without fear of retribution. Employers should also include at least one female employee as a complaint receiver as many female victims don’t feel comfortable reporting to a male.

Farms should also implement clear disciplinary guidelines for sexual harassment claims. By following procedures every time, employers can eliminate the perception of discrimination or preferential treatment. Employers should also follow up on any reports of harassment to ensure it actually stops. When cases of employee sexual harassment make it to the courtroom, judges consider if the employer learned about the problem as soon as possible, how the employer addressed it, and what steps the employer took to prevent it in the future.

Protecting Employees and the Farm

Farming operations accused of creating a hostile work environment due to sexual harassment can find themselves at the center of an expensive lawsuit. Farms often operate on tight budgets, and a lawsuit can be enough to shut it down permanently. While taking steps to prevent sexual harassment in the first place is key, farmers can also invest in insurance to protect themselves and their agribusiness. Contact Cline Wood to learn more.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

5 Serious Risks for Poultry Farms

Posted May 28, 2018 by Administrator

There are several risks involved with poultry farming. However, infection disease is the biggest and most concerning. That is why poultry farmers need to practice good biosecurity to reduce incidents of disease. The following are the most common sources of disease in poultry farming.

  1. The stock itself. The fowls can carry and transmit disease, dead birds in particular. Poultry farmers need to be careful when disposing of deceased animals to prevent the spread of infectious disease. Farmers should also take care when moving poultry stock from one area of the farm to another as this represents another opportunity for the spread of disease.
  2. Vehicles and farming equipment. Famers can unwittingly spread contagions by transporting and using contaminated equipment. For example, if a farmer transported dead birds in a wagon and then loaded that same wagon with feed later, disease may infiltrate the feed.
  3. The animals’ feed. Continuing with the above, feed can transfer disease in several ways. In addition to transporting feed in a contaminated vehicle, rodents can infiltrate it and leave behind disease. Farmers should take great care when transporting and storing their feed to prevent infection.
  4. People on the farm. Farmers may think only visitors pose a risk for spreading disease, but this is not the case. Any workers or individuals who live on the farm are also a threat. Anyone can transfer disease from their shoes as they come and go on the farm.
  5. Water. This is the main source for the spread of disease. Any feces that make it into the water can contaminate it and infect animals across the farm.

Farmers can take several steps to prevent the spread of disease. Implementing common sense biosecurity measures such as not allowing vehicles into the production area, situating production areas far from water sources, treating all drinking water before allowing animals to ingest it, and utilizing freezers for managing the disposal of dead poultry. There is no one simple method for preventing disease on poultry farms, but following the above practices can help. Contact the experts at Cline Wood to learn more about reducing risk on your poultry farm.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

Improving the Bottom Line for Agribusinesses

Posted May 14, 2018 by Administrator

Proper budgeting allows farmers to estimate their costs and profits for an upcoming production period. A solid budget will help farmers make decisions about their agribusiness as well as calculate their ability to achieve financial goals. These goals can include paying off or reducing debts as well as saving enough to make significant purchases for the farm. Budgeting is vital to completing business objectives because it provides a baseline. Without this reference point, farmers cannot hope to make improvements to their operation.

How Do Successful Farmers Budget?

The following are strategies prosperous farmers employ when managing their budget:

  1. Set goals. Budgeting should not be about breaking even. Budgeting allows farmers to visualize and achieve goals with a realistic margin. Goals can be short-term, such as producing more than the previous years, or they can be long-term, such as retiring within the next half-decade. Farmers who approach budgeting with a purpose will be better equipped to manage their agribusiness from year-to-year.
  2. Use budgets for daily management. A budget isn’t a one-and-done deal; it’s a living document that requires nurturing. Farming situations change and budgets should reflect this. Budgets allow farmers to make decisions such as planning for expenditures, making arrangements that will affect the next generation on the farm, etc.
  3. Make smart marketing decisions. Marketing in farming is not the same as marketing for a traditional office job. Farmers have to make decisions on when to sell crops, grain, etc. to ensure they remain in the black. While many companies approach marketing as a means to get rich quick, farmers use it as a method to avoid going in the red. Agribusinesses operate on thin margins and need to use their budgets to make sales decisions that keep their costs and profits in balance.

Budgeting is an effective part of risk management for farmers. In an industry that is often at the mercy of the weather, farmers need to take command of their budget to monitor the factors they can control. If your farm is struggling to manage its risks, Cline Wood can help. Contact us to learn more about assessing your risks and implementing strategies to mitigate them.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

Four Critical Skills for Running a Successful Agribusiness

Posted April 17, 2018 by Administrator

In previous decades, farmers only needed to know how to grow and sustain crops to be successful. Now, the ability to produce a product is a given in farming. With improved technology and communication, almost anyone can grow crops with a modicum of success. Standing out above the competition, however, takes much more work. Farmers now must possess growing power and business savvy to differentiate and remain relevant.

Business Skills and Leadership in Farming

Bringing business skills into the farming industry increases the complexity but also the rewards. Farmers can no longer only rely on their skills at cultivating crops. The following are just some of the areas farmers must learn to navigate to keep ahead of rival operations:

  1. Innovative finance administration
  2. Consumer research and marketing
  3. How to apply and use agricultural technology
  4. Risk management strategies

Risk management, in particular, is a multi-layered concept. Farmers must consider how to avoid risks as well as deal with them should they occur. For example, farmers can take several measures to prevent fires; however, failing to establish a system to manage the aftermath of a fire is foolhardy. Even with the best preventative measures in place, accidents can happen. That is why farmers need to incorporate a number of insurance policies to protect their farm. Failing to invest in insurance coverage can bankrupt a farmer and destroy his or her operation.

The time has come and gone where successful farmers only needed to be good at production. Farmers that fail to improve their business expertise will find themselves falling behind those that invest in marketing, technology, and more to protect their assets. Cline Wood can help struggling farmers navigate the changing landscape of the agriculture industry while putting safeguards in place to protect their farm. Contact us today to learn more.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

What You Need to Know About the Livestock ELD Exemption

Posted March 27, 2018 by Administrator

The Federal Motor Carrier Safety Administration’s (FMCSA) electronic logging device (ELD) mandate went into effect in December of last year. However, the effective date was not without some exemptions.

  • The mandate grandfathered in individuals driving commercial vehicles with automatic on-board recording devices (AOBRDs) through December 2019
  • Drivers operating vehicles manufactured prior to the year 2000 are exempt as well
  • Farmers and agricultural deliverers received waivers as well, exempting them so long as they were delivering agricultural commodities within a 150 air-mile radius

This final agricultural exemption, however, is set to expire on March 18. Farmers and agricultural haulers have submitted waiver extension requests, some as long as five years. The transportation Secretary Elaine Chao, however, has indicated a shorter waiver is more likely.

The issue with this looming expiration date is there is no indication when agricultural commodities transporters will receive this extension. While the answer remains murky, experts agree it is unlikely to come to fruition before the current exemption expires. This is a significant problem when considering the wellbeing of the livestock being transported.

HOS Regulations and Restrictions

Current hours of service (HOS) regulations limit drivers to 14 on-duty hours with no more than 11 hours of active driving in any given 24-hour period. Once a driver hits those numbers, he or she must stop and rest for 10 straight hours. This creates considerable difficulty for the animals and the driver relocating them.

Detractors point out that FMCSA set the HOS regulations for legitimate safety reasons. Allowing or forcing drivers to push beyond those limits can result in drowsy driving, accidents, and fatalities. The Department of Transportation (DOT) was not without sympathy for this conundrum, hence the original 90-day waiver. However, now that this waiver is about to expire, livestock transporters have little choice but to comply until the DOT agency releases the next waiver or enacts a long-term solution.

Solving the Livestock Problem

One proposed option is to plan routes with facilities that can handle livestock along the way. Even though this helps solve the problem of the animal’s wellbeing, it creates several other headaches. There are not enough of these types of facilities along common routes, meaning more would have to be built. This drives up costs for the livestock, which could be prohibitive. There are also other concerns such as security, the weather, and having the appropriate food and water on hand for the various animals.

While lawmakers continue to debate potential solutions, the agriculture industry needs to prepare for this shift. As a dedicated service provider to both the agribusiness and trucking industry, Cline Wood can help your business prepare for this change. To learn more about protecting your agribusiness, contact us today.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

Four Categories of Critical Agribusiness Risk

Posted March 12, 2018 by Administrator

Farmers and farmhands expose themselves to several risks on a regular basis. Some of the top threats include heat-related illnesses, vehicle hazards, fall hazards, and more. By familiarizing themselves with these risks, farmers and their workers can ward off injuries.

Heat Risks

Heat illnesses can prove lethal; however, they are 100% avoidable. Many farms are hot and humid, which puts workers at risk for heat exposure. Heavy lifting or wearing heavy protective gear can compound this risk so it is important that workers take the proper precautions to protect themselves from heat illnesses. Farmers and workers need to ensure they stay hydrated and rest often in the shade. Dehydration happens faster than many realize, so workers should try to drink water every 15 minutes even if they do not feel thirsty.

Vehicle Hazards

Vehicle injuries account for a significant portion of farming accidents every year. Farm tractors, harvesters, and ATVs all cause accidents on farms. Rollovers are one of the most lethal farming accidents. Equipping vehicles with roll bars or roll cages whenever possible can help save lives. Other safety measures include wearing a seatbelt, prohibiting passengers from riding in farming equipment, and only operating vehicles on the appropriate terrain (e.g. do not operate ATVs on streets or paved roads).

Fall Hazards

Fall hazards are not unique to farming. However, compared to other industries, farming experiences a much higher rate of fall-related injuries. To mitigate this risk, farmers need to take three steps. Identify fall hazards, assess the likelihood of an injury occurring from each hazard, and implement control measures to eliminate or minimize the risks. Examples of control measures include eliminating the risk, substituting the risk with a less hazardous option, isolating the risk to minimize the number of employees that must interact with it, utilizing personal protective equipment (PPE) to minimize the effects of the risk, and more.

Grain Bins and Silos

Compared to the above, grain bins and silos may not seem so threatening. However, these structures can combust, cause engulfment, or dust exposure. Of those three, engulfment is most likely to prove lethal. Moving grain acts like quicksand and can engulf workers, sometimes resulting in suffocation. Establishing procedures such as never walking across moving grain can eliminate this threat.

Farmers and workers that familiarize themselves with common hazards can take steps to reduce the likelihood of those risks occurring. Cline Wood can help farmers identify the risks that are unique to their operation as well as what steps to take to mitigate them. To learn more about farming safety, contact us today.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

What You Need to Know About the Crop Insurance Deadline

Posted February 26, 2018 by Administrator

Agricultural is a risky venture from several different standpoints. Weather events like hurricanes, wildfire, and drought can decimate crops; safety hazards such as grain engulfment, vehicle rollovers, and fall hazards lurk in every corner of the farm; and even the sun can pose a threat to farmers if they work too hard for too long during the heat of the day.

While farmers can control some of these risks by taking safety precautions, they cannot do much to prevent natural disasters. That is why crop insurance is so important. It can mean the difference between surviving an extreme weather event to plant again the next year and complete financial ruin.

Who Needs Crop Insurance?

All farmers need crop insurance, but young and new farmers need it the most. They are more leveraged than established farms. This makes them vulnerable to extreme weather because they cannot afford to lose a significant chunk of their income. Some weather events cause so much damage that it equates to an entire year’s worth of farming income. Without crop insurance, weather events such as droughts or natural disasters such as wildfires could wipe out an entire generation of new farmers.

Crop Insurance Deadline Approaching

Hurricanes, droughts, and wildfires accounted for more than $1 billion in crop insurance indemnities in 2017. Farmers need crop insurance to survive such costly and catastrophic events. However, farmers cannot insure crops at their leisure. The 2018 deadline for eligible spring crops is rapidly approaching. Farmers have until February 28 or March 15 to invest in crop insurance. The sales closing dates vary depending on the type of crops the farmer grows. The dates can also differ by county or state as well.

Regardless, the deadline is drawing nearer. Farmers need to insure their crops now to safeguard against natural disasters and extreme weather. As 2017 proved, no farm is immune to these events. Parts of the South, Midwest, Northern Plains, and California all experienced the devastating effects of these catastrophic incidents. To learn more about protecting your crops and your livelihood, contact the experts at Cline Wood.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.