March 18, 2019 | Updated: April 15, 2019
The corn salvage benefit that is included in the Production Insurance plan for corn now provides coverage that more accurately reflects the extra costs associated with harvesting, handling and marketing corn damaged by DON (deoxynivalenol).
These updates will take effect for the 2019 program year. These changes do not apply to 2018 crop.
On March 18,
the government announced improvements to the salvage benefit that take into account the higher costs farmers face as DON levels increase, with organic corn now included.
With that in mind, customers will see a new tiered approach to the corn salvage benefit, with benefit amounts rising as DON levels increase. This tiered approach not only reflects the increased costs associated with higher DON levels, but it also aligns with the industry's practice of segregating affected corn by DON level.
In 2018, the corn salvage benefit paid customers $0.79 per eligible bushel of corn. To be eligible, DON levels had to exceed 5 ppm. Customers can now receive compensation for DON-affected corn starting at 3 ppm and are eligible to receive higher compensation for higher levels of DON.
The table below describes the new tiers and the benefit amount for each tier.
Starting this spring, Agricorp will provide more details to customers about the enhanced corn salvage benefit. For details about the Production Insurance plan for corn,
contact Agricorp, or visit agricorp.com.