Crop insurance change coming in 2012

By Matt Reese

The crop insurance industry is letting farmers know well ahead of time to expect an important change this year in the payment deadline.

“For years, the crop insurance bill was sent out on Oct. 1 and as long as it was paid in 30 days, there was no interest attached. For 2012, the billing date has been moved up to Aug. 15,” said Jason Williamson, with Williamson Insurance Agency. “With the Aug. 15 date, the bill is still due within 30 days. So, by Sept. 15 that bill will be due. We have gotten it to where, until Oct. 1, there will be interest attached. This change was a result of the 2008 Farm Bill and it is now taking effect in 2012.”

The concern is that a late harvest could create a cash flow crunch when the payment is due for crop insurance. Williamson does not want any surprises this fall when the crop insurance bill comes.

“It is going to put us under a crunch this fall,” he said. “The first year, when everybody is used to getting a bill on Oct. 1, we’re trying to make sure these guys do not get wide eyes on Aug. 15 when that bill comes.”

For more from Williamson, here is the interview with Ty Higgins.

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