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September deadlines set for SURE buy-in, other programsKansas A calendar turned to September means one thing to many farmers: it will soon be time to plant winter wheat. This year, however, September is the month for a couple of key deadlines. Sept. 16, for example, is the deadline for producers to request a waiver and pay a "buy-in fee" if they do not carry the necessary crop insurance to qualify for Supplemental Revenue Assistance Payments, or SURE--a new disaster program included in the 2008 farm bill. Because the 2008 farm bill was not finalized until deadlines had passed to sign up for crop insurance, the U.S. Department of Agriculture is offering the one-time waiver in exchange for the "buy-in fee." Art Barnaby, Kansas State University agricultural economist and risk management specialist, says that in Kansas, "Crops are not crops until they are in the bin. Therefore, for growers with 2008 wheat losses or if they expect to have a large number of fall harvested crop acres, the best suggestion is to pay the $100 NAP fees on pasture and other uninsured crops." NAP refers to the federal non-insured crop disaster assistance program. Farmers should check with their U.S. Department of Agriculture Farm Service Agency office to make sure all of their crops are covered with either crop insurance, NAP or Catastrophic Risk Protection, also called CAT. "There is a real lack of information for farmers trying to make informed decisions before paying 2008 NAP and CAT fees to be eligible for SURE payments on 2008 crop losses," he said. "It is important that producers have all fees paid to maintain eligibility for SURE coverage on their fall 2008 crops. Clearly, there are still weather perils that could destroy fall harvested crops and the SURE payment would be helpful," he added. Barnaby said he is telling producers that saving a couple of hundred dollars is not worth the risk: "That is about two tanks of gas for your pickup," he said of the premiums to ensure the coverage. SURE, which could be viewed as free disaster aid, covers 2008 crops and 2009-2012, Barnaby said. Yet, to be eligible for crops next spring, farmers must pay the NAP for uninsured crops, such as hay, pasture and forages. SURE has the potential to be a very good risk management tool for farmers who primarily grow one crop, and less advantageous for diversified farmers who grow a number of crops. "Because there are so many unknowns and one will likely not have answers before the Sept. 30 (wheat) sign-up deadline, the best suggestion I have is to buy the level and type of crop insurance you planned to buy on wheat without considering SURE," he said. More information on these and other risk management topics are available on the K-State Agricultural Economics website: http://www.agmanager.info. Wheat growers should also be advised that the 2008 sign-up period for the program that offers producers direct and counter-cyclical payments ends Sept. 30. Also, the sign-up deadline for crop insurance for fall-planted wheat falls on Sept. 30. Wheat growers should contact their local FSA offices for more information on all of these programs. 9/8/08 Date: 9/4/08
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