\ . Wl I , v'l'il vjJ^-ofK-.j I&—Lancaster Farming. Saturday. July 21, 1973 Co. Tobacco Farmers Split *20,387 Insurance Some 61 Lancaster County farmers shared a total of $20,387 in crop insurance indemnity checks sent out recently by the Federal Crop Insurance Cor poration. “These were farmers that had the foresight to protect their crop investment against the hazards of nature, according to Ed Gamber, Jonestown, local marketing supervisor for FCIC. Federal All-Risk Crop Insurance is operated on a non-profit basis for farmers in over 1400 counties in the United States as an agency of the U.S. Department of Agriculture. Losses on the 9172 Lancaster tobacco crop were caused mostly by excess rain, followed by drought, a condition that may well again occur this year. Claims for the 1972 tobacco crop were settled on an average price of 46 cents per pound, ac cording to Gamber. Lancaster County is in the unique position of being the only county in the United States that insures tobacco on the basis of the guaranteed pounds times an average price to determine the insurance coverage per acre. The guaranteed pounds are considered the “cost of production pounds” and when multiplied by the average price should approximate the farmers investment to produce the crop. This formula is essential to arrive at a means of setlement since Lancaster County has no tobacco quotas and no support price. In other areas the support price is used as a means of determining the indemnity. The main drawback to the Lancaster County method is that even though the farmer delivers his tobacco to the warehouse early in the year. He still has to wait until at least 90 percent of the crop is delivered to the warehouses before the average price is 105? We Deliver LP-Gas No matter where you live, you can count on us to service LP-Gas needs fast and efficiently. determined. coverage on Lancaster County tobacco for the 1972 crop was $524.40 per acre. (1140 cost of production pounds times the 46 cents average price). The ap proximate cost of insurance was $7.75 per acre, less up to 25 percent discounts for good cropping experience. Since the early 1940’s until the end of the 1971 crop year ac cumulated premiums on Lan caster tobacco amounted to $905, 304 and idemnities paid back to farmers amounted to $780,042 or a loss ratio of 86 cents to the dollar. This is lower than the 89 cents loss ratio established for wheat in Lancaster County which is surprising to many farmers since they think wheat losses are few since the crop is less hazardous to grow The main difference lies in the premium cost per acre which on wheat is very low; in fact, it is a real bargain at present planting costs. Depending on the election a farmer makes, which determines the amount of protection he needs, premiums vary from a low of $1.20 to a high of $2.30 per acre. In return for this investment he has a guaranteed return from a low of $21.50 per acre to a high of $59.00 per acre from his wheat crop on a harvested basis. These rates are subject to good ex perience discounts which on wheat go as high as 50 percent of premium. Farmers can now enroll for protection on the 1974 wheat crop with the premium due when the crop is harvested. Enrollment is essential before the crop is planted. John J. Herr, of the Mount Joy area is the Lancaster County field representative. Anyone desiring further details on All-Risk Federal Crop In surance should contact Fieldman Herr. He is in a position to determine an insurance plan for each individual farm. Farmers wishing to report crop damage should contact the Pennsylvania District Office at 1721 Whiteford Road in York, Penn. 17402. This office has the contract files for all insured farmers and serves the nine county, Pennsylvania area in which Federal Crop Insurance is available. XXXX Farmers received only 40 cents of every dollar Americans spent of farm-produced foods at the store in 1972. xxxx Did you know that farmers receive only seven cents for every dollar spent on corn flakes’ ■