C4-Lancastef Farming, Saturday, February 19, 2000
JOHN BERRY
Lehigh Co. Extension
Ag Marketing
The Income Protection (IP)
crop insurance program is design
ed to insure the producer against
reductions in gross income from
insurable reductions in yield or
price. This policy pays when the
harvested and appraised produc
tion, multiplied by the harvest
Jennifer McWilliams, right, SUN Area dairy princess,
gives the fourth grade students a tour of the milkhouse on
the dairy farm tour.
Sun Area Dairy Princess
Joins
Food For
BEAVER SPRINGS
(Snyder Co.)-In November,
Jennifer McWilliams, SUN
Area dairy princess,'joined
with the West Snyder FFA
Chapter to present a Food
For America program at
Beaver Adams and West
Beaver elementary schools.
The purpose of the pro
gram is to educate fourth
grade students about the
source of food in America.
McWilliams, along with SUN
Area Alternate Dairy Prin
cess Sandy Opdyke, spent
time explaining to the fourth
grade students about how
milk gets from the cow to the
grocery store.
Various dairy products
were also discussed with the
students. Following the class-
price, are below the IP guarantee.
IP projected prices are based on
the average of the daily futures
market closing prices for the
insured crop during the month of
February. IP uses the county yield
index to adjust IP premium rates.
The insurance is provided for an
“Enterprise unit” that includes all
acreage of the insured crop in the
county in which the insured has an
West Snyder
America Program
room presentation, all fourth
grade students toured the
dairy farm of Lester and
Barb McWilliams in Beaver
town.
Other West Snyder FFA
members who participated in
the program included Bran
don Herman, Heather Hol
lenbach, Doug Hollenbach,
Hannah Etzler, and Derek
Fetterolf. These FFA mem
bers presented information
on sheep, poultry, pigs, dairy
foods, and beef. They also
developed and played the
“Wheel of Food” game with
the elementary students.
“Wheel of Food” is a game
based on the TV game show
“Wheel of Fortune,” where all
the questions are on the topic
of the students’ food.
interest IP forms a straightfor
ward product for the protection of
a percentage of revenue.
IP is only available for com in
Pennsylvania.
How IP Works?
The IP dollar guarantee per acre
is calculated by multiplying the
approved APH ycild times the
Projected Price times the selected
coverage level. The approved
APH yield is calculated at the en
terprise level (all acreage of the
crop in the county). The Projected
Price is determined from the com
modity futures market contract
prior to planting (as defined in the
insurance policy). Coverage levels
range between 50 and 75 percent
for the IP policy. Producers may
elect the catastrophic protection
level and pay only the $6O admin
istrative fee. No premium is due
for the catastrophic protection
level. For the 1999 and subsequent
crop years, catastrophic risk pro
tection equals 21'A percent of the
approved yield times 100 percent
of the Projected Price.
An insured’s total guaranteed
dollar amount of protection is the
net acres of the insured crop (acres
times share) in the county multi
plied by the IP dollar guarantee
per acre. Indemnities are due
when the insured’s share of pro
duction to count (harvested and
appraised yields) multiplied by the
Harvest Price (as defined in the in
surance policy) is less than the IP
guarantee. If the yield loss is off
set by a price increase, or vice ver
sa, no indemnity payment is paid.
IP Projected and
Harvest Prices
Example 1.
Harvest Price ends up higher
than the Projected Price With a
57 Percent Production Loss.
BUY SELLTRADE
INI «J ■*- p "
X
FARM
EQUIPMENT
25000 KW Pincor, PTO
generator. NH 28 forage
blower w/gandy $l,OOO.
JD 4020 diesel power shift
fires. $B,OOO. Belting
wheels $1,200. Lancaster
Co. 717-738-3104. Call eve
nings 9: O'clock.
Loader w/forks, 2 bkts
off of lOOhp tractor.
F2L511 Deufz.
717-687-8266 8-B:3oam
MH Pony Tractor w/
Hand Operated Cultiva
tors, Exc Cond & Running.
Call After 6:00 PM
410-535-2419
Papec forage harvester,
hav pickup, 2RN com
head, field ready, $975
080. 717-328-9220.
Cose IH 3594 MFWD,
24-spd power shift, 182 hp,
cab, 4900 hrs, duals,
$17,500.717/336-7375.
B'/s' Lucknow snowblow
er w/truck spout, $2500
080. 717/872-1654.
MF 2705, 120 hp, factory
cab, 3200 original hrs, top
link, 540/1000 PTO, 24sp,
power shift, $7200. Del.
avail. 717-534-1253
Ml 6280 grasshead, 7' w/
guide sheels, $2OOO. NH
273 baler w/thrower,
$lBOO. JD 16A flail chop
per, $lOOO. 4R McConnell
cultivator, $lBOO. AC 60
combine w/bin 8< PTO,
$5OO. All good shape.
570-744-2081
j Shaver post drivers, 3pt
hitch complete, HCIO
*> —. $2150, HCB $1350. We can
deliver anywhere. Taney
town Farm Eq.
410/751-1500.
Approved APH yield = 70
bushels per acre
Coverage Level = 65%
Projected Price = $2.20 per
bushel
Harvest Price = $3 per bushel
Actual Production = 30 bushels
per acre
Crop Value = Production to
Count (times) Harvest Price - $9O
Revenue Guarantee = Approv
ed APH yield (times) Coverage
Level (times) Projected Price
IP Indemnity (return to crop in
surance coverage) = Revenue
Guarantee - Crop Value
$lOO.lO-$9O = $lO.lO
In example 1, the large yield
loss is partially offset by the in
creased price at harvest The re
sulting crop value of $9O is still
less than the Revenue Guarantee
by $lO.lO, so an indemnity pay
ment is made to the producer.
Example 2.
Harvest Price ends up lower
than Projected Price - With a 34%
Production Loss
Approved APH yield = 70
bushels per acre
Coverage Level = 65%
Projected Price = $2.20 per
bushel
Harvest Price = $1.35 per
bushel
Actual Production = 46 bushels
per acre
Crop Value = Production to
Count (times) Harvest Price =
$62.10
Revenue Guarantee = Approv
ed APH yield (times) Coverage
Level (times) Projected Price
IP Indemnity (return to crop in
surance coverage) = Revenue
Guarantee Crop Value $lOO.lO
- $62.10 = $3B
In example 2, a large drop in
price combines with a small pro-
PHONE: 717-626-1164 or 717-394-3047
FAX 717-733-6058
Mon.. Tues... Wed., Fri. 8 AM to 5 PM; Thurs. 7 AM to 5 PM
7040 AC tractor, power Farm J 501 3pt hitch log
shift, AC, cab, new wench, new cond. $3500
20.8x38 tires, axle mount neg. 570-675-1437
Case flrain ** 10'DD,
J 1 1,500- 717-866-7822 No y.good working cond.
Sunday calls $1050.610-932-0759
Generator: Cummins Kubota tractor wanted*
Onan 30KW dsl. genset, L 2850, L 3300 or L 3410
like new 156 hrs, all safe- GST/HST.4IO/429-4509.
ty switches, block heater, '
battery charger, 250 gal diesel, 55HP PTO,
fuel tank included, $5,395. 3pj h < 2 Post canopy, exc,
570-864-2558. $10,850,856-769-3183.
Spade Plow, hnants, 4'
w/harrow, good shape,
1-800-886-0272.
FORKS: 80 pairs of forks,
all sizes. SlOO/UP per pair.
410-335-4700
Kelly 30 backhoe attach
ment, 3pth, OBO.
JD F9lO frt mount
mower, Onan eng, 20hp,
52" cut $2,500 080. Call
Tony, Delaware Co
610-459-2944.
Heavy duty loader off of
Deutz tractor, $l4OO.
F2L912 Deutz rebuilt,
$2200. 717-687-8266
8-B:3oam
Clay manger ranger
electric feed cart, very
good cond., Oliver #546
semi mtd. plow 4 - 16"
(570)494-1571.
NH 791 Spreader, Like
New $6,000; MF 65 Trac
tor, 52HP, Gas, w/Multi
Power, New Eng $4,000
717-367-0349
Deutz AIBs SM7ORC dls
cbine, 10.5' cut, good
cond, $2500 now, or buy
at MM Weaver's auction
3/20.717-548-4144
JD 4050 1989 18.4x38
Tires, 4-Post Quad 5100
HR, .Sharp Tractor; JD 90
Skid Steer, New Engine 8<
Tires, 2 Yrs Recondition
ed; Nl 324 Tandem Axle
Spreader Hyd End Gate
Completely Recondition
ed, Hyd. Cyl., Good Condi
tion. 717-463-2394
IH 3088, 2400 hrs, 4-post,
orlg Goodyear radkds,
shed kept, like new,
$14,500; Artsway 475
grinder w/scale $2OOO.
610/767-1477.
1973 cab over IH tandem
axle tractor w/wetllne &
34' flatbed, $3OOO.
717-534-1253
Farmall A tractor, 6'
Woods belly mower,
front end loader.
610-367-0966.
IH D 361 engine out of 806,
new rings, bearings,
valve |ob, $2200; AC 2900
engine. $l5OO can hear
run. 302/492-1186.
Skid Mount Sprayer for
PU 300 Gal Tank, Scot
Pump w/Honda Motor,
40 Boom w/ Foam
Marker $l,OOO
610-593-6094
White 2-105, enclosed
cab, 2853 hrs, $12,000 obo.
Farmhand 6650 tub grind
er, good cond, $B5OO obo.
814-259-3997
12 Oliver 2 bottom plow
with 14" bottom ex. cond.
White Horse 2 way 14"
plow, complete overhaul
1 yr. ago, new controls
and bottoms, rebuilt frog,
new wheels and paint, ex.
cond. 814-349-5542 leave
message.
WANTED TO BUY: Scrap
metal. Highest price paid.
717-284-2800 Lancaster
Co.
duction loss to produce a calculat
ed crop value of $62.10 and an IP
indemnity payment of $3B per
acre.
Excluded Events
Exclusions are the same as the
MPCI policy. Additionally, cover
age is not available for high-risk
land.
Rating and Producer Subsidy
The rating method for Income
Protection reflects historic yield
variation and variation in gross
income due uto yield and price
movements during the crop year.
The rating model includes die cor
relation of national prices and
county yields. Income Protection
premium rates are based upon the
individual yield data reported, the
relationship of each of those
yields to the county average for
that year, and the Projected Price
level.
Since the subsidy is based on
the value of the 50 percent Income
Protection premium, individual
premium subsidies may be more
or less than would be paid for
MPCI. On the average, the pre
mium subsidy is expected to be
about the same as for MPCI.
Important Facts
The IP plan guarantees reven
ues, as opposed to the yields back
ed by the CAT and MPCI. How
ever, IP contains no feature for in
creasing revenue coverage if
prices increase, or provisions for
basic or optional units.
Where to purchase insurance?
This summary is for illustrative
purposes only. Federally subsidiz
ed crop insurance policies are
available from private insurance
agents. A list of crop insurance
agents is available at your USD A -
FSA county office or by contact
ing John Berry at 610-391-9840.
Brillion Seeder, 6'W dou
ble row Iron rollers,
$ 1,550. MontCo
215-885-5000.
1 OR 2 row sweet com
orpumpkin planters w/
JDMax-emerge units.
Pequea
717-442-4406.
Hydraulic pumps for IH,
Ford, MF. Also, available
some power steering
pumps for these tractors.
Brand new! MC/Vlsa
717-530-9459 6pm-9pm
Ford 4600, 16.9 -24, new
paint. Price $6,000. Call
856-455-3462.
White 2-135 with cab,
18.4x38. 2 hyd.. Price
$12,000. Call 856-455-3462.
Selling all equip. 890 NH
harvester, McCormick
hydraulic com binder.
1100 gal. ELS manure
spreader U cultivator,
grass mower combina
tion. To name a fewl John
L. Fisher, 1353 Mountain
Rd Manheim, PA
717-664-4857
IH 806 WF fender, 18.4x38
tires, 800-521-4336.
JD 175 loader, good, ioy
stick control.
717/445-6266.
Weaverline 424 stainless
steel feed cart, very good
cond, low hrs, $2,500.
814-334-5452.
Farmall W 9 parts. Berks
Co. 717/445-6426.
CIH 5130 cab, 4WD,
power shift, 4300 hrs,
$19,000. CIH 5130 2WD.
717-445-6720
AC Dl7 Gas, w/3-16"
Plows, 10' Springtooth
Harrow, 1957 Mdl, Good
Cond 8< Running.
410-535-2419
Wllmar fertilizer spread
er, 4 ton capacity, $l5OO.
610/593-6097.
Planter,