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Corn salvage benefit to cover DON crops

Corn salvage benefit to cover DON crops

Agricorp’s coverage will assist with DON crops over five parts per million

Staff Writer
Agricorp’s corn salvage benefit will provide farmers with coverage for corn crops that have elevated DON levels, a Wednesday agency release said. 
Farmers will be eligible for coverage for harvested crops with DON levels over five parts per million (5 ppm). The program aims to assist growers in covering costs required to harvest and market infected corn, or costs associated with using affected yields as feed. 
To be eligible for the corn salvage benefit, a farmer’s combined sum of bushels below 5 ppm plus the bushels covered by this benefit cannot surpass a grower’s guaranteed protection through Agricorp. 
Customers will receive a payout of $0.79 per eligible bushel of DON crops.
Agricorp will use customer documentation, such as weigh slips and DON testing levels, to determine eligibility. Customers will receive payment once yields are finalized. 
Agricorp provides example calculations for DON crop scenarios in the release. One scenario is detailed below. 
“Scenario 1: Total yield of corn below and above 5 ppm is less than the guaranteed production
Your guaranteed production (GP) is 10,000 bushels.
Your total yield is 9,000 bushels.
6,000 bushels are under 5 ppm and 3,000 bushels are over 5 ppm.
“Your salvage benefit is calculated as follows:
“Salvage benefit = total bushels of corn over 5 ppm x $0.79
= 3,000 bu x $0.79
= $2,370
“Through Production Insurance, the corn salvage benefit would cover 3,000 bushels, totalling $2,370, which would help the producer achieve a total yield of 9,000 bushels. The producer would also receive a production claim on the 1,000-bushel shortfall from their guaranteed production.”
Farmers must be aware of marketing options and their claim positions prior to finalizing decisions about crops with high DON levels. “High yields may offset low yielding fields due to DON and result in no payment,” the article said.
To best support a Production Insurance Claim Investigation, growers must take representative samples, complete DON level testing, and consider all options. Producers should also check to see which markets are available, decide whether to store an infected crop, file an insurance claim, and know how the corn salvage benefit operates, Agricorp recommends.
Growers with elevated DON corn crops should follow up with Agricorp about their final decisions. has reached out to agronomists for comment.
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