Aflatoxin corn

Every year about now I get several calls about how crop insurance regards aflatoxin in corn, so I thought it would be good to write a quick article about it.

Your crop insurance policy applies a reduction to the yield of the corn crop based on the level that aflatoxin exists.  Within the policy there is Discount Factor DF table that specifies how much to reduce the yield based on how much (parts per billion PPB) aflatoxin is present in the grain.  For example, your corn has a level between 50-100 ppb the DF is 20%, so you are producing 100 bushels per acre, it’s discounted to 80 bushels per acre and lets say your yield guarantee is 120 bushels per acre, you will be paid for 40 bushels at the appropriate price.

So what do you need to know this harvest season?

  1. If you suspect aflatoxin, collect a hand sample and carry it to a local elevator for testing either under a black light or a chemical test
  2. If corn is placed in storage without a test and comes out with aflatoxin, it’s not protected by your crop policy, it must be tested prior to going into storage
  3. Call your crop agent if you have any questions, its better to err on the side of caution
  4. Give Alliance a call if you need any guidance on this or any other issue this fall


Brian Montgomery

New Cotton Ginning Cost-Share Program

It was a while coming, but Agriculture Secretary Tom Vilsack made good on his promise USDA would provide a “meaningful” amount of ginning cost-share assistance to eligible cotton…..

Read the full article here.

Whole Farm Revenue Protection

Whole Farm Revenue Protection (WFRP) could help Farmers bridge the gap between their MPCI revenue coverage and their actual expected farm expenses/revenue in 2016. This new policy protects the farm by using the average farm income from 2010 – 2014 and considering intended planted crops for 2016. The genius of this policy is that 2010 – 2014 were high revenue years for most farming operations in the south, resulting from not only high prices but also high yields. Using those higher expected yields with today’s commodity prices, we can do a better job to protect the risk alongside the producer’s standard multi-peril revenue protection policy. The WFRP has many qualifications and details to consider so please contact Brian Montgomery at Alliance Ag Risk Management to help you navigate the process.