With advances in technology, it’s no surprise that cost savings is the number motivator for farmers when it comes to precision agriculture. Cost savings is also the primary reason that more and more farmers are using precision farming technology each year. Why? Because automated data collection saves time and is critical to your bottom line. As you may have heard by now, starting June 25, 2018, the U.S. Department of Agriculture (USDA) will launch an electronic acreage reporting pilot program.
The goal of the pilot is to test new technologies aimed to reduce the administrative burden for producers by allowing the producer, their agent, or their ag service provider to report acreage directly to the USDA. Data received will be shared with their Farm Service Agency (FSA) county office and their crop insurance company. What does this mean for farmers? You will soon be able to use your own precision ag data with MyAgData to create and submit your acreage reports in advance of your meeting with the FSA or your crop insurance agent.
One thing we have been promoting for some time now is the cost savings associated with basing crop insurance acreage reporting on acres captured and easily available in his or her precision ag planting monitor. Based on our past findings with similar pilot programs, farmers have paid 4.7% less crop insurance premium because they are paying based on their actual planted acres. Being the curious ag tech professionals that we are, we sat down with the Risk Management Agency’s online Cost Estimator (RMA) and did some math to determine what the cost savings might actually look like.
We presumed the producer signed up for a Revenue Protection policy for 500 acres of field corn, and 200 acres of soybeans. These are far from being actuarial numbers, but they are based in part on the experience gained over a few years of our own research. And as the RMA themselves say, the Cost Estimator only provides a general premium estimate. It is important to contact your crop insurance agent and refer to your policy for specific information regarding insurance coverage, actuarial information, conditions, and exclusions. Your actual mileage may vary.
Here are some projected cost savings for farmers in four counties before and after using the MyAgData app:
Are you ready to simplify your acreage reporting and see firsthand how automated data collection can improve your bottom line? Visit our website to schedule a free demo of the MyAgData app.