In this issue...
Crop Sense
September 2022
Valued Agencies, Business Partners and Friends, Happy New Year! Often times a new year is indicative of a new beginning, a fresh start or resolution for improvement. While those concepts are exciting and inspiring, the truth is...innovation and improvement are already woven into our very foundation and core strategies here at Hudson Crop. Therefore, while 2022 may inevitably yield a variety of new products, services, strategies and ideas, our “resolution,” if you will, is unchanging – no fresh start necessary. We are dedicated to staying true to our core values by operating with efficiency, creativity and fiscal responsibility while providing our customers with superior customer service, improved efficiencies and accuracy through the continuous development of technology, procedures and training. Integrity and honesty are a top priority and non-negotiable in our unique culture. We are humans and mistakes happen, but it’s how we make corrections and plans to avoid them in the future that preserves our strength as an organization. We will maintain our strong underwriting discipline and diversified footprint of business, with the objective of withstanding any one...
Read more...
In the summer of 2014, Hudson Crop employees gathered to review and update the company’s Vision and Mission. The conclusion of that exercise has not only provided all employees a clear picture of what we want to accomplish as a Company, but has also become an integral part of our culture. First, employees agreed that our vision is “to be the most trusted agricultural risk management partner” with a mission “to be the leading crop insurance provider for agents and agricultural producers by offering the most innovative portfolio of private products and technologies, by delivering outstanding customer service and support and by creating long-term profitability for ourselves and our risk management colleagues.” The vision and mission defined several years ago has become a daily reminder of the purpose and responsibility that each Hudson Crop employee has in their roles as we continue to service our agents and farming communities across the United States. The summer of 2014 set the foundation for the largest growth in the Company’s history this year, as well as the ninth consecutive year a profit share was paid to qualifying agencies. With growth, more responsibilities and increased...
President - Hudson Crop Insurance Services, Inc.
Dan Gasser
Vice President - Director of Operations
Andre Virgilio
to generate solutions, create opportunity and provide value.
Working hand-in-hand
CROP SENSE
Legal and RMA Statements
Tools & Tech
true to our core
What would you like to read about in the next edition of Crop Sense? Tap/click on a Communications team member’s name to submit your suggestions!
Lexi Schroeder Sr. Marketing Comm. Specialist Courtney Coombs Marketing Comm. Specialist
Hudson Crop | (866) 450-1445 | HudsonCrop.com
LIVESTOCK
Innovation
marketing
Equal Opportunity
If you’ve been with the Hudson family for some time now, then you’ve stood witness to our “Making Lemonade out of Lemons” mentality and approach to service. When many companies and businesses retreated as the world underwent unprecedented challenges the last few years, we leaned in. While several adopted a “one-size-fits-all” solution, we personalized and customized across the board. And well… we’re still “squeezing that lemon,” if you will. What Hudson customers and employees have experienced the last couple of years is truly our core values at work. We’ve always held our values at the forefront, but when we are faced with hurdles, some never seen before, that is when the rubber meets the road. We talk a lot about culture and values within our walls...
INNOVATION
Senior Marketing Communications Specialist
Lexi Schroeder
Valued Agencies, Business Partners and Friends, Another reinsurance year is in the books and we’re proud of the growth realized in 2022 – not only of our business footprint, but also the incredible team of individuals servicing it. Sizable growth was experienced in the Upper Midwest/Corn Belt and Citrus in the Southeast, with targeted PRF in Q4. Particularly noteworthy are the advancements of the Hudson Livestock Program. We’ve built a team of individuals specialized and dedicated to servicing Livestock in a reliable, professional and expert manner. This team and their efforts allow Hudson Livestock agents to rest assured business is taken care of at all hours of those offbeat, yet critical sales cycles, less common to the MPCI sales cycles. Speaking of our team, I’m particularly excited by the initiatives within our Claims and Compliance groups as they continue...
A Letter from Dan
Over the past couple years, much of the world has seen a significant shift in how (or equally so, where) we work. Hudson Crop is making strides to ensure flexibility and ease of doing business. Based on feedback from our agents and insureds, we’ve been making enhancements to eHarvest®... Have you checked out our latest addition to the Hudson Crop Marketing Collateral collection? Our “Crop Insurance Decision Guide” measures 8.5 x 11 inches folded and opens up to an easy-on-the-eyes 11 x 17 inch view of various MPCI products and their specifications*.
TOOLS & Tech
The crop insurance program is a public/private partnership between the USDA’s Risk Management Agency and approved insurance providers (AIPs) like us! With this partnership comes a critical responsibility to educate our customers and equip them with resources to conduct business in a fair, equal and non-discriminatory manner, especially for those “underserved communities.” A brief update on Hudson’s latest initiative to uphold this critical duty… Hudson Crop recently formed a committee dedicated to advocating for the education of and outreach to Tribal communities as it relates to the crop insurance industry and various career opportunities within. This committee is comprised of individuals from various departments, expertise and demographics - some also with Tribal heritage...
EQUAL OPPORTUNITY
As Hudson Crop continues to champion the importance and strength of the agent/grower relationship, we are pleased to announce that we are partnering with MyAgInfo™ to introduce agents to Carbon Credit, a new platform that will allow agents to provide a financial opportunity to growers interested in offsetting CO2 emissions by evaluating their current and future farming practices... As I sit here today writing this article, I am watching 2023 new crop futures contracts for the “big 4”-corn, cotton, soybeans and wheat bounce around continued historical highs. What is also bouncing around historical highs are the related input costs the American farmers are incurring to produce the crop to feed and clothe not only the U.S...
Marketing
The advantages of partnering with the Hudson Livestock Team are undeniable for agencies and agents alike. No matter your agency size, we have the necessary resources that create a streamlined, successful experience. How do we do what we do? Technology, program expertise and years of experience working in the livestock industry. We tie everything together with maximum effort put forth on your behalf. The importance of providing agents with an exceptional experience is seemingly obvious, yet the extent to which agent support truly influences an agent’s success is often overlooked…but not at Hudson. As they say, the proof is in the pudding, and the effectiveness of the after-hours livestock service we provide is apparent in our agents’ numbers. Our team knows speed is critical. You are not interested in moving at a snail's pace while the competition moves forward. ...
As drought and impending water supply issues continue to impact several areas of the country, we want to urge agents and insureds to familiarize themselves with Irrigated Practice Guidelines... Growers in the Northern part of our region found themselves in the middle of a long, drawn out, cold and wet spring that delayed access to fields in some areas past the final... Given this “whirlwind” of a year in terms of weather events and claims, we sat down with Area Claims Supervisor (TX, OK and NM), Ronnie Buchannan, to learn how he and his team tackle a challenging claim load, not only in “anomaly years,” but day-in-and-day-out.
CLAIMS
Hudson Crop strives to provide superior customer service and ensure our partnering agents have everything in place to grow. We understand that FCIC and state requirements can be confusing so we’ve merged our Training and Licensing departments into a newly formed “Agency Services Department” to better assist them! Our Agency Services Department staff is committed to ensuring your path to success is clear of any roadblocks. It is comprised of six dedicated team members who have been cross-trained on entry of agency and agent required documentation, such as contracts, commission schedules, disclosures, licenses, competency exams and training. All team members monitor the department’s email inbox, AgencyServices@HudsonInsGroup.com, to ensure documentation received is processed quickly and accurately and questions are answered timely.
Agency Services
Introducing an all NEW Department
Announcing Carbon Credit Pilot Program
Examining the Inputs Side of MP
MFA Coming Soon
Online Bill Pay – Upcoming Enhancements
MPCI Decision Guide
Navigating Prevented Planting in the North
Navigating Texas Claims
Irrigation Guidelines
A Letter from our president
Lisa Loe
Dan's Letter
Hudson Crop exists and operates to provide its business partners and associates with sustainable growth and profitability by operating with efficiency, creativity, and fiscal responsibility while providing our customers, the agent, with superior customer service, improved efficiencies and accuracy through the continuous development of technology, procedures and training.
OUR CORE STRATEGIES
To be the leading crop insurance provider for agents and agricultural producers by offering the most innovative portfolio of private products and technologies, by delivering outstanding customer service and support and by creating long-term profitability for ourselves and our risk management colleagues.
OUR MISSION
To be the most trusted agricultural risk management partner.
OUR VISION
A Letter from our President
Valued Agencies, Business Partners and Friends, Another reinsurance year is in the books and we’re proud of the growth realized in 2022 – not only of our business footprint, but also the incredible team of individuals servicing it. Sizable growth was experienced in the Upper Midwest/Corn Belt and Citrus in the Southeast, with targeted PRF in Q4. Particularly noteworthy are the advancements of the Hudson Livestock Program. We’ve built a team of individuals specialized and dedicated to servicing Livestock in a reliable, professional and expert manner. This team and their efforts allow Hudson Livestock agents to rest assured business is taken care of at all hours of those offbeat, yet critical sales cycles, less common to the MPCI sales cycles. Speaking of our team, I’m particularly excited by the initiatives within our Claims and Compliance groups as they continue the innovative exploration of the use of drones in their daily activities. It’s a true reflection of our ongoing commitment to innovation in technology, efficiency and ease of business. As for Hudson Crop as a whole… we remain dedicated to staying true to our core values by operating with efficiency, creativity and fiscal responsibility while providing our customers with superior customer service, improved efficiencies and accuracy through the continuous development of technology, procedures and training. Integrity and honesty are a top priority and non-negotiable in our unique culture. We maintain a strong underwriting discipline and diversified footprint of business, with the objective of withstanding any one geographic catastrophic event and positioning ourselves to achieve an underwriting gain, in constant pursuit of paying a profit share to eligible agencies – as we have every year since 2013. In summary, we continue every day to do what is best for our agents, farmers and ranchers, employees, business partners and organization by practicing the core, common sense fundamentals of “doing business.” This simple principle is what organically led us to become and stay Agents’ AIP of Choice. Thank you for placing your trust in Hudson, and we look forward to what 2023 holds. Dan Gasser President - Hudson Crop Insurance Services, Inc.
Moo-ving the Needle
The advantages of partnering with the Hudson Livestock Team are undeniable for agencies and agents alike. No matter your agency size, we have the necessary resources that create a streamlined, successful experience. How do we do what we do? Technology, program expertise and years of experience working in the livestock industry. We tie everything together with maximum effort put forth on your behalf. The importance of providing agents with an exceptional experience is seemingly obvious, yet the extent to which agent support truly influences an agent’s success is often overlooked…but not at Hudson. As they say, the proof is in the pudding, and the effectiveness of the after-hours livestock service we provide is apparent in our agents’ numbers. Our team knows speed is critical. You are not interested in moving at a snail's pace while the competition moves forward. When you choose Hudson as your livestock partner, speed is a non-issue, due to the aforementioned technology and extensive program/industry knowledge. We approach every issue on a case-by-case basis, creating solutions for anything our agents encounter. Additionally, we are your eyes and ears for navigating the complexities of the RMA-administered programs. Hudson's livestock program has a near-zero error rate, and we maintain a close relationship with the RMA, making it easier to clear errors efficiently and accurately. Growth derives from collaboration and teamwork. Every Livestock Team member has the same goal, to grow the business by doing an exceptional job. Our chief priority is to do what we said we will in order to help the agent succeed in the Livestock insurance markets.
As Hudson continues to grow, our processes and systems are becoming more efficient by the day. The eHarvest® Livestock dashboard has been streamlined as a result of our unrelenting efforts to improve the user experience. Our quoting software provides a more efficient way to choose the best coverage in order to protect your farmer’s/ranchers’ investment in the event of a price drop before their animals go to market. We also offer eSignature, allowing producers to sign documents digitally for faster processing. Our excellent on-demand training allows agents to meet the RMA LRPA requirements for all livestock programs. The agricultural markets remain volatile, and our dedication to ongoing improvement of services and tools will prove vital in this fast-paced marketplace. When you partner with Hudson Livestock, you are backed by a team that knows what they are doing – plain and simple.
Coming Soon: Multi-Factor Authentication in eHarvest
Over the past couple years, much of the world has seen a significant shift in how (or equally so, where) we work. For those that worked in offices prior to Covid-19, many companies have taken on hybrid schedules that allow their workforce the opportunity to work from home part time. The rise in remote work, coupled with always-prominent concerns regarding data security, has prompted the Hudson Crop IT team to add Multi-Factor Authentication (MFA) to our eHarvest® login process. Multi-Factor (or 2-Factor, or 2-Step) Authentication relies on more than just a username and password to verify a user’s identity before providing access to a device or website. By relying on multiple factors, such as combining something you know (a password or PIN) with something you have (a smartphone or smartcard), the risk of unauthorized users accessing accounts is minimized. Passwords are often repeated across multiple sites or written down in notes on or near computers and may be easily cracked by hackers. With MFA, hacking a user’s ID and password to a site will not be enough for someone to gain access they should not have. All Hudson Crop employees started utilizing MFA to sign into eHarvest in 2021. Recently for 2022, we have successfully started switching designated groups of our agents over to the new MFA login process. This login change for agents will continue to take place over the course of the next few months until we have all eHarvest users signing on with MFA. Agencies will be contacted in advance of their users being switched over and will receive detailed steps of the quick MFA registration process. Individual users will receive an email notification of their login change two weeks in advance. Until Hudson Crop IT contacts your agency, users should continue logging into eHarvest as you normally would. Should you have any questions or concerns regarding this upcoming change, please reach out to us.
Crop Insurance Systems Specialist II
Clair Toews
MPCI Product Decision Guide
Have you checked out our latest addition to the Hudson Crop Marketing Collateral collection? Our “Crop Insurance Decision Guide” measures 8.5 x 11 inches folded and opens up to an easy-on-the-eyes 11 x 17 inch view of various MPCI products and their specifications*. On the reverse, a group of expert Hudson Crop marketing and sales team members collaborated to produce an “Additional Endorsement & Options” section for consideration when making those critical sales closing decisions. While one can easily view, download and/or share the digital copy (see left) at any time, Hudson-licensed agents can also request hard copies from their Hudson Crop Sales Representative to use when meeting with their farmers. Its heavier stock makes it durable enough to use, reuse and take on-the-go, while its smooth finish allows for dry-erase notes and mark-up when evaluating each producer’s unique risk management needs. This piece is unlike any other in our artillery, and we hope you find this comprehensive format valuable in your customer service efforts! *Courtesy of National Crop Insurance Services.
RESOURCES Crop Insurance Decision Guide
Hudson Crop is making strides to ensure flexibility and ease of doing business. Based on feedback from our agents and insureds, we’ve been making enhancements to eHarvest® that are setting the stage for two upgrades to our Online Bill Pay platform. Starting in fall 2022, we will expand our Online Bill Pay features to include Pay As Guest and Credit Card payment options. We currently offer two ways for insureds to pay their premium online, either by 1) a grower creating an account and making their own payments, or 2) calling in their premium payments by phone to their contracted Hudson Crop agent. While these features will remain in place, the feedback received was that the existing payment options are limited due to the fact that the current options require someone (either the grower or the agent) to have an eHarvest account or pay from a checking or savings account. The following provides a brief description of what is coming for Online Bill Pay. 1.) Pay as Guest: This new feature will allow a person who does not have an eHarvest account, such as a farm manager or an accountant, to make a one-time premium payment online for a grower. In order to make the payment on behalf of the grower, the person making the payment will simply need to have the grower’s bill in hand, the grower’s banking information and enter verification data from the bill. 2.) Credit Card Payments: Credit Card payments will also be accepted in the roll-out of these upgrades. Card processing fees and interest must be assumed by the insured...
Other Online Bill Pay and Transactional Reminders: • MPCI, Private Product and Livestock policies are available for Online Bill Pay. • In the event of an RMA audit, funding sources for premium payments must be proven as valid accounts owned by the insured named on the policy(ies). • Banking account information is not required to be stored in eHarvest/myHudson, and users may make one-time payments each time they login. However, the option to save banking account information for future payments is available for users. • We also offer direct deposit options for claim payments so growers do not have to wait for a paper check in the mail. Agents may set these up for their growers as requested after signing an acknowledgment form for system permissions.
Dan Gasser - President, Hudson Crop Insurance Services, Inc.
National Compliance Reviewer
Jackie Schooler
Please reach out your Hudson Crop marketing representative with questions or for more information on our tools and technologies.
As drought and impending water supply issues continue to impact several areas of the country, we want to urge agents and insureds to familiarize themselves with Irrigated Practice Guidelines. While these documents are issued to the insured annually, let’s take this opportunity to review the fundamentals. First and foremost, the insured must have the ability to carry out a “good irrigation practice.” This is defined as the application of adequate water in an acceptable manner, at the proper times, to allow production of a normal crop, which is identified as the APH yield. Additionally, the insured must have a Reasonable Expectation of Adequate Water supply, which is the source and means for supplying irrigation water when insurance attaches. No reasonable expectation exists if the insured knew, or has reason to know, the amount of irrigation water may be reduced before coverage begins. Insureds must be able to document and demonstrate the following as a part of the irrigation assessment:
Several factors are considered when determining whether or not the insured had a reasonable expectation of adequate water and whether a good irrigation practice was carried out. These questions and answers are completed by the adjuster and the insured VIA the use of the Irrigated Claims Guidelines and Questionnaire. The Questionnaire is a series of questions that will help document whether or not all requirements were met. Approved Insurance Providers (AIP) must take the following actions if failure to qualify for or carry out a good irrigation practice is determined: The Loss Adjustment Manual also speaks to several more issues as it pertains to irrigation and related issues. The information in this article is simply a brief summary of the Irrigated Practice Guidelines and a friendly reminder to become familiar with all policy provisions, terms and requirements as it related to Irrigation. Lastly, we always encourage insureds to report a Notice of Loss as soon as possible in the event of any damage. The sooner the better!
VP - Director of Operations
National Claims Manager
Rob Young
• Reasonable expectation of water • Good irrigation practices • Adequate irrigation equipment and facilities • Documentation (by the Acreage Reporting Date (ARD)) that the irrigation water supply has replenished • Separate production records for each practice
• If the acreage fails to qualify for insurance under the irrigated practice, it will result in such acreage being insured under a practice other than irrigated. If no other appropriate practice is available for the acreage, insurance will not be considered to have attached on the acreage. • Failure to carry out a good irrigation practice on acreage properly insured under the irrigated practice will result in an appraisal for uninsured causes on such acreage, unless: o The failure was caused by unavoidable failure of the irrigation water supply after insurance attached; or o Failure or breakdown of the irrigation equipment or facilities due to an insured COL, provided all reasonable efforts to restore the irrigation equipment facilities to proper working order within a reasonable amount of time, unless the AIP determines it is not practical to do so. • Note: Cost will not be considered when determining if it is practical to restore the equipment or facilities. • If a loss is evident, any reported acreage qualifying as an irrigated practice at the time insurance attaches cannot be revised to a non-irrigated practice after the ARD, even if liability remains the same or decreases, or if the insured failed to carry out a good irrigation practice.
Jaya Hahn
Regional Claims Manager - Northwest Region
Managing Prevented Planting in the North
Growers in the Northern part of our region found themselves in the middle of a long, drawn out, cold and wet spring that delayed access to fields in some areas past the final planting dates for their planted crops. With a cause of loss common to a sizable area, the Hudson Claims staff began preparations in early June for a large number of prevent plant (PP) claims. The Prairie Pothole region is no stranger to the planted, harvested and insured (in one of the prior four years) requirements that are now nationwide. Hudson adjusters were able to utilize our integrated mapping system and APH histories to determine maximum payable acres by CLU for each section on our insureds’ policies prior to knowing the results of our insureds’ planting progress. This “homework” on the front side really speeds up the claims process once Acreage Reports are completed and maintains Hudson’s position as a leader in claims service for our agents and insureds. The last week of May and early June proved favorable for planting progress in the region. Growers were able to change planting intentions on-the-fly, and much of the acreage ended up with a planted crop. Whole fields of PP were uncommon at the end of planting for many of our insureds, but several fields saw partial planting and resulted PP claims work for our staff. We are currently well on our way to closing the final PP claims for the year, and agents and insureds alike are pleased with Hudson Claim’s ability to help them navigate a trying planting season.
Regional Claims Manager
Glenn Anderson
The Adjuster is a vital piece of the claims equation. Our expectations for accountability, knowledge, diligence, good communication and customer service are very high. We also provide all of our field staff with a high level of support through excellent training and supervision. Perhaps one of our most impressive stats is our turnover rate. In the past five years, we have lost one adjuster to a competing Approved Insurance Provider (AIP) – just one! In today’s world, that is extremely impressive and virtually unheard of. This tells us that Hudson is not only the AIP/employer of choice, but that our staff is loyal, motivated and takes pride in the work they do. I will wrap this up by sharing some of the agent feedback received from in the past year (names redacted): • “The Claim Supervisor is available 24/7 and is always very helpful or can get my question answered right away.” • “I have complete respect and trust for the Claim Adjusters in my area. They are very thorough, great with the farmers and very knowledgeable.” • “I just trust Hudson more.” Going into 2022, we look to raise the bar even higher as our staff continues to grow. We are always seeking to enhance our technology to increase our efficiency both in the field and in the office. Know that as our business and staff increases, you can rest assured that we are intentional about maintaining this extraordinary culture.
Agency Services Manager
Shelley Simonson
MEET THE TEAM
Over the past 15 years, Shelley has periodically served agents, adjusters and insureds. She has developed and facilitated numerous hours of engaging training, accurately tracked and monitored licensing, training and exams for agents and adjusters, in addition to auditing claims for accurate payment, creating use-cases, testing newly developed technology and creating clear, concise end-user documentation.
Shelley Simonsen: Agency Services Manager | SSimonsen@hudsoninsgroup.com
Jennifer’s 10-year career at Hudson Crop has allowed her to become an expert on policy transfers, agent commissions, contracts and FCIC and state licensing requirements for both agents and adjusters. Her extensive knowledge of eHarvest® is invaluable and why she is one of our go-to leaders for user access and permissions here at Hudson Crop.
Jennifer Oren: National Licensing Manager | JOren@hudsoninsgroup.com
Lexi started her crop insurance career at the front door of customer service. She’s served agents and Hudson Crop staff alike by helping them reach the right person with the right answer. Her five years as a Hudson Crop Licensing Specialist has built a strong foundation for her to assist with any agency and agent profile questions that come her way.
Lexi Hughes: Licensing Specialist | EHughes@HudsonInsGroup.com
Leesha’s personal farm and agency background makes her a valuable asset to our team by helping us see every situation from the customer’s perspective. Her expertise in ‘all things’ State Continuing Education allows Hudson Crop to provide numerous opportunities for agents and adjusters to receive the needed training credits to safeguard their license renewals.
Leesha Heins: Training Specialist | LHeins@HudsonInsGroup.com
For nearly five years, Randi’s eye for detail has been essential in the development of accurate training and marketing resources for agents, adjusters and staff. Her dedication to learners is evident in her passion while facilitating training, both in-person and online, and her commitment to ensuring questions are answered.
Randi Cole: Training Specialist | RCole@HudsonInsGroup.com
Although newer (one year) to the world of crop insurance, Arielle’s enthusiasm for Hudson Crop and its partners is obvious. Her willingness to jump in head first has helped her quickly master data entry and documentation to get training attendance recorded promptly and ensure commissions are tracked accurately.
Arielle Wierda: Agency Support Specialist | AWierda@HudsonInsGroup.com
Department Goals:
As a team, we endeavor to make your crop insurance journey as smooth as possible. We commit to walk hand-in-hand with you to help ensure your training and licensing requirements are met with quick and accurate documentation. We aspire to be your crop insurance trainer of choice and make it a priority to meet as many of your training needs as we can, whether that be live, in-person trainings or various online avenues.
REMINDERS:
It is the responsibility of the agent to keep training, exams and licenses up-to-date and submit certificates and renewals in a timely manner. Expired exams or licenses or missing training hours could prevent policy processing or create policy suspensions. Please send a copy of all certificates and renewed licenses to AgencyServices@HudsonInsGroup.com All agents must submit an annual Conflict of Interest (COI) form and an annual Controlled Business form. These forms may be completed electronically within the eHarvest Processing System dashboard.
As Hudson Crop continues to champion the importance and strength of the agent/grower relationship, we are pleased to announce that we are partnering with MyAgInfo™ to introduce agents to Carbon Credit, a new platform that will allow agents to provide a financial opportunity to growers interested in offsetting CO2 emissions by evaluating their current and future farming practices. The MyAgInfo platform was created by AgWorks to deliver a comprehensive agricultural portal and suite of decision support tools to producers, crop insurance agencies and agronomic affiliates. The MyAgInfo suite offers robust, custom-designed tools that enable farmers and agricultural professionals to make more informed operating decisions in an increasingly complex and competitive industry. As many companies are expressing a desire to better manage their carbon emissions, there is an opportunity for growers to sell carbon offsets, which enables a company to market themselves as environmentally conscious to their customers. While it is nearly impossible to become carbon-neutral in the short-term, many companies are willing to pay growers that provide detailed farming records and allow the verification of soil samples for current carbon offsets as part of their “green” initiatives. Farmers and ranchers willing to provide details of their current and evolving farming practices can financially benefit from “selling” their carbon offsets with a prorated five-year payment plan. This includes, but is not limited to, the types of crops grown in a given year, cover crops utilized between plantings, tillage implements to lesson soil disturbance, use of nitrogen and time of application, along with soil measurement specifically tested for carbon capture. Agents that educate and involve growers in the Carbon Credit Pilot Program to list their carbon credits on a national registry for purchase will also be awarded referral commissions commensurate with the amount of work they wish to provide the data management platform. Growers are required to sign a contract so that they better understand that their carbon offset is payable over a five-year period and that data will be collected each year to maintain the carbon offset. The grower and agent are not responsible for soil sampling fees...
Growers that are utilizing effective use of nitrogen, cover crops, low till or no till farming, have adequate farming records and the willingness to allow soil sampling (at no cost to them), can financially benefit from their farming operations alongside an agent being paid a commission for such referrals. Hudson Crop is excited to begin our pilot program during the month of September. While the carbon offset value of credits continues to be attractive to growers, we also see how the collection of such data could evolve into climate smart farming in the near future. Such initiatives could allow growers to market their crops directly to companies willing to pay premium pricing to show consumers that their environmental commitment to the farmer and consumer is strengthened by their willingness to offer higher purchase pricing for these commodities. As our enthusiasm for this program continues to develop in the coming months, I encourage you to reach out to your Hudson Crop Regional Sales Manager for additional information regarding this financial opportunity. Carbon offsetting initiatives will continue to grow in popularity, and the price of the carbon offset will continue to increase in value as customers become more aware of companies taking an environmentally favored approach in their business.
Director of Marketing Support
Jeffrey VanLandingham
Hudson Crop Announces Carbon Credit Pilot Program
The crop insurance program is a public/private partnership between the USDA’s Risk Management Agency and approved insurance providers (AIPs) like us! With this partnership comes a critical responsibility to educate our customers and equip them with resources to conduct business in a fair, equal and non-discriminatory manner, especially for those “underserved communities.” A brief update on Hudson’s latest initiative to uphold this critical duty… Hudson Crop recently formed a committee dedicated to advocating for the education of and outreach to Tribal communities as it relates to the crop insurance industry and various career opportunities within. This committee is comprised of individuals from various departments, expertise and demographics - some also with Tribal heritage. It has met with RMA team members to brainstorm the best ways to both align with and supplement the efforts already in motion by the RMA. When meeting with the RMA team members, RMA Administrator, Marcia Bunger expressed, “This is my love, my passion. I had an extreme amount of help along the way, and any help was welcomed and valued from my perspective. When we look at the diversity of loss adjusters and crop agents right now, it’s disappointingly low. Therefore, my hope is that as we (RMA) begin to roll out these efforts, AIPs like Hudson strive to provide the Tribal community and all underserved communities with the same opportunities as current crop insurance agents.” At the forefront of Hudson Crop’s Tribal Outreach initiatives are three chief priorities: 1) Sensitivity training for all employees; 2) To gain an understanding of the primary struggles of and best tools/resources for Tribal individuals; and 3) Build trust with and educate those individuals on the myriad of opportunities within the crop insurance industry.
Fostering Equal Opportunity
Additional resources to encourage and provide equal opportunity: The "And Justice for All" Civil Rights poster must be prominently displayed in all offices who are recipients of federally assisted programs, including AIPs and their contracted agencies. This required poster should be displayed in the specific size of 11" wide x 17" high. This size requirement relates to a problem where the poster's text becomes small and almost unreadable when printed in a typical printer's print size of 8.5" x 11". If you need copies, please contact your Hudson Crop Regional Sales Manager or the Overland Park, KS office, and we will mail additional copies to you. If English is not your primary language, we have free resources available to help you and your customers understand the crop insurance policy(ies). “I Speak” cards can also be provided upon request. Listed at the bottom of this article are some of the translation resources currently available. However, if you/your customers are in need of other languages or custom-translated resources, please reach out to info@hudsoncrop.com. Title III of the Americans with Disabilities Act (ADA) requires public accommodations to provide goods and services to people with disabilities on an equal basis with the rest of the general public. The goal is to afford every individual the opportunity to benefit from our country’s businesses and services, and to afford our businesses and services the chance to benefit from the patronage of all Americans. We strongly encourage our affiliates to review the and formulate a written Accessibility Accommodation Plan for your offices. can also be used as a reference in developing your plan.
And Justice for All
Language Assistance
Accessibility Accommodation Plans & ADA Requirements
Helpful Resources
• And Justice for All Poster
• Language Assistance Poster
Click to download the most recent (Sept. 2019) high resolution PDF.
ADA requirements
A checklist for existing facilities
• Filing a Program Complaint
• Reach out to info@hudsoncrop.com for available Ethics Training opportunities.
• “I Speak” Card
If you’ve been with the Hudson family for some time now, then you’ve stood witness to our “Making Lemonade out of Lemons” mentality and approach to service. When many companies and businesses retreated as the world underwent unprecedented challenges the last few years, we leaned in. While several adopted a “one-size-fits-all” solution, we personalized and customized across the board. And well… we’re still “squeezing that lemon,” if you will. What Hudson customers and employees have experienced the last couple of years is truly our core values at work. We’ve always held our values at the forefront, but when we are faced with hurdles, some never seen before, that is when the rubber meets the road. We talk a lot about culture and values within our walls. They’re posted in our corporate office training rooms and appear in several marketing materials, online platforms and communications, but it’s how we carry those values out in our daily work activities and interactions that assign legitimacy. The last few years afforded us opportunity - opportunity to level up, rather than conform or coast. A necessary piece of the Hudson puzzle, one often overlooked by many organizations, is the recognition of different customer types. While it’s no secret that Hudson promotes an “agent first” culture - always keeping the well-being of the agent, farmer and rancher at the forefront of any decision – it may not be known that Hudson recognizes another type of “customer” on a daily basis… its employees. We’ve all heard the phrase, “Employees are a company’s most valuable asset,” but when faced with unprecedented working environment needs, it can be easy to lose sight of that. Once again…Hudson leaned in. By adapting, accommodating, understanding and investing, Hudson GREW in numbers, rather than losing those valuable assets. Not only in the thick of the pandemic did leaders and management adapt, but they continue ‘til this day practicing the open-mindedness required to have a trickle effect of happy employees to happy customers. Rather than snapping back to the “pre-pandemic practices,” new ideas were entertained and even adopted....
From 2020 to current, Hudson Crop grew in terms of business as well as employee force. We added several teammates and even created strategic new positions and departments! Some examples of those changes include: the promotion of Jeffrey VanLandingham to Director of Marketing Services, the hiring of Ron Zarr as National Field Services Manager, the merging of Licensing and Training into the “Agency Services” department, as well as the addition of several Project Management team members specially dedicated to various departments and initiatives within the organization. These are just a few of the many organizational changes made to support our unique, customized approach to service and our sizable business growth. The Hudson family knows the possibilities here are endless. There are opportunities across all departments as we continue to grow, and that peace of mind results in satisfaction that trickles down to our agents, farmers and ranchers. What’s more? We’re still looking! We’re looking for talented individuals to join our team to service our growing business from coast-to-coast. If you or someone you know believes Hudson could be a good home for them and their skillsets, we encourage them to reach out. The future of our offerings, service and team is exciting – be part of it!
Squeezing that Lemon
As I sit here today writing this article, I am watching 2023 new crop futures contracts for the “big 4”- corn, cotton, soybeans and wheat bounce around continued historical highs. What is also bouncing around historical highs are the related input costs the American farmers are incurring to produce the crop to feed and clothe not only the U.S., but the majority of the world. Seeing high prices can be exhilarating, but at the same time, we know those high prices are pushing more financial risk on to the balance sheets of U.S. farmers to be able to produce the crop. As their most trusted business advisor, they will be looking to their crop insurance agents for any available tools to assist in mitigating this additional risk, and Margin Protection (MP) coverage may be one to discuss with those in the pilot area.
National Accounts Manager
Carmen Mescher
• N is commonly used in several forms: anhydrous ammonia, 28% and 32% liquid nitrogen which are UAN solutions made of up Urea, Ammonium, and Nitrate. Anhydrous Ammonia and UAN solutions are the most widely used forms of Nitrogen for corn and soybeans. Urea is used more commonly for wheat, but in specific areas, urea use on corn is increasing as environmental concerns surrounding anhydrous arise. Despite being actually used less than other forms of Nitrogen, the nitrogen cost used in Margin Protection is Urea. As you can see there is a potential disconnect between one of the products used on corn/soybeans in the field versus the product used to protect corn/soybeans in the MP product. The lack of available Anhydrous or 28/32 publically trading indexes makes urea most compatible for the MP product, as it is a publically-traded index on the CME. It is important for farmers to understand this if they are purchasing MP on corn/soybeans to manage their expectations around what fertilizer products are being covered by MP. The product affords price mitigation protection; but not in direct correlation to what actual price fluctuations may be at the farm level when using Anhydrous and 28/32. • P is commonly used in DAP (diammonium phosphate) and MAP (monoammonium phosphate). The phosphate cost used in MP is DAP for corn and soybeans and MAP for wheat. • Potash is the fertilizer form for potassium, and this is also used in MP. it’s important to note the potash price used in the MP product is tracked as a projected price during the August 15-September 14 discovery period, however, it does not change and is held constant at harvest price discovery period, so the price remains static from projected to harvest.
Exhibit 3 analyzes which fertilizer products have to be imported from areas outside of the U.S., and due to current world conditions, may make the supply vulnerable, which could correlate to significant price fluctuations as we approach the product purchase and applications seasons.
• Potash, at present, appears to be the fertilizer source with the possibility of being the most vulnerable to supply/demand price volatility. Four nations account for 80% of potash production: Canada, Russia, Belarus, and China.
MP was first introduced as a pilot program for Corn, Soybeans, Spring Wheat and Rice. The product offers the ability to protect not only revenue at an area level, defined as a county, it also affords protection on several major input costs, including Urea, DAP, MAP, Potash, Diesel and Interest rates. Hudson Crop recently collaborated with University of Illinois - FarmDoc to examine the input side of the equation as it relates to the MP product, primarily the fertilizer components since they tend to make up the majority of the input costs. To gain an understanding of how the product might afford risk management protection, let us first look at the current fertilizer situation.
Exhibit 1 shows the three major sources commonly referred to as “N, P and K” vital to U.S. crop production. These highlighted products are included as fertilizer inputs subject to change in the MP product-Urea, DAP/MAP and Potash.
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Exhibit 1
Exhibit 2 shows historical price trends for all MP fertilizer components, as well as anhydrous ammonia. These are farmer-paid cash price indexes comparing the September time frame, which is a common month for producers in the pilot area to consider the purchase of inputs.
Exhibit 2
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Exhibit 3
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Historical US import sources for potash are -Canada (75%), Russia (10%), and Belarus (8%). Potash is an area of vulnerability for US producers and particularly given the reliance on Russia and Belarus as import sources and geopolitical events in that region. • Nitrogen may also present an opportunity for some additionally significant price volatility - not necessarily because of the product itself, but its reliance on natural gas supplies to produce the product. Together China and Russia produce more than 1/3 of the world’s ammonia. The U.S. is the next largest producer of ammonia. Not only is the US one of the world’s leading producers of ammonia, but also one of the world’s top consumers of ammonia. Over the last five years, the U.S. has produced 80-90% of the ammonia consumed domestically, so the U.S. is not heavily reliant on imports to fulfill demand. Almost all the ammonia imported by the U.S. comes from Trinidad and Tobago and Canada. Natural Gas concerns: o Top Nitrogen producing nations often have the largest capacity of natural gas, like China, Russia, and the U.S. o Europe is heavily reliant on natural gas from Russia. With the Russian invasion of Ukraine there is a lot of uncertainty in natural gas production and trade flows. Coordinated sanctions imposed on Russian exports of natural gas by the US, Europe, and other allies have led to a major shift in trade flows. Without Europe as a destination, China has benefitted from expanded access to Russian natural gas, and at a bargain price.
The US imports 94% of the potash used in US crop production. Historical US import sources for potash are -Canada (75%), Russia (10%), and Belarus (8%).
o The US has been become the world’s top exporter of LNG (liquid natural gas), with 71% of US LNG exports going to the European Union and Britain during the first five months of 2022. • This is a 12% increase in exports in the first half of 2022 compared to last half 2021. • If this results in lowered ammonia production, it could put added pressure on nitrogen fertilizer prices. In summary on the subject of inputs, the MP product does assist in managing some of the price fluctuation risk associated with three of the major fertilizer input supplies. As a reminder, MP also affords risk mitigation for interest rates and diesel, which were not covered in this article. Now we come to the looming question, “Which will make the move downward first - commodity prices or input prices?” Exhibit 4 shows the correlation between the historical drivers of increased input costs, one being natural gas, and the primary driver being corn prices. Urea is included in the chart – it is the fertilizer input product in the MP coverage and signals a trend similar to Anhydrous Ammonia.
The natural gas price is the Henry Hub price in ($ per million BTU). This is a bellwether price in the natural gas price and is a spot price for natural gas in a pipeline in Earth, Louisiana. CME natural gas futures contracts clear on the Henry Hub price. This is for North American price. Anhydrous ammonia is the price paid by Illinois farmers. The corn price is a national corn price collected by NASS. • Natural gas: higher natural gas prices are associated with higher nitrogen fertilizer prices
Exhibit 4
• Corn prices: higher corn prices are associated with higher fertilizer prices, more important than natural gas prices If commodity prices follow the historical trend of moving downward first, the higher coverage levels of 95% and 90% afforded by MP may make it a worthwhile consideration for growers in the upcoming growing seasons as a way to mitigate risk on both sides of the ledger—revenue and inputs. At present, no other crop insurance product affords this benefit...
Another benefit to consider is the producer’s ability to carry an underlying base policy (RP, RP HPE or YP) in addition to MP to secure both individual and area-based coverages during these “historical times.” The article focuses on the three major input components included in MP, but there are many other factors and dynamics of the product to consider when meeting with producers. Please reach out to your Hudson Crop Regional Sales Manager for more information and to review the sales and analysis tools we offer to sort through product benefits. Remember, the sales closing date for MP is September 30, 2022.
1 Schnitkey, G., N. Paulson, C. Zulauf, K. Swanson, J. Colussi and J. Baltz. "Nitrogen Fertilizer Prices and Supply in Light of the Ukraine-Russia Conflict." farmdoc daily (12):45, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, April 5, 2022. 2 https://farmdocdaily.illinois.edu/2022/04/nitrogen-fertilizer-prices-and-supply-in-light-of-the-ukraine-russia-conflict.html 3 US Department of Agriculture, Agricultural Marketing Service 4 https://pubs.usgs.gov/periodicals/mcs2022/mcs2022.pdf 5 https://www.reuters.com/business/energy/us-becomes-top-lng-exporter-first-half-2022-eia-2022-07-25/ | https://www.forbes.com/sites/thomasduesterberg/2022/07/07/historic-shifts-in-russian-energy-flows-bolstering-china/?sh=2bacf90e2423 6 FarmDoc
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I’ve lived here my whole life. I farmed here 28 years before adjusting crops, and I’ve never seen it this hot. 2011 was a hot one, but this year is extremely hot and unrelenting. Our dryland crops are gone. Sure, it’s disheartening, but it will pass – we Texans know that. This year will likely result in 2,000-2,500 total claims for Hudson. R: Our group is pretty accustomed to a heavy work load. They start usually in March with wheat, then continue into each crop as they come of age. This year, we started earlier, and considering the insured price of cotton, we have an extraordinary number of claims that will be high dollar, resulting in compliance review needs. We typically identify early on those policies that need an APH review, but this year we assigned a new procedure to handle the heavier load. Compliance assigned one field reviewer to every two claims adjusters. The adjusters knowing exactly who their designated reviewers were, turned out to be hugely helpful. Reviewers were able to schedule in a more organizational manner. Sure, we had our difficulties, but that teamwork was key. When you have as many agents, adjusters, and insureds in the mix, organization is vital to keep everything streamlined. It helps Compliance and Claims to be a well-oiled machine, and we received great response from the field on this new approach. R: I’ve been with Hudson since 2011 and have always felt that “farmer friendly environment” from the very beginning. That’s the real “Hudson Difference” I’ve noticed. We have a great reputation, and it’s because of our rapport with the growers. Every adjuster that we hire has either farmed or had agricultural experience, which allows them to look at claims from different angles. They have a better directive because they’ve lived/experienced it. Hudson is exceptional at taking anomalies and either presenting solutions or providing the resources to produce solutions. That’s another unique characteristic of Hudson. We have a great customer service reputation, yes, but it starts at the top in our corporate office and trickles down to the adjusters.
Given this “whirlwind” of a year in terms of weather events and claims, we sat down with Area Claims Supervisor (TX, OK and NM), Ronnie Buchannan, to learn how he and his team tackle a challenging claim load, not only in “anomaly years,” but day-in-and-day-out. R: Even in a normal year, we tend to have a very large area with larger claims to handle, averaging 1,000-1,500 claims. Hudson insures quite a large number of irrigated acres, with some non-irrigated acres as well. Drought is typically the number one peril as these summers have been extremely hot. Texas always has wind, but when you have 100 to 115 degrees on top of the hot wind, that makes it worse. It really affects plant growth in cotton, grain sorghum and shallow root crops. R: This year really started in the winter of 2021. We had no winter deep moisture profile, so we were lacking that moisture to carry us into this year. September 2021 was the last time the U.S. had real measurable rain. If there is no rain until May, that’s a foundation for a dry year, resulting in our team already adjusting wheat on the 15th of March. On top of that, we walked into a continued drought this summer. We have pockets of moisture, but our July had roughly 29-30 days where the temps were 100+ degrees. Tag on the normal Texas wind of 25-30 MPH, it hurts pollination and dries out irrigation. Drought and hot wind go hand-in-hand. You just won’t maintain moisture when you’re getting beat down with heat and wind. Texas can be really good or really bad – there is really no in-between. Even the irrigated acres are very dependent on rainfall in the summer. When wells are running 24/7 and pumping from an aquafer, they tend to fail, because they need time to recharge. It’s been hard to keep up with the irrigation. People think irrigated acres shouldn’t have losses, but in reality, you can’t stay ahead of the moisture demands when the crop starts fruiting.
Q: Describe the year we’ve had thus far.
Q: Describe a typical Texas year.
Q: How have you and your team had to adjust or deviate from the “norm” this year?
Q: Despite the obvious and necessary differences in the U.S. regions, can you speak to the overall consistency of the Hudson Claims Team operations?
NON DISCRIMINATION STATEMENT: Hudson Insurance Company is an equal opportunity provider. In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices and employees and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and compliant filing deadlines vary by program or incident. The information contained in this publication is provided for informational purposes only and is not provided as a substitute for advice from legal counsel regarding the content or interpretation of any law, regulation or rule. The information provided shall not revise, supplement or alter an insurance policy in any manner, nor is it intended as a substitute for advice from a risk management expert or legal counsel you may retain for your own purposes. All coverages underwritten by Hudson Insurance Company. ©2022 Hudson Insurance Group. Hudson Insurance Company is an equal opportunity employer.
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