Don't sweat not being a crop insurance expert, that's our job.
For growers, it can be mind numbingly complex and frustrating choosing a plan to protect a year’s worth of work and worry. If you have ever looked at a crop insurance quote, then you know the possible options can look like alphabet soup. Perhaps you have compared 70% YA,YC,YE,TA,EU to 65% YA,YC,YE,SE,OU. In addition, participation in STAX and SCO hinges on how each crop is enrolled in ARC or PLC at FSA. It is a lot to keep up with. Our job is to hear your needs and get you into a policy that covers them.
We can provide you with a solution that isn't complicated and has real protection power.
Yield Protection (YP) policies insure producers against a loss in yield due to unavoidable, naturally occurring events. What types of events qualify? In most cases it is adverse weather, fire by lightning, insects, plant disease, wildlife, earthquake, volcanic eruption, and failure of irrigation water supply due to a natural event.
YP polices guarantee a yield that is based on the individual’s Actual Production History (APH). The producer selects the amount of average yield he or she wishes to insure; from 50-75 percent (in some areas to 85 percent). The base price is 55 - 100 percent of the amounts determined in accordance with the Commodity Exchange Price Provisions and are based on daily settlement prices for certain futures contracts.
Revenue Protection (RP) policies insure producers against yield losses from the same events as in a YP policy and also revenue losses caused by a change in the harvest price from the base price. The amount of insurance coverage is determined by multiplying the desired level of average yield by the greater of the base price or the harvest price. The base price and harvest price are 100 percent of the amounts determined in accordance with the Commodity Exchange Price Provisions and are based on daily settlement prices for certain futures contracts. If the production to count multiplied by the harvest price is less than the amount of insurance coverage, the producer is paid an indemnity based on the difference.
Whole-Farm Revenue Protection (WFRP) provides a risk management safety net for all commodities on the farm under one insurance policy instead of insuring the crops separately. This insurance plan is tailored for any farm with up to $8.5 million in insured revenue, including farms with specialty or organic commodities (both crops and livestock), or those marketing to local, regional, farm-identity preserved, specialty, or direct markets and is available in all counties nationwide.
5 consecutive years of Schedule F or other farm tax forms (it must be possible to complete a Substitute Schedule F form if you filed farm tax forms other than Schedule F) are used to create the guarantee and claims are able to be settled after taxes have been filed for the insurance year.
- We have many policy options to maximize your coverage. Yield Exclusion, Trend Adjustment, Seed Endorsements, Yield Adjustment, and Yield Cups are just a few.
- The policy that is best for you can change from year to year. That’s why we go over a new quote before every growing season.
- We can explain the difference between Enterprise Units (EU) and Optional Units (OU) and why they matter to you, especially if you have some irrigation.
- We can also do Unit Divisions and Written Agreements to help optimize or obtain coverage in specific need situations.
- There is no reason not to have a policy that is custom tailored.