How can my farm operation benefit from crop insurance?
Crop insurance can be used in many ways to benefit your operation. Each different product has its special attributes. You should find the product that fits your farm operation, needs and budget the best. Here are some of the benefits to the different types of coverage's available.
Revenue Protection (RP) guarantees revenue protection. These policies will allow you to safely take advantage of attractive forward contracts at profitable prices regardless of what time of year it is and regardless of how your crop looks. RP allows and supports a more aggressive marketing plan. Crops available for RP in Michigan, Indiana, Ohio and Wisconsin are Corn, Soybeans and Wheat.
Yield Protection (YP) is coverage that guarantees production and quality per section of ground. It also pays replant costs if replanting is necessary. The various crops covered will depend on the county and state they are located in. The following crops are available in most counties within each state, however you need to check with an agent who covers that state.
Michigan - Multi-Peril: Barley, Dry Beans, Corn, Nursery, Oats, Potatoes, Seed Corn Soybeans, Sugar Beets, Tomatoes and Wheat.
Indiana - Multi-Peril: Apples, Corn, Nursery, Oats, Popcorn, Potatoes, Seed Corn, Soybeans, Tomatoes and Wheat.
Ohio - Multi-Peril: Corn, Nursery, Oats, Popcorn, Soybeans, Tomatoes, and Wheat.
Illinois - Multi-Peril: Apples, Corn, Nursery, Oats, Popcorn, Potatoes, Seed Corn, Soybeans, Tomatoes and Wheat.
CAT is the lowest yield production insurance available. It gives 50% coverage and the cost is $300 per crop per county. A catastrophic loss is necessary to collect. If you are a landlord or have a low number of acres, there are other policies that are more cost effective.
Named Peril Insurance allows you to custom design your own policy with only the perils and time frame that you want. This coverage is good for vegetable crops with limited perils.
AGR is a Revenue Guarantee policy that covers crops that have no other type of insurance available, such as blueberries. AGR guarantees a percentage of your 5-year average gross income.
GRP is available only on corn, soybeans and wheat. This policy pays only when the yield of the entire county drops below the expected county yield. It requires very little paperwork and is tailored more for the grower whose yields move closely with or exceed the county averages. This policy could still trigger payment regardless of what your own crop yields.
GRIP is available only on corn, soybeans and wheat. This policy pays only when the NASS-calculated county revenue falls below the county trigger revenue. It requires very little paperwork and is tailored to fit the grower whose yields exceed the county average. In most situations, when an entire county's crop revenues are low, most farmers in that county will also have reduced revenues.
Hail Insurance is coverage based on a dollar level per acre basis at very competative rates. Our staff is experienced to discuss your operation's needs and suggest the coverage that will best fit your operation and your risk ability for your available budget.