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.
Area Risk Protection (ARP) is available only on barley, corn, cotton, grain sorghum, soybeans and wheat. One basic provision with three plans of insurance:
Area Revenue Protection (Similar to GRIP-HRO) Protection against loss of revenue caused by low prices, low yields, or a combination of both. This plan also includes upside harvest price protection.
Area Revenue Protection w/Harvest Price Exclusion (Similar to GRIP) Protects against loss of revenue caused by low prices, low yields, or a combination of both.
Area Yield Protection (Similar to GRP) Protection for production losses only. (Forage has yield protection only)
ARP will require production reporting.
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.