Ag Insurance Products
Actual Production History (APH)
Actual Production History (APH) policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease. The producer selects the amount of average yield to insure; from 50-75 percent (in some areas to 85 percent). The producer also selects the percent of the predicted price to insure; between 55 and 100 percent of the crop price established annually by RMA. If the harvested plus any appraised production is less than the yield insured, the producer is paid an indemnity based on the difference. Indemnities are calculated by multiplying this difference by the insured percentage of the price selected when crop insurance was purchased and by the insured share.
Yield Protection policies insure producers in the same manner as APH polices, except a projected price is used to determine insurance coverage. The projected price is determined in accordance with the Commodity Exchange Price Provisions and is based on daily settlement prices for certain futures contracts. The producer selects the percent of the projected price he or she wants to insure, between 55 and 100 percent.
Revenue Protection policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease, and revenue losses caused by a change in the harvest price from the projected price. 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 projected price and the 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. The amount of insurance protection is based on the greater of the projected price or the harvest price. If the harvested plus any appraised production multiplied by the harvest price is less than the amount of insurance protection, the producer is paid an indemnity based on the difference.
Revenue Protection With Harvest Price Exclusion
Revenue Protection With Harvest Price Exclusion policies insure producers in the same manner as Revenue Protection polices, except the amount of insurance protection is based on the projected price only (the amount of insurance protection is not increased if the harvest price is greater than the projected price). If the harvested plus any appraised production multiplied by harvest price is less than the amount of insurance protection, the producer is paid an indemnity based on the difference.
Catastrophic Risk Protection Endorsement (CAT Coverage)
Catastrophic Risk Protection Endorsement (CAT Coverage) pays 55 percent of the price of the commodity established by RMA on crop losses in excess of 50 percent. The premium on CAT coverage is paid by the Federal Government; however, producers must pay a $300 administrative fee (as of the 2008 Farm Bill) for each crop insured in each county. Limited-resource producers may have this fee waived. CAT coverage is not available on all types of policies.
Whole-Farm Revenue Protection (WFRP)
Whole-Farm Revenue Protection (WFRP) provides a risk management safety net for all commodities on the farm under one insurance policy. 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.
We write hail insurance through multiple providers and have a wide variety of products to fit every need.
Through Travelers we can cover all of your farm insurance needs. Travelers is very competitive with their pricing structure and is a top rated company. Contact us for a quote.
We have an excellent stand-alone sprinkler policy that will cover your center pivot sprinkler(s) for replacement cost, regardless of the age of the sprinkler. We can also insure sprinklers at actual cash value for those that prefer this type of coverage.
Livestock policies are designed to insure against declining market prices of livestock and not any other peril. Coverage is determined using futures and options prices from the Chicago Mercantile Exchange Group. Price insurance is available for swine, cattle, lambs and milk. Producers decide the number of head (cwt of milk) to insure and the length of the coverage period. There are two types of plans available:
1. Livestock Risk Protection
LRP provides coverage against market price decline. If the ending price is less than the producer selected coverage price , an indemnity is due.
2. Livestock Gross Margin
LGM provides coverage for theThe Livestock Gross Margin for Cattle (LGM for Cattle) Insurance Policy provides protection against the loss of gross margin (market value of livestock minus feeder cattle and feed costs) on cattle. The indemnity at the end of the 11-month insurance period is the difference, if positive, between the gross margin guarantee and the actual gross margin. The LGM for Cattle Insurance Policy uses futures prices to determine the expected gross margin and the actual gross margin. Adjustments to futures prices are state- and month-specific basis levels. The price the producer receives at the local market is not used in these calculations.
- Report acreage and any required protection accurately
- Meet policy deadlines
- Pay premiums when due
- Report losses immediately
Producers will receive
- Accurate answers to questions on types of coverage
- Prompt processing of their policy
- Timely payments for covered losses
Sales closing date: last day to apply for coverage.
Final planting date: last day to plant unless insured for late planting.
Acreage reporting date: last day to report the acreage planted. If not reported, insurance will not be in effect.
Date to file notice of crop damage: for a planted crop, notice must be provided within 72 hours of discovery of damage or loss of production (but not later than 15 days after the end of the insurance period). If there is no damage or loss of production and a revenue plan of insurance is in effect, notice must be given no later than 45 days after the latest date the harvest price is released. For crops that are prevented from being planted, notice must be provided within 72 hours after the final planting date or the time the producer determines it will not be possible to plant during any applicable late planting period.
End of insurance period: latest date of insurance coverage.
Payment due date: last day to pay the premium without being charged interest.
Cancellation date: last day to request cancellation of policy for the next year.
Production reporting date: last day to report production for APH, ARH, Revenue Protection, and Revenue Protection with harvest price exclusion option.
Debt termination date: date the approved insurance provider will terminate a policy for nonpayment.