Multiple Peril Crop Insurance (MPCI) policies offer protection against production losses, encompassing both yield and price coverage. These policies enable participating producers to insure a specific percentage of their historical crop production. MPCI is federally subsidized, sold by private companies, and reinsured by the federal government.
What works for one customer may not work for everyone. An article in a farm magazine or a general recommendation made during a grower meeting can easily create buzz in a coffee shop about “what everyone should be doing.” It's crucial that our customers fully understand what they are purchasing, as that is a significant part of our role.
A good example of this is Yield Exclusion (YE). For political reasons, YE was introduced almost a year ahead of schedule. Because it was rushed to the market, companies were delayed in developing the necessary illustration and quoting systems to fully understand the implications of the changes. YE was originally promoted as beneficial for anyone who had experienced a low yield in a year that could be excluded. However, upon closer examination, we realized that YE was often NOT a good choice for many producers. By the time some companies and agents comprehended the impact of YE on Added Land Procedures, it was too late to make any changes.
We strive to create models for new products to ensure accurate calculations. Customers need to have confidence that their agents are seeking the best and most current information regarding new products.
Crop-hail insurance is a type of private insurance that provides coverage for damage and destruction caused by hail and fire. This insurance protects agricultural products while they are still in the field and have not yet been harvested. It is sold on an acre-by-acre basis and reimburses farmers for the value of production lost while crops are still in the field. Since crop-hail insurance is a private product, policies and premiums can vary significantly from company to company. We invest considerable time comparing companies' hail rates and coverage options. It is essential to have the right coverage that fits your operation at the best price possible.
In recent years, Production Plan insurance has become increasingly popular as it complements crop insurance effectively. Because policies and premiums vary among companies, it is crucial to understand what you are purchasing. Hail damage can be challenging to assess in certain situations, and claims may need to be settled later in the growing season. Whether the claim results in no damage, a replant payment, or a deferred settlement, we want to ensure that our producers feel comfortable and knowledgeable about the products they purchase and the claims process. We prioritize selecting companies that will provide the best support for our producers.
Livestock Risk Protection (LRP) is designed to protect against falling market prices for livestock. Producers can select from various coverage levels and insurance periods that align with their normal marketing schedule, allowing them to retain ownership of their livestock.
Producers can purchase LRP insurance any time throughout the year. Premium rates, coverage prices, and actual ending values are updated daily and available online. Depending on the type of livestock, producers can choose from a range of percentages based on their expected ending value for their coverage price. At the end of the insurance period, if the actual ending value is lower than the coverage price, the producer may receive an indemnity for the difference between the two amounts.
We provide daily LRP quotes tailored to your needs, delivered directly to your email. Contact us to sign up.
Pasture, Rangeland, Forage (PRF) insurance provides protection against forage loss due to insufficient rainfall on acres designated for grazing or hay production. This program assists growers in managing increased costs associated with feed, destocking, depopulating, or other expenses that arise during dry periods. The PRF program relies on a rainfall index to assess precipitation levels for coverage purposes, rather than measuring actual production or the loss of products.
It is important to note that PRF insurance is not drought insurance and does not cover damages caused by excessively high temperatures or windy conditions.
There are many private insurance products available that can supplement Multi-Peril Crop Insurance (MPCI) policies. Some of these products promise higher yield and revenue guarantees, while others provide greater pricing flexibility or alter the structure of your units. Depending on the producer's operation and location, certain products may be very effective, while others may not be suitable at all.
We analyze the private products offered by the companies we work with to determine how they can enhance the risk protection programs for our customers. Additionally, we stay informed about private products from other companies, and if we find one that seems like a good fit, we try to get it for our producers.
