Crop Insurance FAQ
What is crop insurance and who manages it?
Multi-peril insurance is a government program overseen by Risk Management Agency (RMA), a division of the USDA. It is a form of insurance that protects from a bushel loss due to natural related occurrences. In certain types of policies it can also protect for a revenue loss.
What can we insure?
The crops that you can insure are based on the county and state where your farm is located. If a crop is commonly grown in your area, more than likely it is insurable.
What perils are covered under crop insurance?
To name a few multi-peril crop insurance covers all natural incurred losses, including:
- Excess Rain
- Drought
- Excess Wind
- Wildlife
- Fire
- Insects infestation
- Freeze
- Disease
- Hail
- Tornado
- Failure of irrigation water supply if caused by an insured cause of loss that occurs during the insurance period
Tell us more about Multi-peril crop insurance
- The policies are reinsured by the Federal Crop Insurance Corporation (FCIC)
- The insurance is delivered by private insurance companies
- Rates are set by the FCIC and are the same with each company (all companies abide by the same rules and regulations)
- Amount of coverage is based on a percentage selected by the policyholder
- Coverage levels range from 50% to 85% @ 5% increments
- 80% & 85% are not available for all crop or counties
- Must have same coverage level for all acres of that crop in that county
- If you insure one acre of a crop you must insure all acres of that same crop
Who can take out crop insurance?
Anyone who has an interest in that crop, this includes Individuals, Partnerships, LLC’s, Corporations or Irrevocable Trusts and Revocable Trusts. However, all individuals with a 10% or more share, including those listed in Corporations, Partnerships, LLC’s and Trusts have to be listed on a Substantial Beneficial Interest form (SBI) along with their individual social security number.
How do I divide up my different farms?
Crops are divided up into separate units by
- Crop
- Includes separating by different types example - beans - black, yellow, pinto etc; onions - red, yellow, white: corn - silage, grain or sweetcorn.
- Section
- Shareholder
- Practice, ie: irrigated, non-irrigated
What price is paid for the loss?
Prices are established depending on the type of coverage you select. You have the option to select a Revenue price or a Actual Production price depending on the crop. These prices are announced and changed yearly.
How do you calculate a guarantee?
Your guarantee is calculated by multiplying your Actual Production history (APH) times the level of coverage you selected (50% -85%).
Example: corn
(APH) of 150 bushels @ 70% (level) = 105 bushel guarantee
What do I do if I have a loss?
CALL US! Even if you are planning on taking your crop to harvest, call us, we will discuss the severity of the loss, turn in a loss or a notice of damage and contact the adjuster. The adjuster will then contact you and set up a time to meet and go over your options.
Are there any other types of crop insurance?
The most common type of coverage is multi-peril crop insurance; however, there is also Hail only, Pasture, Rangeland and Forage, Fire, and Hay-Fire, to name a few.
Can you insure livestock?
Yes, we can insure Cattle, Swine and Lambs against a price reduction. - website for information - www.rma.usda.gove/livestock
Upcoming Deadlines
February 1st
Spring Final Sign-up Date - Onions
March 15th
Spring Final Sign-up Dates - All other Spring Crops
March 15th
Spring Production Reporting - Onions
April 30th
Spring Production Reporting - All other Spring Crops
July 15th
Spring Acreage Report - All Spring Crops
View All Deadlines