Crop Insurance Programs
Crop production can vary widely from year to year due to unforeseen weather conditions. Traditional yield-based insurance will protect your livelihood from the elements of Mother Nature.
MPCI protects against losses caused by multiple perils, including drought, flooding, frost, disease, insects or other natural causes beyond your control.
- Choose from several coverage and price levels to manage your level of risk.
- Coverage levels range from 50 to 75 percent, including 80 and 85 percent levels on select crops in certain areas.
- Premium due dates are designed to coincide with your operation’s cash flow.
- Premiums are subsidized.
Crop hail insurance protects against losses caused by hail, fire and transport.
- Determine the quality of your crop before insuring it by purchasing after seeding and prior to harvest or prior to any hail loss on the crop.
- Select coverage levels on a dollar-per-acre basis up to your insured limit.
- Protect up to the value of the crop.
- Provides acre-by-acre coverage.
- Fire-only coverage is available on haystacks and crops such as hay, grain and grass seed.
- Wind coverage is available on sweet corn and haystack fire.
- Winter kill replant coverage is available for wheat and sugar beets.
Revenue-based insurance protects against losses of income due to low yields, low prices or a combination of both. All of the revenue products use various commodity exchanges and futures contracts in the development of projected/base prices and harvest prices.
- Coverage levels range from 50 percent to 85 percent of historic yield averages for each unit of coverage depending on the crop insured.
- Rates and prices vary by state, county and crops insured.
- Premiums are subsidized.
- Provides coverage on a whole-farm basis rather than being limited to a specific crop.
- Coverage is based on income generated from commodities reported on a Schedule F tax return.
- WFRP also provides coverage for specialty crops typically uninsurable under the traditional crop programs.
- ARH provides coverage against weather-related perils and inadequate market price.
- Coverage levels range from 50 percent to 75 percent.
- Available for sweet and tart cherries in select counties.
Cattle, sheep, swine and dairy may be insured under the Livestock Risk Protection and Livestock Gross Margin (LGM) programs . The policies provide protection against declining market prices. The availability of coverage by livestock type may vary by area.
- A variety of coverage levels and insurance periods are available to tailor coverage to the livestock and dairy operations.
- Coverage may be purchased at any time throughout the calendar year.
This policy protects your gross margin, less milk price, less feed costs. Protection is provided against the loss of gross margin on milk produced from dairy cows.
- Coverage is based on milk price = Class III milk - Chicago Mercantile Exchange; feed cost = corn & soybean meal - Chicago Board of Trade.
- Insurance period is month to month, two-month interval, three-month interval, etc.
- Average daily settlement price on the last three trading days of the month (three days prior to the 4th Friday) is used to establish pricing.
PCI is a simple concept that gives the insured the ability to cover both the fixed and variable expenses of their operation. PCI insures the gross margin of a farming operation by analyzing the factors that drive revenue – yield, price and expenses (seed, fertilizer, chemicals): (Yield x Price) - Expenses = Gross Margin.
As your input costs increase over the year, so does your coverage. There is no ceiling and no effect on your premium, meaning you can do what your farm needs, whenever it needs it, and feel comfortable that your gross margin will stay the same.
This program is designed to provide insurance coverage on pasture, rangeland and forage acres, based on precipitation (Rainfall Index). The Rainfall Index uses National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center data in approximately 17-mile grids. When the final grid index falls below your "trigger grid index," you may receive an indemnity.
*PCI is not currently available in Washington.