To protect from unforeseen weather or a drop in market prices, Northwest Farm Credit Services Insurance Agency provides numerous crop and livestock insurance programs to help producers manage their risk. Unlike other insurance providers, our licensed agents focus solely on crop and livestock insurance. They have in-depth knowledge and experience working with the diverse crops grown in the Northwest.
Crop and Livestock Insurance Programs
Traditional Yield-Based Insurance
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.
Multi-Peril Crop Insurance (MPCI)
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.
Revenue Protection Insurance
- Coverage levels range from 50 percent to 95 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.
Whole-Farm Revenue Protection (WFRP) Insurance
- 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.
Actual Revenue History (ARH) Insurance
- 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.
Pasture, Rangeland, Forage (PRF) Insurance
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 designated grids. When the final grid index falls below your "trigger grid index," you may receive an indemnity.
Dairy Revenue Protection (DRP) Insurance
This policy allows dairy farmers to purchase risk management protection against declines in quarterly revenue from milk sales. This includes declines in milk prices and/or decline in milk production.
- Sold most days and offers flexibility to protect revenue at varying times by offering five quarterly insurance policies.
- Expected revenue is based on future milk prices and commodities (Chicago Mercantile Exchange) and amount of dairy milk production as elected by producer.
- Policy price varies daily based on farmers expected parameters and on expected prices and risk in the market.
- Offers optional protection factor because farm level production is more variable than state average values.
- Participating dairy farmers are not precluded from participation in USDA Farm Service Agency’s Margin Protection Program.
Cattle, swine, dairy and lamb may be insured under the Livestock Risk Protection and Livestock Gross Margin (LGM) programs. The Livestock Risk Protection policy provides protection against declining market prices, while the LGM protects your gross margin, defined as the commodity price minus feed costs. 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 operation.
Production Cost Insurance (PCI)*
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.
*PCI is not currently available in Washington or Montana.