Crop Hail Insurance
Your family's livelihood depends on the quality of your harvest each year. With today's high cost of producing a crop, crop insurance is as much a necessity as any other insurance product you buy. Hail insurance provides protection for more than losses due to a hail storm. Losses due to fire, whether in the field or grain bin, are also covered. Vandalism and transit coverage to the first place of storage within a 100 mile radius are two other benefits provided in a hail policy.
With Mother Nature's unpredictable wrath in this part of the country, you'll have peace of mind with crop hail insurance from Farm Credit Southeast Missouri. Contact your local Farm Credit Southeast Missouri office to discuss policy options to keep your crops and the future of your farm protected.
Multi Peril Crop Insurance
No one needs to tell you that farming takes a lot of faith in avoiding things that are out of your hands, like weather, insects and disease. No matter how well you've done your job, a tough year with any of these foes can absolutely destroy a crop and put the farm in danger of serious financial trouble.
There are many levels and types of Multi Peril Crop Insurance. All premiums are subsidized by the Federal Government. Some policies guarantee production based upon your farm's history. There are policies that guarantee an income per acre which is also based upon your production history and market prices that are established in the spring and fall. The guarantee is based upon the higher of the two prices.
GRP (Group Risk Plan) and GRIP (Group Risk Income Protection) are two additional types of Multi Peril Crop Insurance. The GRP program is intended for those growers who have a yield that corresponds with the county yield. The grower can elect to insure up to 70% to 90% in increments of 5% of the county average yield. When the county yield falls below the selected coverage level percentage, the grower is indemnified accordingly, regardless of the individual yield of the grower. GRIP is similar to GRP except revenue rather than yield is the basis of coverage. The insured is paid in the event the county average per acre revenue falls below the insured's county trigger revenue. Coverage levels are available from 70 to 90% in increments of 5% of the county trigger revenue. Protection per acre is available from 60 to 100% of the county maximum protection per acre listed in the county actuarial (maximum protection per acre equals expected county yield, times the expected price, times 150%). Coverage is expressed as a county revenue trigger (expected county yield times expected price times coverage level). A Harvest Revenue Option is also available which provides additional dollar protection if the Harvest Price increases above the Expected Price. It's very important to remember individual losses are not protected; losses are determined based upon the county as a whole.
Catastrophic Crop Insurance (CAT) is the lowest level of Multi Peril coverage available and 100% of the premium is paid by the U. S. Government (your cost is only the $300 per crop per county administrative fee). Should the USDA declare a disaster in your area, the CAT level of coverage allows participation in the disaster program. If a producer does not have a multi-peril policy, he would be required to buy a higher level of coverage than the CAT level for two years to be eligible for any benefits associated with the disaster program. There are other FSA programs that require proof of crop insurance and the CAT level satisfies this requirement. While CAT insurance is considered "minimum level" coverage, claims paid on these policies have been in the thousands of dollars.
With all of the uncertainties in farming, leaving your yields unprotected is flirting with disaster. To find out more about each of our available crop protection plans, contact your local Farm Credit Southeast Missouri office today.
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