2014 Farm Bill Fact Sheet
The 2014 Farm Bill accelerates the evolution from traditional farm price and income support to risk management, solidifying crop insurance as the primary help for farmers in dealing with production and risk management.
Check out our Farm Bill Fact Sheet to find out more about important Farm Bill decisions and deadlines.
Revenue Protection (RP)
Provides protection against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects and disease. It also protects you against revenue losses caused by harvest price declines or increases from projected price. You select the amount of average yield you want to insure, between 50% and 75% (andin some areas, up to 85%). The amount of insurance is based upon either the harvest or the projected price, depending upon which is greater. If the harvested yield and appraised production, multiplied by the harvest price, is less than the protected revenue amount you receive the difference in an indemnity payment.
Area Risk Protection (ARP, ARPI)
These plans provide coverage based on the experiences of an entire area, or county. It protects against loss of revenue due to decreases in production, price or both – when these decreases are experienced countywide. ARPI replaces the Group Risk Plan (GRP) and the Group Risk Income Protection Plan (GRIP) in 2014 and succeeding crop years. To determine loss, ARPI uses the county yield indexes, combined with FCIC-established prices. You choose your preferred “trigger” estimates for yield, price, or both. When countywide figures fall below your trigger, an indemnity is paid. ARPI advantages include less paperwork and lower costs, but your individual crops are only covered against yield and profit if the rest of your county suffered similar losses. If your yields and revenues typically follow your county’s averages, then ARPI is a good choice.
Crop Hail (CH)
A full line of hail insurance products – including production hail are available for protection against specific weather-related losses, fire, vandalism and first point of destination accidents.
Yield Protection (YP)
Gives you protection against loss in yield due to nearly all natural disasters, including drought, excess moisture, cold and frost, hail, wind, flood, frost and unavoidable damage from insects and disease. You select the amount of average yield to insure, between 50% and 75% (and in some areas, up to 85%). A projected price based on daily settlement prices for certain futures contracts is used to determine the insurance coverage. Then you select the percent of the projected price you want to insure, between 55% and 100%. YP insurance guarantee a yield based on your production history. If your harvest yield is less than the yield guarantee, you receive an indemnity payment. The Catastrophic Insurance (CAT) endorsement can be attached to APH, Yield Protection and GRP. The CAT coverage premium is paid by the Federal Government, but for a $300 fee (per crop, per county) you can buy the minimum insurance coverage, which pays 55% of the FCIC-established prices, for a loss greater than 50% of your average yield.
Whole Farm Revenue Protection (WFRP)
AgVantage® is pleased to offer this new product for 2016-17. Whole Farm is designed for growers who grow or raise 3 or more products in their operation. However, in order to purchase this product there are many things that the grower must provide in order to participate. Please contact your local AgVantage® agent for more information.
SPECIALIZED PRODUCTS WE OFFER
Private Add-On Policies
Many insurance companies are offering private products again for 2016-17. These products are specific to the individual insurance provider and are not subsidized like the underlying Federal MPCI policies. These products work to enhance the underlying coverage the farmer is currently purchasing. Please contact your local AgVantage® agent for more details and pricing.
eWeather RiskTM Weather tools are becoming more important in the grower’s risk management tool box. AgVantage® offers a number of heat, water and growing degree day weather hedges to help supplement the federal crop policies through our alliance with eWeatherTM Risk. There is no sales closing dates and these are uniquely tailored to individual growers. Meet with your AgVantage® agent for more details.
Contact our agents today to find out more.