FEDERAL CROP INSURANCE PROGRAMS
Buying a crop insurance policy is a risk management tool available to agricultural producers. Producers should consider how a policy will work in conjunction with their other risk management strategies to insure the best possible outcome each crop year. Crop insurance agents and other agri-business specialists can assist producers in developing a good management plan.
RMA provides policies for more than 100 crops. Policies typically consist of general crop insurance provisions, specific crop provisions, policy endorsements and special provisions. See RMA's county crop program listings for information about crop policies available in specific counties and states.
Policies are available for most commodities; however, some policies are being tested as pilots or have not been expanded nationwide so are not available in all areas.
Insurance Plans provide different types of insurance coverage to specific commodities:
Crop-Hail coverage provides protection against physical damage from hail and/or fire. Other coverages provided include fire department service charges, transit coverage to the first place of storage, catastrophe loss award (most coverages) and replanting coverage (most crops). Options exist in some areas for other perils, such as wind and theft.
Crop-Hail can be used along with MPCI or other comprehensive coverages to offset the MPCI deductible and provide protection up to the actual cash value of the crop. Coverage is provided on an acre-by-acre basis, so damage that occurs on only part of a farm may be eligible for payment when the rest of the unit remains unaffected.
If a grower has coverage and bumper crop yields or higher prices become apparent, coverage can be increased during the growing season to cover the value of the crop.