Multi-Peril Crop Insurance (MPCI)
The Federal crop insurance program is administered by Approved Insurance Providers (AIPs) like our partners Diversified Crop Insurance Services (DCIS) and Rain and Hail. Since 1998, private insurance companies reinsured by FCIC, have sold and serviced all Multiple Peril Crop Insurance products authorized under the Federal Crop Insurance Act.
One of the greatest challenges for those involved in the sale and service of crop insurance is staying current. With more crops and plans in place, the program guidelines change frequently. Our SouthWest Ag Services team has extensive experience you can trust, thorough processes to ensure accuracy, and willingness to learn new programs and offerings available to the farmer.Whether you are a conventional farmer or organic producer, we can advise you on the policies that are available in your area, that would align with your farming operation, and meet your risk management needs.
MPCI policies are continuing to expand into new counties, launch pilot programs and expand offerings for both conventional and organic farming practices. Just to name a few, our expertise is in the following:
- Conventional farming irrigated and dryland practices
(cotton, wheat, canola, grain sorghum, soybeans, peanuts and sesame)
- Organic farming irrigated and dryland practices
- Whole Farm Revenue Protection for a diversified operation including livestock and both conventional and organic commodities
- Annual Forage
- Pasture, Rangeland and Forage
- Pecan Revenue Protection and Tree Protection
Below are the basic decision points you’ll need to make for your MPCI policy:
- POLICY TYPES:
- YP – Yield Protection (Guarantees yield)
- RP – Revenue Protection (Guarantees yield x price)
- LEVELS OF COVERAGE:
- CAT (catastrophic / yield protection only / 50% coverage – 55% of market price)
- 50-85% coverage levels options on most crops
- UNIT STRUCTURE:
Yield Exclusions (YE)
Yield Exclusions allow farmers to exclude low production on eligible years for qualifying crops.
Yield Adjustments (YA)
Yield Adjustments allow farmers to substitute actual yields that are less than 60% of the county T-yield with that value.
There are additional endorsements and options that are available for the policy. Below are some of those:
- Seed Endorsement for Cotton: covers the value of the seed as it correlates to insured lint pound guarantee on MPCI policy. Note: Increases your liability – not the trigger point of loss.
- Group Risk Plans Available:
- Supplemental Coverage Option (SCO) – available on select crops. This option starts where MPCI ends and goes up to 86%.
- Stacked Income Protection Plan (STAX) – only available on cotton. Coverage from 70-90% but cannot overlap with your MPCI policy.
A basic private insurance (crop hail) policy follows the General Provisions (same for all states) and the Special Provisions (state specific). There are a variety of deductible options and in many cases additional endorsements available for you to select. Our team can advise you through selection and make sure you are informed on binding timeframes to ensure your crop is protected.