Whole-Farm insurance allows farmers to insure all crops on their farm under one policy. This can work as a stand-alone policy or as an umbrella over your existing coverage. The WFRP policy also allows farmers greater flexibility to make planting decisions on their land and provides premium discount incentives for increased diversification. (first offered in 2015)
What is it?
The Whole Farm Revenue Protection policy insures the approved revenue that you expect to earn from commodities that you produce on your farm. It provides comprehensive protection against unavoidable natural disasters and price-related causes of loss on a farm with projected revenue of less than $8,500,000.
Your current years farm plan and 5 years of historic tax forms, all adjusted to reflect allowable income and allowable expenses, are used to determine the approved revenue. Your insured revenue is your approved revenue multiplied by the coverage level selected.
- This policy insures the approved revenue that you expect to earn or will obtain from commodities that you produce or purchase for resale during the insurance year against unavoidable natural causes of loss.
- The number of commodities in your farming operation for the insurance year determines the level of coverage you can purchase, the premium you pay, and determines eligibility if you grow potatoes.
You must choose one coverage level. The coverage levels available are 50%, 55%, 60%, 65%, 70%, 75%, 80%, 85%.
- You must produce 3 commodities to qualify for the 80% or 85% level. If you do not meet this requirement, your level of coverage will be reduced to the highest level for which you qualify.
Is Whole Farm Right for You?
Our team can work through a preliminary Whole Farm Revenue Protection worksheet to help you assess if this policy could meet your risk management needs. We will also clearly explain requirements and records management that allow you to remain in compliance with the policy provisions. Call us for a Whole Farm Revenue consultation.
Production Cost Insurance
Farming is a high risk business, and often volatile price movements in seed, chemical, fertilizer, and commodities make it difficult to predict farm revenue from year to year. PCI alleviates these concerns by providing a predictable annual revenue stream above defined, direct input costs. PCI is a reliable, predictable risk management tool that not only underpins the cost of production in challenging growing seasons, but one that promotes best farm management practices each and every day, across virtually all aspects of the operation. When adversity strikes at any phase of the crop production cycle, PCI supports producer confidence and empowers them to make optimal management and agronomy decisions.
- Three major inputs (fertilizer, seed, and chemical) are covered, plus a specific amount of revenue per acre.
- As input costs rise over the crop year, coverage may increase as well.
- If input costs surge higher over the growing season, PCI coverage may increase by exactly the same amount, dollar per dollar, with no increase in premium; therefore, the margin of risk always remains the same.
- PCI is written on a whole-farm basis, so virtually any crop can be insured.
- A PCI policy can stand alone or be combined with other crop insurance plans.