At American AgCredit we know an investment lost due to crop failure or natural disaster is capital that can never be recovered by your operation. That's why we offer crop insurance products to protect your investment while it's still in the field. American AgCredit has specialized staff that understands crop insurance and can answer your questions about how to protect your financial investment from insurable perils.
Contact your loan officer or insurance specialist today to discuss the insurance alternatives available for your operation.
Crop Hail insurance is a private insurance product which provides actual cash value coverage to growing crops for direct losses caused by hail, fire and lightning, fire department service charges, and limited transit perils to the first place of storage. Various endorsements are available to modify the coverage to include or exclude other named perils or modify the policy provisions. Many deductible options are offered to allow you to manage your coverage and cost.
Crop Fire insurance is a private insurance product which provides actual cash value coverage to growing crops against direct losses caused by fire or lightning and limited transit perils to the first point of storage. Optional endorsements are available for stored grain coverage against direct losses due to fire and lightning at the first place of storage.
APH is a federal crop insurance plan, which provides coverage for yield losses due to natural causes. Specific causes of loss are determined by the crop provisions but may include perils such as adverse weather conditions, fire, insects, plant disease, wildlife, earthquake, volcanic eruption, or failure of irrigation water supply. APH also provides prevented planting and replanting protection on some crops in some counties. Various coverage levels and price elections are available. Losses occur when harvested production is lower than the insured production guarantee established in the policy.
ARH plan of insurance has many parallels to the APH plan of insurance, with the primary difference being that instead of insuring historical yields, the plan insures historical revenues. The policy is structured as an endorsement to the Common Crop Insurance Policy Basic Provisions. It restates many of the APH yield procedures to reflect a revenue product. Each crop insured under ARH has unique crop provisions. Like current revenue coverage plans, the ARH pilot program protects growers against losses from low yields, low prices, low quality, or any combination of these events.
Dollar Plan policies provide protection against declining value due to damage that causes a yield shortfall. The amount of insurance is based on the cost of growing a crop in a specific area. A loss occurs when the annual crop value is less than the amount of insurance. The maximum dollar amount of insurance is stated on the actuarial document. The insured may select a percent of the maximum dollar amount equal to CAT (catastrophic level of coverage) or purchase additional coverage levels.
Revenue Protection policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease, and revenue losses caused by a change in the harvest price from the projected price. The producer selects the amount of average yield he or she wishes to insure; from 50-75 percent (in some areas to 85 percent). The projected price and the harvest price are 100 percent of the amounts determined in accordance with the Commodity Exchange Price Provisions and are based on daily settlement prices for certain futures contracts. The amount of insurance protection is based on the greater of the projected price or the harvest price. If the harvested plus any appraised production multiplied by the harvest price is less than the amount of insurance protection, the producer is paid an indemnity based on the difference.
RP-HPE policies insure producers in the same manner as Revenue Protection polices, except the amount of insurance protection is based on the projected price only (the amount of insurance protection is not increased if the harvest price is greater than the projected price). If the harvested plus any appraised production multiplied by harvest price is less than the amount of insurance protection, the producer is paid an indemnity based on the difference.
Yield Protection policies insure producers in the same manner as APH polices, except a projected price is used to determine insurance coverage. The projected price is determined in accordance with the Commodity Exchange Price Provisions and is based on daily settlement prices for certain futures contracts. The producer selects the percent of the projected price he or she wants to insure, between 55 and 100 percent.
PRF-RI is a federal crop insurance pilot program which provides area plan coverage for producers who graze livestock or raise hay for forage. PRF-RI is designed to insure against a decline in a Rainfall Index within a 12 mile by 12 mile grid. The index is based upon over 60 years of rainfall data within the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center database. As a pilot program PRF-RI is only available in some counties in the American AgCredit territory.
GRIP is a federal crop insurance plan which offers county-based revenue insurance to producers using National Agricultural Statistical Service (NASS) data to establish county revenue levels. The product is not related to the individual producer's revenue level but pays a loss when the county average revenue falls below the trigger revenue level selected by the producer. GRIP losses are paid the following year when the NASS data for the insured crop year are released.
GRP is a federal crop insurance plan which offers county-based yield protection when the county yield falls below the trigger yield elected by the producer. Similar to GRIP, losses are paid in the year following the insured crop year after county average yields are released by USDA. GRP has a lower paperwork requirement than the individual plans of coverage.
American AgCredit is an equal opportunity provider and employer. All of our insurance plans are available to all producers regardless of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal or because all or part of an individual’s income is derived from any public assistance program.
