Crop Insurance Friday: Partnerships & Coverage Basics
Welcome back to our “Crop Insurance Friday” blog series. Today, I will be discussing our crop insurance partnerships and outlining the basics of insurance. I have lots to share, so let’s get started:
When the Farm Service Agency stopped selling crop insurance in 1997, it became necessary for farmers to rely on private insurance companies for their crop insurance needs. Farm Credit understands agriculture and became involved so farmers would have a reliable source of crop insurance. It is Farm Credit’s goal to offer each farmer all levels of coverage for the crop insurance products that are available. Armed with this information, the farmer can select the level of coverage that is best for him or her.
Farm Credit places its crop insurance through Rain and Hail, LLC, the originator of “PREMIER SERVICE” and the industry leader for the past decade. In case you did not know, Rain and Hail, LLC is an employee-owned managing general agency, comprised of eight U.S. division offices, one in Canada and one in Brazil. A commitment to provide meaningful risk management programs to rural America is the foundation of Rain and Hail Insurance Service, Inc. Since 1919, the company that evolved into Rain and Hail established the standards of expertise and innovation that still define the company today.
Long term commitment, stability and performance have made Rain and Hail Insurance Service a leading crop insurance underwriter. More than a simple statement of purpose, Rain and Hail demonstrates this commitment in every specialized insurance product, and it is reflected in their financial strength, business affiliates, responsive claims service and their unmatched support of agents, like us at Farm Credit. In addition to yield protection and revenue protection, Rain and Hail also provides a diversity of products in association with some of the nation’s leading insurers. Rain and Hail’s unique perspective on risk managment in rural American allows them to tailor crop insurance plans with localized impact.
While crop insurance isn’t new, it is more important than ever to thousands of farmers. The ability to fit the coverage to your individual operation, obtain coverage at a meaningful level and affordable price, secure the coverage from a local insurance professional, like Farm Credit, and know that the coverage is in place and can be counted on for financial planning purposes all combine to make crop insurance the cornerstone of many farmer’s financial and risk management plans. These benefits of crop insurance are not new, but they continue to account for the success and acceptance of the program.
You can tailor your coverage to fit your own specific operation’s needs. You have a choice of coverage levels ranging from 50 to 85 percent. Also, numerous coverage plans are available for many crops, including MPCI yield guarantee protection and revenue products that provide you the opportunity to obtain the coverage that fits your specific operation and risk management needs.
You are also able to purchase crop insurance at more affordable prices than ever before because the government shares in the risk and administrative premium costs. This results in affordable protection, while also resulting in manageable costs for taxpayers.
This chart shows the types of crop insurance coverage:
If you have any questions about our crop insurance partnerships, the basics, or would like to get started with your own plan, give us a call today at 888.339.3334, or comment on this post and I’ll get back to you. And hopefully you come back next Friday, when Dwayne Salem discusses some tips and hints and decodes the crop insurance lingo for you.
P.S. Check out our 2013 Spring Update newsletter!