OTHER CROP POLICIES

Things to Consider

Our team at Agriliance insures corn in many different states across the country and we provide risk management advice for each farm individually. All farms have different risk depending on location, financial risk tolerance, markets, soil types, access to irrigation, etc and it is our goal to provide a risk management solution that fits the needs for every operation that we have the pleasure of doing business with.

The Risk Management Agency (RMA) administers crop insurance policies in all 50 states and has different options and tools for farmers to protect their financial risk during the growing season. Also, we have partnered with several different Approved Insurance Providers (AIP’s) who offer many different private products that can help supplement a corn farmers risk management plan. Please give us a call to discuss your corn crop insurance plan and learn how we can add value to your specific operation.

Building Policy Unit Structure

Optional Units

It is important to consider geography when selecting unit structure. If you are growing a crop that is scattered throughout the county then optional units may be a good option.

Enterprise Units

This is a more cost effective way to insure, and groups all of the production produced in the county together. When there may be price risk in the market we think enterprise units may be a better option.

Enterprise by Practice

In order to keep non irrigated production and irrigated production separate this unit structure needs to be selected. This is especially important in a drought year.

Multi-County Enterprise Unit

This structure allows a grower to enterprise production across county lines, and is the best way to manage premium cost if there is only one farm number in a separate county.

Important Options to Elect

Yield Exclusion

When 50% of the acres grown in the county yield below the county t-yield this production year may be excluded from the 10 year actual production history (APH). This is election can be the most important election made in certain areas and on certain crops.

Trend Adjustment

Over a 10 year APH database corn varieties and genetics have improved. Each yield in the 10 year APH database is adjusted upward by the trend adjustment factor, times the number of years that have passed since the yield was recorded.

Level by Practice

This allows a grower to elect a coverage level for non irrigated corn and a different level of coverage for irrigated corn. Irrigated corn may have less or different risk than non irrigated corn and this option gives you flexibility on how to manage these risks separately.

Yield Adjustment

Allows 60% of the t-yield to replace the actual yield when the actual yield comes in below the benchmark.

Yield Cup

This option prevents the approved actual production history yield on a database from dropping more than 10% from the previous years approved APH yield.

SCO vs ARC

If ARC is elected through the FSA programs on corn then that makes a grower ineligible for SCO through crop insurance. It is important to compare the county yield for both SCO and ARC as well as the market conditions when making a decision to participate in the SCO endorsement.

Private Products to pay attention to

Price Flex/Select

These private products help us establish a higher planting price guarantee when the market is volatile and shows better opportunities outside of the standard price discovery windows.

Hail and Wind Coverage

This is an additional product that can be bought along with your MPCI insurance coverage that protects against hail and wind in most areas. We typically like to see this on irrigated corn but it is also a fit for non irrigated corn in many areas.