Farmland owners and cash-renters have many options to consider when creating a risk management plan. Crop insurance is a key route to explore.
The Federal Crop Insurance Corporation (FCIC) provides crop coverage via Multi-Peril Crop Insurance (MPCI). Crop yield losses can be protected against by insuring a certain percentage of historical crop production.
Below are a few popular MPCI products available for Iowa corn and soybean farmers.
Individual Plans are based upon an individual yield loss and, in some plans, a decline in price, due to a wide range of perils. Individual Plans include Yield Protection (YP), Revenue Protection (RP), Revenue Protection with Harvest Price Exclusion (RP-HPE), Actual Production History (APH), and Actual Revenue History (ARH).
Area Plans are insurance plans that provide coverage based on the experience of an entire area, generally a county. These plans include Area Revenue Protection (ARP), Area Revenue Protection with Harvest Price Exclusion (ARP-HPE), and Area Yield Protection (AYP).
Margin Protection is an area-based insurance plan that provides coverage against an unexpected decrease in operating margin (revenue less input costs).
Whole Farm Revenue Protection (WFRP) and Micro Farm
The Whole Farm Revenue Protection (WFRP) and Micro Farm plans provide a risk management safety net for all commodities on the farm under one insurance policy.
To learn more about the insurance products available for farm risk management, reach out to Chelsea Heatherington at Kingsgate Insurance.
Chelsea Heatherington, Farm & Ag Specialist
Call or Text: 515-302-8400