olsen insuring specialty crops
Post on 20-Aug-2015
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What is a “Specialty Crop”?
“A crop not insured or insurable under normal MPCI standards or practices”
Extra paperwork involved Different set of guidelines apply Extraordinary circumstances Non-typical PTV
Specialty Insurance Available: MPCI – Organic crops Crop Hail – wind, fire, transport LRP – Livestock Risk Protection PRF – Pasture Rangeland and Forage Specialty corn coverage (Blue & High Amylase &
High Amylose) Cover Crops
Multiple Peril Crop Insurance Protects against:
Price fluctuation Heat Drought Freeze Disease Wind Wildlife And more….
Guarantees the producer
a Bushel or $ figure Government subsidized Homogenous pricing Protects against natural
disaster Many options available
Multi-Peril Insurance on Organics Stipulations: MPCI available for most common organic crops in KS Must be “Certified Organic” to qualify Must have a buffer and 3 years with no chemicals
applied Must purchase certified organic seed Over 2 million organic acres nation wide, ≤ 25% insured
Organic crops Advantages Disadvantages
Higher Prices!! Insurance guarantee can be
set by contract price No chemical/fertilizer bill No chemicals in the soil
More Work More paperwork Red Tape Travel time finding seed Possible lower yields Limited market 3 yr. transitional period
Organic References Indiana Certified Organic/ECOCERT: http://www.ecocertico.com/ RMA/USDA organic website: http://www.rma.usda.gov
Crop Hail, Wind, Fire, Transport Crop Hail Coverages Available:
Sold by $100s per acre 2 hr. binder (company specific)
Variable rates per township & Range
Ability to stack coverage as season progresses
Upper coverage limits $50.00 minimum Insure ≥ 100% of crop value
Hail Fire (Included in most Basic coverage)
Extra fire/lightning (DCSB)
Replant buy-up Prevented Plant Transport Wind/Greensnap
(corn & wheat only)
Crop Hail - Crop Availability: Corn Soybeans Wheat Gr. Sorghum/Milo Sunflowers Rye Oats Cotton Barley
Sweet corn Popcorn Seed corn Some cover crops Forage crops Canola Dry beans Potatoes
Livestock Risk Protection - LRP Protects against price drops in the market
Available for swine, lambs, and beef Insure 1-2,000 head/yr.
Policy periods: 13-52 weeks Lock in a percentage of the price on the CBOT
Premium calculated by price, length, and commodity No need to turn in a claim
Must have possession of the cattle within 30 days of end date
LRP Specifications On SCE: Number of head to insure Finishing weight, Steers vs. heifers Length of endorsement
Must have application on file. Lock price between 4:00 PM and 9:00 AM Premium paid and SCE signed within 24 hrs.
Pasture Range and Forage (PRF) Protect crops from rainfall shortage based on long-
term averages Cost varies from $2-$35/acre Must choose at lease two 2 month intervals Only one sales closing date each year – Nov 15th.
Specialty Corn: Blue, High Amylase, and High Amylose MPCI coverage now available in KS Some require Written Agreements Separate types Limited markets H-A mostly grown for feed Same price as yellow corn High Amylose – Contract pricing
Cover Crops – A Hot Topic Cover Crop - Hail insurance available on some cover crops.
Rye, oats, wheat, Wind endorsement available on small grains Irrigated crops: Cover crop must be terminated before
the insured crop emerges
Be Aware!!! – Planting a cover crop could jeopardize insurability of a following crop.
Other crops NAP Coverage available for some of the following:
Peaches and tree fruits Grapes Pumpkins Berries
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