Jordan Olsen

Crop Insurance Specialist Frontier Farm Credit – Baldwin City Branch

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

Livestock Risk Protection - LRP

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.

Cover Crop Termination Zones

Cover Crop Termination Zones

Other crops NAP Coverage available for some of the following:

Peaches and tree fruits Grapes Pumpkins Berries

Any Questions?

Thank you!