Yield Protection
Yield Protection insures producers against yield losses due to natural perils such as drought, excessive moisture, hail, wind, frost, insects, and disease. The farmer selects the amount of average yield to insure from 50 to 85 percent at the projected price. The farmer also selects the percent of the projected price to insure at 55 or 100 percent. The projected price is determined in accordance with the Commodity Exchange Price Provisions and is based on daily settlement prices for certain futures contracts. If the harvested production plus any appraised production is less than the yield insured, the farmer is paid an indemnity based on the difference. Indemnities are calculated by multiplying this difference by the insured percentage of the projected price selected when crop insurance was purchased and by the insured share. CAT coverage is available at 55% of the elected price with an administrative fee of $655 per crop per county.
Revenue Protection
Revenue Protection insures producers against yield losses due to natural perils such as drought, excessive moisture, hail, wind, frost, insects, and disease and revenue losses caused by a change in the harvest price from the projected price. The farmer selects the amount of average yield to insure from 50 to 85 percent. The projected price and the harvest price are 100 percent of the amounts determined in accordance with the Commodity Exchange Price Provisions and are based on daily settlement prices for certain futures contracts. The amount of insurance protection is based on the greater of the projected price or the harvest price. If the harvested plus any appraised production multiplied by the harvest price is less than the amount of insurance protection, the farmer is paid an indemnity based on the difference.
Pasture Rangeland and Forage (PRF)
Pasture, Rangeland, and Forage (PRF) policies are Rainfall Index (RI) plans that protect land used for haying and grazing. PRF uses historical rainfall data to establish an expected rainfall amount for a prescribed area. The insured selects land to protect in two-month intervals (up to six intervals per year) at a coverage level of their choosing. The insured receives an indemnity if rainfall on their insured land is below the expected amount for a selected interval. PRF is available in all counties; Rainfall Index policies are also available for apiculture.
Crop Hail
Crop Hail provides farmers protection against any yield reduction caused by fire and /or hail. Crop Hail insurance gives you acre-by-acre protection that can be up to the full value of the crop. Hail is the one catastrophe that is most likely to destroy a part of your crop and leave the rest looking fine. The part hail takes out may well be less than the deductible of your MPCI policy. Even if your frequency of hail damage is low, remember that Crop Hail coverage is rated in your area. It is an inexpensive way for some extra protection for your crop.
Whole Farm Revenue Protection
Whole Farm Revenue Protection (WFRP) insures revenue of the entire farm rather than an individual crop by guaranteeing a percentage of average gross farm revenue, including a small amount of livestock revenue. The plan uses information from a producer’s Schedule F tax forms, and current year expected farm revenue to calculate policy revenue guarantee. Under this plan, you can also cover revenue generated from commodities that are currently uninsurable (such as forage, fruit, and vegetable crops). WFRP-MIRCO is also available for smaller operations focusing on specialized crops.
Revenue Protection with Harvest Price Exclusion
Revenue Protection with Harvest Price Exclusion insures farmers in the same manner as Revenue Protection, except the amount of insurance protection is based on the projected price only (the amount of insurance protection is not increased if the harvest price is greater than the projected price). If the harvested plus any appraised production multiplied by harvest price is less than the amount of insurance protection, the farmer is paid an indemnity based on the difference.
Interested in Protection Your Crop
As a farmer, you know better than anyone that experience counts. King Crop Insurance has been servicing farmers on Delmarva for over 55 years. We understand the major risks you face and we can help minimize your financial risk by providing comprehensive crop insurance services. Our focus is and always has been exclusively the farming community.
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