Choosing The Right Crop Insurance For Your Business

Choosing the right crop insurance for your business can be difficult sometimes. Hasz Insurance is here to make it easier.

Crop Insurance is essential for anyone growing a commodity; it's like an insurance for your car, necessary because that question runs through your head but isn't used all the time. When you do have crop insurance, and something happens, you will surely be thankful, but what if something happens and you don't have crop insurance because you didn't know what you might need?

At Hasz Insurance, we offer six different types of crop insurance, and we want to ensure you get the best one for your business.

Type #1: Whole-Farm Revenue Protection

Whole-Farm Revenue Protection (WFRP) insurance provides coverage against the loss of revenue that you expect to earn or will obtain from commodities you produce or purchase for resale during the insurance period under one insurance policy. WFRP combines the Adjusted Gross Revenue (AGR) and Adjusted Gross Revenue-Lite (AGR-Lite) pilot programs and provides additional enhancements such as:

• A range of coverage levels from 50-85 percent to fit the needs of more farming and ranching operations;

• Replant coverage for annual crops, except Industrial Hemp;

• The ability to consider market readiness costs as part of the insured revenue and expenses;

• Provisions to adjust the insurance guarantee to better fit expanding operations;

• An improved timeline for farming operations that operate as fiscal year filers; and

• Streamlined underwriting procedures based on the forms used for WFRP.

Type #2: Multiple Peril Crop Insurance

Multiple Peril Crop Insurance (MPCI) is the general name for crop coverage provided through the Federal Crop Insurance Corporation (FCIC). As the name suggests, these policies offer a range to the agricultural producer for several naturally occurring perils.

MPCI policies cover loss of production or a combination of yield and price coverage. These combination products cover loss in value due to a change in market price during the insurance period, in addition to the perils covered by the standard loss of yield coverage.

Check out our Dates and Deadlines page for timelines on all the types of crop insurance we offer.

Type #3: Pasture Rangeland Forage

What is it?

The Pasture Rangeland Forage policy is an area-based insurance plan that covers perennial pasture, rangeland, or forage used to feed livestock. It provides producers with a risk management tool to protect the precipitation needed to produce forage for their operation.

What does "area-based" mean?

Area-based means payments are not based on an individual producer's experience; instead, payments are based on a grid's deviation from normal experience. For example, under the Rainfall Index, if your ranch received a surplus of rain, but the area in your grid was below average, you could receive a payment or vice versa.

Type #4: Annual Forage

What is it?

The United States currently comprises about 954 million acres of farmland. The Annual Forage pilot program covers acreage planted each year and used as feed and fodder by livestock. This pilot program utilizes the Rainfall Index to correlate to this acreage.

What is Rainfall Index (RI)?

Rainfall Index (RI) is based on weather data collected and maintained by NOAA's Climate Prediction Center. The index reflects how much precipitation is received relative to the long-term average for a specified area and timeframe.

Type #5: Livestock Risk Protection

What is it?

It is designed to insure against declining market prices. You may choose from various coverage levels and insurance periods that match the time your feeder cattle would generally be marketed (ownership may be retained).

Livestock Risk Protection insurance is similar to a put option, allowing producers to establish a floor price for protection while leaving upside price potential open.

Finding the right crop insurance with Hasz Insurance

The right crop insurance is vital to cover all aspects of your business adequately. When working in the agricultural world, you never know what mother nature may bring. Hasz Insurance has your future protected.