Crop & Livestock Insurance

Absolutely. In fact, Northeast producers have received more than $553 million in crop loss payments from the Federal Crop Insurance Program while paying just about $187 million in premiums. If these growers had self-insured, Northeast agriculture would have suffered a loss of more than $366 million in equity.

The cost of crop insurance is well below the cost of commercial private insurance and ranges from just 2% to –7% of the liability. In addition, the government subsidizes from 55% to 100% of the liability. And, based on the numbers mentioned above, the cost/risk of self-insurance is far greater. So the cost of crop insurance coverage is really minimal.

It’s true that not all crops are insured in every county. But if you grow a crop that is insurable somewhere in the United States (and it’s not under a pilot program), your crop insurance agent can request rates that offer the same program and protection as insurable crops. If no program is available in the United States, the NAP program (Non-Insured Assistance Program) is available from the Farm Service Agency.

No. Qualified losses range from 25% to –50% based on your coverage level election. If you maintain production records by farm serial numbers, crop type, practice or noncontiguous land, you may be able to break your farm into separate insurable units. A crop loss on just one parcel, for example, may qualify for an indemnity payment. Talk to your agent about crop provisions for optional unit requirement and eligibility.

Your production records, not the county average, are used to determine the production history. The county average is used only when you lack proper records.

All you need to supply is your planted acreage records and production report. Perennial crop producers supply a pre-acceptance worksheet with information such as insurable and uninsurable acres and crop age. That’s it!