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Protect your Investments with Hail Coverage
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High commodity prices, rising input costs, continued increases in chemical and fertilizer costs; producers have a lot at stake. Protecting these investments and locking in the profits is key.


Source: GreenStone FCS Dollars and Sense Column in Michigan Farm News

Protect your Investment with Hail Coverage

We can’t predict what the weather holds in store in any year…and this year is no different. With a cold, wet spring, most producers are off to a slower than usual start. In my 15 years with GreenStone, I have never seen a year quite like 2011. High commodity prices, rising input costs, continued increases in chemical and fertilizer costs; producers have a lot at stake. Protecting these investments and locking in the profits is key.

With today’s markets, I am seeing more producers taking a much closer look at their crop insurance coverage. Although the March 15 sign up for Multi-Peril Crop Insurance has long past, there is still an opportunity to protect your crops through other types of coverage. One such coverage is Crop Hail Insurance which compensates for loss of crops due to hail. In the past month, we have seen major storms across the country devastate communities and crops. Tornados and rain cause hail and high wind damage. We are prone to these conditions in Michigan. Hail Insurance can be companion protection with a producer’s Multi-Peril insurance as it not only provides hail coverage, it also protects against loss from fire, vandalism, transportation and storage. It is acre for acre protection, so if only a portion of a field is damaged, the policy covers those acres damaged.

For example, if a producer took a hail policy worth $500 per acre coverage on his soybeans on 100 acres, he would have $50,000 of guarantee liability. If he incurred a 30% loss due to a hail storm, the payout would be $15,000. Hail policies will pay out a second or third time in one year if another storm or insurable cause occurs. The same producer would have $35,000 of liability left on his policy and if he is harvesting and hauling the crop from the field to the farm and a wagon or hopper tips over, losing some of the crop, his policy would also cover that loss.

Specialty crop growers can also benefit with Hail Insurance. With the diversity of crops that are grown here in Michigan, crop hail insurance can be placed on almost any crop grown. Check with your agent and insurance providers for specifics. It also provides the flexibility to choose specific locations to insure as well as choose the amount of coverage on the crop. Prior to any damage occurring, hail insurance can be added anytime throughout the growing season, and can be bound for coverage as early as two hours after your application is submitted to an insurance company.

Why take the risk of losing your most valuable investments? The thought of being able to sleep at night knowing that your prime source of income is protected, is worth your time in visiting with your agent.

Written by: Beth Rowe, Senior Crop Insurance Specialist in Concord, Michigan