Specialty Crop Insurance

Crop insurance is purchased by agricultural producers and subsidized by the federal government. It protects against the loss of crops due to natural disasters (hail, drought, floods, etc.) or the loss of revenue due to declines in the prices of agricultural commodities.

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.

The Micro Farm policy is available through Whole Farm Revenue Protection (WFRP) for operations earning average revenue of $350K per year or less, or $400K per year for carryover insureds. The micro farm option simplifies the record keeping typically required for WFRP by eliminating the need for reporting on individual expenses or individual commodities. Micro farm policyholders may consider revenue from post-production costs, such as washing and packaging commodities and value-added products, as allowable revenue under WFRP.

Hail insurance can be purchased at any time throughout the growing season, but the policy must be bound at least two hours before the hail hits the crop. There are some crops that require a longer binding period. Contact your local agent to learn more about your crop’s requirements.

Insurance options can be county dependent for Actual Production History (APH) and Actual Revenue History (ARH) plans. Under an APH policy, you can typically insure apples, blueberries, grapes, and peaches/nectarines. Sweet and tart cherries can be insured under an ARH policy.

The APH and ARH policies for specialty crops are due on November 20. Whole Farm Revenue Protection and Micro Farm policy deadlines are based on your fiscal year and could be as early as the APH and ARH deadlines. The deadline for Whole Farm Revenue Protection is March 15, and the deadline for Micro Farm policies is April 15.

Crop insurance can be very affordable. GreenStone’s crop insurance specialists work with you to understand your goals and identify a plan and price that aligns with your operation’s budget. Forgoing crop insurance could put your operation at risk in the event of adverse weather or natural disasters, especially when considering today’s high input costs. Crop insurance policies are federally subsidized, making the premiums reasonable for producers.

No. Premiums are set by the USDA at a regional level. Your rates will never go up because you filed a claim or received an indemnity.

No. A lack of market (demand) is considered a man-made cause of loss. Crop insurance covers physical damage from an insurable cause of loss such as weather, natural disasters, or revenue loss due to low commodity prices.

Appraisals on unharvested crops are important for maintaining the approved revenue history and production history in the following crop years.

A written notice of damage or loss is to be filed by the policy holder within 72 hours of the initial discovery of damage or loss of production. These notifications provide the opportunity for the insurance company to inspect the crop and determine the extent of the damage.

Yes. All approved Insurance Providers who sell and service federal crop insurance policies must have adequate surplus to cover their written premiums. The AIPs must meet standards set and monitored by the Risk Management Agency (RMA) to ensure financial stability. All policies are reinsured by the Federal Crop Insurance Corporation (FCIC). If an AIP is unable to pay any indemnities owed, a loss would be paid by the FCIC.

Yes. Each policy has its own way of handling quality loss, specific to that crop or commodity. Ask your crop insurance specialist how that works for your planned crops.

Enhanced Coverage Option (ECO) and Supplemental Coverage Option (SCO) are cost-effective risk management tools that can help protect your operation against a falling price floor.

ECO is an area-based band of coverage that attaches to your existing eligible crop insurance policy. ECO crop insurance coverage provides two coverage levels to choose from: 86-90% or 86-95% depending on your specific needs.

SCO is a county policy that can be stacked on top of your underlying revenue or yield protection coverage. It adds coverage to the base policy up to 86% of crop value. The stacked SCO policy provides area-based coverage.