Frequently Asked Questions about Fruit Crop Insurance
In the interest of sharing our team’s decades of expertise assisting producers in their quest to insure their produce and crops against potential losses, our specialists have compiled a list of the most frequently asked questions about fruit crop insurance below.
We hope this information will help you to find the best coverage and value in crop insurance as well!
What is crop insurance?
Crop insurance is purchased by agricultural producers, and subsidized by the federal government, to protect against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities.
What is 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.
What is a Micro Farm policy?
The Micro Farm policy is available through Whole Farm Revenue Protection (WFRP) for operations earning average revenue of $100K per year or less. 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.
When can I purchase hail coverage?
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.
Which crops can I insure?
Insurance options can be county dependent for APH (Approved Production History) and ARH (Approved Revenue History) plans. Under an APH policy, you can typically insure apples, blueberries, and peaches/nectarines. Under the ARH policy, sweet and tart cherries are insured.
In recent years, Whole Farm Revenue Protection and Micro Farm insurance policies have become available. Under these policies, any and all crops that are legal federally can be insured.
Is there a deadline to sign up for fruit crop insurance?
Yes! The APH and ARH policies for fruit crops are due in mid-November. For example, November 20 is the deadline to insure for the 2023 fruit crop year.
Whole Farm Revenue Protection and Micro Farm policy deadlines are based on your fiscal year and could be due as early as the APH and ARH deadlines, but are typically required by March 15.
It is always advised to consult your crop insurance specialist to confirm deadlines and determine your eligibility by November 20.
Is crop insurance expensive?
The quick answer is no, it can be very affordable. Our crop insurance specialists work with you to identify your goals and help find a plan and price that works for your operation’s budget. Given the current high input costs, foregoing crop insurance coverage could be far more costly to your operation in the event of adverse weather or natural disasters.
If I file a claim, will my future policy cost increase?
No, premiums are set by the USDA at a regional level, so your rates will never change because you file a claim or receive an indemnity.
Is lack of market covered as an insured cause of loss?
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.
After filing a claim, why do I need to have my unharvested production appraised?
Appraisals on unharvested crops are important for maintaining the approved revenue history in the following crop years.
How do I report a claim?
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 damage.
In a disaster year, will my Approved Insurance Provider (AIP) be able to cover my claim payments?
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. In addition, 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.
Is the quality of my crop considered?
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.
If you have questions not listed above, or if you’re ready to optimize your crop insurance coverage with the region’s fastest-growing crop insurance provider, please contact your local crop insurance specialist at 800-444-3276 or go to https://www.greenstonefcs.com/why-greenstone/our-locations.
GreenStone Farm Credit Services is an equal opportunity provider. In accordance with Federal law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices and employees and institutions participating in or administering USDA programs are prohibited from discriminating on the basis of race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs).