The biggest difference between Crop Insurance and any other type of insurance is the presence of governmental influence. The government oversees Crop Insurance and the Risk Management Agency (RMA) is the operational arm of the government that controls and oversees the Crop Insurance program. Crop Insurance is subsidized directly by the Federal Government. Buy-up levels of insurance are subsidized up to 65 percent. ALL Crop Insurance is priced the same, no company is cheaper than its competitors. It is comfortability with the agent; the agent’s knowledge of the business and the producer’s happiness with customer service that should determines where they carry their policy.

Crop Insurance policy provides a floor, a guaranteed minimum yield. The policy then pays the producer if harvested or appraised production falls below the guaranteed yield . With Crop Insurance revenue products you will be protected from low prices as well. Crop Insurance policies cover most Natural Disasters and any additional damage that occurs if the additional damaged was caused by an insured cause of loss.

The bottom-line is this: Crop Insurance is a risk management tool, and with inconsistent markets, uncertain weather patterns and unforeseen events, can you afford to farm without protection?

Q. Why isn't insurance available for the same crop in every county and state?

A. Because the development of Crop Insurance policies depends upon the demand for them, RMA does not initiate policies or expand existing programs to areas where there are no requests. In areas where an established crop policy is not available, farmers may request that their RMA Regional Office expand the program to their county the next crop year. They may also contact their local Crop Insurance agent and inquire as to the availability of submitting a written agreement for the current crop year. Check with your local Crop Insurance agent to determine which crops are insurable and in which counties.


Q. What if I am told I have water now but I run out of water during the crop year?

A. The proper procedure for this kind of situation is to keep a consistent, detailed ledger of notes detailing any meetings you have attended, any discussions with your Ditch Company, the Reservoir Company, GASP or any other entities or individuals with whom you deal regarding water issues. Operating under this premise will assist and help you in the creation of a plan of what to plant and where to plant it. If the lack of sufficient soil moisture necessary to sustain a crop to harvest remains during the planting period and your decision to file Prevented Planting is the final decision, the Adjuster that works your claim will ask for your documentation that supports your decision not to plant. As producers, the burden of proof will be on you, and with new rules and regulations it is a direct violation for we, as agents, to gather documentation for you. If you can prove you had reasonable expectation that there would be enough water to sustain the crop from initial planting to harvest and the crop fails, that is a covered peril under your crop insurance policy. REMEMBER: Documentation is essential.


Q. What if I have prior year's production in the bin and I want to add this year's crop to the bin?

A. The bin must first be measured by the Farm Service Agency (FSA), OR by a crop adjuster prior to this year’s crop entering the bin. The bin must also be marked to distinguish the different crop years’ harvest. This is applicable for ALL crops.


Q. What is the connection between the Farm Service Agency (FSA) and Crop Insurance?

A. Crop Insurance is delivered to the individual producers via independent crop insurance agents. The independent agents represent companies who have been given permission and signed contracts with RMA to administer the Crop Insurance program to the individual producers.

The FSA on the other hand, is a direct branch of the government that in all actuality is a collection agency for the government. The FSA does offer Limited Disaster Payments (LDP’s) and various other payments and services. But to digress, the FSA and the crop insurance companies and agents are being tied together more closely by the government and misreporting at one can result in problems at the other. Make sure that all information given to the FSA is consistent with all the information you report to your crop insurance agent, and vice versa.


Q. How is my Crop Insurance guarantee calculated?

A. Your guarantee is calculated by multiplying your Actual Production History (APH) times the level of coverage you select. Levels are available in 5 percent increments from 50 % to 75%; even 80% is available for certain crops in certain counties. The following is an arithmetic example of how a guarantee is calculated:

- (APH) of 100 bu x .65 level = Guarantee of 65 bu. This is calculated per unit, separate units may have different APH’s.

REMEMBER: After you have set up units for Crop Insurance, you must harvest each unit separately, DO NOT commingle production – it will be extremely harmful to your Crop Insurance APH and the companies have some strict rules regarding the recalculation of APH’s once commingling has occurred.


Q. What crop insurance papers should I keep?

A. There are several papers you should keep for the current crop year:
- Policy confirmation
- Production & yield report
- Acreage report
- Your schedule of insurance
- Maps and 578’s from the FSA
For ALL previous years you should keep your:
- Production & yield reports
- Maps and 578’s from the FSA
- Schedules of insurance


Q. Is insurance available for organically grown crops?

A. Crop Insurance is available for organically grown crops, but it is not available on all crops in all counties. Checking with your local Crop Insurance agent is the best method for gaining information regarding organic insurance.

A producer must use organic farming methods for three (3) years before they will be registered as a Certified Organic Producer. During the three (3) year transition period the Crop Insurance APH will reflect the change in practice and yields and will be coded as Transitional Yields. Papers verifying the Certified Organic Practice must be on file with your Crop Insurance agent and must be submitted with the company before the organic practice will be recognized.