Crop Insurance is purchased by agricultural producers, including farmers, ranchers, and others to protect against either the loss of their crops due to natural disasters, or the loss of revenue due to declines in the prices of agricultural commodities. There are two types of crop insurance: multi-peril and private.
Multi-Peril Crop Insurance (MPCI)
MPCI policies provide coverage for loss of production or a combination of yield and price coverage provided through the Federal Crop Insurance Corporation (FCIC). These policies provide coverage to the agricultural producer for a number of naturally occurring perils and combination products also cover loss in value due to a change in market price during the insurance period. MPCI is federally supported and regulated, and is sold and serviced by private-sector crop insurance companies and agents.
Private Products
Private policies are not part of the Federal Crop Insurance Program and are provided directly to farmers by private insurers. For instance many farmers purchase Crop-Hail coverage because hail has the unique ability to totally destroy a significant part of a planted field while leaving the rest undamaged. In areas of the country where hail is a frequent event, farmers often purchase a Crop-Hail policy to protect high-yielding crops. Unlike MPCI, a Crop-Hail policy can be purchased at any time during the growing season.
Multi-Peril Crop Insurance
Annual Forage
Annual Forage
Annual Forage is a Rainfall Index insurance policy that provides coverage on any annually planted crop used for forage or fodder by livestock. This pilot program is designed to protect against a single peril, lack of precipitation. Click here to learn more.Hemp
Hemp
APH hemp is a pilot program that provides coverage against loss of yield because of insurable causes of loss for hemp grown for fiber, grain or Cannabidiol (CBD) oil. Click here to learn more.Dairy Revenue Protection
Dairy Revenue Protection
DAIRY REVENUE PROTECTION is designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level. Click here to learn more.