Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Do you really want to delete this prezi?
Neither you, nor the coeditors you shared it with will be able to recover it again.
Make your likes visible on Facebook?
Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.
Crop Insurance 101
Transcript of Crop Insurance 101
Wind and Stored Grain Damage
(Price Increase or Decline)
Transit or Upset
Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed and known small loss (the premium) to prevent a large, possibly devastating loss.
What is Insurance?
Individual coverage (APH)
Revenue Protection (RP, RP-HPE)
County Average (Group)
Area Risk (ARPI-APRI-HPE)
Crop Insurance Types
Yield Protection (YP)
County Average (Group)
Crop Hail & Fire
GS and Wind
I have so many high expenses, so why spend more on Crop Insurance?
Do these expenses guarantee revenue?
Crop Insurance Guarantees Revenue
Steps involved in Crop Insurance Decisions
Step 1. Identify all of your farm locations, crops, practices, and shares.
Step 2. Determine possible unit structure.
Step 4. Determine your cost of production and possible gross and net revenue
Step 3. Determine your past yield history by farm
Step 5: Discover Initial Commodity Price
Corn Price Feb. Ave. Dec. 2014 on CBOT-- 2014 $4.62
Bean Price Feb. Ave. Nov. 2014 on CBOT-- 2014 $11.36
Step 6: Find an Agent to analyze the data from previous steps to:
Give you an accurate quote using available software
He or she should :
Understand your operation completely
Understand and communicate unit structure
Explain pros and cons of subsidized and private products
Set clear expectations of insured's responsibilites
Make sure insured client meets all deadlines prescribed
Assist and advise with any potential claim
What if I think I have a claim?
Types of claims
Replant - 20 acres or 20% of unit Notify prior to replant
PP Claim - 20 acres or 20% of unit Notify prior certification date
Hail Claim - No Minimum acres, Notify within 72 hours
Fire Claim - No Minimum acres, Notify within 72 hours
Green Snap or Wind - No Minimum acres, Notify within 72 hours
Stored Grain - Notify within 72 Hours
Vandalism - Notify within 72 Hours
What about a Production Claim?
Production claim-Notify within 72 Hours
Chopping Silage-schedule appraisal early
Prior years grain still on farm-get it measured
Revenue claim (lower Harvest Price)-Notify within 14 days following Fall Price Discovery
Provide elevator records for all sold production
Document farm stored production
Document feed records
Guaranteed Revenue is Important for...
Reliable collateral for loans
May be assigned to lender
Claims paid prior to outlays for next crop
Bankers love a well thought-out plan
Powerful Marketing Hedge tool
Safer hedging when Markets provide opportunity
Guaranteed Revenue known early in Marketing year for best Market planning
With Harvest option farmers are protected up to 100% price increase Fall over Spring