Crop Information

Crop Insurance Information & Need-to-Knows

Federal Crop Insurance is underwritten by the Risk Management Administration (RMA) of the United States Department of Agriculture (USDA). The RMA sets the rules, regulations, rates and prices for all crops each year. Private insurance companies then deliver the crop insurance to the farmers. Since the rates are established by RMA, the insurance coverage and cost is the same regardless of which company and agency you choose. Therefore, there is no need to shop around with many agents for a competitive price quote. The crop insurance quote will be the same from every crop insurance agency.

Crop insurance provides a guarantee of production from losses caused by adverse weather i.e., frost, rain, hail, poor pollination due to weather, windstorms, heat, etc. Any loss caused by adverse weather. It also covers lack of production caused by plant diseases and insects providing you follow the spray recommendations by your PCA. You are also protected to loss due to wildlife (think squirrels).

This is a short recap of what you will need to know to apply for crop insurance for your farming operation.

1. Is the crop insurable in your county? Click here to check
2. Does your orchard or vineyard meet the age requirements set by the Risk Management Administration (RMA)? Click here to find out
3. Acreage is insured by a “unit” structure. All blocks will be insured as one unit unless other landowners exist between the blocks.
4. Most of the crop insurance plans guarantees production, not dollars. The production guarantee is based on the Actual Production History (APH) of the unit. Production records are collected for up to ten years. Cherries and raisins are insured on a revenue/dollar basis.
5. You can insure up to 85% of your actual production average. Insurance guarantees range from 85% to 50% in 5% increments.
6. The total guarantee for a unit is established by multiplying the average yield times the level of protection chosen times the number of acres in the unit. The dollar amount of insurance is determined by using multiplying the total guarantee by the insurance price per pound/ton.