Crop Insurance Offers Protection During Uncertain Times

Capital Farm Credit Agri-Insurance provides personalized service to make sure you get the risk management solutions that are right for your operation. Our goal is to enhance your business while protecting your investment with quality insurance products.

Crop and livestock insurance are risk management tools that can protect your potential income, your savings and your borrowed capital.

Interested? Capital Farm Credit Agri-Insurance Agent Cary Franks recommends checking into three different products at this time of the year: annual forage, livestock risk protection and crop hail.

Annual Forage Insurance

Annual Forage Insurance covers acreage planted each year for livestock feed or fodder, offering risk protection from lack of rainfall.

• Coverage is available on acres used for grazing, haying, grazing/haying, grain/grazing, green chop, grazing/green chop, or silage.
• Both irrigated and non-irrigated acres are insurable.
• Producers insure annual forage production value by dividing their liability into two-month index intervals targeting when precipitation is crucial to the growing season.
• The program uses rainfall index data provided by NOAA to correlate precipitation to the insured acreage.
• Indemnities are paid when rainfall during a specific two-month period in a specific area (grid) falls below a selected percentage of historic average rainfall. Payments are based on final conditions in the entire grid, not on a specific property within that grid.

Livestock Risk Protection

Livestock Risk Protection (LRP) insures against declining market prices for fed cattle, feeder cattle and swine. Coverage may be purchased throughout the year. Two options are available covering both fed and feeder cattle operations.

With both options you can select from a variety of coverage levels and insurance periods that correspond with the time that your market-weight cattle would normally be sold (fed) or normally be marketed (feeder).

How LRP – Fed Cattle works:

• Insured cattle must be located in a state approved for LRP-Fed Cattle protection at the time insurance is purchased.
• Length of insurance coverage available for each specific coverage endorsement is 13, 17, 21, 26, 30, 34, 39, 43, 47 or 52 weeks.
• Producer may select coverage prices ranging from 70 to 100 percent of the expected ending value.
• At the end of the insurance period, if the actual ending value is below the coverage price, an indemnity is paid for the difference between the two.

How LRP – Feeder Cattle coverage works:

• All insured calves and cattle must be located in a state approved for LRP-Feeder Cattle protection at the time insurance is purchased.
• Length of insurance coverage available for each specific coverage endorsement is 13, 17, 21, 26, 30, 34, 39, 43, 47 or 52 weeks.
• Coverage is available for calves, steers, heifers, predominantly Brahman cattle and predominantly dairy cattle.• Producers may choose from two weight ranges: under 600 pounds and 600-900 pounds.

Crop Hail Insurance

Crop Hail Insurance protects against physical damage caused by hail and/or fire. Other coverages include:

• Fire department service charges
• Transit coverage to the first place of storage
• Cotton module coverage

Options exist in some areas for other perils, such as wind and theft.

Crop Hail Insurance can be used along with Multi–Peril Crop Insurance (MPCI) or other comprehensive coverages to offset the MPCI deductible and provide protection up to the actual cash value of the crop. Coverage is provided on an acre–by–acre basis, so damage that occurs on only part of a farm may be eligible for payment even when the rest of the farm unit is unaffected.