Yield Protection
What It Is: A Yield Protection (YP) crop insurance policy guarantees a crop yield based on an individual farm operation‘s Actual Production History (APH). If the production to count is less than the yield guarantee, an indemnity is paid. YP provides protection against losses in yield due to most natural disasters and weather events, including drought, excess moisture or flood, cold and frost, wind, insects and animals and disease.
How It’s Calculated: Yield Protection is subsidized by the Federal Crop Insurance Corporation (FCIC) and is based on each farm operation‘s individual production history. YP covers both basic and optional units—enterprise and whole farm unit coverage is available in some areas—and coverage levels range from 50% to 85% of the APH in 5% increments.
Agriculture Insurance FAQs
How do I apply for Dairy Revenue Protection?
Dairy Revenue Protection is available in all counties within all 50 states and applications may be submitted at any time during the year. However, insurance does not attach until you buy a quarterly coverage endorsement. You may buy multiple quarterly coverage endorsements with one application. Your insurance coverage starts the day you buy a quarterly coverage endorsement.
What does agricultural insurance do?
Agricultural insurance, also known as ag insurance, is a type of insurance specifically designed to help alleviate financial risks for farmers, ranchers, and growers. Depending on the policy, different agricultural products can be insured, from wheat crops to dairy cattle.
Ag insurance is insurance backed by the federal government, specifically the Federal Crop Insurance Program (FCIP), which is under the USDA‘s Risk Management Agency (RMA). Private insurance companies that are Approved Insurance Providers (AIP) sell policies to farmers, growers, and ranchers.
What is the most common crop insurance?
According to the USDA, row crops (barley, buckwheat, corn, etc.) are the most common liability that crop insurance programs cover. Individual-based policies (specifically individual revenue-based), rather than index-based or area-based policies, are the most popular type of crop protection policy.
How can farmers benefit from agricultural insurance?
Agricultural insurance gives hardworking farmers, growers, and ranchers peace of mind that they will be covered in the event of natural disasters, market fluctuations, or other incidents that result in a loss in revenue. This coverage helps make long-term operations feasible, protecting agribusinesses from financial harm and ensuring people have food on the table.
Agribusiness owners are busy. Finding and signing up for the right policies can be incredibly time-consuming. Simplify the process and get the best possible coverage by partnering with Rabo AgriFinance agents.