When it comes to crop insurance, you should know that it 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 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, wind storms, heat, etc.  Any loss caused by adverse weather.  It also covers lack of production caused by plant diseases and insects providing a good spray program was carried out.  You are also protected to loss due to wildlife (think squirrels). 

This is a short recap of what you will need to know in order to apply crop insurance to 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. Crop insurance guarantees production, not farm income.  The production guarantee is based on the “actual production history” (APH) of the unit.  Production records are collected for up to ten years.

5. The guarantee offered is in levels with 75% of the average production being the maximum you can get.  The 75% level would equate to a 25% deductible from your average production.  Insurance guarantees range from 75% 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 the insurance price per pound/ton.

Example:  Almonds
Average production	2,000 lbs.
Level selected    75%	1,500 lbs. per acre guaranteed
50 Acres in the Unit	75,000 lbs. total guarantee
Insurance Price Election	$1.70/lb
Total Dollar Insurance	$127,500*
* Total Dollars are only realized with zero crop production.

You may call us directly at 209-668-6788 or 1-877-573-1122.
 

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