Using Crop Hail to Cover the Gap
Apr 19, 2024
Crop Hail is an additional Risk Management tool that works in conjunction with your Multi-Peril Crop Insurance (MPCI) Policy. Crop Hail is not a replacement for your MPCI Policy but provides coverage for the revenue not covered by your traditional MPCI Policy. There are a multitude of different types of crop hail policies. Work with a Producer Ag Crop Insurance Specialist to help identify which one works best for your operation.
Crop Hail is an easily customizable coverage option that allows you to cover the fields you want with the dollar amount you deem necessary to cover the risk. Producer Ag and their partners offer a 2-hour binding, allowing the producer to get coverage 2 hours prior to the damage. In addition to hail, your Crop Hail Policy can also help protect against wind, fire, theft, vandalism, transit, etc. Below is an example of an irrigated corn field with a 200-bushel production history. With the corn base price set at $4.66 for your MPCI Policy, the producer’s guaranteed revenue is $606. With the producer growing their average crop of 200 bushels, they have a risk exposure of $314. In the event of a hail or windstorm, the producer could potentially lose all $314 before their MPCI policy starts to trigger a payment. As margins have shrunk with higher input costs, Crop Hail is another tool we can use to help protect the profitability of your operation. Please contact Producer Ag to visit about how a Hail Policy can add value to your operation.
Article Provided by: Nick Levin, Crop Insurance Specialist