Crop insurance provides security and the peace-of-mind protection you need
Farming today is big business. It's also
a risky business. And, the risk becomes
greater each year as costs for land, ma-
chinery, fertilizer, seed and pesticides
continue to increase.
You invest a lot of money each grow-
ing season to raise your crops. You an-
ticipate a good harvest. BUT, can you
afford to depend on nature alone for a
good crop to recover these crop invest-
ment dollars? Probably not!
In fact, most farmers today can't!
That's why more and more farmers each
year are making crop insurance a vital
part of their modern farming operation.
What is Crop Insurance?
Crop insurance is a risk management tool. It
helps take the risk out of farming. It protects your
crop investment. It guarantees you an income, and
a cash flow, until the next growing season...even
if disaster strikes.
Who Should Have Crop Insurance?
Every producer should take advantage of this
low-cost, peace-of-mind protection. Crop insur-
ance provides security for you and your farming
operation each growing season...even when crops
are destroyed by a natural disaster. It is the only
disaster protection program available to Ameri-
can farmers.
What Losses Are Covered By Crop
Insurance?
Crop insurance covers all losses resulting from
drought, flood, frost, hail, insects, disease and other
natural catastrophies. It protects your crop in-
vestment until harvest. In case of a loss, it pro-
vides the money needed to cover "out of pocket"
expenses so you will be able to farm another year.
Which Crops Can Be Insured?
Crop insurance protection is available on all the
major commodities grown in this country. It is also
available for most specialty crops produced across
the nation. Virtually any crop that produces a sig-
nificant farm income can be insured. If you have
any question about the availability of crop insur-
ance on a particular commodity, check with your
crop insurance agent shown on the back of this
folder.
Is Crop Insurance Expensive?
No. Crop insurance protection is a low-cost bus-
iness expense...and, it's a tax deductible farm
business expense. Premium costs are low, because
up to 30 percent of the cost of insurance is paid by
the Federal Government. Premium rates also re-
ward farmers who have a record of above-average
crop yields. Crop insurance is affordable protec-
tion you can't afford to be without!
How are Yield Guarantees
Determined?
The flexibility of the crop insurance program lets
you select the coverage and the price election that
meet your individual financial needs each year.
For most crops, you have a choice of purchasing
insurance at three coverage levels... 75 percent,
65 percent, or 50 percent of your average produc-
tion during previous years. You then determine
the amount (the price) you will be paid for each
bushel or pound in case you suffer a crop loss. In
most cases, you can select one of three dollar
amounts for each bushel or pound lost. The bush-
els or pounds lost, multiplied by the dollar amount
you select, determines the amount of money you
will be paid if your insured crop falls short of the
guaranteed yield.
Why Is The APH Program Important?
Crop yield guarantees are based on your own
production history as a farmer. The Actual Pro-
duction History (APH) program uses your records
from past years to determine your individual pro-
duction history on the land you farm. Thus, the
more you have produced in the past, the more in-
surance coverage you can qualify for now. After
your production history has been established, you
choose the exact amount of insurance protection
you want and need.
What Is Meant By Continuous
Protection?
A crop insurance policy is a continuous contract
that provides you with protection year after year,
as long as you wish to be insured. You do not have
to reapply each year. For any year that you decide
not to continue the insurance, you need only notify
your insurance agent in writing before the cancel-
lation date shown in the policy.
Why Do Lenders Recommend Crop
Insurance?
It takes money to make money! Financial lend