Copyright © 2013 Diversified Crop Insurance Services. All Rights Reserved. No distribution or reproduction

without written consent. Diversified Crop Insurance Services is an equal opportunity provider.

Services Provided by:

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You’ve never really been insured,UNTIL NOW.

Services Provided by Global Ag Risk SolutionsThis product may not be available in all states. Please check with your DCIS representative for more information.

Diversified Crop Insurance Services is a company of CGB Enterprises, Inc. and is an Equal Opportunity Provider. #7280_103116

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Think about crop insurance differently than you have in

the past…

Why do you insure?

Revenue

Ultimately REVENUE is what matters on your farm…why not insure that?

Bushels are nice at the coffee shop…but dollars in your pocket pay your bills.

Are you in the game for bragging rights?

• OR to WIN?– Why not both with Production Cost Insurance?

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5-Year Crop Revenue Stream

Literally that is what we want to protect…

WHAT?

Yes…literally we want to protect your 5 year historical revenue stream.

It IS that simple.

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On a 5-year average…

Crop Sales

(incl. Hedging)

- Seed

- Fertilizer

- Chemical

Gross MarginOur initial offer is up to 80% of your Gross Margin PLUS 100% of your Seed/Fertilizer/Chemical costs…

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Step 1 - Historical Revenue

We determine on a per acre basis:• What exactly was your previous 5-year revenue

from crop sales.

• We include Hedging gains and losses.

• We add back in

any grain used for

feed.

The result of Step 1 is the first number in our formula.

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Step 2 - Seed Costs

We determine on a per acre basis:

• What exactly was your previous 5-year expense load on seed.

• We look at the actual cost of seed.

• We include any treatment used.

The result of Step 2 is the

second number in our formula.

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Step 3 - Fertilizer Costs

We determine on a per acre basis:

• What exactly was your previous 5-year expense load on Fertilizer.

• We look at the actual cost of Fertilizer.

The result of Step 3 is the

second number in our formula.

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Step 4 - Chemical Costs

We determine on a per acre basis:

• What exactly was your previous 5-year expense load on Chemical.

• We look at the actual cost of Chemical.

The result of Step 4 is the fourth number in our formula.

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Step 5 – Gross Margin

We simply do the math.The result is what we call your:

GROSS MARGIN

We then create a quote for you based on your actual numbers.

Typically our high offer to you is 80% of your Gross Margin.

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We also insure you for

100%of the actual costs of your inputs of:

� Seed

� Fertilizer

� Chemical

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A TRUE Revenue Floor

• Gives you the comfort level to Hedge at the level you want to knowing your revenue is protected.

• Put on that extra fertilizer or try that new seed variety…Use the best, Farm the best.

• Helping you to farm the way you want! Not the way a rule book tells you to.

Copyright © 2013 Diversified Crop Insurance Services. All Rights Reserved. No distribution or reproduction

without written consent. Diversified Crop Insurance Services is an equal opportunity provider.

Any questions so far?

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Financial Analysis

Using your financial records we look at two broad areas to help guide you to success:

• Direct Inputs

– Seed – Fertilizer – Chemical

• Fixed Costs

– LPM – Labor – Power – Machinery

– LBF – Land – Building – Finance

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Financial Analysis, cont…

We have looked at the Direct Input portion already…

Ultimately you need to be sure you can cover those Fixed Costs. Which is done by your Gross

Margin.

Let’s look at Fixed Costs:�LPM�LBF

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LPM –Labor, Power, & Machinery

What it takes to get the job done…

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LBF –Land, Building, & Finance

Fixed Costs Labor, Power, Machinery:• Custom work• Machinery leases• Interest on machinery

loans• Repairs to machinery• Machinery depreciation• Fuel• Labor

Land, Building, Finance:• Land rent• Repairs to buildings• Building depreciation• Interest on land/build

loans• Leases on buildings

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A Step-by-Step Year in

PCI

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Step 1: Financial Release

• Completely and accurately fill out the 2017 Financial Release form.

• Notify your accountant that GARS/DCIS will be contacting them for additional information

• 5 Years worth of Tax Returns– Schedule F along with Supporting Documentation

– Schedule 4797

– Schedule D

• Accrual Financial Statements if possible

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Step 2: GARS contact to Accountant

Step 2 is completely dependent upon your accountant and the speed at which they work.

You can speed up the process by prepping them on the needed documentation.

Timing is everything…

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Step 3: Financial Review

The farm data is confidentially analyzed and quote is provided.

Production Cost Insurance

Quote for Test Producer

Fixed Cost Margin

Coverage

(FCMC)

Input Cost Coverage

(ICC)Cost Per Acre

Your input costs up to a maximum of

$362.13

$375

$350

If, during the year you will exceed this

maximum, you will need to fill out a

detailed input report and we will adjust

your coverage at no additional

premium!

$325

$300

$275

$250

$225 Varies

$200

$175

$150

$125

$100

$75

$50

$25

Please note the pricing shown is an estimate and

should not be considered an offer of insurance. This

estimate is to be used as a basis of pricing. Prices may

be subject to change based upon the information

reported in the application for insurance.

It is extremely important to understand the "Input

Cost Coverage" (ICC) is the ACTUAL COST OF ALL

SEED, FERTILIZER AND CHEMICAL UP TO THE

MAXIMUM AMOUNT SHOWN. (The maximum

amount is up to 140% of the last 3-year average of the

inputs mentioned above. Therefore the maximum

amount shown is not the coverage UNLESS THAT

AMOUNT IS ACTUALLY USED.

**For illustration and educational purposes only**

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Step 4: Producer Review

• DCIS delivers the quote to the agent for review.

• E-Mail is the preferred method to send the quote. The quote will be sent to all who are authorized to receive the quote.

0

100

200

300

400

500

600

700

800

Planning Planting Fertilizer Chemical Addt'l Pass Harvest

FixedCosts

Variable

Protection All Year Long

0

100

200

300

400

500

600

700

800

Planning Planting Fertilizer Chemical Addt'l Pass Harvest

FixedCosts

Variable

Protection All Year Long

PCI$350

GoodHarvest

PoorHarvest

$12 of Risk

How Production Cost Insurance Works

$/Acre

$205

Seeding $345

SeedFertilizerChemical

Fixed Costs

In-Crop Spraying

$375

Fungicide Spraying$410

Desiccation $424

$150

Production Cost Insurance

$290$320$355$369

Step 5 –Application

Copyright © 2016 Diversified Crop Insurance Services. All Rights Reserved. No distribution or reproduction without written consent.

Diversified Crop Insurance Services is an Equal Opportunity Provider. 33

Step 6 – Application Acceptance

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Step 7 – Farm the Way You Want

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Step 8 – Forms during the year

o Acreage Report

o Peril Notification

o Detailed Input Report

o Stored Grain

o Pre-Harvest

o Post-Harvest

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Step 9 - Claim

Copyright © 2016 Diversified Crop Insurance Services. All Rights Reserved. No distribution or reproduction without written consent. Diversified Crop

Insurance Services is an Equal Opportunity Provider. 37

Questions?