Download - Crop Insurance Update - SRMEC Insurance Performance - 1890 Farm Bill Training...Crop Insurance Performance Dr. Laurence M. Crane 2019 Atlanta Farm Bill Conference Implications for

Crop Insurance Performance

Dr. Laurence M. Crane

2019 Atlanta Farm Bill ConferenceImplications for Socially Disadvantaged Farmers and Ranchers

National Crop Insurance ServicesEmbassy Suites by Hilton Atlanta, Georgia

June 11, 2019

Organization of Presentation

• NCIS Backgrounder

• Industry Overview

• Year in Review

• 2018 Recap

– State Regulated (Crop-Hail)

– Federally Regulated (MPCI)

• Other Considerations

– Specialty Crops

– Some Farm Bill Stuff

– Dairy Revenue Protection

– Whole Farm Revenue

• Application Process

© 2019 NCIS 2

2019 Atlanta Farm Bill Conference -- Implications for Socially Disadvantaged Farmers and Ranchers

BACKGROUNDER

© 2019 NCIS 3


NCIS Functions

• Crop Insurance Program Development and Analysis – Policy Analysis, Loss Adjustment Procedures, Legal Analysis, Agronomic Research

• Economic and Actuarial Analysis

• Education and Training– Loss Adjuster Schools – 17 (1,180 attendees)

– National Conferences – 5 (1,154 attendees)

– Annual Regional/State Meetings – 19 (504 attendees)

• Crop-Hail Advisory Organization and Statistical Agent– Licensed by Individual State Insurance Departments

• Public Relations and Industry Outreach

© 2019 NCIS 4


Number of Insurance Providers by Year

© 2019 NCIS 5


FCIC’s role is to establish provisions, rules, regulations, and rates.

RMA oversees the crop insurance program, administers premium and subsidies, and provides support and outreach. •Agent• Insured

•AIP•RMA/FCIC

Working Together

To Provide

Effective Crop

Coverage

For the Ag

Producer

Working Together


•Agent• Insured

•AIP•RMA/FCIC

Working Together

To Provide

Effective Crop

Coverage

For the Ag

Producer

Approved Insurance Providers

(AIPs) contract with licensed

agents to market crop insurance

and the agent receives

commission.

Working Together


•Agent• Insured

•AIP•RMA/FCIC

Working Together

To Provide

Effective Crop

Coverage

For the Ag

Producer

The agent

Provides product and premium

information to the insured.

Collects required information

including:

Application

Production

Acreage

Builds relationships with customers

Must stay current with crop insurance

programs.

Working Together


•Agent• Insured

•AIP•RMA/FCIC

Working Together

To Provide

Effective Crop

Coverage

For the Ag

Producer

The Insured

Has ownership in a crop and enters into contract to insure it

Must report required information

Pays applicable premiums and fees

Must follow appropriate farming practices

Must notify the AIP in the event of a loss

Will receive an indemnity payment when an insurable loss occurs if guarantee not met

Working Together


2018 YEAR IN REVIEW

© 2019 NCIS 10


Source: USDA, NASS, Quick Stats https://quickstats.nass.usda.gov

Figure 9. U.S. Farm Prices Paid and Received for Crops & Animals (2000 to 2018)

0

20

40

60

80

100

120

140

160

180

20

11

= 1

00

Livestock Paid Livestock Prices Received

0

20

40

60

80

100

120

Crops Prices Paid Crops Prices Received

© 2019 NCIS 11


https://quickstats.nass.usda.gov/

Figure 12. Weekly Corn Futures Prices December Contract, 2012-2018

3.00

4.00

5.00

6.00

7.00

8.00

9.00

1 5 9 13 17 21 25 29 33 37 41 45 49

2012

2013

2014

2015

2016

2017

2018

Week

$/Bu.

Data as of April 16, 2019

Source: Barchart.com© 2019 NCIS 12


2018 STATE REGULATED BUSINESS “CROP-HAIL”

© 2019 NCIS 13


Crop-Hail Premium TotalsState Regulated Business

Prepared 04/25/2019NCIS Insured Crop Summary as of 04/25/2019

Cropyear Premium Indemnity Loss Ratio

2017 952,960,169 876,653,802 0.92

2018 979,933,352 920,953,568 0.94

2017-2018 Crop-Hail Industrywide Totals (U.S. only)

RANK STATE PREMIUM LOSS LOSS RATIO

1 Nebraska 205,869,248 269,649,341 1.31

2 Iowa 107,233,782 97,472,145 0.91

3 North Dakota 106,110,240 77,609,412 0.73

4 Minnesota 101,267,419 74,879,269 0.74

5 Illinois 83,298,336 59,720,723 0.72

Top 5 States by Written Premium Volume for 2018

© 2019 NCIS 14


Figure 18. 2018 Crop-Hail Premium and

Loss RatiosAll Crop, Perils,

Plans Combined


Source: National Crop Insurance Services Insured Crop Summary and NCIS6b

© 2019 NCIS 15


2018 FEDERALLY REGULATED CROP INSURANCE “MPCI”

© 2019 NCIS 16


U.S. Acres in Crop Insurance, 1981-2017

0

50

100

150

200

250

300

350

Insured acres

Total US cropacres

1994 Act

310 mil

Mil. acres

Premium support,then 2000 Act

318 mil1981-2017: 327.65 mil

Sources: U.S. crop

acres are from the

NASS databases.

Insured acres are

from the RMA’s

Summary of

Business. © 2019 NCIS 17


Distribution by CropLiability By Major Crop, 2018

Total: $110 bil.

NCIS Summary of Business as of 04/25/2019 Prepared 04/25/2019© 2019 NCIS 18

Forthcoming in Crop Insurance Today Magazine Paggi and South.

Table 2. Major Revenue Policy Base Prices 1/

2012 2013 2014 2015 2016 2017 2018 2019

% Change

2017-

18

2018-

19

Wheat, Winter ($/bu) (KS) 8.62 8.78 7.02 6.30 5.20 4.59 4.87 5.74 6.1 17.9

Wheat, Spring ($/bu) (ND) 7.84 8.44 6.51 5.85 5.13 5.65 6.31 5.77 11.7 -8.6

Corn ($/bu) (IL) 5.68 5.65 4.62 4.15 3.86 3.96 3.96 4.00 0.0 1.0

Soybeans ($/bu) (IL) 12.55 12.87 11.36 9.73 8.85 10.19 10.16 9.54 -0.3 -6.1

Upland Cotton ($/lb) (MS) 0.94 0.81 0.78 0.63 0.62 0.73 0.75 0.74 2.7 -1.3

Rice ($/cwt) 14.70 15.70 13.90 2/ 11.90 10.40 11.90 10.80 14.4 -9.2

1/ Revenue Protection for 2012-19 as of April 16, 2019

2/ Due to insufficient futures price data, revenue insurance was not available in 2015

Source: RMA Actuarial Information Browser

© 2019 NCIS 19


Table 3. Volatility Factors

Historical

Price

Volatility

1/

Volatility Factor 2/

1968-2018 2012 2013 2014 2015 2016 2017 2018 2019% Change

2017-18 2018-19

Wheat, Winter

($/bu)0.19 0.26 0.24 0.19 0.17 0.22 0.18 0.16 0.19 -11.10% 18.80%

Wheat, Spring

($/bu)0.22 0.19 0.15 0.14 0.15 0.15 0.13 0.13 0.14 0.00% 7.70%

Corn ($/bu) 0.2 0.22 0.2 0.19 0.21 0.17 0.19 0.15 0.15 -21.10% 0.00%

Soybeans ($/bu) 0.18 0.18 0.17 0.13 0.16 0.12 0.16 0.14 0.12 -12.50% -14.30%

Upland Cotton

($/lb)0.23 0.19 0.17 0.15 0.16 0.14 0.15 0.14 0.14 -6.70% 0.00%

Rice ($/cwt) 0.23 0.14 0.11 0.1 3/ 0.15 0.17 0.12 0.11 -29.40% -8.30%

1/ Historical volatility values are obtained by fitting log-normal distribution to the time series of the ratio of the harvest price to the base price from 1968 to

2018. For each year in that time period, the harvest and base prices are calculated by using relevant futures prices in that year. Source: Barchart.com

2/ Revenue Protection as of April 16, 2019

3/ Due to insufficient futures price data, revenue insurance is not available in 2015.

Source: Various RMA Manager’s Bulletins© 2019 NCIS 20


Nationwide Recent Crop Losses

13% Hail

37% Drought & Heat

33% Excess Moisture

Summary: Historically 75% of losses are due to extremes in moisture and temperature


Nationwide SummaryFederal Regulated Business

Note: liability and premium include all business written, both on acre and non-acre

bases.

Prepared 04/25/2019NCIS Summary of Business as of 04/03/2019

CROPYEAR ACRES LIABILITY PREMIUM

2018 309,050,881 110,077,088,960 9,890,623,353

2017 293,404,152 106,083,824,527 10,071,920,375

2017-18 MPCI Industrywide Totals

Top 10 Premium States for 2018STATE ACRES PREMIUM LOSS RATIO

Texas 35,819,283 1,152,979,494 1.31

North Dakota 23,548,536 878,673,599 0.37

Illinois 19,359,940 646,369,301 0.15

Iowa 21,796,976 625,878,448 0.50

Kansas 19,229,164 605,520,961 0.55

South Dakota 18,244,192 598,564,741 0.45

Minnesota 17,524,830 577,161,668 0.62

Nebraska 17,823,745 518,991,516 0.32

California 6,245,624 413,735,308 0.66

Missouri 9,676,950 383,757,527 0.64

© 2019 NCIS 22


Figure 15. 2018 MPCI Premium and Loss RatiosAll Plans Combined


Source: RMA Summary of Business

© 2019 NCIS 23


CORN , 11%

COTTON , 9%

OTHER, 6%

RICE , 37%

SOYBEANS , 37%

Multiple Peril Crop InsuranceArkansas Liability Percentage

2018


ALL OTHER , 6%

CORN , 17%

COTTON , 9%

OTHER, 1%

RICE , 18%

SOYBEANS , 33%

SUGARCANE , 16%

Multiple Peril Crop InsuranceLouisiana Liability Percentage

2018


ALL OTHER , 6%

CORN , 16%

COTTON , 22%

OTHER, 6%RICE , 5%

SOYBEANS , 45%

Multiple Peril Crop InsuranceMississippi Liability Percentage

2018


BURTOBACCO, 7%

CORN , 37%

OTHER, 11%

SOYBEANS , 39%

WHEAT , 6%

Multiple Peril Crop InsuranceKentucky Liability Percentage

2018


ALL OTHER , 5%

CORN , 24%

COTTON , 13%

OTHER, 12%

SOYBEANS , 40%

WHEAT , 5%

Multiple Peril Crop InsuranceTennessee Liability Percentage

2018


ALL OTHER , 16%

CORN , 11%

COTTON , 39%

OTHER, 10%

PEANUTS , 11%

SOYBEANS , 13%

Multiple Peril Crop InsuranceAlabama Liability Percentage

2018


ALL OTHER , 11%

NUR FG&C , 14%

ORANGES , 9%

ORANGETREE, 36%

OTHER, 30%

Multiple Peril Crop InsuranceFlorida Liability Percentage

2018


ALL OTHER , 8%

CORN , 5%

COTTON , 46%OTHER, 12%

PEANUTS , 20%

PECANS , 9%

Multiple Peril Crop InsuranceGeorgia Liability Percentage

2018


ALL OTHER , 7%

CORN , 15%

COTTON , 14%

FLUECURETB, 28%

OTHER, 10%

SOYBEANS , 19%

WFRP , 6%

Multiple Peril Crop InsuranceNorth Carolina Liability Percentage

2018


ALL OTHER , 19%

CORN , 17%

COTTON , 31%

FLUECURETB, 6%

OTHER, 6%

PEANUTS , 7%

SOYBEANS , 14%

Multiple Peril Crop InsuranceSouth Carolina Liability Percentage

2018


ALL OTHER , 20%

CORN , 20%

COTTON , 12%FLUECURETB, 13%

OTHER, 15%

SOYBEANS , 22%

Multiple Peril Crop InsuranceVirginia Liability Percentage

2018


CORN , 41%

OTHER, 12%

SOYBEANS , 47%

Multiple Peril Crop InsuranceMissouri Liability Percentage

2018


ALL OTHER , 18%

CORN , 11%

COTTON , 9%

OTHER, 10%

PECANS , 28%

PRF , 24%

Multiple Peril Crop InsuranceNew Mexico Liability Percentage

2018


CORN , 14%

COTTON , 53%

OTHER, 24%

PRF , 9%

Multiple Peril Crop InsuranceTexas Liability Percentage

2018


SPECIALTY CROPS

© 2019 NCIS 52


Liability Specialty Crop Coverage Growing

From RMA Summary of Business

02/25/2019 © 2019 NCIS 53


Percentage of Policies That are CAT for Select Crops

56%

53%

38%

37%

29%

27%

22%

20%

17%

16%

13%

10%

0% 10% 20% 30% 40% 50% 60%

Pears

Grapes

Almonds

Mandarins/Tangerines

Pistachios

Onions

Lemons

Blueberries

Sugarcane

Walnuts

Orange Trees

Nursery (FG&C)

Source: USDA Office of the ChiefEconomist

© 2019 NCIS 54


Crop Insurance Introductions by CY

• 2000 – 2016 CY premium for added crops/plans

• Stacked bars = count of added programs

– Includes livestock crops/plans

– Does not include added options or expanded/specialty types and practices

– Start with CY 2000; stack each CY’s additions on top of 2000

– No programs are removed from the added program count

© 2019 NCIS 55


0

20

40

60

80

100

120

140

160

180

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

# P

rod

uct

s

2013 – e.g., dry pea & bean revenue

2012 – e.g., olives, pistachios, camelina

2015 – e.g., SCO/STAX, peanut revenue

2014 – e.g., cucumbers, tangors, other citrus

2016 – e.g., significant SCO expansion, margin protection

Source: RMA Summary of Business Feb 13, 2017

Over 160 Product Introductions Since 2000

© 2019 NCIS 56


SOME FARM BILL STUFF

© 2019 NCIS 57


Agriculture Improvement Act of 2018

• Signed on December 20, 2018.

• General overview of key provisions within several Titles.– Not an all encompassing review

• Implementation priorities and timeline established by USDA and RMA.– Regulatory and procedural development or research is needed for several

provisions before they can be implemented.

© 2019 NCIS 58


Crop Insurance Provisions in the 2018 Act

• Title XI – Crop Insurance

• Title XII – Miscellaneous

• Hemp

– Title VII – Research, Extension, and Related Matters

– Title X – Horticulture

– Title XI – Crop Insurance

– Title XII – Miscellaneous

• Title I - Commodities

© 2019 NCIS 59


Enterprise Units

• Allows producers to establish a single enterprise unit by combining an enterprise unit with:– One or more enterprise units in one or more counties; or,

– All basic units and all option units in one or more other counties

• From the Managers’ Report: Does not mandate that an MCEU would cross state boundaries.

© 2019 NCIS 60


Cover Crops

• Identifies the voluntary practice of using cover crops as a good farming practice when terminated appropriately, and says cover crops will not “affect the insurability of a subsequently planted insurable crop.”

• Planting of a cover crop into summer fallow land will also not affect insurability of a subsequently planted insurable crop when terminated appropriately.

© 2019 NCIS 61


Cover Crops, cont.

• “COVER CROP TERMINATION – The term ‘cover crop termination’ means a practice that historically and under reasonable circumstances results in the termination of the growth of a cover crop.

• FCIC shall utilize NRCS “in the consideration of acceptable conservation practices, including good farming practices with respect to conservation (such as cover crop termination).”

© 2019 NCIS 62


Cover Crops, cont.

• Requires continuing education for loss adjusters and agents regarding conservation activities and agronomic practices that are common and appropriate to the area where the crop is produced, including organic and sustainable practices.

• Includes “Conservation Activities” as a topic for Education and Risk Management Assistance.

© 2019 NCIS 63


Cover Crops, cont.

• From the Managers’ Report: The intention of these provisions is that producers considering voluntary conservation practices like cover crops should have confidence when following program guidance, procedures, or advice that they will not impact insurability of their subsequently planted crop.

© 2019 NCIS 64


Crop Production on Native Sod

• Continues 2014 Farm Bill provisions, but expands the reduction in benefits for native sod acreage that has been tilled to any insurable crop.

• Begins on the date of enactment of the Agriculture Improvement Act of 2018 (application to 2019 crop year to be determined by RMA).

© 2019 NCIS 65


Whole Farm Revenue Protection

• Directs RMA to take steps necessary to streamline and add flexibility or tailor program rules to make the WFRP policy provide more meaningful risk protection, especially for small and beginning farmer operations or operations with less than $1 million in gross revenue.

• Expands the definition of a Beginning Farmer or Rancher under a WFRP policy from 5 to 10 years.

© 2019 NCIS 66


Research and Development

• Directs research and development to improve existing policies or develop policies for:

Note: Some initiatives may be developed as a 508(h) program

Tropical storm or hurricane insurance Quality Losses

Citrus Hops

Subsurface irrigation practices Grain sorghum

Limited irrigation practices Irrigation practices for rice

Greenhouses Local foods

Batture land

© 2019 NCIS 67


Underserved Producers

• Definitions expanded to:– Refine “participation rate” to include “by crop”;– Include a member of an Indian tribe, veteran farmer or rancher, or a

socially disadvantaged farmer or rancher.

• Calls for an initial report on how to increase participation in States and amongst underserved producers that are not adequately served by available policies and plans of insurance, with a follow up report every 3 years.

• As part of the report FCIC is encouraged to examine the types of production common among underserved producers, including diversified production for local markets.

© 2019 NCIS 68


Specialty Crops

• Updates the role of the Specialty Crop Coordinator.

• Requires a Specialty Crop Liaison in each regional office.

• Requires the FCIC Board to annually review research and development of insurance for new crops, expansion of existing insurance to additional counties or States, and crops with existing insurance.

• Requires data collected through the Noninsured Crop Disaster Assistance Program be provided for improving crop insurance coverage.

© 2019 NCIS 69


Livestock

• Allows for participation in both the FSA Dairy Margin Coverage (formerly the Margin Protection Program) and crop insurance coverage under LGM Dairy program.

• Allows 2018 LGM Dairy participants to retroactively participate in the Dairy Margin Coverage.

© 2019 NCIS 70


Underwriting Rules

• AIPs will be required to limit the decrease in actual production history of a producer, at the producer’s election, to not more than 10 percent of the actual production history of the previous crop year if the decline was due to drought, flood, natural disaster, or other insurable loss.

• An actuarially sound premium rate must be charged to cover the additional risk.

• Note: Codifies existing procedures

© 2019 NCIS 71


Use of NASS Data

• Aggregate published and unpublished NASS data is to be provided to RMA for use in providing insurance.

– The data is to be kept confidential.

• RMA may use published aggregate data from NASS or any other data source to:

– (i) detect yield disparities or other data anomalies that indicate potential fraud; and

– (ii) target the relevant counties, crops, regions, companies, or agents associated with that potential fraud for audits and other enforcement actions.

© 2019 NCIS 72


Other Miscellaneous Title XI Provisions

• 508(h) Changes:– RMA may share program data, including NAP data from FSA, with concept

proposal applicants

– 508(h) developers shall be eligible for the reimbursement of reasonable research and development costs if the policy is approved by the Board

• Reduces permanent funding for certain program administration and operational activities, and in maintaining actuarial soundness and financial integrity.

© 2019 NCIS 73


Other Miscellaneous Title XI Provisions, cont.

• Modifies topics and funding for Education and Risk Management Assistance.

• Repeals Crop Land Reports annual update and makes a technical correction for pilot programs to the Federal Crop Insurance Act.

• Increases Catastrophic Fees from $300 to $655.

© 2019 NCIS 74


Veteran Farmer or Rancher

• The term ‘veteran farmer or rancher’ means a farmer or rancher who:

(A) has served in the Armed Forces (as defined in section 101 of title 38, United States Code); and

(B)(i) has not operated a farm or ranch;

(ii) has operated a farm or ranch for not more than 5 years; or

(iii) is a veteran (as defined in section 101 of that title) who has first obtained status as a veteran (as so defined) during the most recent 5-year period.

© 2019 NCIS 75


Veteran Farmer or Rancher, cont.

• Extends Beginning Farmer or Rancher crop insurance benefits and CAT Fee waiver to Veteran Farmers.

• Adds veteran farmers or ranchers to the targeted audience of Education and Risk Management Assistance.

© 2019 NCIS 76


Industrial Hemp

• Defines hemp as an agricultural commodity, and allows hemp insurance coverage to extend beyond the period of time it is in the field (as allowed for tobacco, potatoes, and sweet potatoes).

• Amends the Agricultural Marketing Act of 1946 to allow states and Indian tribes to regulate, or follow a plan established by the Secretary to regulate hemp production that includes:– Locations of hemp production

– Sample testing for THC concentration

– Random inspections of producers

– Disposal of plants that are out of compliance

© 2019 NCIS 77


Other Potential Program Impacts

• Expansion of the Acreage Crop Reporting Streamlining Initiative (ACRSI).

• Use of RMA data in establishing county yields for the Agriculture Risk Coverage (ARC) program.

• Potential use of data in identifying conservation practices and their effects on farm and ranch profitability relative to crop yields, soil health, and other risk related factors.

• Sharing of program data between RMA, FSA, NRCS and NASS.

© 2019 NCIS 78


NCIS Role

• Liaison Between USDA/RMA and Approved Insurance Providers (AIPs)

• Communications

• Facilitation

• Training

© 2019 NCIS 79


Product Overview

• AFBF and American Farm Bureau Insurance Services developed Dairy Revenue Protection:

– Provides protection against declines in milk sales quarterly revenue

– Quarterly coverage (3-month periods) – can purchase up to 5 quarters out with the exception of the last sales period (only 4 quarters available)

© 2019 NCIS 81


Five Decisions

• Dairy farmer decides:

– Value of milk protected

– Amount of milk production covered

– Level of coverage (from 70 to 95 percent of the revenue guarantee)

– Which quarterly contracts to purchase

– Protection Factor

© 2019 NCIS 82


2019 Dairy Revenue Protection Statistics

AIPs with Policies Sold 10

Total Policies Sold 3,814

AIPs with Endorsements Earning Premium 10

Total Endorsements Earning Premium 8,644

Declared Covered Milk Production 28,196,293,594 lbs.

Liability Amount $5,506,965,459

Total (Gross) Premium Amount $90,152,185

Producer Premium Support $50,587,419

Source: RMA 6/03/19 1pm CT

© 2019 NCIS 83


2016-2018 Whole-Farm Revenue Protection Comparison

Source: RMA Summary

of Business history files

as of 04/25/2019

2016 2017 2018 Change 2017/18

Policies 2,268 2,835 2,539 -10.4%

Liability $2,332,694,472 $2,837,865,597 $2,681,236,422 -5.5%

Premium $118,705,438 $142,721,972 $138,702,392 -2.8%

Producer Premium $35,080,159 $41,207,021 $39,462,177 -4.2%

Subsidy $83,625,279 $101,514,951 $99,240,213 -2.2%

Indemnity $174,229,613 $153,492,703 $17,680,177 (preliminary)

N/A

Loss Ratio 146.8% 107.6% 12.7% N/A

States 43 45 45 0.0%

Counties 507 679 612 -9.9%

LOSS RATIO DEVELOPMENT OVER TIME

CROP YEAR AGE 52 WEEKS AGE 78 WEEKS AGE 104 WEEKS AGE 130 WEEKS CURRENT

2015 0% 62% 116% 128% 132%

2016 0% 67% 138% 145% 147%

2017 1% 48% 96% N/A 108%

2018 1% N/A N/A N/A 13%

© 2019 NCIS 86


• Ask yourself:–What plans are available for the crops I grow?

–For what coverage levels do I qualify?

–How much can I afford to lose?

–What makes the best financial sense?

• Engage with a crop insurance agent to help answer these questions.

87

What insurance plan and coverage level is right for me?


• Completed by the insured at agent’s office

• Continuous policy unless canceled in writing

• Insured elects:– Which crop(s) to insure

• Must insure all acres of the crop

– By crop/county:• Plan

• Level

• Price

88

Apply for all of the crops that you may possibly plant. Note: You will only be charged for the crops you

actually plant

Process—Application


• Completed:

– Annually by producer, with agent

– After crops are planted

– Due by a specific date

• Reported information:

– Includes acres, share, and plant date

– Determines coverage and liability

89

Process—Acreage Report


• Generated after acreage report is submitted

• Details coverage and liability on each unit

• Should be reviewed carefully for accuracy

90

If information is not correct, contact your agent immediately.

Process—Schedule of Insurance


• If loss expected, insured must file a notice of loss

• Adjuster:– Contacts insured

– Visits farm

– Determines actual production by using standard Federal procedures

– Completes loss paperwork

• Loss payment is made, by company

91

Process—Determining a Loss


• Report required information accurately.

• Meet policy deadlines.

• Pay premiums when due.

• Report losses immediately.

92

Producer Obligations


• Visit a crop insurance agent

• Discuss coverage options with and get help from an agent

• Complete and submit an application to an agent

93

Main Message: Make an informed decision!!

SummaryHow do I get coverage and who can help me?


Crop Insurance

Av

ail

ab

ilit

y

Crop Insurance must be affordable so that it is a useful

risk management tool for farmers and

ranchers.

In order for this successful public/private partnership to continue the program must yield a reasonable economic return for the Approved Insurance Providers (AIPs).

Crop Insurance must be available for use by farmers and ranchers regardless of the size of their operation or the enterprise they are engaged in.

The Strength of Crop Insurance Depends on the Three Legs of the Stool

© 2019 NCIS 94


Websites

NCIS

www.ag-risk.org

Crop Insurance in America

www.cropinsuranceinamerica.org

Social Media

Twitter

@USCropInsurance

Instagram /Pinterest

CropInsuranceInAmerica

YouTube

NCISAmericaSENSITIVE AND CONFIDENTIAL

Do not distribute without author’s permission© 2019 NCIS 95
