Multiple
Peril Crop Insurance
Multiple Peril Crop Insurance (MPCI) is
designed to protect farmers from loss of production. The
grower is allowed to insure a percentage of their average
historical yield. The policy then "guarantees"
that level of production at a predetermined insurance
price for the upcoming year. Levels of coverage range
from 50%-75%. Costs start at $100.00 for the entry
catastrophic level.
MPCI provides comprehensive protection
against low yields, poor quality, late planting,
replanting costs, and damage from:
- Adverse weather
- Plant disease*
- Fire*
- Insects
- Hail
- Earthquake
- Volcanic eruption
- wildlife*
*contingent upon other factors
Summary of MPCI Features
- Insures your assets
- Government subsidizes premium
- Uses your own farm yield history to establish
guarantees
- Loan collateral improves borrowing power
- Has prevented planting and late planting
provisions for some crops
- Protects your investments
- Preserves your savings
- Invests in the future of your farm
- Protects cash flow
- Reinsured by the Federal Government
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Catastrophic
Crop Insurance (CAT)
Actually, this is the entry level of the above MPCI program with some
restrictions. The program protects growers from
"Catastrophic loss". CAT for all acres of any
one commodity in any one county for only a $100.00
administration fee. The actual coverage is 50% of your
average production at 55% of the crop specific insurance
price. This is an excellent program for the price. Contact Us. We will be glad to
discuss the pros and cons of this level of coverage for
your operation.
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Adjusted
Gross Revenue Program
Adjusted Gross Revenue is an entirely new farm revenue insurance program now available in eight counties in California. Is is open to virtually all growers of all crops in the pilot counties. It is designed to allow growers to lock in a revenue floor for the upcoming year. This new program is federally reinsured by the FCIC.
Program
Highlights
- Provides
revenue protection for loss due to production
or price fluctuations.
- Provides you
with a guaranteed farm revenue "income
floor".
- Allows growers
the flexibility to manage their farms.
- Protects the
entire farm's income.
Availability:
Available to
virtually all growers in the counties of Fresno,
Kern, Riverside, San Diego, San Joaquin, San Luis
Obispo, Tulare, and Ventura.
Available for crops
to include vegetables, cut flowers, avocados, citrus,
olives, pistachios, and organic crops. 
Program
Requirements:
- Growers must
have been farming for at least 6 years.
- Growers must
maintain good farming practices.
- Allowances can
be made for expanding or contracting
operations.
- Growers must
maintain accurate records and follow normal
accounting practices.
- Growers must
have completed the application and provided
all supporting documents by January 31.
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Revenue/Dollar Programs
These are new programs that are only available on a
limited basis. They vary by crop but usually have the
broad form coverage of the MCPI policy. The difference is that this program
guarantees a minimum price per carton or acre.
Currently, this type of coverage is available for
Avocados, Strawberries, Blackberries, Cherries, and
Navel Oranges, in the designated counties.
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Crop Revenue Coverage
This new program provides comprehensive protection
for certain crops, guaranteeing a minimum level of
production and minimum harvest price. The policy can
be triggered by either a loss in production or a drop
in harvest price below the guarantee. Causes of loss
are similar to the MPCI
policy with the addition of market price
fluctuations. Coverage levels are from 50% to 85% in
most areas and there is no "CAT" level available
on this program.
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Coverage Enhancement
Option
This endorsement supplements certain MPCI policies and is
designed to allow you higher levels of coverage. It
pays in major loss situations with only minor premium
increases. This policy enhancement is only available
for certain crops, and is not available at the" CAT "level.
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Citrus Freeze
This privately written coverage can be written by
itself or as a supplement to your current MPCI policy. Coverage is
written for a specific dollar amount per acre.
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Hail Only Coverage
This privately written coverage can be written by
itself or as a supplement to your current MPCI policy. Coverage is
written for a specific dollar amount per acre. Losses
are then paid as a percent of damage and coverage.
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 Raisin Reconditioning
This unique privately written coverage can be
purchased alone or most commonly as a supplement to
the MPCI program.
Additional coverage can be purchased based upon your
projected tonnage for raisin reconditioning,
shrinkage, and other associated additional cost.
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Standing Grain Fire
This policy insures your standing grain crop for
direct loss due to fire. Coverage is also extended
for transportation to the first place of storage.
Coverage is written for a certain dollar value per
acre.
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Packing House Coverage
This privately written policy protects packers
from catastrophic loss to fruit supplied to them by
the growers.
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