Actual Production History (APH) policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease. The farmer selects the amount of average yield he or she wishes to insure; from 50-75 percent (in some areas to 85 percent). The farmer also selects the percent of the predicted price he or she wants to insure; between 55 and 100 percent of the crop price established annually by RMA. If the harvest is less than the yield insured, the farmer is paid an indemnity based on the difference. Indemnities are calculated by multiplying this difference by the insured percentage of the established price selected when crop insurance was purchased.
Group Risk Plan (GRP)
Group Risk Plan (GRP) policies use a county index as the basis for determining a loss. When the county yield for the insured crop, as determined by National Agricultural Statistics Service (NASS), falls below the trigger level chosen by the farmer, an indemnity is paid. Payments are not based on the individual farmer's loss records. Yield levels are available for up to 90 percent of the expected county yield. GRP protection involves less paperwork and costs less than the farm-level coverage described above. However, individual crop losses may not be covered if the county yield does not suffer a similar level of loss. This insurance is most often selected by farmers whose crop losses typically follow the county pattern.
Dollar Plan of Insurance
Dollar Plan provides protection against declining value due to damage that causes a yield shortfall. Amount of insurance is based on the cost of growing a crop in a specific area. A loss occurs when the annual crop value is less than the amount of insurance. The maximum dollar amount of insurance is stated on the actuarial document. The insured may select a percent of the maximum dollar amount equal to CAT (catastrophic level of coverage), or additional coverage levels.
Meteorological & Earth Science Plans of Insurance
Pasture, Range, and Forage
Rainfall Index (RI)
Rainfall Index (RI) is based on weather data collected and maintained by NOAA’s Climate Prediction Center. The index reflects how much precipitation is received relative to the long-term average for a specified area and timeframe. The program divides the country into six regions due to different weather patterns, with pilots available in select counties.
Vegetative Index (VI)
Vegetation Index (VI) is based on the U.S. Geological Survey's Earth Resources Observation and Science (EROS) normalized difference vegetation index (NDVI) data derived from satellites observing long-term changes in greenness of vegetation of the earth since 1989. The program divides the country into six regions due to different weather patterns, with pilots available in select counties. Revenue Insurance Plans: Note: All revenue-based options determine revenue differently. See each policy's provisions for their definition of revenue.
Revenue Plans of Insurance
Adjusted Gross Revenue (AGR)
Adjusted Gross Revenue (AGR) - insures revenue of the entire farm rather than an individual crop by guaranteeing a percentage of average gross farm revenue, including a small amount of livestock revenue. The plan uses information from a producer's Schedule F tax forms, and current year expected farm revenue, to calculate policy revenue guarantee.
Actual Revenue History (ARH)
Actual Revnue History - insures against loss of revenue.
Crop Revenue Coverage (CRC)
Crop Revenue Coverage (CRC) - provides revenue protection based on price and yield expectations by paying for losses below the guarantee at the higher of an early-season price or the harvest price.
Group Risk Income Protection (GRIP)
Group Risk Income Protection (GRIP) - makes indemnity payments only when the average county revenue for the insured crop falls below the revenue chosen by the farmer.
Income Protection (IP)
Income Protection (IP) - protects producers against reductions in gross income when either a crop's price or yield declines from early-season expectations. To determine coverage, see the policy provisions. Revenue Assurance (RA) - provides dollar-denominated coverage by the producer selecting a dollar amount of target revenue from a range defined by 65-75 percent of expected revenue. To determine coverage, see the policy provisions.
Revenue Assurance (RA)
Revenue Assurance (RA) - provides dollar-denominated coverage by the producer selecting a dollar amount of target revenue from a rangeRevenue Assurance (RA) - provides dollar-denominated coverage by the producer selecting a dollar amount of target revenue from a range defined by 65-75 percent of expected revenue. To determine coverage, see the policy provisions.
AgriLogic HR, LLC
AgriLogic HR will offer Professional Employer Organization services to small businesses and independent farmers. A Professional Employer Organization (PEO) provides clients and partners a cost effective outsourced solution to control the management of Human Resources, Employee Benefits, Payroll Administration, Federal and State Compliance, and Workers Compensation Coverage, Risk and Claims Management, enabling the small business owner to focus on the core competences to manage and grow the bottom line.
A PEO provides integrated products and services from a single source provider to manage Human Resource compliance and Employee related risk. A PEO delivers these services through a Co-Employer relationship at the client work site and by assuming employer of record liability.
Multi-Peril Crop Insurance
