Olsen insuring specialty crops

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Olsen insuring specialty crops

  1. 1. Jordan Olsen Crop Insurance Specialist Frontier Farm Credit – Baldwin City Branch
  2. 2. What is a “Specialty Crop”?  “A crop not insured or insurable under normal MPCI standards or practices”  Extra paperwork involved  Different set of guidelines apply  Extraordinary circumstances  Non-typical PTV
  3. 3. Specialty Insurance Available:  MPCI – Organic crops  Crop Hail – wind, fire, transport  LRP – Livestock Risk Protection  PRF – Pasture Rangeland and Forage  Specialty corn coverage (Blue & High Amylase & High Amylose)  Cover Crops
  4. 4. Multiple Peril Crop Insurance Protects against:  Guarantees the producer a Bushel or $ figure  Government subsidized  Homogenous pricing  Protects against natural disaster  Many options available  Price fluctuation  Heat  Drought  Freeze  Disease  Wind  Wildlife  And more….
  5. 5. Multi-Peril Insurance on Organics  Stipulations:  MPCI available for most common organic crops in KS  Must be “Certified Organic” to qualify  Must have a buffer and 3 years with no chemicals applied  Must purchase certified organic seed Over 2 million organic acres nation wide, ≤ 25% insured
  6. 6. Organic crops Advantages Disadvantages  Higher Prices!!  More Work  Insurance guarantee can be  More paperwork set by contract price  No chemical/fertilizer bill  No chemicals in the soil  Red Tape  Travel time finding seed  Possible lower yields  Limited market  3 yr. transitional period
  7. 7. Organic References  Indiana Certified Organic/ECOCERT:  http://www.ecocertico.com/  RMA/USDA organic website:  http://www.rma.usda.gov
  8. 8. Crop Hail, Wind, Fire, Transport Crop Hail Coverages Available:  Sold by $100s per acre  Hail  2 hr. binder (company specific)  Fire (Included in most Basic coverage)  Variable rates per township  Extra fire/lightning (DCSB) & Range  Ability to stack coverage as season progresses  Upper coverage limits  $50.00 minimum  Insure ≥ 100% of crop value  Replant buy-up  Prevented Plant  Transport  Wind/Greensnap (corn & wheat only)
  9. 9. Crop Hail - Crop Availability:  Corn  Sweet corn  Soybeans  Popcorn  Wheat  Seed corn  Gr. Sorghum/Milo  Some cover crops  Sunflowers  Forage crops  Rye  Canola  Oats  Dry beans  Cotton  Potatoes  Barley
  10. 10. Livestock Risk Protection - LRP Protects against price drops in the market  Available for swine, lambs, and beef  Insure 1-2,000 head/yr.  Policy periods: 13-52 weeks  Lock in a percentage of the price on the CBOT  Premium calculated by price, length, and commodity  No need to turn in a claim  Must have possession of the cattle within 30 days of end date 
  11. 11. Livestock Risk Protection - LRP
  12. 12. LRP Specifications      On SCE: Number of head to insure Finishing weight, Steers vs. heifers Length of endorsement  Must have application on file.  Lock price between 4:00 PM and 9:00 AM  Premium paid and SCE signed within 24 hrs.
  13. 13. Pasture Range and Forage (PRF)  Protect crops from rainfall shortage based on long- term averages  Cost varies from $2-$35/acre  Must choose at lease two 2 month intervals  Only one sales closing date each year – Nov 15th.
  14. 14. Specialty Corn: Blue, High Amylase, and High Amylose  MPCI coverage now available in KS  Some require Written Agreements  Separate types  Limited markets  H-A mostly grown for feed  Same price as yellow corn  High Amylose – Contract pricing
  15. 15. Cover Crops – A Hot Topic  Cover Crop  Hail insurance available on some cover crops.  Rye, oats, wheat,  Wind endorsement available on small grains  Irrigated crops: Cover crop must be terminated before the insured crop emerges  Be Aware!!! – Planting a cover crop could jeopardize insurability of a following crop.
  16. 16. Cover Crop Termination Zones
  17. 17. Cover Crop Termination Zones
  18. 18. Other crops NAP Coverage available for some of the following:  Peaches and tree fruits  Grapes  Pumpkins  Berries
  19. 19. Any Questions? Thank you!

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