Minimizing Risk in 2020 through Federal Crop Insurance and Private Products.

1. INDUSTRIAL
HEMP &
ORGANIC CROP
INSURANCE

2. FEDERAL CROP INSURANCE
MULTI-PERIL CROP
INSURANCE (MPCI)
WHOLE FARM REVENUE
PROTECTION (WFRP)

3. MULTI-PERIL CROP INSURANCE
Prevented Planted, Replant, & Yield Loss protection from any natural
disaster.
Available for Organic Rice, Corn, Grain Sorghum, Soybeans, Wheat, &
Peanuts.
Levels of Coverage range from 50% - 85% (in 5% increments).
HEMP coverage available for 2020
in select states.
Alabama, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine,
Michigan, Minnesota, Montana, New Mexico, New York, North Carolina, North
Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Virginia, and Wisconsin.

4. MULTI-PERIL CROP INSURANCE
 Coverage is based on farm’s average production.
 Example: You have an Organic Corn farm that averages 140 bu./acre.
 140 bu./acre average at 70% coverage level = 98 bu./acre guaranteed.
 If yield falls below 98 bu./acre, loss is triggered, insurance pays the difference.
 Loss is paid at price set by RMA (Risk Management Agency) OR contract price submitted by insured.
Quote:
98 bu. x $9.24
 OU (Optional Units) allows each farm’s production to stand on its own in the event of a loss.
 EU (Enterprise Units) combines all crop yields to pay an overall loss. Must have at least 2 FSN with 20 acres planted.

5. WHOLE FARM REVENUE PROTECTION
Insures the
lesser of your
past 5-year
average farm
income OR
your expected
income for the
year.
All commodities
generating income
under the
name/entity
insured must be
included. All
commodities
generating income
under the
name/entity
insured must be
included.
Must have at least
5 years of
production history
for one of the
insured
commodities to be
eligible, unless
Beginning Farmer.
Beginning Farmers
must have 3 years
of production
history.
$8.5 million dollar
cap for the annual
income to be
eligible.
For a quote, require past 5-year Schedule F tax forms (2018-2014) and the
upcoming years expected acres, price, and yield history for each commodity.

6. WHOLE-FARM
REVENUE
PROTECTION:
HEMP
THC above .3% is considered “hot hemp” and is not a covered peril.
Must be destroyed or entire policy is void. No replant coverage for
Hemp.
If less than 3 years of history for HEMP, yield is based on the
replacement T-Yield, or expected NAP yield. Not yet released.
Must have a Marketing Contract and License to Grow to be insurable.
Must apply or have a plan under USDA hemp production program
for license to grow.

7. CROP HAIL POLICIES
 State funded. Rates and products vary by company.
 Provide protection for hail, fire, lightning, transit with 50 miles, and first place of storage.

8. HEMP:
CROP HAIL
• Up to $800/acre coverage.
• 10% loss deductible.
• Must be seeded by June 15.
• 2019 rate was $1.35/acre for every $100 of coverage.
• $800/acre coverage = $10.80/acre premium
Hail Protection ONLY

9. PRIVATE PRODUCTS:
AVAILABLE AS STANDALONE POLICIES
Excessive rainfall during
planting period or to
cover replant cost.
Summer Heat Summer Drought
Excessive rainfall
leading into or at
harvest.
Killer freeze:
Late spring or early fall.
Wind
(select areas only)

10. EXCESSIVE
PRECIPITATION
Excessive rainfall at planting can delay the crop,
possibly prevent planting all together, or wash out
what has been planted requiring a replant.
Protection is based on the amount of rainfall
during your coverage period.
Average precipitation is based on your nearest
weather station.

11. EXCESSIVE PRECIPITATION EXAMPLE
 April 10 – April 30
 $200,000 coverage
Average rainfall 4.03 inches
 2” Deductible
 Payment begins above 6.03”
 Payout per excessive inch =
$42,105
 Premium $13,680
1. Select Start and End
Date for planting period.
2. Select Amount of
Coverage Necessary
Expected Income per Acre
by the Number of Acres
3. Select Deductible:
Number of Inches above
the Average Rainfall.
Lower deductible, higher premium.
QUOTE:

12. EXCESSIVE
PRECIPITATION:
AT HARVEST
 October 1 – October 20
 $200,000 coverage
Average rainfall 1.39 inches
 2” Deductible
 Payment begins above 3.39”
 Payout per excessive inch = $35,778
 Premium $17,540

13. DROUGHT
 A dry growing season
can induce stress and
increase THC content
above allowable levels.
 Could also help cover
irrigation expenses.
 Daily rain cap at 2.5”.
June 1
September 20
Deductible

14. EXCESSIVE HEAT
Excessive heat may
increase the THC
content to
unacceptable levels.
Some HEMP varieties
are sensitive to
daytime highs above
95 or 100 degrees.
Each day index
subtracts 95 degrees
from the daily high and
accumulates heat units
over the risk period.

15. EXCESSIVE
HEAT EXAMPLE
 Daily High of 95F
 Daily Low of 70F
 Example:
 100F – 95F = 5 units
 80F – 70F = 10 units
Total units for day = 15
Average units thru coverage period
92 day
coverage period
46 unit vs 92 unit

16. FREEZE COVERAGE
LATE SPRING OR EARLY FALL
 Pays based on lowest temperature
during coverage period.
 31F pays 25% of coverage
 30F pays 50% of coverage
 29F pays 75% of coverage
 28F or below pays 100%
Newport, AR - Weather Station
$10,000 coverage, thru November 2, = $1,627

17. PRIVATE
PRODUCTS:
TERMS &
PROCEDURES
Premium rates are a percentage of Selected Coverage
Options.
Sales Closing Date is at least 20 days prior to start of
coverage period.
Premium is due 15 days
before start of coverage.
Financing is available with 20%
down upfront.
If a loss occurs, claim is automatically filed, and a check
is issued 30-45 days after the end of the coverage period.
To bind coverage, need a signed Application and copy of
Drivers License.

18. JOHN MINOR CROP INSURANCE
& REAL ESTATE
Anna Minor
(870) 523-8900
johnminorcompany@gmail.com
Looking to buy farm ground in AR? Contact us!