Sanilac Co. Michigan | redoak - 9/19/2020 06:42
Tom , for the full run down you can google Agricorp as they administer the program. The 'gov't' is suppose to pay administration costs and farmer ins. premiums pay the claims...
You can buy different levels of coverage from 70-90% of your yield history average and then either choose a set price garuantee or a floating harvest price option..Premiums if you are 'average' in claims is from $4-12.21 corn acre , beans $4.58-12.21 , and then you can get up too a 35% surcharge or discount depending on claim history...It also includes a USAB (PP) benefit
You can insure everything from Adzuki beans to Rutabgas
Being on heavier ground, high rain fall area I always buy highest coverage offered....re-plant is $100-120 acre.....
Agricorp also handles RMP program for livestock & grains and oilseeds Agri-invest (the best ,money for making money) ,Agri-Stability
Overall ,good program, good adjusters and has removed a lot of risk which has pushed land prices/rents
Thanks, that looks a lot like mpci here. Lots of coverage options too, besides the standard program. Of course, the better you cover your risks insurance wise, the more expensive the policy. A guy really needs a decent agent to help figure out just what kind of policy best suites his aims.
I'll be honest. Back in my early lending career, I just wasn't sold on crop insurance. It seemed way overpriced for the coverage offered. By the early to mid 90's things changed, particularly in the emphasis the Fed put into disaster relief.
I believe it was with the Clinton administration that a "shift" in the way disaster relief was going to be approached. Instead of ad hoc programs being shot out of Washington, it was decided to let MPCI handle the lions share of the relief. This by more heavily subsidizing the premiums and encouraging producers to buy into insurance, kind of a pay to play deal. Matter of fact, at one point it became mandatory for producers to carry at least a minimal mpci policy in order to remain qualified for other programs. Those minimal policies were pretty worthless. Lots of guys that took them just figured the cost was an idiot fee.
I think the concept for the above was great. Reduce overall federal spending for crop disaster items through mpci, hopefully putting some of that cost on the producers shoulders. Problem is, that didn't do much to diminish the desire to provide ad hoc relief, particularly by politicians seeking reelection. End result is more cost to the tax payers for this type of spending.
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Crop insurance & a den of thieves & $100 mil.
