Welcome
Crop insurance is a valuable risk management tool that allows growers to
insure against losses due to adverse weather conditions, fire,
insects, disease, and wildlife.
Crop insurance is federally subsidized and is sold by private crop
insurance agents.
From 1997 to 2006, Pennsylvania farmers who purchased crop insurance
averaged more than a $1 back for
every $1 they paid in
premiums in 19 of the past 20 years.
A minimum level of crop insurance, called CAT insurance, is available to
all farmers regardless of size at no premium cost (all premiums are paid
by the federal government). Higher levels of crop insurance (buy-up
protection) are also federally subsidized, with farmers nationwide paying
only 33 to 62 percent of the actual cost of the insurance (depending on
the level of coverage selected by the producer).
The Commonwealth of Pennsylvania is a strong supporter of crop insurance
and has allocated funds to help farmers buy crop insurance since 2000.
This money helps producers to better afford higher levels of buy up
protection so that they are better protected when disasters occur.
Multi-peril crop insurance is available for
at least one commodity in every county
in Pennsylvania; a total of 36 different crop insurance policies are
available across the state (including new policies for dairy and lam
producers). More information on specific crops
and types of coverage can be found under
Fact Sheets.
AGR-lite
is available statewide (since 2003) to eligible farmers with adjusted
gross revenues of up to $2.05 million (based on a maximum protection limit of
$1.0 million annually at the 65 percent coverage level and the 75 percent
payment rate) and has no limitation on livestock income or requirement for
the purchase of MPCI.
There are also new products available to help dairy and lamb producers
manage their market risk. The
livestock gross margin (LGM)
dairy
policy is designed to protect producers from unexpected declines in the
market value of their milk minus feed costs. It uses adjusted futures
prices to determine the difference between expected gross margin and the
actual gross margin. Producers can purchase LGM dairy insurance monthly
and have the option to buy protection for from 1 to 11 months. The
livestock risk
protection (LRP) lamb
policy is designed to protect against unexpected declines in market
prices. LRP-Lamb policy can be purchased weekly and the length of
insurance can be set for 13, 26, or 39 weeks.
The Commonwealth of Pennsylvania is a strong supporter of crop insurance
and has allocated funds to help farmers buy crop insurance since 2000.
This money helps producers to better afford higher levels of buy up
protection so that they are better protected when disasters occur.
|
