-Multi-Peril Crop Insurance (MPCI)

-Crop-Hail Insurance


Crop insurance is purchased by agricultural producers, including farmers, ranchers, and others to protect themselves against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities. The two general categories of crop insurance are called Multi Peril Crop Insurance (MPCI) and Crop-Hail Insurance.

Multi-peril crop insurance (MPCI):

Coverage in this type of insurance is not limited to just one risk. The problem with the multi-peril crop insurance is the possibility of a large scale event. Such an event can cause significant losses beyond the insurer's financial capacity. To make this class of insurance, the perils are often bundled together in a single policy, called a multi-peril crop insurance (MPCI) policy. MPCI coverage is usually offered by a government insurer and premiums are usually partially subsidized by the government. U.S. Department of Agriculture is known to implement the earliest Multi Peril Crop Insurance program in 1938. Federal Crop Insurance Corporation managed this multi-peril insurance program since then. The Risk Management Agency (RMA) is active in calculating the premiums based on individual risk factors since 1996.

-Causes of Loss-
The Multiple Peril policy covers against unavoidable loss directly caused by specific causes of loss contained in the Crop Provisions specified causes of loss, except where the Crop Provisions specifically cover loss of revenue due to a reduced price in the marketplace, must be due to a naturally occuring event. All other causes of loss are not covered.
1. Adverse weather conditions
2. Fire (due to natural causes)
3. Insects, but not damage due to insufficient or improper application of pest control measures
4. Plant disease, but not damage due to insufficient or improper application of disease control measures
5. Wildlife
6. Earthquake
7. Volcanic eruption
8. Failure of the irrigation water supply
9. Failure of irrigation equipment or facilities, due to an insured cause of loss
10. For Revenue Protection, a change in the harvest price from the projected price, unless FCIC can prove the price change was the direct result of an uninsured cause of loss.

Crop-Hail insurance:

Coverage in this type of crop insurance protects for a selected dollar value per acre with a maximum limit of coverage per acre. Acre-by-acre coverage provides protection from isolated damages. This type of insurance is offered by Crop Insurance carriers with no government subsidies.

-Causes of Loss-
1. Hail
2. Fire
3. Fire Department Service Charge
4. Transit Coverage
5. Catastroph Loss Award
6. Replant Coverage (Most Crops)
* Extra Coverage Endorsements - Corn/Sweet Corn/Seed Corn Only
7. Wind
8. Green Snap
9. Extra Harvest Expense