Crop Insurance


Since its founding, FBN® has revolutionized the Ag sector by using innovative technology to improve data transparency and accessibility, and streamline the online shopping experience for farmers and ranchers.  Now we’re applying that same innovative approach to our crop and livestock insurance coverage. Guided by a Farmers First® mindset, our goal is to build technology that makes our policyholders’ lives easier and our insurance agents even more effective.  FBN Insurance 2022 Tech Advancements  Improved Acreage Reporting Tool We spent the first half of 2022 working on the initial launch of an improved, increasingly efficient acreage reporting tool. Designed to provide a simpler, more streamlined acreage report generation experience by leveraging a farmer’s precision data and policy information, progress on this project will continue into 2023.  PRF & Apiculture Insurance Risk Management Decision Tool In the second half of the year, our team developed a Pasture, Rangeland and Forage and Apiculture Insurance Risk Management Decision Tool . This proprietary tool empowers our agents with the unmatched ability to optimize our policyholders’ coverage to fit their needs. By taking into account the producer’s personal preferences and risk tolerance, the tool delivers a customized solution designed to fit the producer’s unique operational requirements. Get a Sneak Peek at Upcoming 2023 Insurance Tech Launches We’ll be sharing an exciting sneak peek of future insurance technology launches to attendees at the upcoming FBN Farmer2Farmer (F2F) event this month. With interactive mockups of our next project — which is already in the works! — ready to share at F2F, we’d love to hear what you like, what you don’t like, and how we can improve our designs directly from the expert: you.  Our FBN insurance customers will get front row seats to see the new tools we’re going to build in the coming year, both directly for our customer facing tools and indirectly through the improvements our technology will provide for our agents. Interested in using these new tools and seeing how they can help you better protect your operation? With almost 600 years of collective experience and a deep understanding of the Ag sector, our FBN insurance agents are ready to personally guide you through the process. Reach out to one of our agents today by clicking here or filling out the form below!  Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN”, are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in all U.S. states.


Livestock Risk Protection (LRP) allows cattle and swine producers to protect against declining market prices and ensure their peace of mind. In the event that prices fall, livestock are still covered and allow the producer to realize the upside on the cash market.  There are a number of different coverage levels and insurance periods offered to match the time your livestock would normally be marketed.  At the end of the insurance period, if the actual ending value is below the coverage price, an indemnity will be paid for the difference. Join Mike Fanning, Ph.D., PAS (Head of Livestock Insurance, FBN® Crop Insurance) and Roger Givens ( FBN Crop Insurance Agent, Oklahoma) as they answer some common questions about LRP in this webinar. What you’ll learn What is LRP  (00:27) How LRP differs between fed cattle and feeder cattle (01:32) How the application process works (02:25) Important applications deadlines to be aware of (03:19) Coverage periods (03:50) How an indemnity payment is calculated (04:47) What sets FBN’s coverage apart (05:47) Get covered Let FBN help find a smart, simple, and personalized plan for you. We use data to ensure you have the right insurance to fit your farm’s needs. So even if it's a second opinion, let's line up what you need from this critical risk-management tool.  Call (877) 576-4468 to speak with an agent or visit FBN.com/insurance to learn more. Webinar transcript Mikaela Tierney (00:01): Hello and welcome to the FBN Livestock Risk Protection Webinar. I'm Mikaela Tierney with FBN , and today I'm joined by the Head of FBN Livestock Insurance Mike Fanning, and FBN crop insurance agent Roger Givens. They'll spend the next few minutes answering some common questions about livestock risk protection, also known as LRP.  To begin, what is livestock risk protection? Roger Givens (00:24): Livestock risk protection is a tool that producers use to hedge against a loss. So we have a feeder cattle class, which is from birth to a thousand pounds and fed cattle, which is anything over a thousand, up to 1600 pounds. This tool also includes swine as well, and it sets a floor for the producer to hedge any loss against losses. We can maintain the cattle and own the cattle for the upside stay in the cash market if he chooses to. Mike Fanning (01:03): And the other point to bring out is that this coverage is on a per head basis and you don't have to worry about filling CME contract sizes. So it allows a little more flexibility in buying your risk management protection Roger Givens (01:18): Per head as well as steers heifer difference as well. So that saves the producer a little money being able to break it up into steers and heifers instead of a total weight contract. Mikaela Tierney (01:31) : How does LRP differ between fed cattle and feeder cattle? Mike Fanning (01:37): So the difference between these are is on the LRP feeder cattle coverages are based on the feeder cattle futures contracts and they target cell weights can be up to a thousand pounds, whereas fed cattle, LRP Fed cattle is based on the CME live cattle futures and their cell target weights range between 1000-1600 hundred pounds. Mike Fanning (02:03): And then the settlement values with LRP feeder cattle is going to be based on the CME cash settled price index report for feeder cattle and for fed cattle. The actual lending values based off the USDA Ag Marketing Services five area weekly weighted average report. So those are the main differences between the two. Mikaela Tierney (02:30): How does the LRP application process work? Roger Givens (02:34): A producer would simply fill out an application, answer a few questions, send that in, we get that approved, that that sets their account to where then it's just a phone call when they find a price they like, a time they want to cover them and nothing is set as a contract. And at that point, coverage is triggered. Premium is due the month after that coverage expires, if there isn't a premium. If the price drops below their coverage, then that would trigger an indemnity. Mikaela Tierney (03:19): Are there any application deadlines that producers need to be aware of? Roger Givens (03:25): The application can be filled out throughout the year at any time. The only deadline would be if they're currently with an agent and they choose to transfer, that would need to be done by June 30th. Mike Fanning (03:40): Okay. And that transfer is effective for the following and subsequent years, so there's no within year transfers. Mikaela Tierney (03:48): Got it. All right. And then what coverage periods are available for LRP? Roger Givens (03:53): The coverage period runs in approximately four week intervals, starting at 13 weeks out and can run up to 52 weeks out. It depends on the offerings. But you'll have a choice of 13 weeks out to 52 and four week intervals. Mike Fanning (04:13): And those offerings do change daily because the coverages are based on what is traded on the respective CME futures for the day. Roger Givens (04:26): I might also add that coverage is not, does not, you can't put coverage onto approximately four o'clock in the afternoon after the board closes is when prices are figured and we, you can have coverage on Monday through Friday in the evenings. Mikaela Tierney (04:47): Got it. And then how is LRP indemnity payment calculated? Roger Givens (04:51): A producer will choose his coverage price at the end and the ending date of that contract. If the price is below that selected coverage price and indemnity is triggered, figured per head per pound. And then if the price is above that, then the premiums do. Mike Fanning (05:17): So in the indemnity calculation when there is a loss, so the actual value is less than the coverage price, they'll take that difference and multiply it by the same number of heads and that target weight that was identified by the producer when they purchased the coverage endorsement. It's very straightforward, it's strictly the number of head insured target weight times the loss on a per hundred weight basis. Mikaela Tierney (05:46): What sets FBN coverage apart? Roger Givens (05:52): We try to come in with a producer and sit down and look at his entire operation. We want to hedge against loss of cattle. We want them to be protected against the cost of gain, which might be feed can, we can discuss that with them. Pharmaceuticals, we wanna be part of the entire program on that operation. And I think that sets us apart. Mikaela Tierney (06:21): And can you share any customer stories from FBN Insurance customers? Roger Givens (06:29): What I hear mostly out there from customers is they like that option to purchase pharmaceuticals from us and to purchase coverage from us. A wide range of coverage, like I said, on the livestock, on the grain. They really seem to like the per head cost. It saves them a little money. There's not gonna be any added fees anywhere. There's not gonna be any surprises down the road. It is what it is per head and they're gonna know that is their max cost. Mike Fanning (07:07): Yeah, we've, we've heard some other customers too when it comes to the LRP, they prefer it to buying coverage on the board because it is on a per head basis and they're not having to meet contract sizes where they could be over-insured or underinsured. They can ensure an exact number of heads and get the exact coverage that they need. That's been the primary reason a lot of these guys have switched from going on the board to using LRP. Mikaela Tierney (07:42): Great. So how can someone get in touch with FBN if they're interested in learning more about LRP? Roger Givens (07:49): They could reach out to their local FBN agent. If they don't have one, they can search us up on the internet, give us a call. Oh, we're nationwide, covering the entire nation. So we're out there, give us a holler and we'll get in contact with you and get you taken care of. Mikaela Tierney (08:12): Awesome. So for more information, you can visit FBN.com/insurance or you can connect with us by phone by calling (877) 576-4468 . The purpose of the following material is to promote awareness of risk management concepts and to highlight risk management products, features, benefits and availability. This presentation does not provide full details of policy provisions or approved procedures. Producers should consult with a local agent for specific details and program requirements. We are an Equal Opportunity Provider. FBN Crop Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in 50 states.


The USDA Risk Management Agency (RMA) has an insurance program for ranchers and beekeepers insuring against the lack of precipitation in 2-month non-overlapping intervals throughout the year. The Insurance program is called Rainfall Index and is better known as either Pasture, Rangeland and Forage (PRF) or Apiculture (API).  [To learn more about the PRF program, read What Producers Need To Know About Rainfall Index And Pasture, Rangeland And Forage Insurance .] How Is PRF Coverage Determined? Over the years, agencies, insurance companies, and other groups have developed tools to aid the producer in determining a coverage level, productivity factor, which index intervals, and how much coverage to assign to an index interval throughout the year.  These tools are used by agents to help provide some guidance for different coverage options. Many of them work by taking a set period of time (e.g. most recent 10 or 20 years or all years of the data) and averaging the data from those time periods to create a coverage option. In addition, most of these tools only allow the agent to run a single coverage scenario at a time. To compare one coverage scenario to another the agent has to run multiple coverage scenarios using different values to compare to each of the other coverage scenarios.  FBN® Insurance has developed proprietary software to support a PRF and API insurance coverage decision. This proprietary software allows an FBN agent to optimize the analysis in assisting a producer in selection of coverage that meets their needs. What Sets FBN's Coverage Decision Tool Apart? The pairing of an individual’s risk tolerance with the amount of premium they are willing to pay for the coverage is a key element of the process. FBN’s proprietary software allows our agents to reduce the amount of time invested in running multiple coverage combinations simultaneously. By running multiple coverage combinations simultaneously, the tool gives you multiple options to review and choose from a single analysis. You are given the ultimate authority to establish a baseline to modify the coverage parameters based on your experience and risk management needs. FBN’s PRF and API proprietary software analysis allows you to take control of your risk and gain a greater peace of mind. Standard PRF and API Coverage Approaches There are five standard approaches to coverage in this area, including:  10-Year Limited - Attempts to optimize over the past ten years without using the FBN forecast. Uniform Coverage - A traditional low risk plan optimized for security with highly distributed coverage. Maximize Efficiency - A medium risk plan optimizing the ratio of indemnity to premium. Maximize Net Indemnity - A medium risk plan optimizing for largest net indemnity. Minimize Risk - A low risk plan optimizing for the highest chance of a positive net indemnity. Customers can also create custom quotes. Learn More about PRF Insurance To learn more about the PRF and API insurance programs and FBN’s decision tool or connect with an agent, visit the PRF page on FBN’s website or by calling 877-204-4645 . Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. "Farmers Business Network" and "FBN" are registered service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in all U.S. states.


Article Crop Insurance

What Is MPCI Harvest Price Discovery?

07 Oct 2022

by FBN Insurance

With harvest time beginning or just around the corner, many producers in the Midwest are trying to determine if their crop production is adequate to not have a crop insurance loss. For many producers, “Harvest Price Discovery” will play a role in that determination. Harvest Price Discovery is a period of time (usually 30 days) that the crop insurance policy utilizes to determine a final commodity price. It will also determine a final revenue guarantee in the case of Revenue Protection (RP) or to calculate a “trigger” yield if the final Harvest Price is lower than the Initial Price Discovery.  For corn and soybeans in the Midwest, Harvest Price Discovery is the average of the closing futures price during the month of October (December corn contract for corn and November soybean contract for soybeans). Other insurable crops may have different Harvest Price Discovery periods based on Policy Actuarials. The type of MPCI policy that you have will make a difference in how the Harvest Price will be utilized on your policy. Yield protection (YP) With YP, Harvest Price does not play a factor in your insurance policy. This product is insuring a guaranteed number of bushels per acre. If the final yield is below this guarantee, the producer will be paid a flat dollar amount for each bushel shortage. For example, the Initial Price Discovery on Corn is $5.90/bu, the amount paid is $5.90/bu regardless of where the price is at Harvest. With this policy, your bushel guarantee remains the same and you are paid an amount determined at the beginning of the insurance period. Regardless of what the Harvest Price is during the Harvest Price Discovery. Revenue protection with Harvest Price Exclusion (RPHPE) This policy utilizes the Harvest Price to determine if the initial Revenue Guarantee is sufficient to not generate a loss.   If the Initial Guarantee was $1,000 per acre based on an Initial Price Discovery of $5.90/bu, the $1,000 Guarantee is then divided by the Harvest Price to see if the yield was adequate to not generate a loss.  $1,000/$5.90/bu Initial Price = 169 bushel initial guarantee  $1,000/$5.00/bu Harvest Price = 200 bushel needed to avoid a loss. $1,000/$6.50/bu Harvest Price = 153 bushel needed to avoid a loss. As you can see in these examples, the final Harvest Price determines your guaranteed bushels. This increases your “Trigger Yield” in a decreasing price environment, but lowers your “Trigger Yield” in an increasing price environment. This policy does not allow you to recalculate your insurance guarantee with a higher Harvest Price, but calculates your “Trigger Yield” based on your beginning guarantee divided by the Harvest Price. Revenue Protection (RP) RP is probably the most popular crop insurance policy. This policy utilizes the Harvest Price in a couple of different ways. If the Harvest Price is lower than the Initial Price, the Initial Guarantee is divided by the Harvest Price to determine a “Trigger Yield. If the Harvest Price is higher, the Initial Guarantee is recalculated using the higher Harvest price.  An Initial Guarantee was $1,000 per acre based on an Initial Price Discovery of $5.90/bu and bushel guarantee of 169/bu/ac. If the Harvest Price is higher than the Initial Price, a new guarantee is calculated before calculating a “Trigger Yield” that is used to determine if a loss is present.  $1,000 guarantee at $5.90/bu Initial Price = 169 bushel initial guarantee  $1,000 guarantee at $5.00/bu Harvest Price = 200 bushel needed to avoid a loss. $1,098 guarantee at $6.50/bu Harvest Price = 169 bushel final guarantee. This policy provides you coverage regardless of the change from the Initial Price to the Harvest Price. In a decreasing price environment, additional bushels are needed in order to meet the Initial Revenue Guarantee. In a rising price environment, the guaranteed bushels per acre do not change and if there is a shortage of bushels, you will be paid the higher Harvest Price if you are below your guaranteed bushels. Harvest Price Discovery for Corn and Soybeans begins October 1st and will be complete on October 31st. Based on which MPCI policy you have in place, it determines how the Harvest Price will be used to determine the number of bushels needed to avoid a loss (trigger yield). If you have any questions regarding how your policy works, please feel free to contact an FBN® Insurance Agent to discuss in further detail.    Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN”, are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in all U.S. states.


29 Sept 2022

by FBN Insurance

Harvest is well underway on most specialty crops out west which may mean it’s time to dig out your crop insurance paperwork. 2022 has been a challenging year between ongoing water scarcity issues and untimely freezes for many of our orchard crops. These challenges have led to a much larger number of crop insurance claims being opened with carriers than the past few years. Here are a few key reminders while trying to navigate your potential claim: 1. Open the Claim If there is ANY chance your production will fall below the insurance guarantee, be sure to inform your agent. Claims must be opened with the AIP prior to beginning harvest so an adjuster can inspect any damage.  2. Work with the Adjuster After the claim has been opened, work with the adjuster. It is their responsibility to inspect your crop prior to harvest. During their inspection they will verify that there has been weather related damage to the crop and estimate the extent of the damage. Reach out to your agent if you’ve opened a claim but have not heard from the insurance company. They will be able to help you get in touch with the adjuster assigned to your claim.  3. Provide Production As soon as production records are available, provide them to your agent and adjuster working your claim. The sooner these records are handed off, the sooner your claim can be finalized and any potential indemnity paid out. This is especially important this year due to the number of specialty crop claims opened across the western region. It will also allow your agent to get a head start reviewing your APH and developing a coverage plan for 2023.  4. High Dollar Claims A high dollar claim review is conducted when a crop claim exceeds $200,000 per crop, per county. This is a standard review to double check all of the production that you have turned into your agent. An adjuster will look at the most recent year of production history. If there are no errors, they will stop there. If there are any discrepancies, they will ask for two more years of history. If your claim has the potential to exceed the $200,000 threshold be prepared to gather up those settlement sheets from 2019-2021 to expedite the process. The main point to keep in mind when dealing with a potential crop insurance claim is that communication is key. Timely communication with your agent and adjuster will keep the process moving forward, avoid any unwanted surprises and ultimately settle your claim faster.  Take control of your risk and gain greater peace of mind Your FBN® Insurance agent can tailor a specialty crop insurance policy to meet the specific needs of your operation. Learn more about this program or connect with an agent by visiting the FBN Crop Insurance page or calling (877)-576-4468 . Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in all U.S. states.


28 Sept 2022

by FBN Network

Don Moody and Gerold Stephens from FBN® Insurance discuss how Pasture, Rangeland, and Forage (PRF) insurance can help manage your forage needs and the perils to your operation from a lack of precipitation. What you'll learn about PRF Insurance In this webinar, Don and Gerold discuss: What is PRF? What are the different coverage options? How does PRF work? When does PRF pay out? What tools exist to make PRF elections? New updates to PRF Watch now Learn more about PRF insurance Click  here  or complete the form below for more information about the PRF Insurance program or to speak to an insurance agent . The purpose of the following material is to promote awareness of risk management concepts and to highlight risk management products, features, benefits and availability. This presentation does not provide full details of policy provisions or approved procedures. Producers should consult with a local agent for specific details and program requirements. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN membership is not required to purchase through FBN Insurance LLC, but certain features may only be available to FBN members. FBN Crop Insurance is currently offered in all U.S. states.


27 Sept 2022

by FBN Insurance

What Is Multi Peril Crop Insurance?  The USDA Risk Management Agency (RMA) offers Multi Peril Crop Insurance (MPCI) coverage for numerous crops throughout the United States. Available for more than 100 different crops (though not all crops are covered in every region), MPCI protects farmers against crop losses caused by natural events. Crop Insurance Deadlines Important insurance dates vary by crop and region of the United States. The important deadlines are: Sales Closing Date (SCD) Acreage Reporting Date (ARD) Premium Billing Date For crops planted in the fall (e.g. winter wheat, winter barley, oats, rye, triticale), the SCD is generally September 30 with an ARD of December 15.  For crops planted in the spring (e.g. corn, soybeans, cotton, grain sorghum, rice, spring wheat, spring barley), the SCD is generally March 15 with an ARD of July 15. Specialty crops (i.e. fruits, nuts, vegetables) have different SCDs and ARDs throughout the year based on the state or county in which they are grown. For the majority of these crops, the premium billing date is August 15. Other Insurance Deadlines There are other commodities or insurance programs (e.g. Pasture, Rangeland and Forage, Apiculture, Annual Forage, Margin Protection) that have a single SCD for the entire United States. The Whole Farm Revenue Protection insurance program has three different Sales Closing Dates depending on your tax filing year, which fall between November and March. Trusted MPCI Protection from FBN® If you haven't gotten a second opinion on your crop insurance in the last few years, now is the time to see how a personalized approach to insurance could make a difference in your operation.  To learn more, and to ensure you meet the appropriate deadlines for the crop you are growing for your specific state and county, contact an FBN insurance agent by clicking here or calling (877)-576-4468 today. Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in all U.S. states.


Article Crop Insurance

When Are Livestock Insurance Deadlines?

27 Sept 2022

by FBN Insurance

The USDA Risk Management Agency (RMA) offers three federally subsidized insurance programs specific to livestock producers . These programs include:  Livestock Risk Protection (LRP) Livestock Gross Margin (LGM) Dairy Revenue Protection (DRP) Additionally, the Rainfall Index insurance program includes Apiculture, Pasture, Rangeland and Forage (PRF) , and Annual Forage .  These federal crop insurance programs run on a “reinsurance calendar” year starting July 1 and ending June 30 of the following year. For example, reinsurance year 2023 began July 1, 2022 and will end June 30, 2023.  Livestock Insurance Deadlines For the LRP, LGM, and DRP insurance programs, the transfer or cancellation deadline is June 30 prior to the start of the new reinsurance year. If a producer wants to change their agent, switch to a different insurance company or cancel their policy for the upcoming year, the transfer/cancellation application needs to be completed and signed by the June 30 deadline.  If the producer is new to LRP, LGM or DRP, an application can be completed and signed anytime during the reinsurance year. Once an application is submitted and approved, the producer can then purchase coverage using a coverage endorsement throughout the year.  After coverage is purchased, premium is billed at the end of the coverage period.  For LRP, the premium billing date is the first of the month following the month in which the coverage ended. For example, if the coverage period ends October 14, the billing date is November 1. For LGM, the premium billing date is the first day of the month following the last month of the coverage period in which the insured has target marketings or in which the coverage period ended. For example, if the coverage period is February-December, and the insured only has target marketings in March-May, the billing date is June 1. For DRP, the premium billing date is the 25th of the month following the month in which the coverage ended. For example, if the coverage period is October-December, the billing date is January 25. Lack of Rainfall Insurance Programs PRF and Apiculture Insurance Deadlines Pasture, Rangeland and Forage (PRF) and Apiculture insurance are classified under Rainfall Index insurance coverage. PRF, which was developed to support ranchers and hay producers by giving them the opportunity to insure their forage grown for grazing and haying , is available in the 48 contiguous United States. Apiculture insurance, which covers bee colonies, uses a range of indexing systems to assess plant growth, which indicates varying levels of honey production. December 1 is a key date for both PRF and Apiculture programs. This represents the sales closing date (for coverage between the following January through December), acreage reporting date and, if the insured wishes to transfer or cancel their coverage for the upcoming year, the date by which a transfer/cancellation application must be signed.  The PRF and Apiculture premium billing date is September 1 of the following year after the sales closing date. For example, a December 1, 2022 sales closing would have a premium billing date of September 1, 2023. Annual Forage Insurance Deadlines Annual Forage insurance , which covers against lack of precipitation on acreage planted annually for use in grazing or as hay for livestock, also falls under Rainfall Index insurance coverage.  The sales closing date for Annual Forage is July 15. This is also the date by which a producer must submit a transfer/cancellation application. Under Annual Forage, there are four acreage reporting dates that align with the four different growing seasons:  October 15 January 15 April 15 July 15  The Annual Forage premium billing date is August 30 of the following year after the sales closing date. For example, a July 15, 2022 sales closing would have a premium billing date of August 30, 2023. Trusted Protection from FBN®  Whether you raise cattle, dairy, apiculture, or swine, Farmers Business Network® has the expertise to serve producers of all sizes. With our Farmers First®approach always top of mind,our agents are here to build a loyal relationship with you, ensuring stability and trust in times of market loss, mortality loss or unexpected peril. FBN is more than just insurance. Our agents work with you to understand your biggest concerns and offer solutions that provide you peace of mind. To speak with an agent and learn more about our available coverage options, please click here or call (877)-576-4468 .  Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in all U.S. states.


27 Sept 2022

by FBN Insurance

Whether it’s almonds in California, apples in Washington, or cherries in Michigan, there is Federal Crop Insurance Policy to help manage your risk. In fact, the USDA’s Risk Management Agency (RMA) protects 76 different specialty crops that account for over $20 billion in liabilities.  Below we’ll cover three of the most common specialty crop insurance plans . Actual Production History (APH) APH policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease. This is a basic plan of insurance that covers most specialty crop commodities including almonds, apples, blueberries, grapes, peaches, pistachios, and walnuts. The farmer selects the amount of average yield they wish to insure, ranging between 50-85%. The farmer also selects the percent of the predicted price he or she wants to insure, between 55-100% of the crop price established annually by RMA.  If final production is less than the yield guarantee, an indemnity is paid on the difference. The indemnity is calculated by multiplying this difference by the price selected at sign up and the insured share in the crop.  Sales closing dates vary by crop and region, with most falling between November 20 and January 31 .  Actual Revenue History (ARH) ARH policies are very similar to the APH policies outlined above. However, they base the guarantee on revenue per acre rather than yield. This gives producers the added benefit of some market volatility protection due to the revenue component. Crops that are eligible for ARH policies include cherries, oranges and strawberries. While sales closing dates for ARH also vary by crop and region, they primarily happen between November 20 and January 31 .  Whole Farm Revenue Protection (WFRP) WFRP provides a risk management safety net for all commodities on the farm under one insurance policy. This insurance plan is tailored for any farm with up to $17 million in insured revenue (up from $8.5 million in insured revenue in years past), including farms with specialty or organic commodities (both crops and livestock), or those marketing to local, regional, farm-identity preserved, specialty, or direct markets. Sales closing dates for WFRP vary by region, with all regions falling between January 31 and March 15 .  WFRP can serve as an excellent tool in a specialty crop producer’s risk management toolbelt. A few benefits of the WFRP program include:  Ability to cover ALL crops grown on an operation Provides Revenue Protection on specialty crops that historically have only had yield protection options available Subsidy levels as high as 80% depending on commodity count and coverage level  Ability to account for expanding operations  Take Control of Your Risk with Specialty Crop Insurance from FBN® FBN has experts in specialty crop insurance located nationwide, each of whom are ready to discuss the specific needs of your individual operation. Learn more about these programs or connect with an agent by clicking here or calling (877)-576-4468 .  Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. We are an Equal Opportunity Provider.FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in all U.S. states.


The USDA Risk Management Agency launched the Rainfall Index Pasture, Rangeland and Forage (PRF) insurance program to provide coverage against the lack of rainfall. The PRF insurance program was developed because ranchers and hay producers historically have not been able to insure their forage grown for grazing and haying. The PRF Insurance program is available in the 48 contiguous United States. How does PRF insurance work? PRF insurance coverage is based on rainfall rather than yields due to accurately measuring forage production and different management practices that affect forage production and yield. There is a high correlation between rainfall and forage production and indemnity payments to producers would offset the cost of purchasing replacement feed. The PRF Insurance program covers only established stands of perennial forages intended for either grazing or haying. A producer has to buy coverage by December 1 for coverage throughout the following year (January – December). Coverage is established on 2-month intervals, or mini insurance periods, county based values and coverage level. County based values are established by grazing and haying intended uses.   Who sells PRF insurance? The PRF Insurance program is sold by private insurance agents and coverage is guaranteed by private insurance companies and the USDA. The USDA also provides premium assistance by covering between 51% and 59% of the premium costs, based on the producer’s selected coverage level. Each county, rainfall Grid and 2-month intervals are individually rated and influences the cost of the program as do the coverage level and productivity factor chosen by the producer. What is the Productivity Factor in PRF? The Productivity Factor is the dollar value of forage production per acre set by the Risk Management Agency. Producers can adjust this amount up or down (60% to 150%), depending on whether they want more coverage or not.  Coverage and indemnities are based on the amount of rainfall measured in each Grid and 2-month interval. The rainfall measured is based on weather data collected and maintained by the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center. The index reflects how much precipitation is received relative to the long-term average for a specified area (Grid) and 2-month interval. Documented rainfall amounts for a given area are drawn from precipitation data collected at NOAA climate reporting stations using the NOAA grid areas measuring 0.25° latitude by 0.25° longitude, which is about 17x17 miles. The Grid used for coverage are based on where the producer’s acres are located and the acres allocated by intended use. The Grid’s rainfall index value is calculated from rainfall data gathered at four NOAA stations nearest to the center of the GRID and not based on what the producer receives in his/her rain gauge. Rainfall indexes are generated for the two-month periods throughout the year. Producers can then choose insurance levels on individual PRF policies for coverage as high as 90% of the long-term precipitation averages for their grid area during those specific time periods. The producer can choose to increase the County Based Value, up to 150%, to increase the value of their forage.  Purchasing an annual PRF policy When purchasing an annual PRF policy, you must select at least two 2-month intervals for insurance coverage. The intervals chosen are determined by the producer and when the producer thinks precipitation is critical for a given forage type. Precipitation data is collected daily and index values are calculated and published about six weeks after the end of each two-month time period. If the rainfall index for a given grid triggers and 2-month interval is below the producer’s selected coverage level, an insurance indemnity is due. Indemnities are applied towards the producer owed premium and once the premium is covered, a check will be sent. Checks are sent soon after those index values are announced. If premium is owed, premium is billed in September of the coverage year. There is no loss adjustment associated with the PRF insurance program because the rainfall data is collected by NOAA and losses are not based on forage yields. Indemnity payments are paid more quickly than most crop insurance policies. FBN® Insurance Agents have access to a privately developed PRF analysis tool to assist producers in determining optimal coverage and display the historical performance of a Grid. Learn more about PRF insurance Click here for more information about the PRF Insurance program or to speak to an insurance agent . Copyright © 2014 - 2022 Farmer's Business Network, Inc. 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