Weighing up Crop Hail Insurance vs Multi-Peril? Kansas weather is unpredictable – making the security of crop insurance coverage a near-necessity for many producers. More than 80 years after the creation of the Federal Crop Insurance Program, farmers can access two types of coverage: Multi-Peril Crop Insurance (MPCI) and Crop Hail Insurance.
Choosing the right type of coverage for your operation goes beyond consideration of extreme weather. Crop Hail Insurance and MPCI differ in many ways from program structure, to coverage timelines, to protections offered.
Ready to explore which type is right for you?
Multi-Peril Crop Insurance is a government-subsidized policy, offered as part of the Federal Crop Insurance Program. Established in 1938 with the passing of the Federal Crop Insurance Act, the program looks to provide affordable crop insurance to farmers. This helps to maintain the viability of farming and ensure the stability of the nation’s food supply.
MPCI Coverage does just that by covering the loss of crops due to:
Crop Hail Insurance is a privately provided policy that offers protection against crop losses not insured under MPCI. In a region where hail can be a prevalent threat to farmers and their yields, Farmers Hail Insurance secures against losses caused by:
Both Crop Hail Insurance and MPCI provide needed protection to Kansas farmers against circumstances outside their control. However, three key differences create unique applications for each.
Because Crop Hail Insurance is offered by private providers, policy prices are set by the individual insurance companies.
Conversely, MPCI is provided through a public-private partnership between the federal government and 15 private insurers approved by the United States Department of Agriculture Risk Management Agency (USDA RMA). The RMA establishes industry-wide premium rates for all insurable crops at one price. All prices are the same throughout the program.
and December 15th, billings sent dates on July 1st and August 15th, and end of insurance periods for various crops on October 31st, November 30th, December 10th, and December 31st." width="1024" height="512" />
Farmers looking to purchase MPCI must do so before planting and prior to the March 15 th coverage deadline.
However, Crop Hail Insurance offers greater flexibility by allowing producers to purchase coverage at any point in the growing season.
While MPCI provides affordable coverage to help farmers secure their livelihoods, Crop Hail Insurance serves as an added layer of protection.
In fact, it is often used to protect against crop losses that are not insured under the federal program or fall below their MPCI threshold.
The nature of hail-producing storms may leave certain portions of a crop unharmed while others are damaged. Crop Hail Insurance can supplement MPCI as additional protection in the event that a claim is less than the deductible for Multi-Peril Crop Insurance.
The security offered by Crop Hail protection also extends beyond the name to insure against losses from fire, lightning, wind, and damage occurring during transit, making it an attractive option for farmers looking to protect high yield crops.
Yes! High Plains Farm Credit is proud to offer a comprehensive range of crop insurance policies that include both yield protection and revenue protection. Additional types of insurance policies include:
The High Plains Farm Credit team is ready to help you customize a crop insurance plan designed to meet the needs of your unique operation. We know the ins-and-outs and can help you determine the right mix of coverage when choosing between Crop Hail Insurance and Multi-Peril Insurance.
Give us a call today to explore the options and get protected!
With more than a decade of industry experience, High Plains Farm Credit Crop Insurance Vice President, Cory Johnson, is the expert with the answers to all your questions. Whether curious about MPCI or wondering about the added benefits of Crop Hail coverage, Cory has the has the information to keep your operation protected.
Thanks to his background in collegiate football, sports management, and steak grilling competition, Cory’s expertise can also keep you entertained and full of good food!
Give Cory a call at 785-656-0124!
