Using Crop Hail to Cover the Gap

Mar 16, 2023
Article Supplied By: Scotty Yerges
Crop hail is an additional risk management tool that can work with your Multi-Peril Crop Insurance (MPCI) policy.  Crop hail is not a replacement to the MPCI policy but can help manage the risk for what is growing in your field to where your underlying MPCI policy starts to trigger.  There is a magnitude of different types of crop hail policies.  Work with a Producer Ag crop insurance specialist to help identify which one works best for your operation.  Crop hail is an easily customizable coverage that allows you to cover the fields you want with the dollar amount you deem as necessary to cover the risk.  Through Producer Ag and their partners, they offer 2-hour binding which allows the producer to get coverage 2 hours prior to the damage.  In addition to hail, your crop hail policy can also help protect against wind, fire, theft, vandalism, transit, etc.  Below is an example of an irrigated corn field with a 200-bushel production history.  With corn base price set at $5.91 for your MPCI the producer’s guaranteed Revenue is $768.00.  With the producer growing their average crop of 200 bushel they have a risk exposure of $414.00.  In the event of a hail or windstorm the producer could be out that amount of money before there MPCI policy starts to trigger payment.  This same example applies to the other crops growing in your fields.  As margins have shrunk with higher input costs, crop hail is another tool we can use to help protect the profitability of your operation.  Please reach out to Producer Ag to look at how a hail policy can add value to your operation.