A little peace of mind goes a long way these days, especially when it's easy and affordable to obtain. Multi-Peril Crop Insurance (MPCI) can help you take some of the risk and worry out of the whims of nature. We call it "weather management" insurance, because it can protect your financial well being from virtually any natural disaster.
As a "weather-management" tool, MPCI has two key features that can help your business withstand the devastating effects of Mother Nature:
- Multi-Level Coverage. MPCI policies begin at the catastrophic (CAT) level. CAT policies pay for losses in excess of 50 percent of your yield guarantee and at 55 percent of the price set for the crop. Producers who are more serious about risk management "buy up" to higher levels of coverage, just as the U.S. Department of Agriculture has encouraged. MPCI buy-up options range from 50 percent all the way up to 75 percent of your production guarantee.
- Multi-Options and Prices. You can also choose unit coverage. And you can purchase crop hail protection to supplement your CAT or your buy-up coverage.
Why Phil Baehr chose MPCI
Phil Baehr owns Baehr's Farm in Niagara County, N.Y., where he manages
85 acres of apples, cherries, peaches and pears. According to Phil, June
30, 1998 is a day that he and his wife will never forget—and not because
it was their wedding anniversary!
A sudden, violent hailstorm put them out of the fresh fruit business for
the season. Their entire apple, peach and pear crop was lost. Phil says,
"We've had three hailstorms in the last five years, and that kind of weather
will financially pinch any business. That's why we use the hail insurance
option as a management tool that keeps our business viable. In fact, it's
the first tool we've had to manage weather. We still can't control weather,
but we can manage its effects by carrying crop insurance."
Adding a note about CAT insurance, Phil says, "I used to carry just CAT
insurance—to meet government requirements for disaster loan eligibility.
But the rules are too restrictive and its settlements very limited. That's
why I bought the first level of buy-up insurance. I analyzed our personal
situation by calculating the number of years we've had hailstorms, the
cost of our premiums and the settlement we could receive from each storm.
Based on my analysis, I found that our premiums are a bargain."
To learn more about the protection offered by MPCI, contact your Farm
Credit loan officer, who will put you in touch with your local crop insurance
agent. The agent will explain MPCI options and help you select the MPCI
coverage that's best for your operation.
Contact us at info@farmcreditwny.com
for more information.
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