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Agricultural Law The Swier Law Firm

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  • What is "arbitration" in a crop insurance claim?

     

    A disagreement between a producer and his insurance company is usually resolved through "arbitration." Arbitration decisions are binding on the parties, but can sometimes be appealed to a federal court. 

  • What is "crop-hail" insurance?

     

    "Crop-Hail" insurance is only offered by private insurance companies and is excluded from the list of policies of the Federal Crop Insurance Program (FCIP). Producers can apply for crop-hail insurance at any time of the year, even after the crops have been planted. Producers often choose this insurance type because it provides them with the flexibility of receiving indemnity for the parts of their field that was damaged by hail. Different states also offer their own versions of FCIP policies that reflect the needs of farmers in their area.

  • What is "adjusted growth revenue" insurance?

     

    "Adjusted Growth Revenue" (AGR) insurance protects revenues of the producer. However, instead of insuring the revenue of just one crop, AGR insures the revenue of the entire farm. The products that can be protected include all agricultural yields, as well as livestock and aquaculture products. This form of insurance is only available in selected counties in 10 states and state-wide in eight others. The basis of the coverage will be the producer’s historical Internal Revenue Service (IRS) tax form and an annual farm report. The percentage of coverage and the rate of the premium will also depend on the number of commodities produced. 

  • What is "actual revenue history" insurance?

     

    "Actual Revenue History" (ARH) insurance is based on historical revenues. ARH follows much of the same procedures as APH policies, but instead of reflecting an average or percentage of products, it reflects a percentage of the total revenue for a certain crop. ARH policies protect producers from seasons of low revenues caused by low prices, low yields, or low quality of the harvested crops.

  • What is "actual production history" insurance?

     

    "Actual Production History" (APH) insurance protects farmers against yield losses and shortages due to natural events like droughts, hail, moisture, frost, disease and other causes. It is up to the producer to choose the amount of the average yield to insure. In some areas, APH insurance can insure up to 85% of a producer’s average yield.

  • What is a loss adjuster?

     

    A loss adjuster is the person sent by the insurance company to review the extent of damages or losses as contained in the claim filed by the producer. 

  • What is livestock insurance?

     

    Livestock insurance provides coverage for the death and loss of livestock due to accidents or diseases. Claims can be filed on a per animal or per herd basis.

  • What is an insurable yield?

     

    An "insurable yield" is the maximum yield that is insured under a policy. It is usually expressed in percentage and the insurance company will review past production of the area to determine the potential yield.

  • Why should an agricultural producer have crop insurance?

     

    It is in the best interest of farmers and producers to have some type of coverage for their crops, livestock and farming structures, equipment and machinery. In addition to the agricultural insurance policies that the USDA administers, private insurance companies can also provide farmers and producers with coverage that the USDA may not be able to provide.

  • What is the purpose of agricultural crop insurance?

     

    Agricultural crop insurance provides coverage for most Acts of God, diseases, and other causes of damage. It is an important risk management tool that the United States Department of Agriculture encourages farmers and producers to use.