Multi-PeriL
Farming is a fulfilling venture, but it’s not without risks. Sometimes, nature’s unpredictability overshadows the efforts of even the most skilled farmer. Fortunately, multi-peril crop insurance (MPCI) offers a way to mitigate financial loss from the unknown so you can face each season with confidence.
At Allied Ranchers Insurance, we provide comprehensive multi-peril crop insurance options to protect your crops—and your investment—when the unexpected happens.
What is Multi-Peril Crop Insurance (MPCI)?
Crop revenue insurance
Multi-peril crop insurance is a federally supported insurance policy offered through private companies like Allied Ranchers Insurance that safeguards farmers from a wide range of risks.
While some crop insurance plans like crop hail insurance only cover specific, MPCI offers a broader risk management safety net. Overall, MPCI has crop insurance policies that provide farmers with the flexibility to choose different coverage levels and optional units based on their crop type and specific needs.
What Does MPCI Cover?
Some of the risks MPCI protects agricultural and crop acreages against include:
MPCI covers losses due to natural disasters like drought, flooding, volcanic eruptions, hail, and frost.
These include losses from pest infestations and plant disease outbreaks, which can wipe out entire fields and lead to a significant loss of crop yields.
You're also safeguarded against price declines in the market, providing financial cushioning in case market conditions cause revenue loss. This is critical for maintaining a steady income, especially if you're growing high-yielding crops whose values may fluctuate.
When to Purchase a Multi-Peril Crop Insurance Policy
You should secure a multi-peril crop insurance policy before planting to secure your crop. Allied Ranchers Insurance agents can assist with specific enrollment deadlines, ensuring continuous protection.
Multiple-Peril Crop Insurance Policies
Multi-peril crop insurance offers different policy types that focus on individual or area-based coverage. The variety of policies affords you the flexibility to choose one that meets your unique needs.
Individual Crop Policies
Revenue Protection (RP)
Revenue protection provides coverage that focuses on protecting both yield and revenue based on market prices. This is especially beneficial for farmers seeking upside harvest price protection. This policy helps secure income even if there is a loss in revenue due to unexpected price changes or crop losses. RP works by using futures market prices at planting and harvest to establish a guarantee throughout the insurance period. If the market price at harvest is lower than the guarantee or if yield drops, the policy pays out to make up the difference.
Revenue Protection-Harvest Price Exclusion (RP-HPE)
This policy is similar to revenue protection, but it excludes harvest price adjustments. The coverage is based solely on the initial planting price. RP-HPE provides policy protection at a lower premium cost, making it cost-effective protection against loss.
Yield Protection (YP)
Yield protection is designed to protect against a loss of yield due to natural risks like drought or disease. Unlike revenue-based policies, YP doesn't consider market price fluctuations. As such, it's ideal for farmers focused on achieving a specific yield level. Generally, if the actual yield falls below a set percentage of the insured level, the policy compensates for crop yield losses.
Area Crop Policies
Area Revenue Protection (ARP)
ARP offers insurance policies that protect against loss of revenue on a county-wide basis. The payouts are triggered when the average area revenue falls below the insured level. This coverage is beneficial for farmers who want to align their protection with the regional performance of their crops.
Area Revenue Protection with Harvest Price Exclusion (ARP-HPE)
It’s similar to ARP, but it excludes harvest price adjustments. It reduces premiums by basing insured revenue on the initial planting price alone.
Area Yield Protection (AYP)
Area Yield Protection insures against area-level average yield declines from natural events. This policy is ideal for farmers whose main priority is reaching specific yield levels across their area.
Margin Protection (MP)
Margin Protection offers protection by covering reductions in profit margins due to both decreased revenue and increased input costs. This comprehensive approach to the loss of revenue is ideal for farmers looking to stabilize margins beyond yield alone.
ALLIED RANCHERS INSURANCE
Why Purchase Multi-Peril Crop Insurance?
It’s important to get multi-peril crop insurance for various reasons:
Stabilizing Income Despite Inherent Unpredictability
Agriculture is a high-risk venture, and even the best-prepared farmers can suffer from unexpected setbacks. MPCI stabilizes income by compensating for losses due to uncontrollable events, helping to ensure the continuity of your operations.
Enabling Growth and Access to Financing
With MPCI, you are more creditworthy because indemnity payments protect your income. This policy protection makes it easier to access loans, invest in infrastructure, and expand operations. Financial institutions see MPCI as an added security.
Protect Your Farm's Future with Allied Ranchers Insurance
In today’s agricultural landscape, managing risk is essential. Multi-peril crop insurance from Allied Ranchers Insurance helps to protect you against the uncertainties of each growing season, safeguarding your income and preserving your legacy.
Contact Allied Ranchers Insurance today at (402) 371-0405 to discuss how MPCI can work for you. From tailored coverage options to prompt indemnity payments, our able agents are here to help you thrive.
