Exploring the Options:
A Roadmap to Guide Risk
Management Decisions
I
n advance of every new crop season, agents begin
the ritual of preparing a good risk management
plan for their policyholders. Knowing all of
the products available for their area can be a
daunting task. With federal coverage for over 100 crops,
how does an agent know what products and endorsements
are best? Is an 80% Revenue Protection policy with a Basic
Hail plan preferable to a 75% Revenue Plan with a Replant
Option and a Company Supplemental Product? What about
coverage for livestock, nursery or haying/grazing land? With
so much to consider, this brief overview can help you make
sense of all available options.
Rainfall Index – Pasture, Rangeland and Forage
The Rainfall Index plan of insurance provides protection
against a single peril – the lack of precipitation. Coverage
can be purchased by landlords, tenants, and owner/
operators for those acres important to their haying and
grazing operations. The PRF program is designed to give
farmers and ranchers the ability to buy insurance protection
for losses of forage produced for grazing or harvested for
hay, which result in increased costs for feed, destocking,
depopulating, or other actions.
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Producers may select from a variety of coverage levels,
productivity factors and two-month index intervals to
personalize their plan. The Rainfall Index program uses
weather data collected by the National Oceanic and
Atmospheric Administration to determine rainfall levels.
When the final grid index falls below your trigger grid
index, you may receive an indemnity.
Whole-Farm Revenue Protection
Whole-Farm Revenue Protection (WFRP) provides a risk
management safety net for all commodities on the farm
under one insurance policy. This plan is tailored for any
farm with up to $8.5 million in insured revenue, including
farms with specialty or organic commodities (both crops
and livestock), or those marketing to local, regional, farm-
identity preserved, specialty or direct markets.
WFRP protects a farm against the loss of revenue that
is earned or expected to be earned from commodities
produced during the insurance period, whether sold or
not; commodities bought for resale during the insurance
period; and all commodities on the farm except timber,
forest, forest products, and animals for sport, show or pets.
KANSAS INSURANCE AGENT & BROKER | May - June 2017 |