Federal Crop Insurance in Wisconsin 1

Federal Crop Insurance in Wisconsin 1 - Learning for life...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
AN OVERVIEW OF FEDERAL CROP INSURANCE IN WISCONSIN PAUL D. MITCHELL AGRICULTURAL AND APPLIED ECONOMICS UNIVERSITY OF WISCONSIN-MADISON UNIVERSITY OF WISCONSIN-EXTENSION NOVEMBER 2005 Author Contact Information: Phone: (608) 265-6514, Cell: (608) 320-1162, Email: pdmitchell@wisc.edu , Web: http://www.aae.wisc.edu/mitchell/ Learning for life
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
TABLE OF CONTENTS PAGE INTRODUCTION 1 FEDERAL CROP INSURANCE IN WISCONSIN 2 BRIEF DESCRIPTION OF WISCONSIN INSURANCE PLANS 4 EXISTING PLANS NOT AVAILABLE IN WISCONSIN 4 APH CROP INSURANCE 5 UNIT STRUCTURE 5 CALCULATING APH YIELD 7 Transition Yields 7 Yield Cup, Cap, and Floor 7 COVERAGE LEVEL AND PRICE ELECTION 8 PREMIUM SUBSIDIES 9 PREMIUM CALCULATION 9 IMPORTANT CROP INSURANCE DATES 10 LATE AND PREVENTED PLANTING 12 Late Planting 13 Prevented Planting 13 Replant Provisions 14 FARMER RESPONSIBILITIES 14 Variety/Hybrid and Practice Restrictions 14 Acreage Reports 14 Good Farming Practices 14 Alternative Crop Uses 15 When a Loss Occurs 15 FRAUD AND PROGRAM ABUSE 15 OTHER INSURANCE POLICIES 16 Crop Revenue Coverage (CRC) 16 Group Risk Plan (GRP) 17 Group Risk Income Protection (GRIP) 19 Dollar Plans: Forage Seeding and Hybrid Seed Corn 19 ADDITIONAL RESOURCES 21
Background image of page 2
INTRODUCTION The USDA’s Risk Management Agency (RMA) operates the Federal Crop Insurance Corporation (FCIC) to manage the federal crop insurance program. The FCIC follows federally mandated guidelines when endorsing the various crop insurance policies available for approved crops. An FCIC endorsement for a crop insurance policy makes federal subsidies available to insurance companies selling the policy and producers buying the policy. These subsidies include a premium subsidy for producers to lower the cost of purchasing policies, plus a subsidy to insurance companies for administrative and overhead costs for providing the policy and a reinsurance agreement between the RMA and insurance companies. The RMA subsidizes crop insurance because without subsidization, private insurance companies would offer few or none of the current crop insurance policies. The federal crop insurance program has gone through dramatic changes in recent years, including an expansion in the types of policies available and in insurable crops. The purpose of this overview is to help producers, Extension county faculty, and other agricultural professional to understand current federal crop insurance policies available in Wisconsin for major crops. Not all questions can be answered here, nor can all details be described. Additional resources to use for more specific questions are provided. Finally, this overview can quickly become dated on specific policies and crops, since the RMA is continuously modifying and improving crop insurance policies to address unforeseen contingencies. Hence, a certified crop insurance agent is an excellent source for up-to- date information regarding the specifics of the different policies available and for the definitive requirements of current policies. An important message of this overview is that
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 24

Federal Crop Insurance in Wisconsin 1 - Learning for life...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online