Although no producer goes into a planting season with the anticipation of low yields, low commodity prices, and a payout from their crop insurance policy come harvest time – it happens. Unfortunately, in times of tight margins and the inability for some to cover their break-even costs, Yield and Revenue Protection plans regulated and offered through the Risk Management Agency do not provide sufficient amount of coverage for some producers to farm comfortably.
Buy-up products, those that allow a producer to elect higher levels of coverage than provided by federally regulated programs, have proven their value in the past few years protecting top end revenue that producers would have otherwise lost. Carrying 90-95% of APH coverage eliminates the large deductible that would need to be met in a loss situation that would ultimately result in a crop insurance indemnity under a standard MPCI protection plan.
Several companies within the crop insurance industry are utilizing their positions in the private product arena by offering coverage options of this caliber. Each differ slightly when it comes to policy capabilities and premium cost; however, all exhibit a similar general concept and prove to be effective for a large variety of producers.
If you are interested in how a buy-up product would work for you and which one would be the most valuable for your operation, please feel free to contact an ABIS Crop Insurance agent for further discussion.
— Hailey Becker