Insurance Gaps in Agricultural Policies

Insurance Gaps in Agricultural Policies

12:18 11 January in Business, Crop, Insurance

Does your farming business have all of the coverage it needs? How sure are you? Running an agricultural business has a long list of potential risks, and if they aren’t managed properly it can devastate your finances and your future.

While the government has put the Federal Crop Insurance program in place to safeguard farmers interests with a multitude of risk management options, independent crop insurance providers offer additional products to round out any potential gaps in your coverage that a basic crop insurance product does not address.

Here are some of the most useful supplemental insurance products available to round out your current policy.

  1. Total Weather Insurance (TWI)

TWI is an add-on option for farmers who have a Multiple Peril Crop Insurance (MPCI) policy that offers up to 80% coverage on insured crops. The TWI provides protection for farming profits by covering the extra 20% yield that the MPCI policy does not cover if the crop suffers damage and loss from weather events such as excessive heat or moisture, drought, flooding or any other event specified in the policy.

  1. Added Price Option (APO)

APO is another add-on insurance product that compliments Yield Insurance or MPCI policies. Added Price Option insurance offers pricing protection by locking in a higher expected price per crop bushel than the one listed in the MPCI policy. If there is an unexpected yield loss, the APO policy, which is a bushel only policy, pays to cover the lost amount.

  1. Harvest Max

If you have Federal Multiple Peril insurance but want to protect your crops expected revenue and profits, a Harvest Max supplemental insurance policy may be exactly what you need. This simple and flexible add-on insurance protects your business from yield losses and covers any difference between the actual production history of your crop and a guaranteed amount specified in the policy.

  1. Revenue Net

The Revenue Net insurance product is an add-on that benefits farmers who have a Federal Common Crop Insurance Policy (CCIP) with a Revenue Protection option. This flexible insurance product allows you to secure a higher revenue guarantee price amount by selecting a specific two-week period during the current crop year and locking in those prices to ensure future profitability.

  1. Multiple Price Discovery (MPD)

MPD is an add-on insurance product designed for farmers who have a Federal Common Crop Insurance Policy (CCIP) that helps to protect their profitability no matter how dramatic fluctuations in factors such as market prices and input costs become. The coverage works by locking in higher prices for soybean and corn crops months before a Revenue Protection plan would, which enhances your risk management plan.


To make sure that your investment is as secure as possible and that you have adequate protection for your entire crop, a consultation with a licensed and experienced agricultural insurance broker is essential.

Want to find out more about products that fill in the missing pieces of your crop insurance needs? Call Ihry Insurance today to speak with one of our helpful representatives and get a free quote.

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