This yield is generally lower than the grower's actual yields. The unit without production will be assigned a yield based on the variable T-yield procedure discussed previously. The indemnity payment will be reduced.įailure to report the production for all farm serial numbers (FSNs) - If you do not report all of your FSNs, with production information, on or before the production reporting date, the production cannot be added at acreage reporting time. This oversight generally seems to occur with added land, but many times occurs because the producer fails to insert the planted acreage figure under thee farm number on their acreage reporting form. Your indemnity will be slightly less due to the reduction in your total guarantee (not your per acre guarantee) and you will be refunded any overpayment of premium.įailure to report all farm serial numbers (FSNs) planted to the insured crop - If you fail to report all of the FSNs planted to the insured crop, the unreported FSNs will not have coverage. The acreage will be reduced to the correct number of acres. Over reporting your planted acreage per unit - If you have over reported your acres, your production to count will be derived from all planted acreage for that crop per unit. Therefore, if you underreport your acres your yield will be artificially inflated and you will receive a lower indemnity payment. Underreporting your planted acreage per unit - Production to count for an insured crop is derived from all planted acreage for that crop per unit, whether you reported all of the acres in that unit or not. What are some of the common mistakes that producers make that can cost them money?Ī: Here are some of the most common mistakes that could cost the producer money: Producers may seek to resolve their disputes by exercising their rights under Section 20 or Section 25, in the crop insurance policy Basic Provisions. As a reinsurer, RMA does not have an appeal process available for producers. Can RMA help me get a payment on my claim?Ī: RMA has a Standard Reinsurance Agreement with insurance providers to sell and service crop insurance policies according to Federal Crop Insurance Corporation policies and procedures. Q: My crop insurance company denied all or part of my claim after I experienced a loss. Your agent will help you choose the best coverage for your crop based on your particular farm operation and your risk management and budgetary needs. Your local insurance agent can describe the different insurance products available, and the policy rates and terms. RMA also has 10 Regional Offices, in various locations across the country, that you may contact for information specific to your area. Crop insurance policies are sold and serviced by private insurance companies.įor information about insurance products available in your area, please contact a local insurance agent or one of the insurance companies that sell and service crop insurance policies in your state. Q: How does the Federal crop insurance program work, and how do I apply for coverage?Ī: Federal Crop Insurance Corporation (FCIC) programs are administered by the Risk Management Agency (RMA), which underwrites crop insurance policies for hundreds of crops and livestock in the United States. Or prevented planting occurs due to natural disasters. For those without insurance, the Noninsured Crop Disaster Assistance Program (NAP), managed by USDA's Farm Service Agency, provides financial assistance to producers of non-insurable crops when low yields, loss of inventory, Q: Does crop insurance cover crops in the event of naturalĪ: Producers who purchased crop insurance are covered for all natural causes of loss The private and public sectors can assist farmers in developing a good management plan. Crop insurance agents and other agri-business specialists in Insure the best possible outcome each crop year. Producers shouldĪlways carefully consider how a policy will work in conjunction with their other risk management strategies to Frequently Asked Questions Crop Insurance BasicsĪ: Buying a crop insurance policy is one risk management option.
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