National Crop Insurance Services 8900 Indian Creek Parkway Suite 600 Overland Park, KS 66210-1567 Phone: 913-685-2767 Fax: 913-685-3080

 

NATIONAL CROP INSURANCE SERVICES

8900 Indian Creek Parkway, Suite 600

Overland Park , KS 66210

 

 

FOR IMMEDIATE RELEASE January 10, 2006

Information in this article provided by USDA’s Risk Management Agency, Pennsylvania State University, and the Pennsylvania Department of Agriculture.

For more information contact Jan Eliassen at 410-778-0120 or Laurie Langstraat at 913-685-2767.

Whole farm insurance expanded, improved

AGR-Lite may help lower crop insurance costs

OVERLAND PARK, KAN. --- USDA has approved several changes to the federally subsidized Adjusted Gross Revenue Lite insurance program (AGR-Lite). The new-and-improved AGR-Lite now qualifies more farmers, protects against more hazards, and has generally lower premiums than other types of crop insurance coverage.

AGR-Lite is a streamlined, whole-farm revenue protection policy. It provides protection against low revenue due to unavoidable causes, including market fluctuations.

For 2006, the maximum pay-out has been raised from $250,000 to $1 million. Producers can qualify as long as their average gross revenues don’t exceed $2 million per year.

Producers with only one commodity are eligible for all 65 percent and 75 percent coverage options. The 80 percent level now only requires three commodities.

Insurable causes of loss have been expanded to include wildlife, and unavoidable or uncontrollable disease and insect damage.

Also, the sign-up deadline for new applicants has been moved from January 31 to March 15.

With 2006 farm budget projections on the rise, some producers may investigate the possibilities of slightly lower MPCI coverage levels combined with low cost AGR-Lite coverage as a way to lower their overall crop insurance costs. AGR-Lite premiums are discounted when used along with Multiple Peril Crop Insurance (MPCI).

Originally designed by the Pennsylvania Department of Agriculture (PDA), AGR-Lite is now available in 17 states, including the entire Northeast.

Some features that distinguish AGR-Lite from other forms of crop insurance are:

It is a stand alone policy

It can be used as an umbrella over selected individual coverage.

It works for organic, high value varieties, dairy, aquaculture, and livestock.

It recognizes local market prices that may be higher than national prices.

It covers nursery, greenhouse, milk, wool, and honey.

It protects against low prices

It protects direct marketed production at realistic prices

It gives individual protection based on your yield, quality and price history.

It covers otherwise uninsurable crops

Record keeping is simple.

Premium is usually lower than other insurance plans.

For more information contact a local crop insurance agent well before March 15.

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Last updated: January 10, 2006.

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