The transition to combo insurance
Farm and Ranch December 6, 2010 This fall marked the implementation of that new combo insurance policy for wheat growers and Dave Paul with the regional office of the USDA’s Risk Management Agency says the transition went well. Paul: “I think our participation numbers are probably going to be a little bit higher this year even they have been in the past couple of years. We announced a $7.12 price on the revenue and yield protection this fall.” Paul says the combo policy is much easier for both crop insurance agents and producers to understand. Paul: “Because essentially they just need to take their average yield in to their agent. We have one price that works for both the yield protection and the revenue protection. Then the producer has basically just three choices to make. One is how much coverage do they want to buy, in other words how much deductible, between 50-85% of their average yield. Then they need to decide what kind of unit structure they want. We have some new opportunities and options there as well. And then third is do they want just straight yield protection or do they want upside-downside price protection or do they just want downside price protection. And they have all those choices all in one insurance package. Again it is much easier to understand and once producers kind of get in the swing of things every fall bring your yield in, get one quote with all three options, make a choice and go down the road.” Tomorrow more from Paul on the insurance unit options. I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net. ?
