November/December 2022 - 24

I
CROP
&
INSURANCE
A variety of factors can affect orchard trees and yield,
not the least of which is Mother Nature, as farmers
are reminded with extreme weather events. National
Nut Grower asked Nicole Gueck, insurance agent with
Specialty Risk Insurance, about some basics to help
unfamiliar growers get started.
What is the Farm
Service Agency's
relationship with
crop insurance?
Nicole Gueck: Many times, ag
producers will state that they have
" crop insurance " through the Farm
Service Agency (FSA). While both
the FSA and the Risk Management
Agency (RMA) operate under
the same USDA umbrella to help
producers manage risk, they
have very different roles. The two
agencies do " talk to each other "
though, and regularly share
producer information.
FSA's responsibilities include
providing credit to ag producers
through farm loans, the
administration of farm commodity
programs, and implementing ad
hoc disaster programs. There
are FSA offices located in every
county. The RMA administers the
federal crop insurance program
and provides risk management
education. RMA does not have
county or state offices, but
rather regional offices that serve
multiple states.
If you have federal " crop
insurance, " it is through the Risk
Management Agency, which is
sold and serviced by a network of
Approved Insurance Providers
(AIPs) through a public-private
partnership. AIPs use independent,
licensed crop insurance agents to
market insurance programs to the
insureds.
Can I buy crop
insurance through
my regular
insurance agent?
NG: Possibly, but crop insurance
agents have special licenses
and must be appointed to sell
with one or more of the AIPs. A
crop insurance agent will have
knowledge of the agricultural crop
in question and the geographies
he/she serves. You will want to
find someone who has a good
understanding of your industry, as
well as the crop insurance policies
in question. Since the premium
rate will be the same regardless
of which agent or company you
choose to work with, you should
choose an agent/agency based
on their expertise, integrity,
reputation, and overall customer
service, not only when they sell you
a policy, but throughout the year,
and especially in the event of a loss.
Is crop insurance
similar to other types
of insurance?
NG: The short answer is: Not
really. Crop insurance is quite
different in many ways. Crop
insurance covers the growing
crop itself and coverage ceases
once harvested from the field;
you will still need property and
casualty (P&C) insurance for your
structures, equipment, etc.
With crop insurance, the
insured will select a coverage
level between 50% and 75-85%,
rather than a deductible. There
is a single sales closing date
(deadline) to sign up, which
can vary by crop and location.
Missing this deadline could mean
not having coverage for an
entire year.
With crop insurance, there is
no need to 'price shop' because
the rates offered are the same
regardless of agent or company.
Finally, unlike other types of
insurance, you can't be dropped
or non-renewed due to loss
history, assuming your losses are
legitimate and there is no moral
hazard present.
24 NOVEMBER/DECEMBER 2022
K
Q
C
U
November/December 2022

Table of Contents for the Digital Edition of November/December 2022
