Group Risk Income Protection

Protects against yield losses based on the average of your county and protects against commodity price fluctuation.

Advantage: The cost of coverage is very low. Your price per bushel is 1.25 times the established price so the dollar coverage is high. The level of coverage can be increased to 90%.

Disadvantage: Because the insurance is based on the county average yield for that crop year, you may not get a crop and the county average is still average, and thus you will not receive a payment.

It would be very risky to commit your crop as loan security, forward contracting, or feed supply. Crop hail coverage should be added to get the same level of security.  By buying a hail policy, it will make it very expensive. There is no replant, no prevent plant and losses get paid the next year.

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