Insuring Iowas Agriculture

William Edwards, Faculty, Economics Department

Situation:

There are over 500 registered crop insurance agents doing business in Iowa and at least 8 major insurance companies that sell crop insurance.  Nearly 90% of the corn and soybean acres in Iowa are covered by crop insurance in 2006, at a total cost of $367 million in premiums.  Both agents and farmers need to know what types of policies and coverage levels are available, and how to choose among them.

Objective:

To improve the knowledge of crop insurance policies and risk management concepts of insurance agents serving at least 25% of Iowa farmers.

Activities/Output:

A one-day continuing education seminar for crop insurance agents and providers was held on November 4.  Program topics included Group Risk Income Protection policies, ag policy issues and their impact on crop insurance, the Noninsured Assistance and USDA Disaster Assistance programs, and crop insurance coverage for losses due to aflatoxin.

Impact/Outcomes: 

Attendance at the workshop was 250, with 185 people requesting CEU credits.  Evaluations indicated that attendees insured approximately 25,780 farms, or about 28 % of all Iowa farms.  As a result of knowledge gained at this workshop, insurance agents will be able to provide better guidance to their clients about when group risk insurance is beneficial to their farming operation, how claims for aflatoxin damage are handled, how crops that are not covered by standard multiple peril insurance polices can still be insured, and how federal legislation is likely to impact future crop insurance choices.  This knowledge will help Iowa crop producers better protect themselves against severe financial losses.

September 2006

104 Agricultural Risk and Financial Management

 

Page last updated: September 29, 2006
Page maintained by Linda Schultz, lschultz@iastate.edu