Extension Communications
3614 Administrative Services Building
Ames, Iowa 50011-3614
(515) 294-9915
2/8/99
Contacts:
William Edwards, Extension Economics, (515) 294-6161
Treva Blumenshine, Extension Communication Systems, (515)
294-5672
New Crop Revenue Insurance Program Announced
AMES, Iowa -- A new crop insurance program is available to Iowa producers this year. It combines features of existing revenue insurance programs and the Group Risk Program (GRP) that have been offered for several years, according to William Edwards, Iowa State University Extension economist.
The new program is called Group Risk Insurance Protection (GRIP). It offers producers protection based on expected county revenue, measured by the expected yield for the county times the average futures market price during March 8-12, according to Edwards. "Farmers can choose a trigger level of gross revenue between 70 and 90 percent of this expected revenue," he said. "If the actual revenue, computed from the actual county average yield and the futures market price at harvest, is below the trigger revenue the farmer receives an indemnity payment."
The amount of the payment depends on the size of the shortfall and the value of protection selected by the producer. "Protection levels can be anywhere from 90 percent to 150 percent of the county expected revenue," Edwards said. "Indemnity payments are based only on county yields, however, and not on those of the individual producer or landowner."
GRIP policies offer high dollar levels of coverage for a modest premium. "They will be most useful to producers whose individual yields typically follow the county average very closely, or who do not have adequate production history records," Edwards said. Local crop insurance agents can provide more details about GRIP insurance. For more information, contact your local ISU Extension county office and ask for publication Fm-1850.
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Extension programs are available to all without regard to race, color, national origin, religion, sex, age, or disability.