The USDA Risk Management Agency sets the costs, which vary by the level of coverage the farmer chooses. Because the cost is the same from agent to agent, Massey recommends that farmers choose an agent based upon their service.
Farmers who receive indemnities totaling more than $200,000 should expect to be audited by FCIC, he said.
For more information:
Missouri Crop Resource Guide: Marketing and Risk Management: crops.missouri.edu/marketing.
Information on APH and T yields: crops.missouri.edu/marketing/insyields.htm.
USDA Risk Management Agency: rma.usda.gov.
Missouri Department of Insurance: insurance.mo.gov.
"Crop Insurance in Missouri," MU Extension publication MP749: extension.missouri.edu/MP749.
USDA drought assistance page: www.usda.gov/drought.
About the Federal Crop Insurance Corporation
FCIC, administered under the USDA Risk Management Agency, decreases production risk associated with adverse weather conditions, fire and pests in addition to price risks associated with fluctuating commodity markets.
Federal crop insurance is a public-private partnership that allows farmers to manage risk while shielding taxpayers from farm disaster bailouts by guaranteeing farmers a percentage of predicted crop revenue.
Source: University of Missouri Extension