Producers of winter wheat and other fall-planted crops now have an opportunity to receive a discount on their federal crop insurance. Currently, Crop1 Insurance is the only company authorized by the USDA and the Federal Crop Insurance Corporation (FCIC) to offer savings to farmers on the federal crop insurance through the Crop1 Insurance "Premium Discount Plan" (PDP).
The Premium Discount Plan is available on all federally-reinsured crop insurance programs except "CAT" and offers farmers an opportunity to reduce the cost of their federal crop insurance by up to 10% . The discount amount varies based on the coverage level and plan a farmer selects. This is the third Crop1 has been approved to offer the Premium Discount Plan to farmers. However, this is the first year that Crop1 has been approved to offer FCIC-approved insurance for fall crops. Originally, the Premium Discount Plan was only available on five crops in seven states. And, this year, FCIC and USDA expanded the program to cover all crops in 15 states; Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Texas, Washington, and Wisconsin.
"Farmers are under pressure to be low-cost producers. The Premium Discount Plan is designed to pass on our cost savings to the farmer," says Billy Rose, President and CEO of Crop1 Insurance. "At this point, Crop1 is the only company the USDA has approved to offer this savings to farmers.
The Crop1 Premium Discount Plan offers FCIC-approved federal crop insurance for all crops that can be insured under the federal program, and offers farmers an opportunity to receive a savings of up to 10% . This is the first year that Crop1 has offered the Premium Discount Plan for fall crops. For example, some of the crops that can be covered under the fall crop Premium Discount Plan are winter wheat, citrus, forage, onions, etc.
The Premium Discount Plan savings are available to farmers without reducing or changing their existing insurance coverage. In fact, Crop1 has found that many farmers use the savings to buy added protection from Crop1 at the same cost they would pay for lower coverage with other crop insurance providers.
"We used Crop1 this year and have been favorably impressed with all aspects of their service," says Ron Kielkpof, an Iowa farmer. "The savings we incurred with Crop1â€™s Premium Discount Plan allowed us to increase our coverage level without increasing our overall premium."
The Crop1 Premium Discount Plan results from a provision passed by Congress that was designed to increase price competition, and it is expected that farmers will greatly benefit with this price competition between insurance companies. Crop1 received approval from the federal government because they were able to prove their operating costs are lower than many other crop insurance companies. In part, this is due to the way Crop1 uses the Internet to process information. One additional benefit of Crop1â€™s Internet system is that farmers may access policy information at their convenience, even though Crop1 does not require them to complete an application online.
Crop1â€™s Premium Discount Plan is available to winter wheat and additional fall crop producers through its "CropAgent Affiliate Network" of experienced licensed agents and adjusters throughout the 15 states where the Premium Discount Plan is approved.