With much of the state's corn crop prospects deteriorated, producers have been contacting their crop insurance agents, examining their insurance policies and wondering how they might be compensated.
"It is very likely that between 88 and 92 percent of the state's corn acreage was insured," said Cory Walters, University of Kentucky College of Agriculture economist.
Producers who suspect they have a yield loss should contact their crop insurance agents for further instruction on their crop.
Due to the condition of the Kentucky corn crop, many producers will likely receive some type of crop insurance payment. Payments will vary, depending on a producer's coverage level, insurance type and unit type. By examining the schedule of insurance in their policies, producers can review their insurance decisions. Due to the various decisions associated with a Multiple Peril Crop Insurance policy, Walters estimated that crop insurance premiums cost Kentucky producers somewhere between $7 and $20 per acre.
"Higher coverage levels imply a higher bushel guarantee and therefore a higher possibility of payments," Walters said. "Higher coverage levels have higher insurance premiums."
Revenue protection insurance is the most common type of insurance policy. Each policy will have a revenue guarantee. Guarantees vary among producers depending upon the percentage of the crop they insured, their actual production history and whether they elected to use the harvest price or the projected harvest price to calculate a potential payment. Payments are triggered when a producer's yield multiplied by the national price is less than their revenue guarantee.