Producers who have delivery contracts with John Deere Risk Protection's new Crop Delivery Contract Policy are being offered expanded coverage. This policy provides coverage to corn and soybean producers who have delivery contracts with companies or cooperatives contracting grain including ethanol and biodiesel plants.
In the event a producer is unable to satisfy their delivery contract due to a yield shortfall, the Crop Delivery Contract Policy provides coverage when the replacement cost rises above the federal crop insurance coverage price and the contract price.
"John Deere has been serving rural America for more than 170 years," says Don Preusser, president of JDRP. "And we understand that when farmers consider forward contracting as a part of their crop marketing strategy, they may have concerns about being able to fulfill their delivery contracts. With this new policy, farmers have another important risk management tool from JDRP to help reduce a loss should they experience a yield shortfall on contracted grain."
The policy applies to corn and soybeans committed to delivery contracts, and is currently available in the following select states for the 2009 crop year: Arkansas, Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin.
Availability in all states is subject to state approval. For more information about this and other products offered through JDRP, contact your local John Deere Crop Insurance Agent.