Crop Hail Production Plan

Crop Hail Production Plan

Production Plan is a Crop Hail insurance endorsement that is coupled with your federally-subsidized MPCI policy, and is designed to provide coverage on the portion of your crop that is left unprotected by your MPCI policy.

Production Plan differs from traditional hail insurance in the indemnity phase. A traditional hail policy pays based on the percent of damage a crop sustains, while the Production Plan endorsement goes a step further and takes into account the total harvested production. An adjuster will still assess the percent of damage at the time of the hail loss; however, the final hail loss calculation cannot be completed until harvest when the actual production to count is known.

How Does it Work?

• The crop acreage insured under this endorsement must also be insured under a Yield Protection, Revenue Protection, or Revenue Protection with Harvest Price Exclusion policy with FMH or another AIP
• If MPCI is with another AIP, FMH will require the summary of coverage and current crop year acreage report
• Offered on an MPCI unit basis for selected crops at 110% - 120% of insured's APH (check your state for crop and modified APH availability). Insured's APH and MPCI levels are used to determine the Limit of Insurance and premium.
• An indemnity payment is based on the actual hail loss and final production to count.
• Coverage terminates December 31.

What are the Benefits

• Allows producer to protect crop against hail loss up to 120% of the producer's APH
• Covers the gap created by yield and revenue policies
• Ideal for producers that generally do not purchase private hail insurance due to cost or other factors