You MUST sign-up no later than February 1 to have coverage for the upcoming crop year.
How does it work?
The federal crop insurance program is the only subsidized insurance plan that provides coverage against perils for your growing crops. Crop insurance is an integral part of Pan American’s valued growers' risk management plan.
The best way to understand the Federal Crop Insurance Program is by looking at an example:
Say we have a grower with 100 acres of Cabernet Sauvignon in Napa County who averages 4.0 tons per acre and has Catastrophic (CAT) Coverage. During harvest, extreme moisture damages the crop (the crop was harvested though determined to be a total loss):
How much coverage do you have at CAT level?
200 Tons Guaranteed (50% of average yield)
x ($5,050 x 55% Price Election)
= $555,500 Total Coverage
100 acre x 4.0 tons per acre x 50% coverage level x ($5,050 x 55% price election)
How much will the grower be paid with a total loss?
-$555,500 (Note: Claim payment could be reduced by $200/ton in Napa County for any lost tonnage left unharvested.)
How much did the policy cost?
For a $300 enrolment fee, you can obtain catastrophic coverage for your crops, irrespective of the acreage planted. For a higher level of coverage, Pan American can help you obtain "buy-up" insurance.
To have coverage for the upcoming year, don’t forget to sign up by January 31st.
Please contact Greg Merrill to discuss coverage options, causes of loss and insurable crop and acreage qualifications.
Greg S. Merrill, CIC, AFIS
Senior Vice President / Director of Crop Insurance Services
Pan American Insurance Agency, Inc., a Relation Company
7673 N. Ingram, Suite 103, Fresno, CA 93711
559.492.5384 direct | 760.485.0456 cell | 559.222.6092 fax