Production Cost Insurance

PCI is a unique risk management tool, covering both fixed costs and variable costs.  As farmers consider how to increase their yields and manage adversities, this product encourages them to farm the way they always intended to produce the best crops possible in any given season, no matter the adversity, by following the agronomic advice and instincts they have learned to trust through the years. 

The Basics

Coverage amount is two-fold, based on  review of the farm's five-year financial history.  First component is the farm's fixed cost margin (FCMC): total crop revenue (grain sales, hedging gains/losses, etc), minus input cost (seed/fertilizer/chemicals).

Producers have some options to enhance the FCMC coverage level, but these are determined on an individual basis.   Component two covers 100% of the actual costs of inputs.  Should seed/fertilizer/chemical costs surge during a season due to weather, pests or other adverse circumstances, there is no increase in premium.

Additional Details

PCI is a whole-farm policy, so almost any crop can be insured.  It also can be combined with other crop insurance plans.  

Premium costs are individually calculated and quoted upon analysis of the farm's financial data.  Quotes are typically offered through the end of March and are good for 21 days.  Signed applications must be received before the quote expires.  Premium is due by September 30th, with interest accruing after that time.