Crop Insurance Brokers & Adjusters

What Are Crop Insurance Brokers & Adjusters?

Crop insurance brokers (or agents) help farmers purchase federal crop insurance policies that protect against yield losses, revenue declines, and crop failures. Adjusters are the professionals who evaluate damage and determine claim payments when losses occur. Together, they help dairy farms protect their significant investments in forage and feed crops.

Why Crop Insurance Matters for Dairy

Dairy farms often grow substantial corn silage, hay, and other forage acreage. A drought, flood, or early frost can devastate these crops, forcing expensive purchases of replacement feed and threatening the farm's financial stability. Federal crop insurance provides a safety net against these uncontrollable losses.

Key Benefits

• Financial protection: Recover a portion of losses when crops fail
• Lender requirements: Many ag lenders require crop insurance
• Subsidized premiums: Federal subsidies make coverage more affordable
• Risk management: Stabilize cash flow against weather variability
• Price protection: Revenue policies protect against price drops too

Types of Coverage

Yield-Based Policies

Pay when actual yield falls below your guaranteed level. Options include Actual Production History (APH) and other yield-based products.

Revenue Policies

Protect against revenue loss from either yield decline or price drops. Revenue Protection (RP) is the most common policy for corn and other commodities.

Whole-Farm Revenue Protection

Covers the entire farm's revenue rather than individual crops. Can be valuable for diversified operations.

Pasture, Rangeland, Forage (PRF)

Index-based insurance for hay and grazing land. Pays based on rainfall indices rather than actual production.

Dairy Revenue Protection (DRP)

Not crop insurance, but a related program protecting milk revenue. Often purchased through the same agents.

Working with Crop Insurance Agents

A good crop insurance agent will:

• Explain available coverage options and levels
• Help you understand coverage costs vs. potential payouts
• Ensure accurate yield history and acreage reporting
• Meet deadlines for enrollment and reporting
• Guide you through the claims process when needed

The Claims Process

1. Report the loss: Notify your agent promptly when damage occurs
2. Adjuster inspection: An adjuster visits to assess damage
3. Documentation: Provide production records and other required information
4. Payment determination: Adjuster calculates loss and claim payment
5. Payment: Receive claim payment from your insurance company

Do You Need Crop Insurance?

Most dairy farms with significant crop acreage should carry crop insurance. Consider:

• Revenue protection on corn silage and grain crops
• PRF or similar coverage on hay and pasture
• Higher coverage levels if you can't afford to self-insure losses
• Review coverage annually as your operation changes

Cost Considerations

Crop insurance premiums are subsidized 50-60% by the federal government. Net farmer premiums vary by crop, location, coverage level, and price levels—typically $10-40 per acre for corn silage and $5-15 per acre for hay. Higher coverage levels cost more but provide greater protection. Compare the premium cost to the potential claim benefit and your ability to absorb uninsured losses.