Are you searching for Katy TX Crop Insurance that will protect your revenue and livelihood when necessary? If so, consider contacting the insurance professionals at Texas Insurance Agency. Our team has the knowledge and years of experience you need on your side. We will help you find the best insurance policy to fit your needs!
Crop insurance can be beneficial to you, whether you are a farmer or rancher. There are many different types of crop insurance plans that cover a wide range of crops and commodities.
What is Crop Insurance?
In layman’s terms, a crop is defined as a number of food or agricultural products that are grown in large amounts. Insurance is available for crops; however, each crop must meet specific qualifications. Furthermore, some crops will only qualify for certain insurance plans.
If you are a farmer or rancher, the chances are that farm or ranch is your livelihood. Risk management is just one way to protect this investment and your income. Purchasing crop insurance is a great step you can take to prevent unexpected revenue loss due to circumstances outside your control.
For instance, natural disasters, wildlife, vandalism, and other events can be covered by specific crop insurance plans. Many of these plans are based on the harvest cycle you live by. Applications must be filed by a certain date, typically prior to the start of harvest or planting season.
The results of any Katy TX Crop Insurance claim you file will be based on a series of factors. First and foremost, production reporting is a requirement for those who have crop insurance. Needless to say, the approach to how crop insurance is handled differs entirely from other types of insurance policies.
When you plant or harvest a crop, you include it in a specific report that the insurance company requires. This is because the amount of crop you planted does not necessarily equal the amount you will harvest. Keeping a record of both will allow your insurance agent to see the difference between that which was planted and harvested.
When you purchase crop insurance, chances are they will ask you to record specific information about each crop. For instance, this information will likely include each crop’s type, practice, and location. Keep in mind that any time you experience a significant loss of crops, it must be filed in a claim within a certain time frame. Insurance companies refer to this as Notice of Loss.
Types of Katy TX Crop Insurance
Individual crop insurance plans are meant to cover the crops on a single farm or ranch. These plans are governed by rules from the Federal Crop Insurance Program (FCIP), which outlines under what circumstances farmers can insure their crops and file claims.
Revenue Protection (RP)
An RP crop insurance plan protects revenue loss due to crop damage or loss. Calculating the loss involves using a formula that takes into account four factors: coverage level, share percentage, average crop yield, and projected price of those crops.
Initially, your compensation will be calculated using the projected harvest price. However, it will be adjusted according to the actual harvest price.
Yield Protection (YP)
Crops can only be insured under a YP plan when they qualify for insurance under an RP plan. If you file a YP claim, losses will be calculated using the same formula as an RP plan.
Revenue Protection with Harvest Price Exclusion (HP-HPE)
An HP-HPE insurance plan works similarly to the YP and RP plans. The single major difference, however, is the fact that it does not fluctuate according to the harvest price. When calculating your claim, your agent will use the projected price.
When it comes to crop insurance area plans, things work a little differently. Any claims you file will be based on the production of the entire county where your crop is located. Your insurance agent can give you more information about how this works with crops planted across county lines.
Area Yield Protection (AYP)
This plan works the same way as an RP plan, with the most obvious difference being that an AYP plan factors in the entire county’s yield rather than that of an individual farm. While a claim for this insurance plan has different qualifications, it is calculated using the same formula as an RP or YP claim.
Area Revenue Protection (ARP)
ARP plans cover losses that happen due to price decrease, production loss, or both. Much like the AYP plan, the insurance agent will calculate your claim amount using a projected harvest price. If the actual harvest price is lower or higher than the project price, your overall claim will fluctuate.
Area Revenue with Harvest Price Exclusion (ARP-HPE)
With an ARP-HPE plan, your compensation rate will depend on the entire county’s actual crop yield/expected crop yield. Projected harvest and actual harvest prices will factor in accordingly.
Other Crop Insurance
Crop Hail (CH)
CH insurance covers damage caused by hail, vandalism (i.e., crop circles), and in transit.
Named Peril (NP)
NP refers to a group of supplemental insurance plans that you can purchase and which fill gaps in your crop insurance. Some examples of NP plans include:
- Grape Cluster Freeze
- Grower Citrus Freeze
- Supplemental Replant Coverage
- Pasture Fire Protection
- Weather Products
- Rain on Tomatoes (only available in California)
- Packer Citrus Freeze
- Raisin Reconditioning
- Almond Extra Harvest Expense
- Crop Fire
Any of these supplemental insurance plans can be purchased for qualifying crops. Ask the experts at Texas Insurance Agency for more information or to get answers to your questions!
Katy TX Crop Insurance
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Katy, TX Fun Facts:
- Katy is named for the K-T Railroad.
- Downtown Houston is just thirty miles from Katy.
- One of Houston’s more popular water parks, Typhoon Texas, is located near the Katy Mills Mall.
- For more information about Katy, TX, visit the city’s website!