What is in this article?:
- Harvest-time yield assessments dictate insurance indemnities
- Enterprise units defined
- Multiple peril crop insurance compares final production levels to a guarantee level determined by historical yield averages.
- There may be a complete loss on part of the insurance unit, but if the production or revenue for the entire unit is greater than the coverage level, there is no insurance indemnity.
Enterprise units defined
"Enterprise units are composed of all the crop grown by a producer in a county. The enterprise units have been more popular this year because they come with higher subsidies for producers," Patrick said.
"When multiple units are insured together it reduces the chance of indemnity payments, so the government encourages growers to go that route."
Some growers also have private hail insurance or fire insurance on their crops. These types of coverage could trigger an indemnity farmers may not receive under multiple peril policies.
At this point in the growing season it's too late to purchase crop insurance, but Patrick said it might be a good idea for growers to contact their agents with coverage questions.
"If farmers have suffered some damage from wind or other storms there's not a lot they can do right now other than contact their crop insurance agents to make sure they're going to be able to comply with all of the requirements of the company if they do have a claim later on," he said.
But even those producers whose fields are damaged may not have as much yield loss as they expect. Much of the time, corn can recover from injury sustained during the growing season.
"Most farmers simply need to wait it out and assess crop recovery over the coming weeks," said Bob Nielsen, Purdue Extension corn specialist.
"It is impossible for anyone to assess the potential yield loss in the days following most weather events."