Extra Harvest Expense is an optional Crop Hail endorsement that covers damage by wind that results in additional harvest expense. It does not provide coverage for green snap or wind.
- The crop acreage insured under this endorsement must also be insured under a Yield Protection, Revenue Protection, or Revenue Protection with Harvest Price Exclusion policy with FMH or another Approved Insurance Provider (AIP).
- If MPCI is with another AIP, FMH will require the summary of coverage and current crop year acreage report.
- Offered on an MPCI unit basis for select crops at 110 –120% of insured’s APH (check with your FMH agent for crop and modified APH availability).
- Insured’s APH and MPCI levels are used to determine the Total Coverage and premium.
- An indemnity payment is based on the actual hail loss and the final production to count.
- Coverage terminates December 31.
Additional Information
Late and Prevented Planting
Any percentage reduction to the MPCI Production Guarantee on the MPCI policy because of late planting will apply to the Total Coverage on this policy. Any acreage prevented from being planted is not insurable.
Insurance Units
If the supporting MPCI policy is written on an enterprise unit basis, this policy can only be provided on a basic or optional unit basis.
Loss Requirements
- The insured is to provide the total harvested and/or appraised production for each unit no later than the earliest of 30 days after harvest is complete or 30 days after termination of coverage.
- FMH cannot pay any loss until the entire insured crop in the unit sustaining direct damage has been harvested or appraised.
- Harvested and/or appraised production will be determined using the same procedures used to establish production to count under the underlying MPCI policy.
Availability
Coverage varies by state, check with your FMH agent for availability.
The Production Crop Hail Plan is ideal for a producer who:
- Looks at exposure on an aggregated basis as indemnity is paid on a UNIT basis, not an acre-by-acre basis.
- Understands that a crop that has sustained a hail loss can recover through a growing season and in some cases, may harvest over its production plan coverage level and not have a payable loss.
- Is comfortable waiting until final unit production is determined prior to calculation and payment of any indemnity.
Price Election
The Price Election is the MPCI Projected Price on the underlying MPCI policy.
Price Election Percent
The insured may select a percentage of the Price Election between 25% and 100%.
Production Plan Coverage Level
The insured may select levels of 110%, 115%, or 120% of the approved APH yield. Check with your FMH agent for the levels available.
Production Plan Guarantee
(APH) x (Production Plan Coverage Level) x (Acres per Unit)
MPCI Production Guarantee
(APH) x (MPCI Coverage Level) x (Acres per Unit)
Crop Hail Production Guarantee
(Production Plan Guarantee) – (MPCI Production Guarantee)
Production Plan Loss
(Production Plan Guarantee) – (Production to Count)
Production Loss Due to Hail
(Production Plan Guarantee) – (Percent of Hail Loss)
Loss Payable
Lesser of (1) Crop Hail Production Guarantee, (2) Production Plan Loss, or (3) Production Loss Due to Hail, multiplied by the Price Election and your Share.
Total Coverage
(Crop Hail Production Guarantee) x (Price Election) x (Share)
