Crop Insurance

What is the AgriCap Insurance Program?

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The AgriCap Crop Insurance Program is designed to be an efficient complement to the Federal Program.  Coverage selections are more flexible with respect to commodity prices, yield triggers are specific to your APH history, premiums are based on your own experience rather than area rates, premium payment plans smooth your cash flow, you reap and keep the financial rewards from your sound farming practices.  The design and financial strength of the program meets the security needs of lenders and creates the opportunity to keep profits on the farm.

The heart of the program is the formation of a captive insurance company – owned by you – as the vehicle for funding against potential yield losses in adverse years while accumulating profits where commodity yields are within normal ranges.

  • AgriCap Crop Insurance captives have been used by the agriculture community since 2018. We have developed a structure that will give farmers ultimate control over their risk management program.
  • A captive insurance company is a limited-purpose, licensed insurance company formed by businesses for the express purpose of insuring risks inherent in the associated business as an alternative to retail insurance markets.
  • With ‘The AgriCap Captive’ you have the opportunity to determine the amount of risk you maintain within your captive (Retention/Deductible). The limit chosen above that established amount is covered by a Reinsurance Company rated ‘A’ or better by AM Best.
  • Equity growth in the captive is best achieved during years with no losses; however, potential equity may still be built in years with losses.
  • In the past 20 to 30 years, the number of captive insurance companies has grown. Today there are more than 5,500 captives worldwide, writing more than $20 billion in premium. These companies have capital and surplus estimated in excess of $50 billion.
  • Captives are not a new strategy for companies to mitigate risk. AM Best Company states the first captive was formed in 1960.
  • The growing number of risks and their impact on agriculture may be best managed through a captive that has flexibility to tailor risk management programs to meet specific risk issues, such as pandemics and other causes of loss that are excluded from traditional insurance coverages.

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