Friday, July 23, 2010

With the passage of the last Farm Bill,

Farmers Need To Understand Insurance Options

With the passage of the last Farm Bill, Congress instituted a new premium discount for those producers who elect to insure by enterprise units. One of the features of buying higher levels of coverage is to allow a farmer to split his farm up into separate insurable units. First, each farm number would have its own guarantee. Then, that farm number could be further split into irrigated and non-irrigated units. An enterprise unit simply combines all farm numbers and practices into one final guarantee.

Discount Leads To Lower Premiums

For giving up optional units, the producer pays a substantially lower premium. More than 70 percent of all policies written this year will be revenue-based and carry an enterprise unit discount. To qualify for this discount, two separate FSA farm numbers must be planted to the insured crop with a minimum of 20 acres on the second number.

source : cottonfarming

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