Top producers can’t afford inaccurate crop insurance. Utilizing the traditional ways of reporting crop insurance may be causing growers to be overpaying on premiums and reducing overall profitability. Precision Risk Management does crop insurance differently than any other provider. Traditional FSA/CLU maps can overestimate your premium and provide coverage to areas where there are no crops. Using precision technology and a full support team, PRM ensures you only pay for the insurance coverage you need.
10.9%
Field Difference
$19,852
5 Year Savings
21.27
Bu Difference
Precision Data Done Better.
Up to 7% Operation Crop Insurance Savings
A producer can be paying for crop insurance where there are no crops.
There is no requirement to insure every FSA acre and, very likely, every acre shouldn’t be insured. Only the acres that were planted that season should be insured. Otherwise, the grower is creating unnecessary insurance coverage and added premium.
In one field example, there is a 10.9% difference between what FSA acres recommend insuring and Precision Planted acres. That is a $166.04 savings in crop insurance premium. It is not immediately clear the large impact of the difference until you examine the effect on an entire operation.
With an average of 7% difference, a 4,000-acre operation will save
$19,852 over 5 years.
Increase your APH with
Using FSA acres can artificially lower a grower’s actual production history (APH). Total production for a field is divided by the number of planted acres to calculate the APH. When the acres are overstated using FSA instead of the true planted acres, it drops the APH. This lowers the maximum potential payout for any claims.
A 21.27 bushel difference of corn in our 7% operation example increases a crop insurance guarantee of $145.91 per acre. Across 4,000 acres, that is a $583,648 increase in guarantees. Using Precision Planted acres have a lasting impact on your operation through your APH.
Why is there a difference?
There are many reasons why FSA acres and Precision Planted acres may not match. FSA acres are records indicating the entire possible amount of land that is theoretically possible for planting. Many times, a producer can’t or does not want to devote inputs to certain areas of a field. Precision Planted acres using the precision technology during the planting process only account for the acres where seed was put in the ground.
Precision Technology Setup
The PRM Data Specialists partner with the grower to create the most accurate acreage and production reporting. This is achieved by PRM team members going on-farm to set up the precision technology on existing equipment the grower already possess. That’s why every PRM policy comes with the use of a PRM employed Data Specialist. Data Specialists are devoted to helping the insured farmer set-up and year-round support of precision technology for crop insurance. As a crop insurance industry first, the team of Data Specialists are not third-party contractors and are employed by Precision Risk Management, ensuring the highest and consistent quality customer support.
The PRM Data Specialists partner with the grower to create the most accurate acreage and production reporting. This is achieved by PRM team members going on-farm to set up the precision technology on existing equipment the grower already possess. That’s why every PRM policy comes with the use of a PRM employed Data Specialist. Data Specialists are devoted to helping the insured farmer set-up and year-round support of precision technology for crop insurance. As a crop insurance industry first, the team of Data Specialists are not third-party contractors and are employed by Precision Risk Management, ensuring the highest and consistent quality customer support.
