One more week. March 17 is the deadline for crop insurance sign up for Cornbelt row crops. If you are concerned about Asian rust in soybeans and have never carried crop insurance, March 17 is the deadline. If you are concerned about La Nina, and have never carried crop insurance, March 17 is the deadline. If you have already booked a large amount of your expected 2008 production, and want to protect your decision, March 17 is the deadline. For either signing up for the first time or changing plans, the deadline is a week away.

An alternative to the typical Actual Production History (APH) insurance are the Group Risk Plan (GRP) and the Group Risk Income Protection (GRIP). The group plans are different from other types because they compare your crop yield (GRP) or revenue (GRIP) against the average for your county. Keep in mind that you will be indemnified only if your county average goes down, but not if your county average is stable and your farm average falls. A good summary is provided by Iowa State University ag economist Bill Edwards.

GRP users will select a trigger level, ranging from 70 to 90% of the expected county yield, which is determined by the National Agricultural Statistics Service and announced about 5 months after harvest. A GRP user will receive an indemnity check, regardless of their own crop, if the county average yield falls below a trigger yield, which is determined by the expected average multiplied by a trigger level selected by the producer.

GRIP is a revenue version of GRP calculated by a price factor, which is determined by the performance of the corn and soybean delivery contracts during the month of February. That establishes a revenue guarantee level, and if the county revenue falls below the trigger revenue selected by the producer an indemnity payment is received. The county revenue is calculated with the actual county yield, and the performance of the corn and bean delivery contracts in the preceding month.

What is the cost of GRP and GRIP? That depends on the coverage level selected, and as expected the higher the coverage level the more expensive the premium. Find your premium level at the University of Illinois Farmdoc premium calculator. If you have found GRP and GRIP to be inexpensive in the past, you will find the premiums higher this year because USDA has a maximum subsidy level per acre, and crop values are much higher this year. Under GRP and GRIP a farm is considered an enterprise unit and all acres of a given crop must be insured.

Keep in mind that a yield history is not required, adjustors do not inspect losses, only one policy is required per farm per county, and higher coverages are available. The downside is the fact that isolated crop losses are not covered, and neither are planting delays and crop quality issues such as aflatoxin. A primary user of GRP and GRIP are farmers whose yields typically parallel a given county average. But if you utilize a group policy to save on premium cost, discuss supplementary hail, fire, or other peril insurance with your agent.

Summary:
GRP and GRIP are group policies that provide economical crop insurance coverage, but will jeopardize a user if the crop yield is hurt without the county average declining also. GRP insures the yield, and GRIP provides revenue insurance, but payments are delayed for about 5 months after harvest until county average yields can be verified. Both plans are helpful to a producer where a yield history is not available.