Johnston, Iowa — Jan. 25, 2008 — John Deere Risk Protection (JDRP) is now offering the industry’s first-ever Ethanol Policy by providing coverage to corn producers, who have delivery contracts for the purpose of ethanol production. This new policy, available once the multi-peril crop insurance policy is with JDRP, insures yield shortfalls below contracted volumes in the event the price to replace the corn rises above the federal crop insurance coverage.
With the Renewable Fuels Standard (RFS) now requiring 36 billion gallons of renewable fuels to be used annually by 2022, the American farmer will be faced with choosing to dedicate more acres of corn for ethanol production and all of the associated risks that go with it. JDRP understands that current federal crop insurance may not adequately address this increased risk, which has led to the development of this new policy.
“John Deere has been serving the American corn producer for 170 years with equipment and technology, and now with support for their ethanol production,” says Don Preusser, president of JDRP. “We are excited to introduce this new Ethanol Policy, a crop insurance industry first, and will do our best to continue providing solutions to producers who are supporting renewable energy initiatives.”
The new Ethanol Policy, underwritten through Westfield, provides additional protection for those bushels of corn contracted for the purpose of ethanol production in the event a producer has a harvest shortfall and the price to replace those bushels exceeds the producer’s underlying insurance coverage. Once the MPCI policy is with JDRP, this ethanol policy can be purchased up to MPCI acreage reporting date.
“With the importance being placed on renewable fuels, we’re proud to be working with an industry leader in crop insurance to offer this new policy,” says crop insurance agent John Keister of Minn-Iowa Crop Insurance Services in Blue Earth, Minn. Travis Keister, another crop insurance agent with Minn-Iowa, adds, “The new policy is a simple tool that addresses an industry-changing sector of agriculture. With so much focus on renewable fuels and ethanol, it couldn’t have come at a better time.”
As another benefit to producers, the policy requires that the facility offering the ethanol contract procure replacement bushels, eliminating the need for producers to find the replacement grain themselves. Ron Kibble, a John Deere dealer, farmer and strong supporter of the ethanol industry says, “This policy is a win-win for growers and ethanol plants alike. JDRP’s new Ethanol Policy provides more security for everyone involved.”
JDRP, a managing general agent of Westfield Insurance Company, intends to make the Ethanol Policy available in Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin. All states are subject to approval. For more information, please contact your local John Deere Crop Insurance Agent.
About John Deere
John Deere Risk Protection, Inc. is a subsidiary of John Deere (Deere & Company-NYSE:DE), the world’s leading manufacturer of agricultural and forestry equipment; a major manufacturer of construction equipment; and a leading supplier of equipment used in lawn, grounds and turf care. Additionally, John Deere manufactures engines used in heavy equipment and provides financial services and other related activities that support its core businesses.
Since it was founded in 1837, the company has established a heritage of quality products and services providing performance that endures to customers worldwide.
About Westfield Insurance
Westfield Insurance, recognized for Sharing Knowledge. Building Trust.® since 1848, provides personal and commercial insurance and surety services in 28 states. Westfield brings experience and expertise to insurance protection for farms and agribusinesses. One of the nation’s 50 largest property and casualty insurers, Westfield is rated “A” (Excellent) by A.M. Best, the insurance financial rating agency. Westfield is the underwriting company for crop insurance offered by John Deere Risk Protection, Inc.