Johnston, Iowa — Feb. 16, 2009 — John Deere Risk Protection (JDRP) has been at the forefront of innovative products since its entry in the crop insurance industry in order to meet its customers’ needs. JDRP is now offering expanded coverage to producers who have delivery contracts with its new Crop Delivery Contract Policy. This policy provides coverage to corn and soybean producers who have delivery contracts with companies or cooperatives contracting grain; this includes ethanol and biodiesel plants.
The Crop Delivery Contract Policy, available when a revenue-based Multi-Peril Crop Insurance (MPCI) policy is in place with JDRP, provides coverage in the event a producer is unable to satisfy their delivery contract due to a yield shortfall and the replacement cost rises above the federal crop insurance coverage price and the contract price.
“John Deere has been serving rural America for more than 170 years,” says Don Preusser, president of JDRP. “And we understand that when farmers consider forward contracting as a part of their crop marketing strategy, they may have concerns about being able to fulfill their delivery contracts. With this new policy, farmers have another important risk management tool from JDRP to help reduce a loss should they experience a yield shortfall on contracted grain.”
The Crop Delivery Contract Policy provides farmers with confidence in contracting more production when better pricing opportunities are available, simplifies the process of securing replacement product, and assists in covering the costs associated with replacing the crop when those costs exceed the original contract price. It works on top of a Crop Revenue Coverage (CRC) or Revenue Assurance (RA) policy provided through JDRP to create additional protection on contracted bushels.
“The Crop Delivery Contract Policy is another example of JDRP’s effort to continue to provide innovative products and services to its customers,” adds Preusser.
The policy applies to corn and soybeans committed to delivery contracts, and is currently available in the following select states for the 2009 crop year: Arkansas, Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin. Availability in all states is subject to state approval.
For more information about this and other products offered through JDRP, contact your local John Deere Crop Insurance Agent.