February 8, 2002
2002 IFARM CROP INSURANCE PREMIUM CALCULATOR
The 2002 version of the IFARM premium calculator has been released for
use. This tool calculates per acre insurance premiums for the following insurances:
Actual Production History (APH), Revenue Assurance with the base price option
(RA-BP), Crop Revenue Coverage (CRC), Group Risk Plan (GRP), and Group Risk Income
Plan (GRIP). Premiums can be calculated for corn, soybeans, wheat, and grain sorghum
in counties of twelve states located in the greater Corn Belt. The Premium Calculator
is in the crop insurance section of farmdoc (http://www.farmdoc.uiuc.edu/cropins/).
Using the IFARM Premium Calculator
An input screen will appear when the Premium Calculator is selected. A user will
have to select a state, county, and crop. A user also will need to indicate the
Actual Production History (APH) yield for the crop. The APH yield is based on
a yield history from the farm or unit to be insured. The APH yield is used in
calculating guarantees for insurance products. In the following example, premiums
will be generated for corn in Warren County, Illinois having a 145 bu. APH yield.
Clicking "submit" will result in a page showing premiums for different
insurance products, as shown in the following example.
As shown on the title line, premiums are for corn having a 145 bu. APH yield
given a basic unit, a 100 percent protection level, and a non-irrigated practice.
The table shows per acre premiums the insurance products at different coverage
levels. The coverage levels impacts the per acre guarantee offered by the insurance
product. Higher coverage levels increase the guarantee, increasing the chance
of being paid by the product.
The Premium Calculator is linked to fact sheets describing the insurance products.
Scrolling over the headings at the top of the columns (i.e., APH ($/acre), RA-BP
($/acre), etc.) will reveal a pop up box describing the insurance product. Clicking
on the headings brings up a fact sheet giving a complete description of the product.
Boxes at the bottom of the page allow options to be changed. These boxes are:
County - changes the county for which crop insurance quotes are obtained.
Crop - changes the crop. Crops are corn, soybeans, wheat, and grain sorghum.
Unit - changes the units. The Premium Calculator will give premiums for basic
and optional units.
Protection Level - relates to GRP and GRIP insurances. Protection levels range
from 60 to 100 percent of a maximum protection levels. When insurance payments
occur, higher protection levels result in higher insurance payments.
Practice - changes the practice. Usual practices are irrigated and non-irrigated
options. For soybeans and grain sorghum, some counties also have Not Following
Another Crop (NFAC) and Following Another Crop (FAC) practices. FAC is used for
double crop. NFAC is used when crops are not doubled.
Premiums for 2002 will be revised in early March. At this time, base prices
for revenue products are released. Base price will impact per acre premiums.
Issued by: Gary
Schnitkey, Department of Agricultural and Consumer Economics