Hail and Wind Options

This past season we saw a number of areas sustain significant wind damage. Wind is a covered peril under the Multi-Peril Federal Crop Insurance policy, to the extent that it causes a loss. By that I mean at the end of the season, we look at what was harvest-able production and compare it to your bushel/revenue guarantee. With earlier season winds, green snap would cause a significant yield loss which could trigger a loss in the fall. Later season wind may not trigger a yield loss if you are still able to get the bushels through the machine.

A separate hail policy, which many producers carry in conjunction with their Federal Multi-Peril, will reimburse growers for wind damage if hail is also part of that event. A separate hail policy will not cover wind damage without hail damage unless you add a “wind” or “green snap” endorsement. We don’t use these endorsements a lot, but they are available and need to be considered when setting up coverage for the upcoming season.

A green snap endorsement will reimburse growers when the stalk gets broken off below the ear. This is a direct loss payment on an acre by acre basis. The issue we see with this policy is that many times when green corn gets hit with wind, it will goose neck but not necessarily break. This endorsement would not pay for goose necked corn. The cost of this endorsement varies by company but they typically run about $.45 per $100 of coverage. This would be on top of your standard hail premium.

A wind endorsement is a more comprehensive option to cover wind damage. This will pay for direct loss from wind for lodged or green snapped corn. Again, the premium will vary by company and expiration of coverage selected but this option will add about $1.00 per 100 of coverage to your hail policy.

These options should be reviewed with your agent if you are interested in direct coverage for wind damage. After a year like this past one, it is a topic on the minds of lots of producers.