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Deere offers new ethanol crop insurance

Agriculture.com Staff 03/01/2008 @ 9:47am

For farmers who have delivery contracts with ethanol plants, John Deere Risk Protection, Inc. is offering a rider this year that will add value to its customers who have either Crop Revenue Coverage or Revenue Assurance with the Harvest Price Option.

Dennis Daggett of Deere Risk Protection explained the new program Friday at Commodity Classic in Nashville, Tennessee.

"It helps the farmer not get inverted," Daggett told reporters.

If a producer has a harvest shortfall and the price to replace those bushels exceeds the grower's underlying insurance coverage, the new insurance rider provides up to 75 cents per bushel of additional coverage, Daggett said.

The cost of the added coverage will vary with location and a grower's underlying coverage, but it should generally fall in the range of two to three cents per bushel, he said.

Farmers must have crop insurance sold by the Deere and Company subsidiary, but Daggett said the ethanol coverage can be purchased up to the multi-peril crop insurance acreage reporting date this summer.

Unlike other crop insurance coverage, if the rider kicks in, the ethanol plant uses it to buy the corn.

"The farmer does not have to worry about finding the replacement bushels," Daggett said.

Deere plans to make the new coverage available in Iowa, Illinois, Indiana, Kansas, Minnesota, Missoujri, Nebraska, Ohio, South Dakota and Wisconsin.

For farmers who have delivery contracts with ethanol plants, John Deere Risk Protection, Inc. is offering a rider this year that will add value to its customers who have either Crop Revenue Coverage or Revenue Assurance with the Harvest Price Option.

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