The Crop Insurance Industry Provides Reassurance to Farmers Impacted by the Midwest...

The Crop Insurance Industry Provides Reassurance to Farmers Impacted by the
Midwest Floods

OVERLAND PARK, Kan., June 19 /PRNewswire-USNewswire/ -- Flooding across the
Midwest has devastated communities across several states. Among those hardest
hit are farmers, who have lost homes, livestock and thousands of acres of
farmland.

"We haven't seen an event like this since 1993," said Bob Parkerson, President
of National Crop Insurance Services (NCIS). "We want to reassure farmers that
they are not alone. The crop insurance industry will stand by them. We have
built reserves over the last few years with good weather, and have the
financial stability and resources to help them assess their options, make the
best decisions for their farms, and cover claims that will allow them to be
back in business next season."

Parkerson added, "We have been through this before, and will work with the
Risk Management Agency to once again get money into the hands of producers as
quickly as possible."

Insurance Payments:
Prevented planting claims and whole units that are lost from the flood do not
have to wait until the crops go to harvest, and therefore will be paid much
faster than claims deferred until harvest. Farmers will also receive their
indemnity payments from the crop insurance policies much earlier than they
will payments from the disaster program that is part of the 2008 Farm Bill.

Tips and Information for Farmers:
Following are tips and information for farmers impacted by the Midwest floods:

1. Contact your agent if you have not already done so; they are your best
resource in assessing your situation
2. There are provisions in place within most crop insurance policies,
including replanting and prevented planting, that can help you recover
your losses.
3. You have options. The Federal Crop Insurance Program underwent
significant legislative reform following 1993, and now many farmers
have
alternatives to manage their individual farm-risk situations.

Provided below is a summary of the crop insurance policy benefits available to
most insured farmers not only in the Midwest, but famers across the country
facing the difficulties of the start of the 2008 growing season.

-- If the farmer is able to plant his/her crop in a timely manner, but severe
weather follows, such as the current Midwest flooding conditions, crop
insurance benefits available to the farmer who has individual coverage are as
follows:
* If crop damage occurs early, farmer may be able to receive a replant payment
and replant the crop.
* If farmer cannot replant timely, but growing conditions improve, an
indemnity may be payable and the farmer can plant a second crop which may also
be insured.
* If farmer cannot replant the original crop or plant a second crop, the
farmer will receive an indemnity for his/her loss.

-- If the farmer is unable to plant his/her crop due to flooding and/or excess
moisture conditions, crop insurance benefits available to the farmer with
individual coverage are as follows:
* If the farmer cannot plant original crop or switch to a new crop if
conditions improve, the farmer may receive a "prevented planting" indemnity.
* If conditions improve, the farmer may plant a second crop which can be
insured and a reduced indemnity can be paid to the farmer for the original
crop that could not be planted.

Prevented planting and replant benefits are not available under the group
plans of insurance.

The Federal Crop Insurance Program:
The federal crop insurance program is a public-private partnership, the
industry and federal government work hand in hand. The crop insurance program
is available to all producers on an equal basis and provides the financial
stability for farmers and ranchers, including access to capital.

National Crop Insurance Services
National Crop Insurance Services (NCIS) is an international not-for-profit
organization representing the interests of more than 60 crop insurance
companies. NCIS member companies write Crop-Hail Insurance; Multiple Peril
Crop Insurance (MPCI), the federally subsidized risk management program; and,
privately developed crop insurance products totaling approximately $6.6
billion in premium, with liability totaling approximately $67 billion. These
companies service all farmers participating in the federal program, including
limited-resource and socially-disadvantaged farmers. In partnership with the
government, these private companies are the safety net that equitably provides
risk management to the American farmer. NCIS members range in size from
one-state companies to national writers, as well as foreign company members.

SOURCE National Crop Insurance Services

Laurie Langstraat, +1-913-685-2767, or Courtney Froemming, +1-202-729-4132,
both of National Crop Insurance Services