| FOR IMMEDIATE RELEASE | CONTACT: Lee Boyer |
| jUNE 16, 2006 | (406) 444-2402 |
More Crop Producers Purchase State Hail Insurance
HELENA, Mont. — Purchases of State Hail Insurance for crops have been running well ahead of recent years as Montana enters its stormy season and farmers seek to protect their investments in 2006 crops.
The number of crop acres covered under State Hail Insurance as of June 9, 2006 was nearly double that of the previous year, says Lee Boyer, a bureau chief at the Montana Department of Agriculture, which operates the hail program. State Hail Insurance is available for most of the crops grown in Montana. The state program has increased coverage limits in recent years as some private insurance companies have stopped offering hail coverage.
Current limits under the program are $40 per acre on non-irrigated crops and $56 per acre on irrigated crops. Premium costs depend on the insured amount, the county historic average for hail losses, and the crop being insured. Producers who pay for their premiums in cash receive a 4 percent discount. Policies take effect at 12:01 a.m. on the day after the purchase.
The Board of Hail Insurance has issued partial refunds to producers participating in the program in each of the past three years. The board may authorize refunds when hail damage is light and insurance premiums exceed costs including damage payouts, administrative costs and actuarial needs of the program.
Applications for insurance through the State Hail Insurance Program are available at county property and assessment offices of the Montana Department of Revenue. For more information about the program, contact Bill Herbolich, hail program specialist at the Montana Department of Agriculture at (406) 444-2402, or by email at agr@mt.gov.
