AgriInsurance vs Agristability vs AgriRecovery
in Chev.Agric
I'm not sure if I understand the three correctly.
Wouldn't the pre-determined level of production be stable year after year? So if the AgriInsurance allows producers to have stable revenue, I'm not sure how agristability can help. Or is it that AgriInsurance's pre-determined level is the same average across all producers for that particular crop per exposure and the product margin comparison is just for each producer.
Also, would AgriInsurance be like income replacement and AgriRecovery be any other indemnity portion of say, auto insurance? AgriInsurance wouldn't pay to repair anything after the disaster, isn't it? It would be the AgriRecovery that puts the producers' state back to how it was before the disaster?
Thank you,
Comments
If I understand your question correctly, you're asking about the difference between the following Business Risk Management programs:
The best answer I can give is to direct you to the Canadian Agricultural Website at:
But the idea is that Agri Insurance protects the producer from "normal" natural hazards (like too much rain) not something that is designated as a disaster. Agri Recovery would apply in cases of disaster. Agri stability could apply even when there is no production loss or disaster, but for an event that caused a significant decline in the profit margin for a producer (possibly an increase in U.S. tariffs?)
These 3 programs do seem almost like they cover the same thing, but they don't.