An SCIC contract guarantees a yield based on what you have grown over the long term and the coverage option you selected. This guarantee appears on your Statement of Insurance in kilograms and bushels for most crops, and kilograms and pounds for those crops typically marketed in pounds.
Coverage for yield-loss starts on June 21 for all established crops. Crop losses after June 20 but prior to harvest are assessed through a pre-harvest inspection. Crops are covered for losses in the field; there is no coverage for grain once it is put into storage.
Pre-harvest inspections are completed when a crop is put to an alternate use, other than harvest. Failing to report a loss before it is put to an alternate use may void your insurance. Notify SCIC if you are considering putting your acres to an alternate use.
Losses on harvested crops are based on production and quality for most crops. Yield-loss coverage ends November 15. If you have not harvested all of your acres, you must contact SCIC to request an extension of insurance by November 15 if you want over-winter losses covered.
It is important to store and sell your insured grain separately from all other producers’ grain and all other crops, whether insured or not. If ownership of the grain cannot be clearly identified, production is averaged among the involved producers or crops.
Yield-loss payments are based on the shortfall between the production guarantee and the total net harvested production for all acres of the insured crop. Any appraisals applied to acres put to any use other than harvesting will be included in the final yield‑loss calculation.
Yield-loss payments are determined once the total yield-loss, including quality factors, have been finalized. The production loss is paid at the insured price, according to the price option you select in the spring. The insured price is not based on, nor does it guarantee, market price.
Production Guarantee Example
An example to better understand how Production Guarantee is calculated.