John Deere Risk Protection (JDRP) is offering the first insurance policy for farmers who grow corn on delivery contracts for ethanol production. The Ethanol Policy provides coverage for yield shortfalls below contract amounts in the event the price to replace the corn rises above the federal crop insurance coverage. The policy also requires the facility offering the ethanol contract to procure the replacement bushels of corn so that producers do not need to find the replacement grain themselves.
The new Ethanol Policy is available once a multi-peril crop insurance policy is purchased with JDRP. It is underwritten through Westfield Insurance Company.