Production Cost Insurance (PCI)

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Farming is a high-risk business that is full of uncertainties.

Our Production Insurance Believe in Us

The unpredictable price movements in the primary inputs – chemicals, seed, commodities, and fertilizer often make it difficult to predict a farm’s revenue every year. But if you are looking to alleviate all these concerns and make more significant investments in your crop, you should consider purchasing production cost insurance (PCI) plan.

PCI is a multi-peril product that protects these primary farm inputs and a specific amount of gross margin per acre. It eases your financial pressure and helps you maintain accurate and detailed records, which is achieved by providing you with an expected annual revenue stream above the direct input prices.

PCI has two basic components:

Fixed Cost Margin Coverage (FCMC)

is the margin selected to cover your fixed expenses, including the chemicals, fertilizer, and seeds. You are the one to choose how much of your fixed costs to insure.

Input Costs coverage (ICC)

is the cost of your chemicals, fertilizer, and seeds applied to the crop during the production year. As these inputs are applied, the coverage cost continues to increase with no additional premium.

How do PCI works?

is determined by averaging the cost of chemicals, fertilizer, and seeds based on the 5-year financial record of your farm. An additional 40% may be included to cover the unforeseen increase in production costs.

If the input costs increase during the growing season, the PCI coverage may increase by the same amount without any raise in premium. Thus, the margin of risks will always remain the same. Not only is PCI policy a reliable risk management tool that strengthens the production cost in difficult growing seasons, but also one that boosts your daily farm management processes across all areas of your farm operation.

The production cost insurance is offered on a whole-farm basis, so almost any crop is eligible for coverage with Northern Ag Inc. We have developed a product for farmers at all levels and everywhere. It is a solution created to suit your farm operations.

When disaster strikes at any stage of your crop production cycle, Northern Ag Inc’s PCI supports and empower producers to make the best management and agronomy decisions. No firm understands agricultural risk management better than we do. We are known for our swift response in providing significant production cost insurance and risk management programs to the rural American community.


Your business future can be brighter and more lucrative. All it takes is a call today to learn more about how we can help you purchase the production cost insurance that suits your business.

For questions and further details about products.