Feasibility research report for insuring commercial poultry production

producers, and integrators. While the Contractor found mortality coverage for extreme weatherconditions is available from a variety of sources, along with corollary business interruptioninsurance, such coverage for disease is not available in ―prepackaged‖ products. Several agentsindicated a willingness to talk about such coverages, but none had had experience negotiatingpolicies for these perils.Coverage in TransportationSome policies are available to provide coverage for growers, producers, and integrators requiringtransportation of poultry or eggs from one listed location to another, if the vehicle is owned bythe policy holder.Basic Farm LiabilityBasic Farm Liability limits start at $2,000,000, with higher limits available.Employers Contingent LiabilityEmployers Contingent Liability is available with the ability to add employees as insureds.II.E. ApproachThe Contractor‘s research and analysis of the poultry sectors was guided by the language of theAct and a focus on the criteria for feasibility as outlined in the SOW. The Contractor sought firstto develop an understanding of the relevant risk management literature, current economicconditions, available government programs, and characteristics of the poultry sectors, includingcurrently available risk management tools. Subsequently, the Contractor identified perils andeconomic risks faced by the poultry industry stakeholders, paying particular attention tostakeholders‘ most significant risk management concerns and expressed needs. The Contractorthen completed a risk analyses on the identified, insurable perils currently uninsured. In thelistening sessions, the Contractor gathered information concerning stakeholders‘ potentialinterest in federally-subsidized insurance products. The Contractor also sought to understand theapplicability of an AGR-like product for the poultry industry stakeholders. The Contractor thenapplied RMA‘s criteria for feasibility to evaluate insurability of the perils identified in thepreceding step. Finally, after a systematic analysis, the Contractor assessed the feasibility ofdeveloping federally-subsidized, stakeholder-acceptable, actuarially-sound, non-marketdistorting crop insurance products for poultry production.RMA‘s criteria for feasibility together identify the requirements to establish an appropriatefeasibility recommendation for crop insurance development activities in the broadest terms.Section 2.4.1 of the SOW states:―The contractor when recommending a possible insurance program needs to keepin mind the following criteria:Conform to RMA's enabling legislation, regulations, and procedures thatcannot be changed;The insured's and their agents must be will to pay the appropriate pricefor the insurance;The insurance product must be effective, meaningful and reflects theactual risks of the producers;Use or disclosure of information or datacontained on this sheet is subject to therestrictions on the title page of this report.25Risk Management AgencyContract No: N10PC18148