Insurance

Insurance is required and must meet the following requirements:

· The agricultural commodity financed with the CROP loan must be insured while growing and while in storage;

· Insurance coverage must be in an amount equal to or greater than the principal amount of the CROP loan. This applies to all crops whether grown for forage or resale, including crops held in inventory;

· If any personal property is used as collateral for the CROP loan, the Farmer must obtain insurance to sufficiently protect the property against loss;

· It is the Lender's responsibility to verify that the Lender is properly listed as loss payee on the insurance policy. In the event of loss, any insurance proceeds would be made payable to the Lender and applied to the CROP loan; and

· The Lender must be able to provide verification of insurance for the agricultural commodity being financed by the CROP loan.