Sunday, February 10, 2019

Poultry Insurance Faces More Challenges

The Mississippi Department of Insurance issued the following article.


Agriculture is the number one industry in Mississippi, and poultry is one of its most valuable segments. The Mississippi State University Extension Service estimates that in 2018, the poultry and egg industry brought in almost $3 billion. With such a large, profitable industry, insurance is important to producers.

“Poultry is consistently one of the top economic drivers for our state. Insurance helps keep Mississippi-grown poultry prices competitive in national and international markets,” said Commissioner of Insurance Mike Chaney.

Mark Leggett, President of the Mississippi Poultry Association, when asked why insurance is important to poultry farms, responded, “For one basic reason, you’re not going to get a loan if you don’t have insurance.”

Independent growers rely on loans, mostly Small Business Administration loans, not only to get up and running, but to support continued operations, improvements and expansion. In order to obtain these loans, one thing a grower must have is insurance.

Most poultry production is contracted out to independent growers but that does not imply a small operation. A new poultry house can cost more than $350,000 to build and equip, and most farms have four houses or more. According to the MSU Extension Service, a single 25,000 square foot broiler house can produce almost a million pounds of live birds annually.

Only a small number of insurance providers are willing to write coverage for poultry farms, largely because of the expensive replacement cost for destroyed or damaged poultry houses. The main threats to a poultry house are lightning, fire, tornado, hurricane, hail, and ice storms. One tornado going across a 4-house poultry farm could easily do over a million dollars in damage. In the spring of 2014, tornadoes damaged or destroyed at least 65 poultry houses and killed over a million chickens in the state. The disaster led to some insurers no longer writing policies in Mississippi.

In addition to the wind-related storm damage that growers seek to insure against, one of the most costly threats is lightning. Modern chicken houses are full of electronic systems controlling temperature, humidity and lighting, much of which can be monitored remotely. If these systems are not properly grounded, lightning can blow out and destroy this equipment, which probably has the highest replacement cost.

Ernie Joiner of Joiner Insurance is one of the few agents in the state still writing insurance for poultry houses. He addressed some of the challenges facing poultry growers, saying, “Invest in all safety measures available at the time of construction. This upfront investment will pay for itself many times over with premium savings and loss prevention.”

Joiner continued, “Houses can be retrofitted at any time with safety devices that increase the insurability of the property. New owners of farms that were built years earlier can add the cost for upgrades at the time of purchase.”


Leggett echoes Joiner’s advice to insure and invest in poultry houses, “It’s important to get you back on your feet after a storm or ice damage or fire or whatever the causes you’re insured for.”

The Mississippi Insurance Department (MID) remains committed to helping insurance consumers in the state. Contact the MID Consumer Services division at 1-800-562-2957 or by emailing consumer@mid.ms.gov

9 comments:

Anonymous said...

The insurance industry is exempt from anti-trust law. That needs to change.

Anonymous said...

CH-S to the rescue of the poultry companiies, banks, and growers in that order. Who do you think will foot the bill, the growers and the taxpayers.

Cynical Sam said...

Nothing will change with the insurance and big pharma industries until there are Congressional term limits.

That won't happen until a Convention of States occurs.

Anonymous said...

3;12 is correct. thus the insurance industry in mississippi is regulated by the ms st dept if insurance. an administrative agency created by the legislature. problem is the state dept of insurance doesn't have the resources nor the legal teeth to regulate a one car funeral. reason for that is that the stinking insurance industry has the entire mississippi legislature on its payroll. all those fat ass legislators you hear talking about protecting industry from the evil plaintiff lawyers are all bought and paid for by the insurance companies. you will find them all with their lobbyist buddies at ticos swilling their free booze, packing their faces on free steak {the atkins diet ,of course} and playing grab ass with the waitresses.

Anonymous said...

Trust me, beside what this little advertisement makes you believe, there are plenty of agents writing poultry house insurance besides Ernie Joiner. There aren't but a few carriers. That being said, the poultry market has been sold too cheap and the integrators(companies) and the growers don't what to pay for it. When you can insure over $1mil in property in less than 5 acres for less than $10k in premium, it doesn't take long to figure out that one good storm and the insurance company will never recoup the losses at that location. Then look at the state of MS as a whole and the wide spread wind and hail storms that scatter across this state annually and you can see why MS is not a profitable state for poultry house insurance. Most Poultry house claims are wind/hail driven versus lightening.

Anonymous said...

"Ernie Joiner of Joiner Insurance is one of the few agents in the state still writing insurance for poultry houses." Might be one of the biggest loads of BS i have ever read. There are PLENTY of agents that are "willing" to write insurance on poultry houses.

Why does this Ernie guy thing he is so special?

Anonymous said...

If it were profitable there would be 25 companies wanting to write the coverage. If some of you think its such a money maker jump in and pay a claim out of your pocket. Same can be said for the wind exposure on the coast. If you have a business and can't make a reasonable 6% profit you won't be in business very long. Check out the closed Mugshots on Spillway if you don't believe me.

Anonymous said...

I agree these guys don't gamble, if they can't make a profit, they are leaving town.

Anonymous said...

Appears the insurance companies just need to raise prices. Perhaps Mississippi growers could co op an insurance plan. The poultry companies could help get it started with some seed money. They will benefit in the long term.



Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.