Yield Based Coverage
Yield Protection policies insure producers in the same manner as Actual Production History (APH) polices, except a projected price is used to determine insurance coverage. The projected price is determined in accordance with the Commodity Exchange Price Provisions and is based on daily settlement prices for certain futures contracts. The producer selects the percent of the projected price he or she wants to insure, between 55 and 100 percent.
Learn more about our Yield Based Coverage plans:
Multi-Peril Crop Insurance (MPCI) – Provides protection against losses from a number of uncontrollable causes. MPCI is the most popular insurance coverage due to its flexibility in level and price.
Catastrophic Coverage (CAT) – Provides the minimum coverage amount on a MPCI policy. For a $100 fee, producers can buy a minimum insurance coverage based on 50% of the producing operation’s average yield at 55% of the FCIC established prices.
Group Risk Plan (GRP) is designed as a risk management tool to insure against widespread loss of production of the insured crop in a county. GRP policies use a county yield index as the basis for determining a loss. When the estimated county yield for the insured crop, as determined by National Agricultural Statistics Service (NASS), falls below the trigger yield level chosen by the producer, an indemnity is paid. Payments are not based on an individual producer’s crop yields. Coverage levels are available for up to 90 percent of the expected county yield.
Revenue Insurance Plans
Revenue Protection policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects and disease, as well as revenue losses caused by a change in the harvest price from the projected price.
Learn more about our Revenue Insurance Plans:
Crop Revenue Coverage (CRC)
– Provides farmers with a revenue guarantee based on their approved yield and current market price. Protects against losses resulting from a decrease in market price, a loss of production or combination of these. While CRC provides several advantages over traditional crop insurance policies, the real benefit comes when it is incorporated as an integral part of the producer’s marketing plan.
CRC can be an effective risk management tool by providing farmers with an established revenue guarantee per acre. Farmers may more proactively market through the growing season when prices are usually higher, knowing that CRC provides the revenue guarantee to cover bushels committed in forward pricing their crop or when using other market options.
Revenue Assurance (RA) provides coverage to protect against loss of revenue caused by low prices or low yields or a combination of both.
Income Protection (IP) – The Income Protection (IP) program is designed to insure against reductions in gross income from below average yields and low harvest prices. Since the goal of the program is to protect revenue at the enterprise unit level, the insured unit is based on a county index of all acres of the crop in the county. This program is offered for select crops in a limited number of states.
Contact one of our trained agents to learn more about how our Indexed Income Protection can work for you.
Group Risk Income Protection (GRIP)
is designed as a risk management tool to insure against widespread loss of revenue from the insured crop in a county. GRIP policies use a county revenue index as the basis for determining a loss by using the estimated county yield for the insured crop, as determined by National Agricultural Statistics Service (NASS), multiplied by the harvest price.
If the county revenue falls below the trigger revenue level chosen by the producer, an indemnity is paid. Unlike GRP, it is not necessary to have a decline in yield to be indemnified, as long as the combination of price and yield results in a county revenue that is less than the trigger revenue. Payments are not based on individual producer’s crop yields and revenues. Coverage levels are available for up to 90 percent of the expected county revenue.
Adjusted Gross Revenue Insurance (AGR) – This pilot program provides an insurance safety net for producers growing crops without MPCI insurance coverage. Insures all agricultural commodities produced on a farm as well as products purchased for resale.