The Yield Protection Crop Insurance program is a plan of insurance that provides protection against a production loss due to naturally occurring events only. A market-based value price will be determined per the Commodity Exchange Price Provision (CEPP).The RMA still reserves the right to set and/or modify the price for Yield Protection.
The Insured may choose between 55% - 100% of the projected price.
A guarantee will be determined by multiplying the production guarantee (yield x level) times the Projected Price. The Yield Protection plan is available only for crops traded on commodity exchanges.
RP - Revenue Protection
The Revenue Protection Crop Insurance program is a plan of insurance that provides protection against loss of revenue due to a production loss, price decline or increase, or a combination of both.
The price is determined per the Commodity Exchange Price Provision (CEPP), but there is NO price election. The policyholder must take 100%. A guarantee will be determined by multiplying the production guarantee per acre by the “Greater of” Projected or Harvest Price. The Revenue Protection plan is available only for crops traded on commodity exchanges.
Note: The Catastrophic (CAT) coverage endorsement is not available under the Revenue Protection plan.
RPE – RP /w Harvest Price Exclusion
The Revenue Protection with Harvest Price Exclusion program is the same as Revenue Protection (RP) except the amount of insurance is based on the Projected Price only. The guarantee is the harvested production (plus any appraised production) multiplied by the harvest price and compared to the revenue guarantee (Yield x Projected Price). The Revenue Protection with Harvest Price Exclusion plan is available only for crops traded on commodity exchanges.
Note: Revenue Protection with Harvest Price Exclusion is now considered a Plan – not an Option. Instead of adding the Harvest Price Option, it is now excluded.
APH Crop Insurance
APH Crop Insurance, also known as MPCI, provides comprehensive protection against weather-related causes of loss and certain other unavoidable perils. Coverage is expressed as a yield guarantee (APH yield times the coverage level) and may be adjusted for quality deficiencies. APH crop insurance is only available for non-traded commodities.
Select your Guarantee
APH offers six levels of protection and allows the ability to prove yields and insure on an individual basis.Benefits
Single Guarantee
APH Crop Insurance will pay indemnities without taking away harvest expense.
Pays Full Liability
APH Crop Insurance will pay FULL liability even if you a substitute crop is used when it is no longer practical to replant.
Coverage by Units
APH allows for further breakdown of farming units for coverage. Producers no longer have to average production from all your farms within one county, if prior record keeping permits.
Widespread Coverage
APH covers most perils which cannot be controlled by the farmer. Examples of covered perils are:
The Group Risk Income Protection (GRIP) insurance program is an area-based revenue insurance program that provides insurance protection against widespread loss of revenue in a county.
GRIP combines the group, or county average, yield coverage of the Group Risk Plan (GRP) with commodity exchange-based price coverage similar to the Revenue Assurance (RA) and Crop Revenue Coverage (CRC) policies. The insured is paid in the event the county revenue falls below the insured’s trigger revenue. GRIP is similar to GRP except revenue, rather than yield, is the basis of coverage.
Benefits: Guarantees yield loss and down side price on county basis with less paperwork required.
GRP - Group Risk Plan
Group Risk Plan (GRP) provides a dollar amount of protection. A loss payment is available when the county average yield, in a given year, falls below the trend adjusted average yield by a greater percentage than the policyholder's selected deductible.
Levels of Coverage
The grower selects the dollar amount of protection per acre and the percentage of the county yield (70 to 90% for most crops) at which they want to insure.
Benefits
A simplified program that is easy to understand
It provides payment based on performance of a crop in a county as a whole
It is more appealing than CME Group crop yield contract because: It triggers based on county rather than state average yield The grower's transaction cost is lower because of government cost share
