Our Insurance Plans

Insurance Plans provide different types of insurance coverage to specific commodities.

Insurance Plans

Revenue Protection

The Revenue Protection (RP) policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease, and revenue losses caused by a change in the harvest price from the projected price. The producer selects the amount of average yield he or she wishes to insure; from 50-75 percent (in some areas to 85 percent). The projected price and the harvest price are 100 percent of the amounts determined in accordance with the Commodity Exchange Price Provisions and are based on daily settlement prices for certain futures contracts. The amount of insurance protection is based on the greater of the projected price or the harvest price. If the harvested plus any appraised production multiplied by the harvest price is less than the amount of insurance protection, the producer is paid an indemnity based on the difference.

Yield Protection

The Yield Protection (YP) policies insure producers in the same manner as 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.

Whole-Farm Revenue Protection

Whole-Farm Revenue Protection (WFRP) provides a risk management safety net for all commodities on the farm under one insurance policy. This insurance plan is tailored for any farm with up to $8.5 million in insured revenue, including farms with specialty or organic commodities (both crops and livestock), or those marketing to local, regional, farm-identity preserved, specialty, or direct markets.

Coverage

WFRP protects your farm against the loss of farm revenue that you earn or expect to earn from:

  • Commodities you produce during the insurance period, whether they are sold or not;
  • Commodities you buy for resale during the insurance period; and
  • All commodities on the farm except timber, forest, and forest products; and animals for sport, show, or pets.

Sales closing dates are county specific. Contact our office for more information.

Area Yield Protection (AYP)

AYP coverage is based on the experience of the county rather than individual farms. Maintaining the insured's actual production history is now mandatory and may be used by RMA as a data source to establish hand maintain the area programs. AYP indemnifies the insured in the event the final county yield falls below the insured's trigger yield. The Federal Crop Insurance Corporation (FCIC) will issue the final county yield in the calendar year following the crop year insured. Since this plan is based on county yields and not individual yields, the insured may have a low yield on their farm and not receive payment under AYP.

Area Risk Protection Insurance

Area Risk Protection Insurance, or ARPI, is an insurance plant that provides coverage based on the experience of an entire area, generally a county. ARPI replaces the Group Risk Plan (GRP) and the Group Risk Income Protection Plan (GRIP). It is designed to increase efficiency by providing one set of policy provisions for all area plans, and uniform pricing methods for area an individual-based plans. It also provides for more flexibility in the data source used for establishing yields and requires production reporting requirements for producers in area –based plans, which will improve accuracy and allow the program to be offered in more areas.

ARPI provides clarity, simplicity, transparency, and reduction of duplication over the GRP and GRIP policy language that benefits both you and your insurance provider. You can choose from three insurance plans:

  • Area Revenue Protection that covers against loss of revenue due to a county level production loss, price decline, or combination of both, and includes upside harvest price protection;
  • Area Revenue Protection with Harvest Price Exclusion that covers against loss of revenue due to a county level production loss, price decline, or a combination of both;
  • Area Yield Protection that covers against loss of yield due to a county level production loss.

All three plans have one set of basic provisions and crop provisions documents and will be effective for the 2014 and succeeding crop years. The first contract change date is June 30, 2013 for wheat.

Hail Insurance

Crop-Hail policies are not part of the Federal crop insurance program and are provided directly to farmers by private insurers. Many farmers purchase Crop-Hail coverage because hail has the unique ability to totally destroy a significant part of a planted field while leaving the rest undamaged. In areas of the country where hail is a frequent event, farmers often purchase a Crop-Hail policy to protect high-yielding crops. Unlike MPCI, a crop-hail policy can be purchased at any time during the growing season. Hail Insurance provides protection against any yield reduction caused by hail and/or fire.

Multi Peril Crop Insurance

Multiple-Peril Crop Insurance (MPCI), you can purchase coverage to guarantee yields based on your actual production history (APH). MPCI provides protection against losses for most crops from nearly all natural disasters. Less expensive than revenue-based policies, an MPCI policy protects against yield and/or quality losses from many different perils, including drought, excess moisture, cold and frost, wildlife, disease and insects. Various levels of coverage are available.