Multi-Peril Crop Insurance (MPCI)

Revenue protection protects against revenue loss caused by price increases or decreases, low yields or a combination of both (for corn silage and rapeseed, protection is only provided for production losses). 

This coverage guarantees an amount based on the individual producer’s APH and the greater of the projected price or harvest price. The projected and harvest prices are established according to the crop’s applicable commodity board of trade/exchange as defined in the Commodity Exchange Price Provisions (CEPP). 

While the revenue protection guarantee may increase, the premium will not. The projected price calculates the premium and replant payment or prevented planting payment. An indemnity is due when the calculated revenue (production to count x harvest price) is less than the revenue protection guarantee for the crop acreage. 

Yield Protection (YP) protects against yield loss due to unavoidable, naturally occurring events. 

This includes:

• Weather
• Fire
• Insects
• Plant disease 
• Wildlife
• Earthquakes
• Volcanic eruption
• Failure of the irrigation water supply due to a naturally occurring event 

Similar to the APH (Actual Production History) insurance plan, YP guarantees a production yield based on the individual producer’s APH. Unlike the APH plan of insurance, a price for YP is established according to the crop’s applicable commodity board of trade/exchange as defined in the Commodity Exchange Price Provisions (CEPP). 

The projected price determines the yield protection guarantee, premium, replant payment or prevented planting payment, and value the production to count. The coverage and exclusions of YP are similar to those for the APH plan of insurance. 

An indemnity is due when the value of the production to count is less than the yield protection guarantee. The YP plan guarantees a yield based on the individual producer's actual production history. If the production to count exceeds the yield guarantee, the insured will be paid a loss. RMA sets the price on a YP policy.

Area Protection includes:

• AYP (Area Yield Protection)
• ARP (Area Revenue Protection)
• ARP-HPE (Area Revenue Protection with Harvest Price Exclusion)

Area Protection coverage is different from county to county rather than from the individual farms themselves.

Area Yield Protection (AYP)

AYP coverage is based on the experience of the county as a whole rather than individual farms. Maintaining your actual production history is now mandatory and may be used by RMA as a data source to establish and 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 Revenue Protection (ARP)

Like the other area plans, ARP is based on the experience of the county rather than individual farms. Coverage is provided against loss of revenue due to a county-level production loss, a price decline, or a combination of both. 

Upside harvest price protection is included, which increases the policy protection at the end of the insurance period if the harvest price is greater than the projected price and if there is a production loss. 

ARP will pay a loss when the final county revenue is less than the trigger revenue, which is calculated using the higher of the projected price or harvest price.

Area Revenue Protection with Harvest Price Exclusion (ARP-HPE)

ARP-HPE is also 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 and maintain the area programs. 

An ARP-HPE policy protects against revenue loss due to a county-level production loss, price decline, or a combination of both. 

This plan only uses the projected price and does not provide upside harvest price protection. 

An indemnity is due under ARP-HPE when the final county revenues published by FCIC are less than the trigger revenue. Since this plan is based on county revenue and not individual revenue, the insured may have a loss in revenue on their farm and not receive payment under ARP-HPE.

More information coming soon. 

Call for details.

This coverage is a newer crop insurance option that allows you to cover an additional area for a portion of the underlying crop insurance policy deductible. 

This coverage must be purchased as support to at least one of the following:

• Yield Protection
• Revenue Protection
• Revenue Protection with the Harvest Price Exclusion
• Actual Production History
• Yield-Based Dollar Amount of Insurance policy

Enhanced Coverage Option offers you the choice of 90% or 95% trigger levels. A trigger level is the percentage of yield or revenue where your loss becomes payable.

The SCO, Supplemental Coverage Option, was introduced in the 2014 Farm Bill and went into effect in 2015. 

It’s designed to protect against widespread loss of yield or revenue in a county by covering a portion of the deductible of the underlying crop insurance policies.

If the county yield falls below 86% then an indemnity is due. This depends on the base policy. SCO will apply until the county yield falls below the coverage level of the underlying policy. 

The underlying policies are:

• YP
• RP
• RP-HP