Federal Crop Insurance Programs
Yield Protection (YP): The Yield Protection plan is protection for yields only and claims are calculated using the projected price guarantee. The insured's avenge production is multiplied by the level of coverage chosen to establish the guaranteed. The yield Protection price is determined by averaging the daily price on a commodity exchange during a designated period of time.
Revenue Protection (RP): The Revenue Protection Plan provides protection from yields as well as revenue. A loss occurs when the production to count falls below the guaranteed production or the revenue to count falls below the revenue guarantee. The revenue projected price is calculated using the price discovery method as the Yield Protection plan(YP). The initial guarantee for Revenue Protection is calculated by multiplying the guaranteed production by the projected price. However, the Revenue Protection Plan also has an additional discovery period near the time of harvest for the crops (Harvest Price). If the harvest price is greater than the projected price, the revenue guarantee is increased, if the harvest price is less than the projected price the policy guarantee remains at the projected price. Losses are paid using the harvest price.
Revenue Protection with Harvest Price Exclusion (HP_HPE): The Revenue Protection Plan with Harvest Price Exclusion Plan is the same as the RP plan except that the guarantee is not adjusted up by the harvest price. The guarantee is always based on the projected spring price.
Group Plans: Group coverage policies insure against a countywide loss of production on a crop. The idea is that when an entire county's crop yield is low, most producers in that county will also have low yields. National Agricultural Statistical Service county data is used to set the expected and actual county yields. Under a group plan the insured chooses a percent of the expected county yield. If the actual county yield falls below that amount, a loss occurs. Since the policies are based on a county yield and not on the individual yield, a production report is not required. Since the guarantee and loss is based upon the county yield, the insured may have a low yield and not receive a loss payment because the county yield does not fall below his guarantee. An insured may also have a normal yield and receive a loss payment if the county yield is low and falls below his guarantee.
Effective December 2013 we have three new products of offer in addition to your Federal Crop Insurance Program. They do NOT replace your Federal Crop Insurance Policy, they are an attachment or enhancement to your current Crop Insurance Policy.
Price Flex: Price Flex is a non-reinsured supplemental (NRS) product designed to offer additional coverage for Revenue Protection (RP). Price Flex allows producers to select additional price discovery periods. If their highest period exceeds the higher of the projected and harvest price published by RMA, their price is used in determining any indemnities.
Enterprise Plus: The Enterprise Plus (EP+) policy supplements the coverage provided by the common crop insurance policy (CCIP) authorized and reinsured by the Federal Crop Insurance Corporation (FCIC). The EP+ policy is a private policy and is not reinsured by FCIC. However, with limited exceptions described in the policy and manual, the guidelines applicable to the CCIP policy apply equally to the EP+ policy. By purchasing the EP+ policy, an insured will receive individual sub-unit coverage to protect against isolated losses that do not trigger an enterprise unit indemnity. If the underlying CCIP Federally reinsured corn or soybean policy triggers a loss at the enterprise unit, the EP+ coverage expires and premium is earned and payable.
HarvestMax: HarvestMax is a risk management tool which gives growers the ability to protect against shallow yield losses. It is designed to either compliment a grower's current federal crop risk management strategy or provide standalone risk management.