PRODUCTION PLAN The Production Plan is a private crop hail insurance policy that is coupled with your federally-subsidized MPCI Yield Protection (YP), Revenue Protection (RP), or Revenue Protection with Harvest Price Exclusion (RPHPE) policy. It is designed to provide coverage on the portion of your crop that is left unprotected by your MPCI policy. Contact your field supervisor for applicable writing areas.
Where the Production Plan differs from traditional hail insurance is in the indemnity phase. A traditional hail policy pays based on the percent of damage a crop sustains while the Production Plan policy goes a step further and takes into account the total harvested production. An adjuster will still assess the percent of damage at the time of loss; however, the final loss calculation cannot be completed until harvest when the actual production to count is known.
How It Works
Insured must have an YP, RP, or RPHPE policy with FMH at a coverage level between 65%-85%
Offered on an MPCI unit basis for wheat at 100% and for corn and soybeans at 110%, 115%, and 120% of crop yields. Check your state for crop and level availability
Insured's APH and MPCI levels are used to determine the Production Plan Limit of Insurance and premium
An indemnity payment is based on two conditions – the actual hail loss and the final production to count on the unit
Benefits
Allows for average and above average-year yields and higher APHs
Covers the gap created by yield and revenue policies
Ideal for producers that generally do not purchase private hail insurance due to cost or other factors
When is a Traditional Hail Policy the Better Choice?
For producers that don't keep records on an optional or basic unit basis
In areas that are known to experience frequent hailstorms
For producers that are not comfortable waiting until harvest for an indemnity payment
For producers that want a replant provision, stored crops coverage, or deductible policy options
This plan is available in the following states: CO, IA, KS, MN, NE, ND, & SD.
