The Common Crop Insurance Policy, also known as the Combo Policy, combines the Actual Production History (APH), Crop Revenue Coverage (CRC), Revenue Assurance (RA), and Income Protection (IP) policies into a single insurance policy provision.
The combination of principal features of these 4 past insurance plans will offer producers a choice of revenue protection or yield protection with one basic provision and the applicable crop provisions. The goal of the Combo Policy is to reduce the amount of information producers must read to determine the best risk management tool for their operation and to better meet the needs of the insured producers.
The new Combo Policy, Basic Provisions, and related crop provisions affect the following crops: wheat, barley/malting barley, corn, grain sorghum, soybeans, cotton, rice, sunflowers, and canola/rapeseed.
Revenue Protection (RP) and Revenue Protection with Harvest Price Exclusion (RPHPE) are multiple-peril crop insurance products that are based on the Commodity Exchange Price Provisions (CEPP) prices and protects against production loss, price decline or increase, or a combination of both. To determine the loss guarantee, RP will use the greater of the Projected or Harvest Price. RPHPE insures in the same way as RP, but uses only the Projected Price to determine the loss guarantee.
What are the benefits of RP/RPHPE?
Protects against revenue loss caused by low yields and/or low prices
Flexible and efficient management tool to crop producers
The Harvest Price is limited to 200% of the Projected Price
Coverage on basic, optional, enterprise, and whole-farm units where available
Discounts for producers that insure multiple crops on wholefarm units
How does it work?
Establishes a minimum guarantee of revenue per acre
May select coverage with or without Harvest Price Exclusion
For the loss guarantee, RP will use the greater of the Projected Price or Harvest Price
If revenue to count is less than final revenue guarantee, an indemnity is paid
This plan is available in the following states: AR, CO, IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, OK, SD, & WI.