Group Risk Income Protection is a county-based revenue insurance product that pays the producer in the event the county average per-acre revenue falls below the trigger revenue level selected by the producer. GRIP is based on the same principle as Group Risk Protection (GRP), but guarantees revenue instead of yield. GRIP offers the producer a guarantee against declines in revenue by county. GRIP also has the Harvest Revenue Option available, which uses the greater of the expected price or the harvest price to figure the producer’s trigger revenue and policy protection.
What are the benefits of GRIP?
Flexible program that allows the farmer to choose between several coverage levels and amounts of protection.
Maximum policy protection is 150% of the expected county revenue, more than any other multi-peril program.
Harvest Revenue Option allows the producer to increase expected county revenue if the harvest price is higher than the expected price.
Offers a competitive premium, requires no records and less paperwork to participate.
Subsized by FCIC and protects against widespread loss of revenue in a county.
Fits well with a full coverage crop hail policy, which provides added coverages.
How does it work?
Uses county yields based on National Agricultural Statistics Service (NASS) data.
Determines expected and harvest prices using commodity future contracts.
Pays indemnity if county per-acre revenue is lower than selected trigger revenue.
May select with or without the Harvest Revenue Option.
Coverage levels range from 65% - 90%.
This plan is available in the following states: AR, IA, IL, IN, KS, MN, MO, NE, OH, SD, & WI
