Federal Crop Insurance

Policy Options

icon_rp

Revenue Protection

Revenue Protection (RP) and Revenue Protection with Harvest Price Exclusion (RP-HPE) are multi-peril crop insurance products that are based on the Commodity Exchange Price Provisions (CEPP) prices and protect 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. RP-HPE insures in the same way as RP, but uses only the Projected Price to determine the loss guarantee.

How Does It Work?

  • Both plans establish a minimum guarantee of revenue per acre.
  • To determine the Revenue Guarantee, RP will use the greater of the Projected Price or Harvest Price. RP-HPE will use only the Projected Price.
  • For both plans, the indemnity payment is determined using the Harvest Price.
  • If Revenue to Count is less than final Revenue Guarantee, an indemnity is paid.

    What Are the Benefits?

  • Protect against revenue loss caused by low yields and/or low prices
  • RP offers “upside” Harvest Price protection by valuing lost bushels at the Harvest Price
  • Flexible and efficient management tools for crop producers
  • Harvest Price has no limit on the downward movement
  • Coverage on basic, optional, enterprise, and whole-farm units where available
  • Premium amount is determined using the Projected Price and will not increase even if the Harvest Price is higher than the Projected Price
  • Subsidized by the Federal Crop Insurance Corporation (FCIC)
icon_yp

Yield Protection

Yield Protection (YP) and Actual Production History (APH) are multi-peril crop insurance products that protect against losses in yield due to nearly all natural disasters. For most crops, that includes drought, excess moisture, cold and frost, wind, flood, and unavoidable damage from insects and disease. These products guarantee a yield based on an individual producer’s actual production history. If the Production to Count is less than the Yield Guarantee, an indemnity is paid.

How Does It Work?

  • Both plans establish a guarantee of bushels per acre.
  • YP Projected Price is determined in accordance with CEPP, and APH price is established by the Federal Crop Insurance Corporation (FCIC).
  • Both plans pay an indemnity if the Production to Count falls below the Yield Guarantee.

    What Are the Benefits?

  • Both plans offer a competitive premium
  • Protect against production loss
  • Based on a producer’s own production history
  • Coverage levels range from 50% to 85% of the APH
  • Coverage provided on basic and optional units
  • Enterprise unit coverage is available in some areas
  • Subsidized by the FCIC
icon_arp

Area Revenue Protection

ARP is a county-based revenue insurance product that pays in the event the Final County Revenue falls below the Trigger Revenue level you selected. The Trigger Revenue is calculated using the higher of the Projected Price or Harvest Price. Individual farm revenues and yields are not considered, so your individual farm may experience reduced yield/revenue, but you may not receive an indemnity. ARP offers “upside” Harvest Price protection by valuing lost bushels at the Harvest Price.

ARP-HPE is a county-based revenue insurance product that insures in the same way as ARP, but uses only the Projected Price to determine the loss guarantee.

How Does It Work?

  • Both plans use county yields based on National Agriculture Statistics Service (NASS) data.
  • The Commodity Exchange Price Provisions (CEPP) are used to determine the Projected and Harvest Prices.
  • Both plans pay an indemnity if the Final County Revenue is lower than the selected Trigger Revenue.

    What Are the Benefits?

  • Both plans provide flexibility and allow the producer to choose between several coverage levels and amounts of protection
  • ARP allows the producer to increase Expected County Revenue if the Harvest Price is higher than the Projected Price
  • ARP-HPE guarantees the producer a set amount of county revenue
  • Fits well with a full coverage crop hail policy, which provides additional individual coverages
  • Subsidized by FCIC and protect against widespread loss of yield in a county
icon_ayp

Area Yield Protection

Area Yield Protection (AYP) insures against widespread loss of production of your crop in a county. AYP is primarily intended for use by those producers whose farm yields tend to follow the average county yield. AYP is a county-based insurance product that pays an indemnity in the event the Final County Yield falls below the Trigger Yield you selected. Individual farm yields are not considered, so your individual farm may experience a reduced yield, but you may not receive an indemnity.

How Does It Work?

  • AYP uses county yields based on NASS data.
  • YP pays an indemnity if the Final County Yield is below the Trigger Yield

    What Are the Benefits?

  • Flexible program that allows the producer to choose between several coverage levels and amounts of protection
  • Fits well with a full coverage crop hail policy, which provides additional individual coverages
  • Subsidized by the FCIC and protects against widespread loss of yield in a county
icon_aph

Actual Production History

Yield Protection (YP) and Actual Production History (APH) are multi-peril crop insurance products that protect against losses in yield due to nearly all natural disasters. For most crops, that includes drought, excess moisture, cold and frost, wind, flood, and unavoidable damage from insects and disease. These products guarantee a yield based on an individual producer’s actual production history. If the Production to Count is less than the Yield Guarantee, an indemnity is paid.

How Does It Work?

  • Both plans establish a guarantee of bushels per acre.
  • YP Projected Price is determined in accordance with CEPP, and APH price is established by the Federal Crop Insurance Corporation (FCIC).
  • Both plans pay an indemnity if the Production to Count falls below the Yield Guarantee.

    What Are the Benefits?

  • Both plans offer a competitive premium
  • Protect against production loss
  • Based on a producer’s own production history
  • Coverage levels range from 50% to 85% of the APH
  • Coverage provided on basic and optional units
  • Enterprise unit coverage is available in some areas
  • Subsidized by the FCIC
icon_prf

Pasture, Rangeland, Forage

The Risk Management Agency (RMA) Pasture, Rangeland, and Forage (PRF) pilot insurance program provides insurance coverage on your pasture, rangeland, or forage acres. This innovative pilot program is based on precipitation and the Rainfall Index. This program allows you to buy insurance protection for losses of forage produced for grazing or harvested for hay, which result in increased costs for feed, destocking, depopulating, or other actions.

PRF is available in the 48 contiguous states with the exception of a few grids that cross international borders.

icon_wf

Apiculture

Apiculture systems consist of different types of plants or crops and often contain mixtures of different species, each with different growth habits and seasons, rain requirements, and other climate conditions necessary to maintain plant growth over extended periods of time. API was designed to provide maximum flexibility to cover these diverse situations.

This program utilizes various indexing systems to assess plant growth and vigor, which correlates to honey production. Coverage is based on the insured’s selection of coverage level, index intervals, and productivity factor.

Whole Farm

icon_wf

Whole Farm Revenue Protection (WFRP) is a multi-peril crop insurance product that provides a safety net for all commodities on the farm under one insurance policy, including specialty and organic crops, allowing for more crop diversity on the farm. WFRP provides protection against loss of revenue that you expect to earn or will obtain from commodities you produce or purchase for resale during the insurance period.

You can buy WFRP alone or with other buy-up level (additional) Federal crop insurance policies. When you buy WFRP with another policy, the WFRP premium is reduced due to the coverage provided by the other policy.

Note: If you have other multi-peril crop insurance policies at catastrophic coverage levels, you do not qualify for WFRP.

icon_sco

Supplemental Coverage Option

The Supplemental Coverage Option (SCO) is a county-level revenue-based or yield-based optional endorsement that covers a portion of losses not covered by the same crop’s underlying crop insurance policy.

SCO is available in select counties for spring barley, corn, soybeans, wheat, sorghum, cotton, rice, blueberries, and apples.

Please contact your FMH agent for more details.

How Does It Work?
SCO can be elected only when a producer has purchased one of the following underlying plans of insurance:

  • Yield Protection
  • Revenue Protection
  • Revenue Protection with Harvest Price Exclusion
icon_stax

Stacked Income Protection (STAX)

The Stacked Income Protection Plan (STAX) is a crop insurance product for upland cotton that provides coverage for a portion of the expected revenue for your area. Most often your area will be your county, but it may include other counties or even practices as necessary to obtain a credible amount of data to establish an expected yield and premium rate.

How Does It Work?
STAX may be purchased on its own, or as a companion to the following plans of insurance:

  • Yield Protection
  • Revenue Protection
  • Revenue Protection with Harvest Price Exclusion
  • Area Yield Protection
  • Area Revenue Protection
  • Area Revenue Protection with Harvest Price Exclusion
mp

Margin Protection

Margin Protection is a crop insurance coverage option that provides coverage against an unexpected decrease in your operating margin caused by:

  • Reduced county yields
  • Reduced commodity prices
  • Increased price of selected inputs
  • Any combination of the above

Margin Protection is area-based, using county-level estimates of average revenue and input costs to establish the amount of coverage and indemnity payments.

 

How Does It Work?

  • MP provides coverage that is based on an expected margin per acre for each applicable crop, type, and practice.
  • MP is area-based coverage and may not necessarily reflect a producer’s individual experience.
  • The Harvest Price Option allows you to choose to include replacement cost coverage to the Margin Protection policy. Similar to many popular revenue-based policies, if the harvest price is greater than the projected price, the expected margin and the trigger margin are recalculated based on the higher harvest price.