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?
- Protects 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 tool for crop producers
- Harvest price has no limit on the downward movement
- Coverage on basic, optional, enterprise, and whole-farm units were 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)
P/RP-HPE allows the producer to select a coverage level ranging from 50% up to 85% in 5% increments. Talk to your FMH agent or check your county actuarial for availability of coverage over 75% for basic and optional units.
Basic, optional, enterprise, and whole-farm units are insurable under RP/RP-HPE.
Production to Count
Production to Count equals harvested and appraised production from the insured acreage.
Revenue to Count
(Production to Count) x (Harvest Price)
If the final Revenue Guarentee is greater than the Revenue Count, an indemnity is paid equal to the difference.
Per-acre premiums will depend on the county of the insured crop, unit structure, the crop’s APH yield, and price elections. Higher coverage levels and higher elected prices result in higher premiums.
Additional coverage include Late Planting Coverage, Prevented Planting and Replant Provisions.* For more information on Seed Endorsement, Malting Barley, and other additional coverages specific to the crop, talk to your FMH agent or check your county actuarial.
Harvest Price Exclusion (HPE)
Insurance protection is based on the Projected Price only. The amount of protection is not increased if the Harvest Price is greater than the Projected Price. If the harvested production plus any appraised production multiplied by Harvest Price is less than the amount of insurance protection, the insured is paid an indemnity based on the difference.