Group Risk Protection Coverage (GRP)
What is it?
Group Risk Plan (GRP) provides a dollar amount of protection.
A loss payment is available when the county average yield, in a given year, falls below the trend adjusted average yield by a greater percentage than the policyholder's selected deductible.
Levels of Coverage
The grower selects the dollar amount of protection per acre and the percentage of the county yield (70 to 90% for most crops) at which they want to insure.
Benefits
- A simplified program that is easy to understand
- It provides payment based on performance of a crop in a county as a whole
- It is more appealing than CBOT crop yield contract because
- It triggers based on county rather than state average yield
- The grower's transaction cost is lower because of government cost share





