Group Risk Protection Coverage (GRP)

What is it?Risk Protection

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

     

Important Dates

  •    08/15/2008 -
       Extended
       Acreage Reporting
       for Select States
  •    09/30/2008 -
       Fall Crops
       Sales Closing Date

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