Revenue Assurance Insurance Coverage (RA)
What is it?
Revenue Assurance Coverage (RA) provides comprehensive protection for perils such as weather related causes of loss, certain other unavoidable perils, and price fluctuations.
The coverage and exclusions of RA are similar to those for the standard Multiple Peril Crop Insurance (MPCI) policy.
However, MPCI provides coverage for loss of production, whereas RA provides coverage to protect against loss of revenue caused by low prices or low yields or a combination of both.
Revenue Assurance has available the fall harvest price option, which uses the greater of the fall harvest price or the projected harvest price to determine the per-acre revenue guarantee.
The producer must select a coverage level percent. The minimum allowable coverage level is 65 percent and the maximum allowable is 85 percent for basic, optional, whole-farm and enterprise units.
Benefits
- Fosters greater grower confidence to do pre-harvest crop sales
- Protects growers who need a specific amount of production
- Loss payments closely track economic results
- May be viewed more favorably as loan collateral
- Rewards the more business-like grower