Crop Insurance
Plan Comparison
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| Crop Revenue Coverage - CRC | |
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The most widely available revenue protection policy is CRC. This policy guarantees an amount of revenue (based on the individual producer’s actual production history (APH) x commodity price) called the final guarantee. The coverage and exclusions of CRC are similar to those for the standard MPCI policy. This final guarantee is based on the greater of the spring-time generated price (base price) or the harvest-time generated price (harvest price). While the guarantee may increase, the premium will not. Premium will be calculated using the base price. Since the protection of producer revenue is the primary objective of CRC, it contains provisions addressing both yield and price risks. CRC covers revenue losses due to a low price, low yield, or any combination of the two. A loss is due when the calculated revenue (production to count x harvest price) is less than the final guarantee for the crop acreage. Refer to the CRC Commodity Exchange Endorsement (CEE) for the applicable board of trade and futures used in the price establishment. |
| Group Risk Income Protection - GRIP | |
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GRIP is the newest revenue product to come along. GRIP is based on the experience of the county rather than individual farms, so APH is not required for this program. A GRIP policy includes coverage against potential loss of revenue resulting from a significant reduction in the county yield or commodity price of a specific crop. When the county yield estimates are released, the county revenues (or payment revenues) will be calculated prior to April 16 of the following crop year for course grains, July 16th for cotton and April 1st for wheat. GRIP will pay a loss when the county revenue is less than the trigger revenue. Since this plan is based on county revenue and not individual revenue, the insured may have a loss in revenue on their farm and not receive payment under GRIP. Beginning with the 2004 crop year, the GRIP Harvest Revenue Option (HRO) Endorsement is available. This optional endorsement offers “upside” price protection by valuing lost bushels at the harvest price in addition to the coverage offered under GRIP. The base price is set the same as the CRC base price. |
| Group Risk Plan - GRP | |
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Like GRIP, GRP coverage is based on the experience of the county rather than individual farms, so APH is not required for this program. GRP indemnifies the insured in the event the county average per-acre yield or payment yield falls below the insured's trigger yield. The Federal Crop Insurance Corporation (FCIC) will issue the payment yield in the calendar year following the crop year insured. Since this plan is based on county yields and not individual yields, the insured may have a low yield on their farm and not receive payment under GRP. The price is set by RMA. |
| Income Protection - IP | |
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IP is a revenue product that is based on the individual producer’s APH and protects against a loss of income when prices and/or yields fall. While IP looks a lot like CRC, it does not have the increasing price function of CRC. The guarantee and the premium will be calculated using the spring-time generated price (projected price). An indemnity is due when the revenue to count (production to count x harvest price) is less than the amount of protection. |
| Multiple Peril Crop Insurance - MPCI | |
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MPCI is the oldest and most popular product to make this list. As the name implies, MPCI provides protection against a loss 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. MPCI guarantees a yield based on the individual producer’s APH. If the production to count is less than the yield guarantee, the insured will be paid a loss. The established price is set January 1st and the additional price is set by the crop’s sales closing date. |
| Revenue Assurance - RA | |
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The coverage and exclusions of RA are similar to those for the standard 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. RA has the Fall Harvest Price Option (FHO) available. This option uses the greater of the fall harvest price (harvest-time generated price) or the projected harvest price (spring-time generated price) to determine the per-acre revenue guarantee. So with the option RA works like CRC; without the option it works like IP. RA protects a producer’s crop revenue when the crop revenue falls below the guaranteed revenue. Refer to the applicable RA crop provision for the applicable futures used and month released. |
The products and product topics summarized in this outline are not all encompassing and do not substitute for the policy provisions. See the policy provisions and/or contact your Approved Insurance Provider for a complete description of available coverages and their terms and conditions. |
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Crop Insurance Plan Comparison
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| Plan Code | 44 |
73 |
12 |
42 |
90 |
25 |
| Coverage | Individual Revenue |
Area Revenue |
Area Yield |
Individual Revenue |
Individual Yield |
Individual Revenue |
| Administrative Fee | $30 (Per crop Per county) |
$30 (Per crop Per county) |
$300 CAT $30 additional (Per crop Per county) |
$100 CAT $30 additional (Per crop Per county) |
$300 CAT $30 additional (Per crop Per county) |
$30 (Per crop Per county) |
| Available Unit Structure | Basic/Optional/Enterprise |
One unit per crop per county |
One unit per crop per county |
Enterprise |
Basic/Optional/Enterprise |
Basic/Optional/ Enterprise/Whole-farm |
| Price Reference for Guarantee | Higher of Base Price or Harvest Price |
60% - 100% of maximum dollar amount of protection based on expected price; or higher of expected and harvest price if HRO elected |
45% (CAT) or 60% - 100% of maximum dollar amount of protection |
Projected Price |
Price percentage elected by insured |
Projected Harvest Price (base price); or higher of Projected Price and Harvest Price if FHO elected |
| Maximum Price Movement | Upward: 200% price change limit Downward: No limit |
Upward: 200% price change limit Downward: No limit |
Not Applicable |
Not Applicable |
Not Applicable |
Upward: 200% price change limit Downward: No limit |
| Coverage Level Percent Available | 50%, 55%, 60%, 65%, 70%, 75%, 80%*, 85%* *see actuarial for availability |
65% (CAT) 70%, 75%, 80%, 85%, 90% |
70%, 75%, 80%, 85%, 90% |
50%, 55%, 60%, 65%, 70%, 75%, 80%*, 85%* *see actuarial for availability |
50%, 55%, 60%, 65%, 70%, 75%, 80%*, 85%* *see actuarial for availability |
65%, 70%, 75%, 80%*, 85%* *see actuarial for availability |
| APH | Required |
Not Required |
Not Required |
Required |
Required |
Required |
| Acreage Report | Required |
Required |
Required |
Required |
Required |
Required |
| Guarantee | Final Guarantee = 1. Minimum Guarantee - (APH) x (yield) x (level) x (base price) 2. Harvest Guarantee - (APH) x (yield) x (level) x (harvest price) |
Policy Protection = (Dollar amount of protection elected by insured) x (net acres) |
Policy Protection = (Dollar amount of protection elected by insured) x (net acres) |
(APH Yield) x (Level) x (Projected Price) |
(APH Yield) x (Level) |
(APH Yield) x (Level) x (Projected Harvest Price) or, if FHO elected and it is higher than projected harvest price, then (APH Yield) x (Level) x (Fall Harvest Price) |
| Rating | Continuous Individual Yield Rated |
Area Yield Rated |
Area Yield Rated |
Individual Yield Span Rated |
Continuous Individual Yield Rated |
Continuous Individual Yield Rated |
| Subsidized by Government | Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Written Agreement | Available |
Available - only to insure specialty corn & grain sorghum as basic corn and basic grain sorghum |
Available - only to insure specialty corn & grain sorghum as basic corn and basic grain sorghum |
Not Available |
Available |
Available - only for High Risk ground, New Breaking ground, Strip-mined land or Unrated land |
| Premium | Calculated using automated premium calculator. |
Calculated using automated premium calculator. |
Calculated using automated premium calculator. |
Calculated using automated premium calculator. |
Calculated using automated premium calculator. |
Calculated using automated premium calculator. |
| Discounts for Good Experience | Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
Applicable |
Not Applicable |
| High-Risk Land | Eligible for Coverage |
Eligible for Coverage |
Eligible for Coverage |
Not Eligible for Coverage |
Eligible for Coverage |
Eligible for Coverage |
| High-Risk Land Exclusion | Available |
Not Available |
Not Available |
Not Available |
Available |
Available |
| Hail and Fire Exclusion | Not Available |
Not Available |
Not Available |
Not Available |
Available |
Not Available |
| Replanting Requirements | Applicable |
Not Applicable |
Not Applicable |
Applicable |
Applicable |
Applicable |
| Replanting Payments | Available |
Not Available |
Not Available |
Available |
Available |
Available |
| Late Planting Provisions | Applicable |
Not Applicable |
Not Applicable |
Applicable |
Applicable |
Applicable |
| PP Provisions | Applicable |
Not Applicable |
Not Applicable |
Applicable |
Applicable |
Applicable |
| Notice of Loss | Required |
Not Required |
Not Required |
Required |
Required |
Required |
| Loss Adjustment Procedure Required | Yes |
No |
No |
Yes |
Yes |
Yes |
| Loss Due When | The calculated revenue (production to count x harvest price) is less than the final guarantee |
The county revenue is less than the trigger revenue |
The county yield is less than the trigger yield (expected county yield x level) |
The revenue to count (production to count x harvest price) is less than the amount of protection (APH x projected price x net acres) |
The production to count is less than the yield guarantee |
The crop revenue (production to count x harvest price) is less than the guaranteed revenue |