USDA Crop Products
The following is a summary description of USDA federal crop insurance products, options, and how they can work for you. USDA-RMA products are revised frequently and include components such as SCO, LRP, DRP, PRF, WFR, PCI, HEMP. There are also newer endorsements such as BFR & VFR with added benefits to growers. For a full listing of currently available programs - refer to https://www.rma.usda.gov/
YP - Yield Protection
The Yield Protection Crop Insurance program is a plan of insurance that provides protection against a production loss due to naturally occurring events only.
A market-based value price will be determined per the Commodity Exchange Price Provision (CEPP).
- The RMA still reserves the right to set and/or modify the price for Yield Protection.
- The Insured may choose between 55% - 100% of the projected price.
A guarantee will be determined by multiplying the production guarantee (yield x level) times the Projected Price. The Yield Protection plan is available only for crops traded on commodity exchanges.
Note: The Good Experience Discount will continue for Yield Protection only.
RP - Revenue Protection
The Revenue Protection Crop Insurance program is a plan of insurance that provides protection against loss of revenue due to a production loss, price decline or increase, or a combination of both.
The price is determined per the Commodity Exchange Price Provision (CEPP), but there is NO price election. The policyholder must take 100%. A guarantee will be determined by multiplying the production guarantee per acre by the “Greater of” Projected or Harvest Price. The Revenue Protection plan is available only for crops traded on commodity exchanges.
Note: The Catastrophic (CAT) coverage endorsement is not available under the Revenue Protection plan.
RP - HPE [Harvest Price Exclusion]
The Revenue Protection with Harvest Price Exclusion program is the same as Revenue Protection (RP) except the amount of insurance is based on the Projected Price only. The guarantee is the harvested production (plus any appraised production) multiplied by the harvest price and compared to the revenue guarantee (Yield x Projected Price). The Revenue Protection with Harvest Price Exclusion plan is available only for crops traded on commodity exchanges.Note: Revenue Protection with Harvest Price Exclusion is now considered a Plan – not an Option. Instead of adding the Harvest Price Option, it is now excluded.
ARPI- Area Risk Protection Insurance
ARPI is one basic provision with three plans of insurance: ARP, ARP-HPE, and AYP. ARPI is an area based coverage that protects against widespread loss of revenue, yield, or a combination of both in a county. It is a policy that protects against natural causes of loss that cause the final county yield or revenue to be less than the trigger yield/revenue. ARPI replaces the Group Risk Plan (GRP), Group Risk Income Protection (GRIP), and GRIP-Harvest Revenue Option (GRIP-HRO). The GRP and GRIP plans of insurance will no longer be available.
- Individual farm revenue and yields are NOT considered when calculating losses under ARPI.
- It is possible that an individual farm may experience reduced revenue or yield and NOT receive an indemnity under ARPI.
ARP - Area Revenue Protection
Protection against loss of revenue caused by low price, low yields, or a combination of both. This plan also includes upside harvest price protection which increases the policy protection if the harvest price is greater than the projected price.
ARP-HPE - [Harvest Price Exclusion]
Protects against loss of revenue caused by low prices, low yields, or a combination of both.
AYP - Area Yield Protection
Protection for production losses only.
MP - Margin Protection
A Fall sold policy (9/30) - MP is a county yield based protection against loss of revenue caused by low price, low yields, or a combination of both. This plan differs from ARP as it also incorporates changes in input costs such as diesel and fertilizer and is also available at a higher trigger point (95%). MP also has different price discovery periods which may be more stretegically beneficial to the grower.
APH Crop Insurance
APH Crop Insurance, also known as MPCI, provides comprehensive protection against weather-related causes of loss and certain other unavoidable perils. Coverage is expressed as a yield guarantee (APH yield times the coverage level) and may be adjusted for quality deficiencies. APH crop insurance is only available for non-traded commodities.
Select your GuaranteeAPH offers six levels of protection and allows the ability to prove yields and insure on an individual basis.
- Single Guarantee
- APH Crop Insurance will pay indemnities without taking away harvest expense.
- Pays Full Liability
- APH Crop Insurance will pay FULL liability even if you a substitute crop is used when it is no longer practical to replant.
- Coverage by Units
- APH allows for further breakdown of farming units for coverage. Producers no longer have to average production from all your farms within one county, if prior record keeping permits.
- Widespread Coverage
- APH covers most perils which cannot be controlled by the farmer. Examples of covered perils are:
- Flood and Adverse Weather
- Plant Disease
- Insect Damage