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There are several types of risk protection a producer can select from in order to protect his or her farming operation from the combination of low yields and/or profits. Plans and pricing vary by state & county, along with individual yield histories. Producers can also choose whether to insure against their own APH or go the county route.
Multiple Peril Crop Insurance (MPCI)
MPCI guarantees the producer a selected amount of production based on the producer's historical yield results. MPCI covers loss of production due to drought, flood, fire, disease, pests, and adverse weather conditions.
Crop Revenue Coverage (CRC)
CRC provides guaranteed revenue protection by extending crop insurance protection based on Actual Production History (APH) to include price as well as yield variability. Indemnities are due when any combination of yield and price result in revenue that is less than the Revenue Guarantee.
Revenue Assurance (RA) - Not available in Wisconsin
RA provides revenue protection based on price and yield expectations. RA protects a producer's loss of revenue resulting from low future prices, low yields, or a combination of the two. RA with the Fall Harvest option and CRC are essentially the same product, however RA has a slightly different pricing period and unlike CRC, there are no price-movement limits.
Income Protection (IP) - Not available in Wisconsin
Income Protection is another revenue product, which similar to RA without the harvest price option, protects your investment from shortfalls in production, decreases in price, or both. There is no upside price protection like on CRC. This coverage is only available on enterprise units.
Group Risk Plans (GRP)
Group Risk Plans (GRP) is a crop insurance plan in which the guarantee is strictly based on average county yields. If the county yield is less than the GRP guaranteed, the grower receives an indemnity payment equal to the percent difference times the dollars of coverage purchased. The individual grower's yield has NO impact on the loss payment.
Group Risk Income Protection (GRIP)
GRIP is based on the experience of the COUNTY rather than individual farms. 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. GRIP indemnity payments are made only if the county revenue for the insured crop is less than the county's trigger revenue. County revenues are determined on/before April 16th following the crop year, with payments to follow shortly after.
Adjusted Gross Revenue - Lite (AGR-Lite)
AGR-Lite is a whole-farm revenue protection package. Your operation is protected against low revenue due to unavoidable natural disasters and market fluctuations that affect your income during the insurance year. This program is based on your five-year farm average revenue as reported to the IRS and includes many commodities that are not individually covered under other plans.
Crop-Hail Insurance
Covered perils include hail; fire & lightning; first place of transit (up to 100 miles); vandalism & malicious mischief and; fire department service charges up to $250. Hail through RCIS also has a Harvested Grain Endorsement, along with coverage options based on dollar-per-acre or production plans.
Notice - Hail is not part of the Federal Crop Insurance Program and therefore is not federally subsidized. FBC hail policies are written through RCIS and backed by Fireman's Fund Insurance.
Revenue Plan Price Determinates
CRC & GRIP Prices are Established Using the Following:
Base price:
Harvest price:
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