Policy Types
Group Risk Income Protection(GRIP)
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. 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 theirfarm and not receive payment under GRIP. 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.
Group Risk Plan(GRP)
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.
Crop Revenue Coverage(CRC)
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 whenthe calculated revenue (production to count x harvest price) is less than the final guarantee for the crop acreage.
Revenue Assurance(RA)
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 (FHPO) 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 croprevenue when the crop revenue falls below the guaranteed revenue.
Actual Production History(APH)
This is the traditional plan that most producers have. A producer reports his past yeilds and is given a production guarantee based on his history for each "unit'. Losses are paid based on the "market price" set each year by the USDA.
Catastrophic (CAT)
Catastrophic coverage is the lowest level of APH. CAT insures 50% of production at 55% of the base price for a fee of $300 per crop. CAT has no optional units and does not pay for replants. CAT coverage provides very little coverage..... usually discovered at loss time.
Hail Insurance
Hail insurance is private coverage purchased on crops with dollars-per-acre coverage to protect against hail and fire losses. Many companies also cover transit losses, lightning, vandalism, etc. Grain storage is in many hail contracts which can supplement or replace similar coverage in a farm owners policy. Crop Hail insurance gives you acre-by-acre protection that can be as much as the actual cash value of your crop, thereby protecting your investment and your future.
Private Replant Prevented Plant(PRPP)
Private Replant and Prevented Plant is an endorsement for hail coverage that can only be purchased by GRP & GRIP customers. This endorsement provides coverage for replant and prevented planting.