Crop Insurance Types:

YIELD BASED COVERAGE

Multi-Peril Crop Insurance (MPCI) – provides protection against losses from a number of uncontrollable causes. MPCI is the most popular insurance coverage due to its flexibility in level and price.

Catastrophic (CAT) – Provides the minimum coverage amount on a MPCI policy. For a $100 fee, producers can buy a minimum insurance coverage based on 50% of the producing operation's average yield at 55% of the FCIC established prices.

Group Risk Plan (GRP) – Recommended for farmers whose yield history closely tracks the county or parish history because protection is based on the yield experience of the county rather than their individual farms.

REVENUE INSURANCE PLANS

Crop Revenue Coverage (CRC) – Provides farmers with a revenue guarantee based on their approved yield and current market price. Protects against losses resulting from a decrease in market price, a loss of production or combination of the two. While CRC provides several advantages over traditional crop insurance policies, the real benefit comes when it is incorporated as an integral part of the producer's marketing plan.

CRC can be an effective risk management tool by providing farmers with an established revenue guarantee per acre. Farmers may more proactively market through the growing season when prices are usually higher, knowing that CRC provides the revenue guarantee to cover bushels committed in forward pricing their crop or when using other market options.

Revenue Assurance (RA) – This program was expanded in Crop Year 2001 and is now available on more crops in more states and counties. This policy provides protection against revenue losses resulting from any combination of low market prices or low production yields. RA is available in certain states. Ask your agent about availability in your area.

Income Protection (IP) – The Income Protection (IP) program is designed to insure against reductions in gross income from below average yields and low harvest prices. Since the goal of the program is to protect revenue at the enterprise unit level, the insured unit is based on a county index of all acres of the crop in the county. This program is offered for select crops in a limited number of states.

Indexed Income Protection (IIP) – This pilot program is available for certain states and crops. The pilot program uses a formula that indexes individual yields to county yields to mitigate the distortions of a short yield data base and the disproportionate affect of a low yield on a data base.

Group Risk Income Protection (GRIP) – Similar to GRP, except the focus is on revenue, not yield. It is available in certain states and counties. GRIP is designed as a management tool to insure against widespread loss of revenue from the insured crop in a county. It is primarily intended for use by those producers whose yields are highly correlated with those of the other producers in the county who wish to insure that the combination of the yield and price result in a particular level of revenue.

Adjusted Gross Revenue Insurance (AGR) – This pilot program provides an insurance safety net for producers growing crops without MPCI insurance coverage. Insures all agricultural commodities produced on a farm as well as products purchased for resale.