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OVERVIEW
RMA provides policies for more than 100 crops. (This number would be much higher if every crop variety insured in every county were counted.) RMA is also currently conducting studies to determine the feasibility of insuring many other crops and is conducting pilot programs for some new crop policies in selected states and counties. Federal crop insurance policies typically consist of:
1. The Common Crop Insurance Policy;
2. The specific crop provisions; and
3. The policy endorsements and special provisions.
Producer Obligations | Producer Expectations | Important Terms
TYPES OF COVERAGE
Farmers may select from various types of policies. Standard Multiple Peril Crop Insurance (MPCI) policies are available for most insured crops. Other plans may not be available for some insured crops in some areas. In addition, some of the policies listed below are not available nationwide; they are being tested in pilot programs and are only available in selected states and counties.
Multiple Peril Crop Insurance (MPCI)
 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. |
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.
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 Adjusted Gross Revenue (AGR)
Adjusted Gross Revenue (AGR) Insurance provides protection against low revenue due to unavoidable natural disasters and market fluctuations that occur during the insurance year. AGR-covered farm revenue consists of income from agricultural commodities, including incidental amounts of income from animals and animal products and aquaculture reared in a controlled environment. |
 Adjusted Gross Revenue-Lite (AGR-Lite)
Adjusted Gross Revenue-Lite (AGR-Lite) Insurance is a whole-farm revenue protection plan. The plan provides protection against low revenue due to unavoidable natural disasters and market fluctuations that affect income during the insurance year. Most farm-raised crops, animals, and animal products are eligible for protection. |
 Nursery Crop Insurance
Nursery Crop Insurance safeguards your nursery operation and your financial well-being. By planning for unlikely events such as adverse weather, fire, or even wildlife destruction of your inventory, you can rest assured that your bottom line will be protected. |
 Pasture, Rangeland & Forage (PRF)
The Rainfall Index and Vegetation Index programs were developed to become risk management tools for the 588 million acres of U.S. pastureland and 61.5 million acres of hayland. The pasture, rangeland and forage (PRF) insurance policies use innovative technology to assess losses in forage production across diverse range and pasture environments. |
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.
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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.
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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.
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Income Protection (IP)
IP is a revenue product that, based on the individual producer’s APH, 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. |
 CROP HAIL INSURANCE
The devastation left in the wake of a hail storm can be total or partial... But it’s always expensive, and all of the good farming practices in the world won’t prevent it. 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.
Crop Hail Flexibility
Your ProAg Agent will work with you to design Crop Hail coverage to fit your risk management strategy. Flexible deductibles allow you to tailor the cost of your Crop Hail policy to meet your budget.
Your Crop Hail policy may provide optional coverage for perils other than hail. In many areas, basic hail coverage may be enhanced by–
- fire and lightning
- transit
- reimbursement of replanting costs
- wind
- vandalism and
- stored grain coverage
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 PRODUCER OBLIGATIONS
Producers must:
- Report acreage accurately,
- Meet policy deadlines,
- Pay premiums when due, and
- Report losses immediately.
 PRODUCER EXPECTATIONS
Producers will receive:
- Accurate answers to questions on types of coverage,
- Prompt processing of their policy, and
- Timely payments for covered losses.
IMPORTANT TERMS
Sales closing date—last day to apply for coverage.
Final planting date—last day to plant unless insured for late planting.
Acreage reporting date—last day to report the acreage planted. If not reported, insurance will not be in effect.
Date to file notice of crop damage—after damage; the date the producer decides to discontinue caring for the crop; prior to the beginning of harvest; immediately, if farmer determines that the crop is damaged after harvest begins; or the end of the insurance period, whichever is earlier.
End of insurance period—latest date of insurance coverage.
Payment due date—last day to pay the premium without being charged interest.
Cancellation date—last day to request cancellation of policy for the next year.
Production reporting date—last day to report production for Actual Production History (APH).
Debt termination date—date insurance company will terminate policy for nonpayment.
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