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Yield Protection Crop Insurance Plan

Yield Protection (YP) insurance plan insures producers in the same manner as APH policies, except a projected price is used to determine crop insurance coverage.

The Yield Protection crop insurance plan of insurance protects against a loss of production. This insurance plan is very similar to the APH plan in that it it based on the actual production history of their crops but is only available on crops that are eligible for Revenue Protection.

What is yield protection crop insurance?

YP policies work the same as the APH plan, guaranteeing a yield, but instead of using a price election established by RMA, the price is established according to the applicable board of trade/exchange as defined in the policy document called the Commodity Exchange Price Provisions (CEPP). The price that is used is called the Projected Price. The Projected Price is used to calculate the guarantee, premium and loss payments.

The producer selects the percent of the projected price they want to insure, between 55 and 100 percent. The guarantee is established by multiplying the average yield by the coverage level and by the Projected Price, and an indemnity may be due when the value of the production to count is less than the yield protection guarantee plan.

Crop Insurance Comparison Guide

Learn more with our crop insurance comparison guide.

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