Insurance Policies

Multiple Peril Crop Insurance (MPCI)

U.S. Department of Agriculture’s Risk Management Agency (RMA) has rolled out the Common Crop Insurance Policy (COMBO) for 2011. The COMBO policy has decreased the number of choices. Your policy will be automatically converted as shown in Table 1.

Table 1:

Crop Insurance Policy conversion by the COMBO Policy.

2010 Crop Year	2011 Crop Year – Converted To
CRC and RA with Harvest Price Option	Revenue Protection (RP)
RA without Harvest Price Option and Income Protection and Indexed Income Protection	Revenue Protection with Harvest Price Exclusion (RPE)
APH or AYP (CAT Endorsement)	Yield Protection (YP)

 

Revenue Protection (RP): Similar to CRC and RA with Harvest Price Option. RP Guarantees a minimum dollar amount of gross revenue per acre using the APH yield times the higher of the average closing Chicago Board of Trade settlement prices in February or October. Corn uses December of the current year prices. Soybeans use the November of the current year prices.

Revenue Protection with Harvest Price Exclusion (RPE): Similar to RA without Harvest price Option. RPE guarantees a minimum dollar amount of gross revenue using APH times the average closing Chicago Board of Trade settlement price in February. Corn uses December of the current year prices. Soybeans use the November of the current year prices.

Yield Protection (YP): Similar to the APH or AYP Option. Provides yield protection only. Prices used are the average closing Chicago Board of Trade settlement price in February. Corn uses December of the current year prices. Soybeans use the November of the current year prices.

Catastrophic Yield Coverage (CAT): 50% of the APH yield and 55% of the YP Price level. Costs $300 per crop per county. Minimal protection that keeps you eligible for the farm program benefits and federal disaster programs.

Group Risk Income Protection (GRIP) and Group Risk Plan (GRP): Makes indemnity payments only when the average county revenue for the insured crop falls below the revenue chosen by the farmer. Basically no changes in 2011 from 2010 with these policies.

 

Crop Hail Insurance

A policy that gives the insured a payment that equals the percent of loss multiplied by the insured value per acre.

Replant Endorsement: Replant coverage over and above Multi Peril replant coverage.