YIELD BASED COVERAGE
Muti-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 approves yield and
current market price. Protects against losses resulting from a
decrease in market price, a loss of production or combination of these.
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) - Available
for selected states and crops, 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.
