Crop insurance information

Multiple Peril Crop Insurance (MPCI): MPCI insures against losses from natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease. You choose the amount of your average yield you want to insure, from 50% to 75% (in some areas up to 85%). You also choose a percent of the predicted price for a crop, between 55% and 100%.

Revenue Protection (RP): Revenue Protection policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease, and revenue losses caused by a change in the harvest price from the projected price. The producer selects the amount of average yield he or she wishes to insure; from 50-75 percent (in some areas to 85 percent). The projected price and the harvest price are 100 percent of the amounts determined in accordance with the Commodity Exchange Price Provisions and are based on daily settlement prices for certain futures contracts. The amount of insurance protection is based on the greater of the projected price or the harvest price. If the harvested plus any appraised production multiplied by the harvest price is less than the amount of insurance protection, the producer is paid an indemnity based on the difference.

Yield Protection (YP): Yield Protection policies insure producers in the same manner as APH policies, except a projected price is used to determine insurance coverage. The projected price is determined in accordance with the Commodity Exchange Price Provisions and is based on daily settlement prices for certain futures contracts. The producer selects the percent of the projected price he or she wants to insure, between 55 and 100 percent.

Margin Protection (MP): Margin Protection provides coverage that is based on an expected margin, which is the expected area revenue minus the expected area operating costs, for each applicable crop, type and practice. Margin protection is area-based coverage and may not necessarily reflect a producer’s individual experience. The margin protection plan can be purchased by itself, or in conjunction with Yield Protection or Revenue Protection policy.

Crop Hail: Crop Hail coverage gives you acre-by-acre protection up to the actual cash value of your crop, thereby protecting your investment and your future. Available coverage of perils of hail, wind, fire and transport.

Contact Carlson Family Insurance to go over all of the options to protect your crops and to review any additional add on policies that are also available. Above is just a basic outline of some of the most common types of policies that are available for your crop insurance needs.