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2011 General Policies and Provisions from the Risk Management Agency (RMA)
2011 Common Crop Insurance Policy (COMBO) Provisions from the Risk Management Agency (RMA)COMBO brochure PDF
Revenue Protection Plan via COMBO Policy (formerly CRC, RA and IP)
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. Available on
soybeans, corn, wheat, grain sorghum, cotton, barley, canola/rapeseed, rice, and sunflowers.
Click here for Revenue Protection Plan PDF
95% of all policies written through Crop Insurance Services is Revenue Protection Plan coverage!
Being able to take advantage of marketing opportunities may be the biggest reason to carry revenue insurance coverage.
Yield Protection Plan via COMBO Policy (formerly APH on most crops)
Yield Protection policies insure producers in the same manner as APH polices, 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.Available on
soybeans, corn, wheat, grain sorghum, cotton, barley, canola/rapeseed, rice, and sunflowers.
Click here for Yield Protection Plan PDF
Less than 5% of all policies written through Crop Insurance Services is Yield Protection or APH coverage.
Actual Production History (APH)
Actual Production History (APH) policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease. The producer selects the amount of average yield to insure; from 50-75 percent (in some areas to 85 percent). The producer also selects the percent of the predicted price to insure; between 55 and 100 percent of the crop price established annually by RMA. If the harvested plus any appraised production is less than the yield insured, the producer is paid an indemnity based on the difference. Indemnities are calculated by multiplying this difference by the insured percentage of the price selected when crop insurance was purchased and by the insured share.
Less than 5% of all policies written through Crop Insurance Services is Yield Protection or APH coverage.
Catastrophic Risk Protection Endorsement (CAT Coverage)
Catastrophic Risk Protection Endorsement (CAT Coverage) pays 55 percent of the price of the commodity established by RMA on crop losses in excess of 50 percent. The premium on CAT coverage is paid by the Federal Government; however, producers must pay a $300 administrative fee (as of the 2008 Farm Bill) for each crop insured in each county. Limited-resource producers may have this fee waived. CAT coverage is not available on all types of policies.
Less than ½% of all policies written through Crop Insurance Services is CAT.
Crop Hail (Not an RMA product) PDF
Even though government reinsured policies (such as the former CRC and RA policies) have become the "norm", depending on the crops grown, your yield history, level of coverage, unit structure, or even field locations...you may want some additional protection. A crop hail policy protects primarily against just damage due to hail, but some private policies or endorsements offer additional protection as well. Below are the general concepts of this category, but specifics of a policy vary by company.
- Companion Production Plan Hail: becoming a very popular policy, a yield-based hail policy protecting up to 130% of your APH. Commonly carried in addition to Revenue Protection and/or with Enterprise Units.
CPP unit structure is by the field. Choose either a 0% or a 5% minimum loss qualifier, where available.
- "Straight" Hail: deductibles from 0% to 30%, pays per acre
- Companion Hail: meant to piggy-back your Revenue or Yield Protection policy, protects the "top-end" (deductible portion) of Revenue or Yield Protection, can pay by the acre.
- Sugar Beets Tonnage coverage
- Coverage for peas, beans, sweet corn when rejected for canning purposed. Don't buy hail coverage on these crops without this protection!
- Windstorm, Green Snap, and Lodging coverage. Definitions vary, but generally provides coverage when unable to recover ear of corn by normal harvest machinery.
- Hybird Seed Corn Endorsement
- Prevented Planting and Replanting Endorsement, commonly used with area plans of coverage like GRIP.
- Sugar Beet Wind, Freeze, and Soil Crusting
- Fire and lightning, transit, vandalism, stored grain, and carry-over coverage is commonly included in hail policies.
- Premium modification plans or volume discounts are available for higher liability policies. Can usually "combine" together policies of others you farm with or are related to in order to obtain this discount.
Click here for Crop Hail PDF
Dollar Plan
Dollar Plan (generally for Forage Seeding or Hybrid Seed Corn)
policies provide protection against declining value due to damage that causes a yield shortfall. The amount of insurance is based on the cost of growing a crop in a specific area. A loss occurs when the annual crop value is less than the amount of insurance. The maximum dollar amount of insurance is stated on the actuarial document. The insured may select a percent of the maximum dollar amount equal to CAT (catastrophic level of coverage), or purchase additional coverage levels.
Adjusted Gross Revenue-Lite (AGR-Lite)
Adjusted Gross Revenue-Lite (AGR-Lite)
policies insure revenue of the entire farm rather than an individual crop by guaranteeing a percentage of average gross farm revenue, including a small amount of livestock revenue. The policies use information from a producer's Schedule F tax forms, and current year expected farm revenue, to calculate policy revenue guarantee.
Click here for AGR-Lite PDF
Adjusted Gross Revenue (AGR)
Adjusted Gross Revenue (AGR)
policies insure revenue of the entire farm rather than an individual crop by guaranteeing a percentage of average gross farm revenue, including a small amount of livestock revenue. The policies use information from a producer's Schedule F tax forms, and current year expected farm revenue, to calculate policy revenue guarantee.
Click here for AGR PDF
Group Risk Income Protection (GRIP)
Group Risk Income Protection (GRIP)
is designed as a risk management tool to insure against widespread loss of revenue from the insured crop in a county. GRIP policies use a county revenue index as the basis for determining a loss by using the estimated county yield for the insured crop, as determined by National Agricultural Statistics Service (NASS), multiplied by the harvest price. If the county revenue falls below the trigger revenue level chosen by the producer, an indemnity is paid. Unlike GRP, it is not necessary to have a decline in yield to be indemnified, as long as the combination of price and yield results in a county revenue that is less than the trigger revenue. Payments are not based on individual producer’s crop yields and revenues. Coverage levels are available for up to 90 percent of the expected county revenue. GRIP involves less paperwork and costs less than plans of insurance against individual loss as described above. Under GRIP, an individual producer’s crop may receive reduced revenue from the insured acreage and not receive a payment under this plan if the county does not suffer a similar level of revenue loss. This insurance is primarily intended for producers whose crop yields typically follow the average county yield and wish to insure that the combination of yield and price result in a particular level of revenue.
Group Risk Plan (GRP)
Group Risk Plan (GRP)
is designed as a risk management tool to insure against widespread loss of production of the insured crop in a county. GRP policies use a couty yield index as the basis for determining a loss. When the estimated county yield for the insured crop, as determined by National Agricultural Statistics Service (NASS), falls below the trigger yield level chosen by the producer, an indemnity is paid. Payments are not based on an individual producer's crop yields. Coverage levels are available for up to 90 percent of the expected county yield. GRP involves less paperwork and costs less than plans of insurance against individual loss, as described above. Under GRP, insured acreage for an individual producer's crop may have low yields and not receive a payment if the county does not suffer a similar level of yield loss. This insurance is primarily intended for producers whose crop yields typically follow the average county yield.
Rainfall Index (RI)
Rainfall Index (RI)
is based on weather data collected and maintained by the National Oceanic and Atmospheric Administration's Climate Prediction Center. The index reflects how much precipitation is received relative to the long-term average for a specified area and timeframe. The program divides the country into six regions due to different weather patterns, with pilots available in select counties.
Click here for RI on Pasture, Rangeland & Forest PDF
Vegetation Index (VI)
Vegetation Index (VI)
is based on the U.S. Geological Survey's Earth Resources Observation and Science (EROS) normalized difference vegetation index (NDVI) data derived from satellites observing long-term changes in greenness of vegetation of the earth since 1989. The program divides the country into six regions due to different weather patterns, with pilots available in select counties.
Click here for VI on Pasture, Rangeland & Forest PDF
All Crop Policies and Pilots
You may also find useful information about crop insurance by visiting our links page.
Glossary of Crop Insurance Terminology This link takes you to a glossary of terms related to Crop Insurance. We'll help you learn the lingo so you can talk the talk.
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