Agricultural Insurance

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Farm, Ranch and Crop Insurance

 

Revenue Protection (RP)

Revenue Protection coverage establishes a dollar guarantee based on the Commodity Exchange Price Provisions (CEPP) projected price. This coverage offers a producer protection against a loss of yield related to unavoidable perils, as well as protection against commodity price fluctuations. Coverage levels are available from 50% – 75% and 80% – 85% in limited areas. Coverage for the Revenue Protection (RP) plan is based on the producers Actual Production History (APH) and a base price established from an applicable futures market.

The producers Base Revenue guarantee is:

APH x Level of Coverage x Insured Acreage x Percent of Share x the Projected Price

The benefits of the Revenue Protection coverage match those of the Revenue Protection with Harvest Price Exclusion (RPHPE) coverage.

Yield Protection (YP)

Yield Protection coverage only provides protection against a production loss for crops in which revenue protection is available, but was not selected. Coverage levels are form 50% – 75% and 80% – 85% in limited areas. Coverage is expressed as a production guarantee (approved yield x average level) and provides prevented planting and replanting protection.

The benefits of the Yield Protection coverage are: • Improved Risk and Financial Management • Stability for long-term business plans • Cash flow safety net • Confidence for pre-harvest crop sales • Loan Collateral

Revenue Protection with Harvest Price Exclusion (RPHPE)

Revenue Protection with Harvest Price Exclusion is insurance coverage for your operation that excludes the use of the harvest price in the determination of the revenue protection guarantee. This option offers protection against loss of yield due to unavoidable perils, such as inclement weather, and other downward price fluctuations. Coverage levels are available from 50% – 75% (and up to 85% in limited areas) of the producers Actual Production History (APH) The dollar guarantee for the insurance is:

APH x Level of Coverage x Insured Acreage x percent of Share x Projected Price

The benefits of this policy are: • May be viewed more favorably as loan collateral • Rewards the more risk conscious grower • Protects growers who need a specific amount of production to feed livestock • Fosters greater grower confidence to do pre-harvest crop sales to improve profits

Price Flex (PF)

Price Flex is a private product offered by Hudson Insurance Group through Farmers Heritage Financial.  As a supplement to individual MPCI policies, it provides potentially higher than the base coverage established under the RP or GRIP plans.  For pennies a bushel, a producer can exercise the option of adding one or several additional price discovery periods to their policy, the higher of which would be used to establish the revenue guarantee for the loss purpose if that price exceeds the projected and harvest prices as determined by RMA.

Crop-Hail

Companion Hail is an endorsement to a multi-peril or revenue-based crop insurance policy that provides additional coverage for a loss caused by fire or hail. Crop-Hail insurance protects against loss in yields due to hail and/or fire. Opposite to a federally reinsured crop insurance policy, the producer is allowed to purchase crop-hail insurance coverage up to the actual total value of their crop.