Raising crops is capital intensive, so why would you risk your farming operation to the unknowns of crop production including weather? At Riverpoint Agency we offer crop insurance expertise the guide you through the complex world of crop insurance. We can build a crop insurance plan to fit your specific operation's needs. We offer all Multi-Peril products including revenue protection, yield protection, area protection, margin protection, livestock risk protection and pasture rainfall forage index coverages as well as Crop-Hail options to fit your needs.
Multiple Peril Crop Insurance (MPCI)
As the name implies, MPCI provides protection against a loss in yield due to nearly all natural disasters. For most crops, that includes drought, excess moisture, cold and frost, wind, flood and unavoidable damage from insects and disease. MPCI guarantees a yield based on the individual producer's APH. If the production to count is less than the yield guarantee, the insured will be paid a loss.
Revenue Protection (RP)
About Revenue Protection
Revenue Protection (RP) offers comprehensive protection through a dollar guarantee. RP also provides prevented planting and replant protection. A projected price is used to calculate the premium, replant payments and prevent planting payments. Revenue Protection with Harvest Price Exclusion is also available.
RP covers weather-related causes of loss, certain other unavoidable perils and price fluctuations.
The RP dollar guarantee for the insurance unit is the approved yield times the level of coverage, the insured acreage, the percent of share and the projected price. Coverage levels are available from 50% to 75%, in 5% increments (80% and 85% coverage levels are available in limited areas). There is increased protection if the harvest price is higher than the projected price. Revenue Protection with Harvest Price Exclusion does not provide increased protection if the harvest price is higher than the projected price.
Value of Production
To determine the value of production, multiply the harvested production, plus any appraisals, by the percent of share and harvest price. The price at which the crop is sold is not used to calculate the loss payment.
To calculate a payable loss, subtract the value of production from the dollar guarantee, multiplied by the percent of share.
• A basic unit is all acreage of the crop in the county of which the insured has 100% ownership or shares with the same person.
• Optional units are divisions by sections or section equivalents (AR, LA and MS units are only available by FN), by irrigated or non-irrigated practices and by acreage grown under an organic farming practice.
• An enterprise unit is all insurable acreage of the insured crop in the county, regardless of interest or persons sharing.
• A whole-farm unit combines all of an insured’s acres for all qualifying crops in the county into a single insurance unit.
Benefits of RP
• RP fosters greater grower confidence to do pre-harvest crop sales to improve profits.
• RP protects growers who need a specific amount of production to feed livestock.
• RP loss payments more closely track economic results.
• RP may be viewed more favorably as loan collateral.
• RP rewards the more risk-conscious grower.
About Yield Protection
Yield Protection (YP) protects against a production loss for crops for which revenue protection is available but was not selected. YP also provides prevented planting and replant protection. Coverage is expressed as a production guarantee (approved yield times the coverage level). Catastrophic (CAT) coverage is available at 50% of the approved yield and 55% of the projected price (50/55).
The YP yield guarantee is the approved yield, multiplied by the selected level of coverage and the insured acreage. Coverage levels are available from 50% to 75%, in 5% increments (80% and 85% coverage levels are available in limited areas) of the approved yield up to 100% of the projected price, which is determined by the Commodity Exchange Price Provisions.
Production to Count
The production to count for the insurance unit is the actual production, plus any yield appraisals, less any adjustments for excess moisture or poor quality (if applicable). Producers should notify their crop insurance agent or company immediately to get specific instructions on what to do if the crop is damaged or the producer plans to utilize production in such a way that harvested production cannot be determined.
The loss payment is calculated by subtracting the net amount of production from the yield guarantee and multiplying the result by the projected price and percent of share.
• The basic unit is all acreage of the crop in the county of which the insured has 100% ownership or shares with the same person.
• Basic units may be further divided into optional units, if qualifications are met.
• The unit structure defined in the Common Crop Insurance Provisions may be modified by the Crop Provisions.
• Enterprise units are available for all crops with YP.
Benefits of YP
• YP fosters greater grower confidence to do pre-harvest crop sales to improve profits.
• YP provides stability for long-term business plans.
• YP may result in improved risk and financial management.
• YP may be viewed more favorably as loan collateral.
• YP can act as a cash flow safety net.