Multi Peril Crop Insurance
Plans of Insurance
Actual Production History (APH) Plan
The APH plan provides individual yield protection against production losses. APH covers losses due to naturally occurring events such as adverse weather, insect and disease. The guaranteed yield in this plan is based on the producer’s actual production history, with price elections determined by RMA. Indemnity is due when the value of the production to count is less than the established liability.
Yield Protection (YP) Plan
The YP plan is similar to the APH plan in that it offers yield protection based on the producers actual production history. It also protects the farmer from yield losses due weather, insect, disease, and wildlife damages. However unlike APH Plan the prices are not set by RMA but instead are established according to the commodity board of trade/exchange in the Commodity Exchange Price Provisions. Producers may elect to insure anywhere between 50% and 85% of their average yield, and anywhere between 50% and 100% of the price. When the value of the production to count is less than the yield protection guaranteed, and indemnity is due.
Revenue Protection (RP) Plan
The RP Plan provides individual revenue protection against price decrease or low yields or a combination of both. Coverage guarantees an amount determined by the producers actual production history, the price is determined by either the harvest price or projected price, whichever is higher. The producer is due an indemnity when the calculated revenue is less than the revenue protection guarantee. Producers may select overage levels anywhere between 50% and 85%, and price levels between 50% and 100%.
RP with the Harvest Price Exclusion (RP HPE) Plan
The RP HPE Plan is identical to the RPE except that the projected price is used solely to determine the protection guarantee.
Area Yield Protection (AYP) Plan
The AYP plan provides coverage based on the county wide production and yields. Individual producer’s actual production histories are not required. The producers may select coverage levels between 65% and 90%, and price levels of 45% and 60%-100%. With this plan the producer is paid only if the actual county wide production yield falls below the projected county wide production yield. With this plan it is possible for the producer to have a loss, and not receive a payment, because the county average yield was higher than the expected county yield.
Area Revenue Protection (ARP) Plan
The ARP plan is similar in to the AYP Plan, but it also incorporates revenue loss based on the expected harvest price. Producers may select coverage levels between 70% and 90%, and 60% to 100% of the price. The producer is due and indemnity when the county wide revenue is less than the projected county wide revenue.
ARP with Harvest Revenue Option ( ARP-HRO)
This plan is the same as the ARP Plan with the additional harvest revenue option. This option offers upside protection by valuing loss at the harvest price OR the expected harvest price, whichever is higher.