Product List
RMA PRODUCTS (these products are reinsured by the FCIC)
Actual Production History (APH)
APH coverage is the oldest product in the crop insurance family of policies. Often called simply "Multi-Peril Crop Insurance" or MPCI, it provides protection against a loss in yield due to natural causes. For most crops, this includes drought, excess moisture, cold and frost, wind, flood and unavoidable damage from insects and plant disease. APH plan guarantees a yield based on the individual producer's actual production history. If the production to count is less than the yield guarantee, the insured will be paid a loss. RMA sets the price on an APH policy.
Adjusted Gross Revenue Insurance (AGR)
The Adjusted Gross Revenue pilot program is a whole-farm revenue program that provides an insurance safety net for producers growing crops where MPCI insurance coverage is not available. AGR insures all agricultural commodities produced on a farm as well as products purchased for resale against loss of revenue due to any unavoidable natural disaster that occurs during the previous insurance year, or market fluctuation that causes a loss in the current insurance year. Animal and animal products may account for no more than 35% of the allowable income for the insurance year in order for a producer to be eligible for AGR.
Adjusted Gross Revenue Insurance Lite (AGR-Lite)
The Adjusted Gross Revenue-Lite program is a whole farm revenue program similar to the AGR program that provides protection against low revenue due to unavoidable causes. Covered farm income includes income from almost all crops and agricultural commodities. Producers are eligible for AGR-Lite regardless of what percentage of their income is from animals and animal byproducts. For AGR-Lite, the annual average adjusted gross revenue cannot exceed $250,000.
The Catastrophic Endorsement can be attached to APH, Yield Protection and GRP. For a $300 fee, producers can buy the minimum insurance coverage based on 50% of the producing operation's average yield at 55% of the FCIC established prices. When the CAT Endorsement is attached to a Group Risk Plan, coverage is based on 65% coverage level at 45% of the FCIC established prices. This endorsement is not available on the Revenue Protection Plans.
This policy guarantees an amount of revenue (based on the individual producer's actual production history (APH) x commodity price) called the final guarantee. The coverage and exclusions of Revenue Protection are similar to those of the Yield Protection Policy. The final guarantee is based on the greater of the base price (the "initial" commodity price) or the harvest price (the final commodity price generated at harvest time). While the guarantee may increase, the premium will not. Premium will be calculated using the projected price. An insured can exclude the component that allows the harvest price to increase the final guarantee by electing the Harvest Price Exclusion (HPE). The Revenue Protection plan covers revenue lossed due to a low price, low yield, or any combination of the two. An indemnity is due when the calculated revenue (production to count x harvest price) is less than the final guarantee for the crop acreage. The Revenue Protection Plan and the Revenue Protection Plan with the Harvest Price Exclusion (HPE) are available for the following crops: barley, canola/rapeseed, corn, cotton, grain sorghum, rice, soybeans and wheat.
The dollar plan provides 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 value of the crop 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 their coverage level.
Group Risk Income Protection (GRIP)
GRIP is based on the experience of the county rather than individual farms, so actual production history (APH) is not required for this program. A GRIP policy includes coverage against potential loss of revenue resulting from a significant reduction in the county yield or commodity price of a specific crop. When the county yield estimates are released, the county revenues (or payment revenues) will be calculated the following crop year. A GRIP policy will pay an indemnity when the county revenue is less than the "trigger" revenue on the individual producer's policy. Since this plan is based on the county revenue and not individual revenue, the insured may have a loss in revenue on their farm and not receive payment under GRIP. A GRIP Harvest Revenue Option (HRO) endorsement is available. This Option offers "upside" price protection by valuing lost bushels at the harvest price in addition to the coverage offered under GRIP.
GRP coverage is based on the experience of the county rather than individual farms, so actual production history (APH) is not required for this program. GRP indemnifies the insured in the event the county average per-acre yield (the payment yield) falls below the insured's "trigger" yield. The Federal Crop Insurance Corporation (FCIC) will issue the payment yield in the calendar year following the crop year insured. Since this plan is based on county yields and not individual yields, the insured may have a low yield on their farm and not receive payment under the GRP plan of insurance.
Rainfall Index Plan of Insurance
Beginning in the 2009 Crop Year, the new Rainfall Index Plan of Insurance is available for two crops: Apiculture and Pasture, Rangeland, Forage (PRF).
- Apiculture crop coverage is available for beekeepers that rely on the health and productivity of the acreages their honey bees (insured by colonies) pollinate and feed on for the production of honey.
- PRF crop coverage is available for farmers and ranchers who rely on pasture, rangeland, or forage acreage for haying or grazing to feed their livestock. The Rainfall Index Plan of Insurance is an 'area plan' that bases coverage on the rainfall experience in a small area called a grid. Rainfall Index Plan grids are squares of 12 by 12 miles. These small grids allow Rainfall Index policies to provide more localized coverage. Grids are reported in place of the producer's FSN or other land location.
The Rainfall Index Plan uses average precipitation data provided by the National Oceanographic and Atmospheric Administration (NOAA) Climate Prediction Center (CPC). The same data is used to maintain the Palmer Drought Index. This precipitation data is used for rating and for determining expected and final grid indices.
Coverage is purchased the calendar year before the crop year begins. Producers allocate their insured crop for a grid and share into two or more 2-month time periods called Index Intervals. There are six Rainfall Index Intervals available. Producers select the appropriate Index Intervals for their operation by asking themselves "When do I need rain on this parcel to have a good harvest this year?" Their answer tells them which Index Interval(s), or time periods, they should select to best mitigate their risk.
Producers need to report all of the colonies or acres that qualify for coverage (are insurable) in the policy county; however, producers are not required to insure 100% of those qualifying colonies or acres. A producer's Actual Production History (APH) is not used for this Plan.
Rainfall Index Plan policies pay an indemnity if the Federal Crop Insurance Corporation (FCIC)-issued Final Grid Index for a specific Index Interval falls below the insured's Trigger Grid Index.
A crop insured under the Rainfall Index Plan is intended for producers whose crop tends to be produced on acreage that follows the average rainfall patterns for the grid. Because this Plan is based on grid precipitation data from NOAA's CPC and not on individual production, the insured may have low rainfall in a grid and still not receive an indemnity.
Vegetation Index Plan of Insurance
Beginning in the 2009 Crop Year, the new Vegetation Index Plan of Insurance is available for two crops: Apiculture and Pasture, Rangeland, Forage (PRF).
- Apiculture crop coverage is available for beekeepers that rely on the health and productivity of the acreages their honey bees (insured by colonies) pollinate and feed on for the production of honey.
- PRF crop coverage is available for farmers and ranchers who rely on pasture, rangeland, or forage acreage for haying or grazing to feed their livestock.
The Vegetation Index Plan of Insurance is an 'area plan' that bases coverage on the vegetation density and active plant cell growth ("greenness") experience in a small area called a grid. Vegetation Index Plan grids are squares of 4.8 by 4.8 miles. These small grids allow Rainfall Index policies to provide more localized coverage. Grids are reported in place of the producer's FSN or other land location.
Vegetation Index coverage protects against a reduction in the grid's index, which is an average of the historical vegetation density/thriving plant matter measured within that grid. The index reflects the level of "greenness" relative to the long-term average for the specified area and time period.
The Vegetation Index Plan uses averaged Normalized Difference Vegetation Index (NDVI) data provided by the Earth Resources Observation Systems (EROS) - the same satellite imagery and capabilities used by NASA. This vegetation density data is used for rating and for determining expected and final grid indices.
Coverage is purchased the calendar year before the crop year begins. Producers allocate their insured crop for a grid and share into one or more three-month time periods called Index Intervals. There are four Vegetation Index Intervals available. Producers select the appropriate Index Intervals for their operation by asking themselves "When do I most need this parcel to be green and active to have a good harvest this year?" Their answer tells them which Index Interval(s), or time periods, they should select to best mitigate their risk.
Producers need to report all of the colonies or acres that qualify for coverage (are insurable) in the policy county; however, producers are not required to insure 100% of those qualifying colonies or acres. A producer's Actual Production History (APH) is not used for this Plan.
Vegetation Index Plan policies pay an indemnity if the Federal Crop Insurance Corporation (FCIC)-issued Final Grid Index for a specific Index Interval falls below the insured's Trigger Grid Index.
A crop insured under the Vegetation Index Plan is intended for producers whose crop tends to be produced on acreage that follows the average vegetation growth patterns for the grid. Because this Plan is based on grid "greenness" data from EROS and not on individual production, the insured may have poor crop production (forage or honey) in a grid and still not receive an indemnity.
NAMED PERIL PRODUCTS (these products are not reinsured
by the FCIC)
- The intent of the BPM Policy is to allow the insured the opportunity to supplement the price election selected on an underlying APH, Yield, Revenue or Revenue HPE policy. The combined value of the supplemental coverage provided by the BPM Policy and coverage provided by the applicable MPCI policy may not exceed the value of the Actual Production History multiplied by the Base price election. Policy is available on Corn, Soybeans, Wheat, & Almonds in select states. Check with your Agro agent for availability in your area. The BPM policy is a private policy and is not reinsured by FCIC.
- The Umbrella Policy (UP) provides yield coverage for two consecutive years at 90% of an Enterprise APH. UP coverage starts at 90% and ends at 75%, where an underlying Mpci policy would provide coverage on an annual basis. The policy is designed to cover back to back shallow losses and also to provide protection for hedging input costs further out than existing annual insurance products. UP is only available on corn in select states. Check with your Agro agent for availability in your area. The UP policy is a private policy and is not reinsured by FCIC.
IRO - Increased Replant Option
- The Increased Replant Option (IRO) policy for corn and soybeans supplements the coverage provided by the Multiple Peril Crop Insurance (MPCI) policies authorized and reinsured by the Federal Crop Insurance Corporation (FCIC).
- The IRO policy is a private policy and is not reinsured by FCIC. However, with limited exceptions described in the policy, the guidelines applicable to the MPCI policy apply equally to the IRO policy
- By purchasing the IRO policy, an insured may be eligible for replant coverage and payments on a small parcel of land that would not qualify for coverage or a payment under the provisions of the applicable MPCI policy.
- Unlike the replant provisions of the various MPCI policies, IRO does not have a minimum 20% or 20 acres acreage requirement.
- Contact your agent for additional information.
SRP - Sugar Beet Replant Policy
- The intent of the Sugar Beet Replant Policy (SRP) is to reimburse an insured for the expense of replanting their sugar beet crop when the crop is damaged by an insured peril to the extent that replanting is necessary. Our reimbursement is in excess of any replant benefit that the insured may receive under the provisions of the related MPCI policy. Coverage is available from $20 to $60 an acre in $5 increments. This policy will pay in addition to the MPCI policy replant payment on acreage initially planted to a like variety. Check with your Agro agent for avaialability in your area. The SRP policy is a private policy and is not reinsured by FCIC.
- A full line of hail insurance products are available, including Production Hail. (see individual state rate manuals for available products)