Insurance
3. GROUP RISK INCOME PROTECTION
What Are The Benefits of GRIP?
- Maximum policy protection is 150% of the expected county revenue – more than any other multi-peril program.
- Harvest Revenue Option allows the producer to increase expected county revenue if the fall price is higher than the spring price.
- Offers a competitive premium, requires no records and less paperwork to participate.
- Fits well with a full coverage Crop Hail policy, which provides added coverages.
- Subsidized by FCIC and protects against widespread loss of revenue in a county.
How Does GRIP work?
- Uses county yields based on National Agricultural Statistics Service (NASS) data.
- Determines expected and harvest prices using commodity future contracts.
- Pays an indemnity if the production is less than the guarantee
1. REVENUE PROTECTION & REVENUE PROTECTION WITH HARVEST PRICE EXCLUSION
Benefits of RP/RPHPE
- Protects against revenue loss caused by low yields and/or low prices
- Flexible and efficient management tool to crop producers
- The Harvest Price is limited to 200% of the Projected Price
- Coverage on basic, optional, enterprise, and whole-farm units where available
- Discounts for producers that insure multiple crops on whole-farm units
How Does RP/RPHPE Work?
- Establishes a minimum guarantee of revenue per acre. May select coverage with or with Harvest Price Exclusion
- For the loss guarantee, RP will use the greater of the Projected Price or Harvest Price; RPHPE will use only the Projected Price
- If revenue to count is less than final revenue guarantee, an indemnity is paid
2. YIELD PROTECTION & ACTUAL PRODUCTION HISTORY
Benefits of YP/APH
- Protection against production loss. Based on a producer’s own production history Provides coverage levels of 50% to 85% of the APH in 5% increments
- Provides coverage on basic and optional units. Enterprise and whole farm unit coverage is available in some areas
- Offers a competitive premium. Subsidized by the Federal Crop Insurance Corporation (FCIC)
How Does YP/APH Work?
- Establishes a guarantee of bushels per acre
- YP Projected Price is determined by futures contracts, and APH price is established by the FCIC
- Pays an indemnity if the production to count falls below the yield guarantee