COVERAGE

MPCI - Multiple Peril Crop Insurance
CRC - Crop Revenue Coverage
RA - Revenue Assurance
CAT - Catastrophic Coverage

Protection is flexible to allow insureds to select coverage and level of protection according to their individual risk managment needs.

Common Denominators

• Continuous Coverage
• Must insure all acres of all like crops in the county
• Coverage based on the producers Acrual Production History (APH)
• Must purchase or make changes to all plicies by sales closing
• Prevented planting coverage a part of all policies

MPCI - MUTIPLE PERIL COVERAGE INSURANCE

• Individual policy
• Losses paid if actual yeild is less then the guaranteed yeild
• Coverage levels - CAT, 50% to 85% depending on area and/or crop:
  • The higher your level, the more coverage you have.
  • At 85%, loss would be paid when yield reduction is 16% or more of expected yield (APH).
• Premiums are subsidized to reduce out-of-pocket costs.

  Wheat MPCI Loss Example

  Established Price	Loss Scenario
  $3.50	Guarantee 37.5 bu
  Additional Price $3.50	Harvested Bushels
  APH 50	30 bu
  Level 75%	Deficiency 7.5 bu
  PGA 37.50 bu	7.5 bu x $3.50 = Payment
  Interest in crop 100%	Payment $26.25/acre
  30 bu Harvest

  
  
  

PERILS NOT COVERED

• Negligence
• Fire - man made (i.e. Combine Fires)
• Mismanagment - chemical damage
• Wrongdoing - including any member of the household, tenants, or employees
• Failure to follow good farming and harvesting practices
• Backing up of water by any governmental or public utilities dam or reservoir project
  
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CRC - CROP REVENUE COVERAGE

• Individual policy
• Revenue-based guarantee (bushel & price; quality)
• Sets a minimum revenue guarantee at planting and a harvest guarantee at harvest,
  both based on the market
• Final guarantee established at higher of minimum guarantee or harvest guarantee
  (caused by price changes)
• Coverage levels - 50% - 85%
  
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RA - REVENUE ASSURANCE

• Individual policy
• Revenue-based guarantee
• Product available in two policy types:
  1. Basic/Standard (100% base price)
  2. Endorsement available w/Harvest Price Option
• With HPO endorsement, coverage similar to CRC policy
• Product differences from CRC
  • Premium rating process differs from CRC (cost)
  • Whole Farm Units available with RA
• Coverage levels - 65% to 85% for all unit categories

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"CAT"- CATASTROPHIC COVERAGE

• Individual Policy
• Coverage for catastrophic bushel loss
• Coverage levels - 50% level; 55% market price
• Low cost, minimal coverage
  
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PRODUCER RESPONSIBILITIES

• Keep separate reporting records for each optional field
• If commingling in home bins - must request permission
• Precision farming monitoring can be used of APH purposes but no in loss situation
• Loss notice - turn in AS SOON AS LOSS IS DISCOVERED
• Report production before end of insurance period
  • August 1st - Wheat
  • December 1st - Spring Crops
    
    

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ACREAGE REPORTING

• An Acreage Report must be completed regardless if acres are planted or not.
• All acres of the crop in the county, insurable or uninsurable, must be reported.
• All acres that were Prevented Plant must be reported.
• Acreage Report must be signed and dated timely by the Acreage Reporting Date shown in the County Actuarial, or coverage is at risk.
• Entity/Acres/Share information must match the information provided to the FSA
  (Data Reconciliation).
• Share interests must be accurate.
  
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