Revenue Protection

Revenue Protection

Revenue Protection (RP) and Revenue Protection with Harvest Price Exclusion (RPHPE) are multi-peril crop insurance products that are based on the Commodity Exchange Price Provisions (CEPP) prices and protect against production loss, price decline or increase, or a combination of both. To determine the loss guarantee, RP will use the greater of the Projected or Harvest Price. RPHPE insures in the same way as RP, but uses only the Projected Price to determine the loss guarantee.

How Does it Work?

• Both plans establish a minimum guarantee of revenue per acre.
• The producer may select coverage with or without Harvest Price Exclusion.
• To determine the Revenue Guarantee, RP will use the greater of the Projected Price or Harvest Price. RPHPE will use only the Projected Price.
• For both plans, the indemnity payment is determined using the Harvest Price.
• If Revenue to Count is less than final Revenue Guarantee, an indemnity is paid.

What are the Benefits

• Protects against revenue loss caused by low yields and/or low prices
• RP offers "upside" Harvest Price Protection by valuing lost bushels at the Harvest Price
• Flexible and efficient management tool for crop producers
• Subsidized by the Federal Crop Insurance Corporation (FCIC)

Benefits Continued

• Harvest price has no limit on the downward movement
• Coverage on basic, optional, enterprise, and whole-farm units where available
• Discounts for producers that insure multiple crops on whole-farm units
• Premium amount is determined using the Projected Price. The premium will not increase even if the Harvest Price is higher than the Projected Price