Multiple Peril Crop Insurance (MPCI) is federally subsidized protection from numerous causes of loss, including drought, excessive moisture, freeze, disease and more. Several MPCI products and endorsements are available specifically intended for different crops and diverse areas of the United States.
Actual Production History (APH)
Provides comprehensive protection against weather-related causes of loss and certain other unavoidable perils. Check Crop Provisions for specific causes of loss.
Coverage Levels: 50%-85%, in 5% increments, (80% and 85% coverage levels are not available in all areas) of the APH up to 100% of the price election (determined by RMA). CAT coverage is available at 50% of the APH and 55% of the price election.
Apiculture (API)
Provides coverage for lost honey production due to insufficient plant growth caused by below normal precipitation. Not all the colonies within the operation must be insured.
Coverage Level: 70 to 90 percent.
Area Revenue Protection (ARP)
An area-based revenue insurance program that provides insurance protection against widespread loss of revenue in a county. ARP does not provide coverage for prevented planting or replanting.
Coverage Level: From 70%-90%, in 5% increments, of the county revenue. Coverage is expressed as a county revenue trigger (expected county yield multiplied by the expected price and coverage level).
Area Yield Protection (AYP)
Provides protection against loss of yield due to a county level production loss. A loss payment triggers when the county average yield in a given year falls below the trend adjusted average yield by a greater percentage than the insured’s selected deductible. AYP does not provide coverage for prevented planting or replanting.
Coverage Level: CAT at 65% of the expected county yield and 45% of the projected price, and additional coverage of 70%-90% (in 5% increments).
Dairy Revenue Protection (DRP)
Insures against unexpected declines in quarterly revenue from milk sales as a result of a decline in milk prices, a decline in milk production or a combination of both. The policy uses the futures prices for milk and other dairy commodities and milk production indexed to state or region as a basis for its guarantee. The program does not insure against loss or destruction of cattle or individual yield risk (similar to Area Risk Protection Insurance).
Forage Production
Insurable under the APH plan. Forage coverage is available for the following types of production: Alfalfa, Red Clover, Alfalfa Grass, Birdsfoot Trefoil, Grass Alfalfa, Birdsfoot Trefoil Grass, Dryland Timothy and Orchardgrass. Losses are paid when the production to count is less than the guarantee. Production from all cuttings is used to calculate the production to count.
Coverage Level: from 50%-85% (check your county actuarial for availability of 80% and 85% levels), with up to 100% of the price election. CAT coverage is also available at the 50% level and 55% of the price election.
Margin Protection (MP)
Provides you coverage against an unexpected decrease in your operating margin (revenue less input costs). MP is area-based, using county-level estimates of average revenue and input costs to establish the amount of coverage and indemnity payments. To the extent that the average margin for a county is lower than expected, due to a decrease in revenue and/or an increase in input costs, MP will cover a portion of that shortfall. MP can be purchased by itself or in conjunction with a YP or RP policy.
Coverage Level: From 70%-95% of the expected margin.
Nursery Protection
Provides coverage for plants that are container grown, field grown or both. The plants must be produced by a business enterprise that derives at least 40% of its gross income from the wholesale marketing of plants. Plants are insurable if they are listed on the “Eligible Plant Listing” and meet hardiness zone requirements. Covered perils include adverse weather, fire, wildlife, earthquake/volcanic eruption, frost/freeze (if required protection is used), disease/insect (for which there is no effective control), failure of power/irrigation supply (caused by a covered peril) and delay in marketability if such a delay results in the reduction in the value of the plants (due to a covered peril that occurs within the insurance period).
Coverage Level: Either at a CAT or buy-up level for each insured practice (container grown or field grown). CAT (50/55) provides coverage at 50% of the insurable plant inventory and 55% of either the lesser of the wholesale price or the price listed on the Plant Price Schedule. Buy-up levels vary from 50-75% (in 5% increments) of your insurable plant inventory at 100% of either the lesser of your wholesale price or the price listed on the Plant Price Schedule. Different coverage levels may be elected for each plant type.
Revenue Protection (RP)
Comprehensive protection through a dollar guarantee. RP also provides prevented planting and replant protection. A projected price is used to calculate the premium, replant payments and prevent planting payments. RP covers weather-related causes of loss, certain other unavoidable perils and price fluctuations. The RP dollar guarantee for the insurance unit is the approved yield times the level of coverage, the insured acreage, the percent of share and the projected price. There is increased protection if the harvest price is higher than the projected price. Revenue Protection with Harvest Price Exclusion does not provide increased protection if the harvest price is higher than the projected price.
Coverage Level: From 50%-85%, in 5% increments (80% and 85% coverage levels are not available in all areas).
Revenue Protection Harvest Price Exclusion (RPHPE)
Covers weather-related causes of loss, certain other unavoidable perils and price fluctuations. It offers comprehensive protection through dollar guarantee. RPHPE also provides prevented planting and replant protection. A projected price is used to calculate the premium, replant payments and prevent planting payments. RPHPE coverage excludes the use of the harvest price in the determination of the revenue protection guarantee, differentiating it from RP coverage. The RPHPE dollar guarantee for the insurance unit is the approved yield times the level of coverage, the insured acreage, the percent of share and the projected price. RPHPE does not provide increased protection if the harvest price is higher than the projected price.
Coverage Level: From 50%-85%, in 5% increments (80% and 85% coverage levels are not available in all areas).
Supplemental Coverage Option (SCO)
Provides additional coverage for a portion of your underlying crop insurance policy deductible. SCO is an endorsement to either a YP, RP or RPHPE policy. For crops that do not have revenue protection plans, SCO is also available as an endorsement to the APH policy. SCO follows the coverage of the underlying policy. If the underlying policy is YP, then SCO covers yield loss. If the underlying policy is RP, then SCO covers revenue loss.
Coverage Level: Dependent on the liability, coverage level and approved yield for your underlying policy.
Whole-Farm Revenue Protection (WFRP)
Provides a risk management safety net for all commodities on the farm under one insurance policy. This insurance plan is tailored for any farm with up to $8.5 million in insured revenue, including farms with specialty or organic commodities (both crops and livestock), or those marketing to local, regional, specialty or direct markets. WFRP can be purchased in conjunction with STAX. WFRP provides protection against the loss of insured revenue due to an unavoidable natural cause of loss, that occurs during the insurance period and will also provide carryover loss coverage if you are insured the following year.
Coverage Level: From 50%-85%.
Yield Protection (YP)
Protects against a production loss for crops for which revenue protection is available but was not selected. YP also provides prevented planting and replant protection. Coverage is expressed as a production guarantee (approved yield times the coverage level).
Coverage Level: CAT coverage is available at 50% of the approved yield and 55% of the projected price (50/55). The YP yield guarantee is the approved yield multiplied by the selected level of coverage and the insured acreage. Coverage levels are available from 50% to 75%, in 5% increments (80% and 85% coverage levels are available in limited areas) of the approved yield up to 100% of the projected price, which is determined by the Commodity Exchange Price Provisions.
Prevented Planting Coverage
Provides a payment to growers when they are unable to plant their crops due to an insurable cause. Perils covered are weather related and include drought. Prevented planting coverage for the same insured cause of loss event can continue up to two years. The guarantee is the protection per acre for timely planted acreage (historical yield [MPCI APH] multiplied by the level of coverage and the projected price multiplied by the applicable prevented planting coverage percentage. An additional prevented planting coverage level of plus 5% is available for a surcharge unless this option is not provided for in the county actuarial table (not available for CAT coverage level).
Replant Coverage
Provides a payment to growers to replant an insured crop that has been damaged by an insurable cause of loss. If allowed by the Crop Provisions, a replanting payment may be made on an insured crop, replanted after Rain and Hail has given consent (and documented in the claim file), and the acreage replanted is at least the lesser of 20 acres or 20% of the insured planted acreage for the unit.
Enhanced Coverage Option (ECO)
Provides additional area-based coverage for a portion of your underlying crop insurance policy deductible. With ECO, you can add an additional band of coverage from 86% all the way up to 95% of your approved yield. It works in conjunction with your underlying multi-peril policy so it must be purchased as an endorsement to the Yield Protection, Revenue Protection, Revenue Protection with the Harvest Price Exclusion, Actual Production History or Yield Based Dollar Amount of Insurance policy.
Freeze Date Extension for Hybrid Seed Corn
The MPCI program provides a frost or freeze date after which frost or freeze is not an insurable cause of loss. The Freeze Date Extension for Hybrid Seed Corn endorsement allows the insured to extend that frost or freeze date by either 5, 10, or 15 day increments. If a frost or freeze occurs during this extended coverage period that causes the seed corn warm test germination rate to drop below 80%, it would be a covered loss under this endorsement.
Increased Germination for Hybrid Seed Corn
The MPCI policy guarantees that the seed corn will have a warm test germination rate of 80% or greater on a total composite sample. The Increased Germination for Hybrid Seed Corn endorsement provides improved coverage by guaranteeing that the seed corn will have a warm test germination rate of at least 90% and a cold test germination rate of at least 80% as applied separately to samples of rounds and flats. Seed corn having a germination rate above the MPCI standard but less than the endorsement standards will be covered under this endorsement. Seed corn having a germination rate less than the MPCI standard will be covered by the MPCI policy.
Quality Loss (QL) Option
Utilizes your actual yields without adjustments for quality deficiencies to calculate your Approved APH, rather than the post-quality yields that are currently used. By electing QL, your APH database will reflect what you actually produced, not a yield that was reduced due to a quality issue.
Replant Extra
The Replant Extra endorsement provides additional coverage to the grower to cover the costs to replant above the amount that is provided on the underlying yield-based plan of insurance policy. The endorsement is available for corn, dry beans, soybeans and sugar beets.
Revenue Plus (RVP)
RVP is a private endorsement product that provides additional revenue coverage for the same crop(s)/county(ies) insured under the Revenue Protection (RP) plan of insurance. If the unit structure for RVP is the same as for the underlying RP policy, a RVP loss will be triggered at the same time as the RP policy regardless of whether the loss is due to a yield loss and/or price loss. The endorsement is available for corn and soybeans.
Yield Plus (YDP)
YDP is a private endorsement product that provides coverage based on the insured’s approved yield established for the underlying MPCI policy. YDP provides coverage against yield losses which results in the production to count being less than the MPCI production guarantee. YDP coverage is available when the underlying MPCI plan of insurance is Yield Protection (YP), Revenue Protection (RP), or Revenue Protection with the harvest price exclusion (RP-HPE).
