Crop Insurance Today Fourth Quarter 2021 - 24

CROP INSURANCE
Yield
Abbreviation Code
Protection
YP - Plan 01
Yield Protection (YP) provides
protection against a loss in yield due
to unavoidable, naturally occurring
events. For most crops that includes
adverse weather, fire, insects, plant
disease, wildlife, earthquake, volcanic
eruption, and failure of the irrigation
water supply due to a naturally
occurring event. Like the APH (Actual
Production History) plan of insurance,
YP guarantees a production yield
based on the individual farmer's APH.
Unlike the APH plan of insurance, a
price for YP is established according
to the crop's applicable commodity
board of trade/exchange as defined
in the Commodity Exchange Price
Provisions (CEPP). The projected
price is used to determine the yield
protection guarantee, premium, any
replant payment or prevented planting
payment, and to value the production
to count. The coverage and exclusions
of YP are similar to those for the APH
plan of insurance. An indemnity is due
when the value of the production to
count is less than the yield protection
guarantee. The main crops covered
under this plan include barley (includes
malting type), canola/rapeseed, corn,
cotton, grain sorghum, peanuts, rice,
soybeans, sunflowers, and wheat.
24 FOURTHQUARTER2021
Revenue
Protection
RP - Plan 02
Revenue Protection (RP) provides
protection against a loss of revenue
caused by price increase or
decrease, low yields or a combination
of both (for corn silage and rapeseed,
protection is only provided for
production losses). This coverage
guarantees an amount based on the
individual farmer's APH and the greater
of the projected price or harvest price.
Both the projected price and harvest
price are established according to the
crop's applicable commodity board
of trade/exchange as defined in the
Commodity Exchange Price Provisions
(CEPP). While the revenue protection
guarantee may increase, the premium
will not. The projected price is used
to calculate the premium and replant
payment or prevented planting
payment. An indemnity is due when
the calculated revenue (production
to count x harvest price) is less than
the revenue protection guarantee
for the crop acreage. Crops covered
under this plan include barley (includes
malting type), canola/rapeseed, corn,
cotton, grain sorghum, peanuts, rice,
soybeans, sunflowers, and wheat.
(Please note the " Maximum Price
Movement " for rapeseed and corn
silage on page 26.)
RP w/Harvest
Price Exclusion
RP-HPE - Plan 03
Revenue Protection Harvest Price
Exclusion (RP HPE) is similar to
Revenue Protection (RP), however
RP HPE coverage provides protection
against loss of revenue caused by
price decrease, low yields or a
combination of both. Unlike RP, the
revenue protection guarantee for RP
HPE is based on the projected price
only and it does not increase based on
a harvest price. Crops covered under
this plan include barley (includes
malting type), canola/rapeseed, corn,
cotton, grain sorghum, peanuts, rice,
soybeans, sunflowers, and wheat.
Crop Insurance Today Fourth Quarter 2021

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