Crop Insurance Today Fourth Quarter 2021 - 25

PLAN COMPARISON
The NCIS Crop Insurance Plan Comparison and the new Livestock Plan Comparison are current as of October 2021. These documents are
designed for use as a quick reference job aid for crop insurance company personnel, crop insurance agents, and farmers.
These two comparison charts are a thorough, yet compact list of major crop insurance and livestock plans of coverage. They include a general
overview and a side-by-side comparison of the insurance products which are available on a national or almost-national basis.
The products and product topics summarized are NOT all-encompassing and do NOT substitute for the policy provisions. See the policy
provisions and/or contact an agent or company for a complete description of the available coverages and their terms and conditions.
Area Yield
Protection
AYP - Plan 04
Area Yield Protection (AYP) coverage
is based on the experience of the
county rather than individual farms.
Maintaining the insured's actual
production history is now mandatory
and may be used by RMA as a data
source to establish and maintain the
area programs. AYP indemnifies the
insured in the event the final county
yield falls below the insured's trigger
yield. The Federal Crop Insurance
Corporation (FCIC) will issue the final
county yield in the calendar year
following the crop year insured. Since
this plan is based on county yields
and not individual yields, the insured
may have a low yield on their farm
and not receive payment under AYP.
Area Revenue
Protection
ARP - Plan 05
Like the other area plans, Area
Revenue Protection (ARP) is based on
the experience of the county rather
than individual farms. Coverage is
provided against loss of revenue due
to a county level production loss, a
price decline, or a combination of
both. Upside harvest price protection
is included which increases the policy
protection at the end of the insurance
period if the harvest price is greater
than the projected price and if there
is a production loss. ARP will pay a
loss when the final county revenue is
less than the trigger revenue which
is calculated using the higher of the
projected price or harvest price.
Area Revenue
Protection w/Harvest
Price Exclusion
ARP-HPE - Plan 06
Like Area Yield Protection, Area
Revenue Protection Harvest Price
Exclusion (AYP, ARP-HPE) is based on
the experience of the county rather
than individual farms. Maintaining the
insured's actual production history is
now mandatory and may be used by
RMA as a data source to establish
and maintain the area programs. An
ARP-HPE policy provides protection
against loss of revenue due to a
county level production loss, price
decline, or a combination of both. This
plan only uses the projected price
and does not provide upside harvest
price protection. An indemnity is due
under ARP-HPE when the final county
revenues published by FCIC are less
than the trigger revenue. Since this
plan is based on county revenue and
not individual revenue, the insured
may have a loss in revenue on their
farm and not receive payment under
ARP-HPE.
Actual Production
History
APH - Plan 90
Actual Production History (APH) is
the oldest insurance product listed
on this comparison chart. The APH
plan of insurance provides protection
against a loss in yield due to nearly all
natural disasters. For most crops, that
includes drought, excess moisture, cold
and frost, wind, flood and unavoidable
damage from insects and disease.
Like YP, the APH plan of insurance
guarantees a yield based on the
individual farmer's actual production
history. Unlike YP, the available price
elections are established by the Risk
Management Agency. An indemnity is
due when the value of the production
to count is less than the liability. Of the
small grain crops, only oats, rye, flax,
and buckwheat remain covered under
the APH plan of insurance.
CROPINSURANCE TODAY®
25

Crop Insurance Today Fourth Quarter 2021

Table of Contents for the Digital Edition of Crop Insurance Today Fourth Quarter 2021