Crop Insurance Today May 2013 - (Page 44)

Crop Insurance CropInsuranceTODAY By Dean Strasser, NCIS The NCIS Crop Insurance Plan Comparison (CIPC) has been updated for the 2013 crop year and is current as of March 21, 2013. This popular NCIS product is designed for use as a quick reference job aid for crop insurance company personnel, crop insurance agents and producers alike. The CIPC is a thorough, yet compact list of major crop insurance plans of coverage. It includes a general overview and a side-by-side comparison of the available insurance products which are available on a national or almost-national basis. Please note that the products and product topics summarized in this chart are NOT all-encompassing and do NOT substitute for the policy provisions. Please refer to the policy provisions and/or contact your company for a complete description of the available coverages and their terms and conditions. Yield Protection Abbreviation – Code Revenue Protection RP with the Harvest Price Exclusion YP – Plan 01 RP – Plan 02 RP HPE – Plan 03 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 producer’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, rice, soybeans, sunflowers, and wheat. 44 MAY2013 Revenue protection 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 producer’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, rice, soybeans, sunflowers, and wheat. (Please note the “Maximum Price Movement” for rapeseed and corn silage on the following page.) RP HPE is similar to 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 protec, tion 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, rice, soybeans, sunflowers, and wheat.

Table of Contents for the Digital Edition of Crop Insurance Today May 2013

President's Message
2012 Year in Review
2013 Annual Convention Great Success!
Max Erickson Awarded Outstanding Service Award
Larry Heitman Pesented Leadership Award
Leadership of NCIS Regional/State Crop Insurance Committees
How Do Farmers Manage Risk When It Comes in So Many Forms?
Step 9-Monitoring and Controlling the Farm Business Q: How do I monitor progress over time?
Three Industry Stalwarts Presented Lifetime Achievement Awards
Cover Crops
Crop Insurance Plan Comparison
NCIS Retirements

Crop Insurance Today May 2013