Insurance Products

GRIP (Group Risk Income Protection)
This is a revenue based county policy rather than individual producer based, so no individual producer records are required. The price determination is the same as RP (with the exception of the producer having the option to include the Harvest Price, GRIP/HRO, or not), but the county yields are determined by NASS (National Agricultural Statistics Service) the following year. Indemnity payments are ”triggered” when the county revenue (final county yield x harvest price) is less than the ”trigger” revenue on the individual producer’s policy (expected county yield x coverage level, 70%-90%, x spring price, or Harvest Price if the GRIP/HRO option is chosen). Since this is a county based revenue policy, an individual producer may have a loss in revenue on his/her farm and not receive any indemnity payment.

GRP (Group Risk Protection)
This is a county based yield policy rather than an individual producer based, so no individual producer records are required. County yields are determined by NASS and the price is determined by the CBOT (the same as YP) in the spring of the crop year. Indemnity payments are ”triggered” when the county yield is less than the insured’s “trigger” yield, based on the level of coverage selected by the producer, 70%-90% of the expected county yield. Since this is a county based yield policy, an individual producer may have a loss in yield on his/her farm and not receive any indemnity payment.

YP (Yield Protection)
By choosing this policy producers are insured against yield losses due natural causes, such as drought, flooding, excessive moisture, hail, wind, frost, disease, and insects. The producer’s yield history is determined by the records he/she supplies, with a minimum of 4 years building to a 10 year yield history. The Projected Price is established by the average of the daily price of the February close of the December corn contract on the CBOT, and the average of the daily price of the February close of the November soybean contract on the CBOT. The producer can choose coverage levels from 50%-85% of his APH, and price levels from 55%-100% of the CBOT price. If the harvested production is less than the yield insured, then there is a payable indemnity (Yield Insured – Harvested Production x % Projected Price).

RP (Revenue Protection)
Producer’s have a guaranteed revenue with this policy. Losses can still be natural causes as in the YP policy, but in addition price can also be a cause of loss. The final guaranteed revenue is determined by the higher of the Projected Price (February close of the December corn contract and the November soybean contract) or the Harvest Price (October close of the December corn contract and the November soybean contract) on the CBOT times the coverage level (50%-85%) of the yield history (APH). An indemnity can be paid when the harvested production x the Harvest Price is less than the final guaranteed revenue.

RP/HPE (Revenue Protection with Harvest Price Exclusion)
This is the same as RP except the Projected Price determines the guaranteed revenue. This policy provides income protection when prices and/or yields fal