The primary reason for an indemnity for Crop Insurance is the failure of a crop. This Minnesota corn yield trend chart shows several years in the past that corn yields were significantly below expected trends.  

The Federal Crop Insurance Corporation (FCIC) released a new Common Crop Insurance Policy Basic Provisions and related crop provisions that will be the basis for insurance coverage starting with the 2011 crop year. The new policy combines the Actual Production History (APH), Crop Revenue Coverage (CRC), Revenue Assurance (RA), Income Protection (IP) and Indexed Income Protection (TIP) policies into a single policy.

COMBINING SIMILAR POLICIES = NEW COMMON POLICY: Simply put, the newly released Common Crop Insurance policy combines several different policies that had similar features into a single policy. Key features, most important to producers from previous multiple policies were retained, along with simplifying your insurance options for insuring the crops you plant.

POLICY WILL AUTOMATICALLY CONVERT: Your crop insurance policy is a continuous contract; therefore, your policy will renew and automatically convert to the coverage most similar to the type of policy you had last year. If you do not wish to make changes to your crop insurance policy for the 2011 crop year, then no additional paperwork is required. The chart provided below describes how your 2010 policy will be converted to the new policy for the 2011 crop year. Both yield and revenue protection policies are available for the 2011 crop year under the new Basic Provisions and related crop provisions for wheat, barley, malting barley, corn, grain sorghum, soybeans, cotton, rice, sunflowers and canola/rapeseed.

A revenue product indemnity may be earned from a yield loss, revenue price change or a combination of both. This trigger yield claculator can be used to estimate if you may have an indemnity payment due. Actual indemnity payments are subject to determination by an adjustor and the company. 

Trigger Yield Calculator    

The iFARM Crop Insurance Crop Insurance Evalulator is a sophisticated risk simulation engine to evaluate a range of popular insurance products for corn and soybeans farms in Illinois, Indiana, Iowa, Minnesota, Missouri and Ohio.  Includes Frequency of Indemnity Payments, Average Payments from Insurance, Farmer-Paid Premium Costs, and provides revenue and risk impacts.

The current RA and Crop Revenue Coverage (CRC) Basic Provisions and procedures each require that notice of revenue loss be provided not later than 45 days after release of the fall harvest price for RA or the harvest price for CRC (hereafter final price). Further, these policies specify that a claim for indemnity must be submitted not later than 60 days after release ofthe final price unless the producer requests an extension in writing and the Approved Insurance Provider (AlP) agrees to such request. If the producer has farm-stored production they may also elect, in writing, to delay measurement of the farm-stored production.

RMA has been advised there are areas in the country where producers may still be harvesting the crop more than 45 or 60 days after release ofthe final price. In these situations, producers may not have sufficient information to timely determine whether they have a revenue loss and therefore be unable to comply with the notice ofrevenue loss and submission of claim provisions of the RA and CRC policies.

The Crop Revenue Coverage (CRC) and Revenue Assurance (RA) policy endorsements specifies how, where, and when commodity prices for the Base Price and Harvest Price are determined. The Base Price and Harvest Price, are defined as the sum of all daily settlement prices (established on full active trading days) for the appropriate commodity contract, during the time period specified in the applicable Base Price or Harvest Price definition, then dividing that sum by the total number of full active trading days included in the sum.

RMA Price Discovery Reporting Tools  

APH & Revenue Price History

We look at how your revenue insurance provides a floor. The tables shown in the article show the effective guarantee value per bushel if you grow a crop equal to your Guarantee Yield. Because you have grown a crop it will be sold in the cash market and the basis at the time of the sale will impact your net price. The cash equivalent shown is an example of a revenue floor established by using the base price, your coverage level elected and a local basis for growing a crop equal to your guarantee yield.

2010 Revenue Insurance Floor Reviewed

Supplemental Insurance Coverage is provided by Private Policies to supplement the coverage provided by the Multiple Peril Crop Insurance (MPCI) policies authorized and reinsured by the Federal Crop Insurance Corporation (FCIC). These are private policies and is not reinsured by FCIC.

Fact Sheet for Base Price Modifer, Increased Replant Option, SugarBeet Replant Policy.

Umbrella Policy provides Multiple Year coverage available for Corn only. The Umbrella Policy (UP) provides yield coverage for two consecutive years at 90% of an Enterprise APH. UP coverage starts at 90% and ends at 75%, where an underlying Mpci policy would provide coverage on an annual basis. The policy is designed to cover back to back shallow losses and also to provide protection for hedging input costs further out than existing annual insurance products. UP is only available on corn in select states.

The intent of the Base Price Modifer (BPM) Policy is to allow the insured the opportunity to supplement the price election selected on an underlying MPCI, CRC, RA, or RA/HPO Policy. The combined value of the supplemental coverage provided by the BPM Policy and coverage provided by the applicable MPCI policy may not exceed the value of the Actual Production History multiplied by the Base price election. Policy is available on Corn, Soybeans, Wheat, & Almonds in select states.

The Increased Replant Option (IRO) policy for corn and soybeans supplements the coverage provided by the Multiple Peril Crop Insurance (MPCI) policy. The intent of the IRO policy is to allow the insured the opportunity to supplement any replant payment they may receive under their MPCI policy. Growers can choose $30, $40, or $50 of additional replant coverage. Unlike the replant provisions of the various MPCI policies, IRO does not have a minimum acreage requirement. IRO corn and soybean policies can be written in conjunction with APH, Crop Revenue Coverage (CRC), and Revenue Assurance (RA) Plans of Insurance .

The intent of the SugarBeet Replant Policy (SRP) is to reimburse an insured for the expense of replanting their sugar beet crop when the crop is damaged by an insured peril to the extent that replanting is necessary. Our reimbursement is in excess of any replant benefit that the insured may receive under the provisions of the related MPCI Policy.

Supplemental Revenue Assistance (SURE) payments are designed to supplement the protection producers can purchase from private crop insurance companies. In fact, a producer must purchase insurance for all major crops produced each year to be eligible for the SURE disaster program, starting in 2008.

Farmers may be eligible to receive a SURE payment if they operate land in a county that has been declared a disaster county by the U.S. Secretary of Agriculture ("Secretarial Designated" disaster counties) or in a county that is contiguous to a disaster county. Farming operations not in eligible counties can also qualify if they have more than a 50 percent loss in the expected gross value of their crop production. Additionally, at least one crop on the farm must suffer a production (yield or quality) loss of ten percent or more for the farm to receive a payment.

SURE is a revenue guarantee program, similar to crop revenue insurance. If the farm's actual crop revenue is less than the guarantee, the SURE payment makes up 60 percent of the difference. The actual crop revenue includes not only the estimated value of the crop produced, but other USDA payments and crop insurance indemnity payments received, as well. This prevents farmers from receiving double payments for the same losses

FSA SURE Fact Sheet               Sure - Art Barnaby KSU

ISU Calculator to estimate payments under Supplemental Revenue Assistance (SURE) for 2008 or 2009 crops

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at 202-720-2600 (voice and TDD). To file a complaint of discrimination write to: USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, or call 800-795-3272 (voice), or 202-720-6382 (TDD). USDA is an equal opportunity provider and employer.