Common Crop Insurance Policy

 

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.

2010 Policy

Crop Revenue Coverage (CRC)

Converted to 2011 Crop Year to:

Revenue Protection Plan

Revenue Assurance (RA) with the Fall Harvest Price Option

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Revenue Protection Plan

Revenue Assurance (RA) without the Fall Harvest Price Option

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Revenue Protection Plan with the Harvest Price Exclusion

Income Protection (IP)

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Revenue Protection Plan with the Harvest Price Exclusion

Indexed Income Protection (IIP)

Revenue Protection Plan with the Harvest Price Exclusion

Actual Production History (APH) (includes CAT endorsement)

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Yield Protection Plan

 

Revenue Products Claims and Indemnity

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.

Projected and Base Prices

Displays price information for crops covered by Yield Protection (YP), Revenue Protection (RP), Revenue Protection with Harvest Price Exclusion (RPHPE), and Group Risk Income Protection (GRIP). We accumulate daily prices during the price discovery periods. At the conclusion of the period, the application reports the final approved prices.

Price Discovery Reporting

 

 

  Corn   Soybean
  Projected Price Revenue   Projected Price Revenue
  Yield & Revenue Harvest   Yield & Revenue Harvest
2013          
2012 $5.68 $7.50   $12.55 $15.39
2011 $6.01 $6.32   $13.49 $12.14
 
  APH CRC / RA Base CRC Harvest RA / HO Harvest   APH CRC / RA Base CRC & RA Harvest
2010  $     3.90  $     3.99  $     5.46  $     5.52    $     9.15  $     9.23  $    11.63
2009  $     4.00  $     4.04  $     3.75  $     3.90    $     9.90  $     8.80  $      9.66
2008  $     4.75  $     5.40  $     4.13  $     3.74    $   11.50  $   13.36  $      9.22
2007  $     3.50  $     4.06  $     3.58  $     3.82    $     7.00  $     8.09  $      9.75
2006  $     2.00  $     2.59  $     3.03  $     3.56    $     5.15  $     6.18  $      5.93
2005  $     2.20  $     2.32  $     2.02  $     1.93    $     5.00  $     5.53  $      5.75
2004  $     2.45  $     2.83  $     2.05  $     1.99    $     5.60  $     6.72  $      5.26
2003  $     2.20  $     2.42  $     2.26  $     2.37    $     5.30  $     5.26  $      7.32
2002  $     2.00  $     2.32  $     2.52  $     2.43    $     5.00  $     4.50  $      5.45
2001  $     2.05  $     2.46  $     2.05  $     2.05    $     5.26  $     4.67  $      4.37
2000  $     1.90  $     2.51  $     2.11  $     2.11    $     5.16  $     5.32  $      4.72

 

Crop Insurance Handbook

Crop Insurance Handbooks (CIH)
Provides underwriting standards and instructions for multiple peril crop insurance (MPCI) policies insured at catastrophic and additional coverage levels.

2013 Crop Insurance Handbook. Feb 2013.

CIH Slipsheets. Feb 2013.
Other RMA Base & Projected Prices

 

 

  Spring Wheat   Sugar beets   Sweet Corn
  Projected Price Revenue   APH Election   APH Election
  Yield & Revenue Harvest                
         $     59.85  `     $    101.00  
  $7.84      $     51.30  $     59.85    $      98.00  $ 101.00
  $9.89 $8.90    $     41.50      $      87.00  
   
  APH CRC / RA Base CRC & RA Harvest            
2010  $     4.90  $     5.43  $      7.08    $     43.75      $      87.00  
2009  $     6.70  $     6.20  $      5.57    $     43.00      $      90.00  
2008  $     9.25  $   11.11  $      9.11    $     39.00      $      90.00  
2007  $     4.45  $     5.23  $      6.61    $     39.00      $      60.00  
2006  $     3.15  $     4.22  $      4.57    $     38.00      $      50.00  
2005  $     3.50  $     3.35  $      3.46    $     38.00      $      50.00  
2004  $     3.35  $     4.00  $      3.46    $     39.00      $      50.00  
2003  $     3.15  $     3.64  $      3.77    $     38.50      $      55.00  
2002  $     3.15  $     3.18  $      4.04    $     33.00      $      55.00  
2001  $     2.80  $     3.41  $      3.10    $     36.00      $      50.00  
2000  $     3.15  $     3.18  $      2.69    $     40.00      $      45.00  

 

Non-Discrimination Statement

The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the bases of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual's income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities.)

For more information, contact the RMA Civil Rights Office at 202-690-3578 (main line).