Federal Products

RP (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.

RP-HPE (Revenue Protection with Harvest Price Exclusion) is very similar to RP. However, the revenue protection guarantee for RP HPE is based on the projected price only and it does not increase based on a harvest price.

YP (Yield Protection) is also similar to RP. However, YP policies only protect against yield loss and offer no price protection.

SCO (Supplemental Coverage Option) is a county-based coverage that covers any gap from your RP coverage up to 86%. SCO is 65% federally subsidized. Because SCO is county-based, indemnity payments are not paid until after the County Yields are released on June 15th. SCO also includes a Protection Factor that allows the producer to adjust the premium and claim amount to make the product more affordable while also keeping the same guarantee (Ex: an 80% Protection Factor would mean the producer would pay 80% of the premium to receive 80% of the claim). Producers that elect to take SCO MUST elect to take PLC. 

SCO is a great, and affordable way to increase your coverage!

ECO (Enhanced Coverage Option) is a county-based coverage that covers bands of risk above SCO. ECO is very similar to SCO, but allows the producer to select an 86%-90% band of coverage or an 86%-95% band of coverage. ECO is 44-51% federally subsidized. Because ECO is county-based, indemnity payments are not paid until after the County Yields are released on June 15th. ECO also includes a Protection Factor that allows the producer to adjust the premium and claim amount to make the product more affordable while also keeping the same guarantee (Ex: an 80% Protection Factor would mean the producer would pay 80% of the premium to receive 80% of the claim). With ECO, a producer can elect either ARC or PLC. 

ECO is the highest MPCI coverage option that is federally subsidized!

ARP (Area Risk Protection) is a county-based policy and is not dependent on the outcome of a producer's individual production. 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.

ARP-HPE (Area Risk Protection with Harvest Price Exclusion) is very similar to ARP. However, ARP-HPE policies only allow the producer to use the February price in their guarantee (as opposed to the higher of the Feb Price & Harvest Price)

AYP (Area Yield Protection) is also similar to ARP. However, AYP policies only protect against yield loss and offer no price protection. Remember, since AYP is county-based, the County's final yield (not the individual's) must be below the yield trigger in order to receive a claim. 

MP (Margin Protection) is a product elected in the fall that provides coverage against an unexpected decrease in operating margin (revenue less input costs). Margin Protection is area-based, using county-level estimates of average revenue and input costs to establish the amount of coverage and indemnity payments. Margin Protection also uses a discovery period of Aug 15th - Sep 14th. Margin Protection includes a Protection Factor that allows the producer to adjust the premium and claim amount to make the product more affordable while also keeping the same guarantee (Ex: an 80% Protection Factor would mean the producer would pay 80% of the premium to receive 80% of the claim).

Because Margin Protection is area-based (average for a county), it may not reflect your individual experience. Payment may be made when the harvest margin for the county is lower than the trigger margin due to a decrease in revenue and/or an increase in input costs. Margin Protection will cover a portion of that shortfall.

MP-HPO (Margin Protection with Harvest Price Option) is a Margin Protection policy that allows you to use the higher of the Feb Average Price or the Harvest Price in your guarantee.  

Whole Farm is a program that insures multiple crops on a farm.

PRF (Pasture, Rangeland, and Forage) is an insurance product that provides coverage for lack of participation in a 17x13 grid area. PRF does not offer individual field coverage and does not measure individual production. It simply monitors the rainfall captured in each grid and compares it to the grid area's average historical rainfall. PRF is elected in several 2-month intervals across the span of a calendar year. PRF is a policy elected in the fall and begins on January 1st.

At SFM, we have an optimizer that gives you the most likely PRF Interval Plan to succeed based on historical rainfall data!

DRP (Dairy Risk Protection) is an insurance product designed to protect against a decline in quarterly revenue from milk sales below the established coverage price. LRP is highly federally subsidized from 44-55%. DRP is able to be purchased every day (exceptions include major holidays and days with major market movement). 

LGM (Livestock Gross Margin) is an insurance product that protects against rising feed costs and decreases in milk prices. LGM is available for Swine, Dairy, and Cattle. 

LRP protects against a decline in prices below the established coverage price for Feeder Cattle (up to 900lbs), Fed Cattle (1000-1400lbs), and Swine. LRP is highly federally subsidized with subsidy rates ranging from 35%-55% based on the elected coverage level. LRP is able to be purchased every day (exceptions include major holidays and days with major market movement). For each endorsement length, an Expected Ending Value is determined. You are able to purchase LRP for several different endorsement lengths and several different coverage levels. If the price drops below the coverage price you elected, a claim is triggered.

Hemp insurance is a new insurance product. Please contact us if you would like more information.