Your farming operation is your livelihood and crop insurance is a vital risk management tool. It is important to carry the type and level of coverage that protects your financial investment by minimizing risk and maximizing profits. No one knows what tomorrow’s weather will bring, so manage the risk by visiting one of our crop insurance experts by March 15th at your local United FCS office.
There are several crop insurance policies that protect your crop investment and provide funds to replace lost income when crop yields do not attain a specific level due to many different perils. Coverage is available at a number of different levels, allowing you to tailor the policy to fit your needs.
Area Yield Protection (AYP)
Area Revenue Protection (ARP)
AYP is an insurance plan that offers coverage based on Expected County Yield, as determined National Agricultural Statistics Services (NASS). When the final county yield, as per NASS, falls below the trigger level chosen by the producer, an indemnity is paid. The plan does not use individual histories as a basis for the guarantee. ARP combines the revenue feature with the standard AYP policy.
Actual Production History (APH)
Yield Protection (YP)
Both Actual Production History and Yield Protection plans are yield-based policies that offer protection against yield losses due to natural causes such as drought, excess moisture, hail, wind, frost, and unavoidable damage from insects and disease. Both APH and YP are available at different coverage and price levels, allowing you to tailor the policy to fit your needs. Each policy type pertains to a specific listing of crops. Indemnities are paid when production falls below the guarantee established in the spring.
Revenue Protection (RP)
RP with Harvest Price Exclusion (RP/HPE)
The RP and RP/HPE policies offer revenue protection based on yield and price expectations. The plans combine your individual production history with current commodity prices to establish a revenue guarantee. The RP plan allows for market price changes that occur by establishing the final guarantee in the fall, based on the prices in effect at that time. RP/HPE excludes the fall price factor and limits the revenue guarantee to that which was established in the spring. RP and RP/HPE protect against lost revenue caused by low prices, low yields or the combination of the two.