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.
Revenue loss due to;
- Increase or Decrease in price
- Low Yield
- Combination of both
Projected Price and Harvest Price defined by CEPP
Harvest Price not to exceed Projected Price x 2.00 – (except for corn silage and rapeseed for which the harvest price = projected price)
Revenue Protection guarantee = APH approved yield x coverage level x greater of projected price or harvest price
The production to count x harvest price is less than the revenue protection guarantee x insured acres.
How does it Work?
Benefits of Revenue Protection
Revenue Protection enables you to protect your farming operation by limiting your risk from both yield and price risk.
Protects against loss of revenue resulting from low futures prices, low yields, or a combination of the two.